Ahem: text-heavy post ahead!
The toolbox
Recently, I was talking to a friend about getting the Airbnbs up and going. We were weighing the pros and cons of charging the upfront costs (~$7,000) to a credit card and carrying the balance until the business became profitable – usually 1-2 months in this case.
He said, yes, of course it’s worth it. It’s “smart debt.”
Let me think about that…
It got me thinking about this hobby and all the points and miles we love to earn.
The points and miles cards we all hold earn us, obviously, point and miles. But, beyond that, they are important financial tools. Your credit is one of your most important assets, and I feel no one talks about the credit cards as an avenue for anything beyond earning points and miles – and that avenue is great – but by extending us credit, the banks open up other opportunities for us.
Now, in starting up my side hustle, there was no way I wasn’t going to run all the expenses through a points or miles card, but I’d never considered the idea of not paying it back at the end of the billing cycle. I’m of the mindset of never paying a dime of interest – but is it OK, in certain situations, to carry a balance?
