If you believe that you are a good financial manager, then this little tidbit is for you. It requires little to no effort on your part – heck, your bookkeeper can take care of this for you and all you have to do is reap the benefits. Here it is: Use your credit card. That's it, simple, logical, easy to do and it's something you are probably good at already. Easy enough, is not it? Well, not really. Like I said in the beginning, if you are a 'good' financial manager, this can easily be done. What I am talking about is using your card for as many business expenses as you possibly can. The benefit is that your vendor gets paid right away and you have a backup receipt from the card company to show that you paid the bill.
The real reason for all of this is that you were smart enough to get a credit card that all your vendors accept and now you get the benefit of all those mileage points, hotel points, or other merchandise and services. The business pays the vendors with the credit card, and that same day, you pay the credit card company since you are such a great financial manager. If you can not do this, then do not do this. Does that make any sense at all? The reason I am harping on this issue is that I have met very few people who will actually go to the trouble to go online and pay their card carrier company within a day or two in order to keep control of their money.
Generally, I have seen that when a person uses a credit card, they go crazy insane with them quite easily. It takes a remarkable discipline to use the card and go online later that same day to 'refund' the credit card company for your purchases. If you can actually do this, then you will have a wonderful handle on how much money is in your account and available to use for a purchase. You are going to have to pay your vendor anyway, so why not just be a little bit smaller than the average guy or gal out there and plan ahead. Talk to the vendors, make sure they will accept your card. If they do not, find another vendor. You could accumulate many thousands of mileage points each and every month.
Over the years, I have traveled to many places using only mileage points. And, since I am among the vertically challenged (I am six and a half feet tall), I can only fly first class. This costs at least 60,000 points each time. I was lucky enough to have most of my sellers accept my credit card – lucky enough to coerce …. I mean convince them, that it was to their benefit as well (you either take the card or I go somewhere else). In the long run, we all benefited from my credit card usage – the venders got their money and I got to fly for free!