Recently, I started to make bigger purchases around the middle of the month because I found that I can save more money this way. Most of you are probably a little puzzled by what I just said so let me explain this a little further.
Credit cards have a statement date where they will calculate how much you owe with the due date usually a couple of weeks later. A few weeks ago, I finally realized that if I buy something after the statement date, I won’t really have to pay for it until 50+ days (almost two months) later. Let me give you an example to illustrate.
As you can see on the screen capture, my last statement date is September 10. If I bought something on September 11, the charge would be on my October 10th statement and I wouldn’t have to pay for it until the end of October.
So Why Is This Useful
- The obvious is the extra interest that I gain from doing this. The dollar amount is not that much, but I’m quite happy getting what would seem like free money.
- Furthermore, not allowing myself to buy something until the middle of the month is actually a great way to stop splurging. One of my biggest money leak is impulse buying. When I want something, I seem to flip on my “passion switch” because I would be thinking about it constantly. I would convince myself how much I “need” it and then I would finally convince myself to buy it, only to let it sit on my desk collecting dust after a few weeks (sometimes a few days). Now that I’m not allowing myself to buy anything expensive until the middle of the month, I give myself time to think about my purchase and I end up not buying most of the items that I want.
Oh I wish I found this trick long ago. I hope that you too will benefit by spending less and keeping more.