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☕ DrinkCoffeeAndProfit
Smart money moves before breakfast
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Inspiration Quote for the Day
“Debt is the slavery of the free.”
Publilius Syrus
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The Morning Ritual
Doreen Moved Her Card Balance to 0%. The Trap Was the Next Purchase.
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My neighbor Doreen was standing at her mailbox on Tuesday, tearing open an envelope with a big orange “0%” on the front. She owes about $6,500 on a card charging close to 20%. The offer promised 18 months of no interest if she moved the balance over.
Here is what caught my eye. The math on a balance transfer is usually excellent. The trouble starts with the small habits people keep after the transfer, and the fine print rarely spells them out.
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Doreen’s card company earns money on the slow lane of debt. Our partner below is focused on a company growing in the fast lane.
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· · · Partner Message · · ·
Editor’s Note: While everyone was distracted by the SpaceX IPO, Elon Musk quietly started backing a NEW AI startup that has been called “the fastest-growing business in the history of capitalism.” And it could be the next hot IPO on Wall Street. Normally these types of explosive opportunities are reserved for rich people on Wall Street and Silicon Valley. But former tech executive and angel investor Jeff Brown found a way for you to claim a stake for less than $50. Click here to see the details and get the name of this startup, 100% free… or read more below.
Dear Reader,
See this building the size of several football fields behind me?
You see, while everyone was distracted by the SpaceX IPO…
Elon Musk quietly started backing a NEW AI startup that has been called…
“The fastest-growing business in the history of capitalism.”
And I’ll also show you how to claim a stake for as little as $50.
Most people don’t know about it because this building is located in the middle of nowhere… an industrial zone in South Memphis.
But even though this has nothing to do with robots, self-driving cars, or rockets…
This startup is growing faster than Tesla and SpaceX.
It just filed the paperwork to go public in what’s set to be the next hot IPO on Wall Street.
But you do NOT have to wait until the IPO.
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We have so much to look forward to,
Jeff Brown
Founder & CEO, Brownstone Research
This is an advertisement.
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In One Sip
► The average credit card rate is 19.67%, down from a record 20.79% in August 2024. Source: Bankrate, October 14.
► The average credit card balance is about $6,519. Source: TransUnion, via Bankrate.
► Most 0% intro cards charge a balance transfer fee of 3% to 5%. Longer intro periods usually carry the 5% fee. Source: Bankrate.
► The average transfer fee on cards with a 0% intro offer is about 3.3%. Source: WalletHub.
► The buried part: carry a transferred balance, and new purchases on that card often charge interest from day one.
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Why It Matters for Your Money
Run Doreen’s numbers. Paying $362 a month at 19.67%, her $6,500 takes about 22 months to clear and costs roughly $1,270 in interest.
Move it to an 18-month 0% card with a 3% fee instead. The fee is about $195, added to the balance on day one.
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· · · Partner Message · · ·
This is an advertisement.
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Pay about $372 a month and the whole thing is gone before the intro period ends. Total cost: the $195 fee.
That is a savings of about $1,075. Even with a 5% fee, about $325, she still comes out roughly $945 ahead.
Sound familiar? The savings are real only if the balance hits zero before the clock runs out.
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The Wealth Angle
Here is where it gets interesting. Most cards give you a grace period on new purchases. Pay the statement in full and you owe no interest.
Carry a balance, even a 0% transferred one, and that grace period usually disappears. Groceries and gas bought on the new card can start charging the regular rate right away.
Think about that for a second. The card that saves Doreen $1,000 on the old balance can quietly charge her interest on every new swipe.
I think the cleanest approach is simple. Use the transfer card for the transfer only, and buy everything else on a different card you pay in full.
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☕ Key Insight:
A balance transfer can save about $1,000 on a $6,500 balance at today’s rates. Clear it before the intro ends, and keep new purchases off the transfer card.
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Doreen is working on fewer payments going out. Our partner below is pitching payments coming in.
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· · · Partner Message · · ·
In his most recent interview with The Economist, Elon Musk said that because of AI “money will be irrelevant by the year 2036.”
I can see that happening too.
AI is already displacing millions of jobs.
One report says 40% of all jobs could be automated within the next decade.
When that happens, the government will have no choice but to pay people some sort of Universal Basic Income.
But this could take 20 years to materialize
So while Musk tweets and Congress holds hearings, what are you supposed to do? Wait?
I don’t think so.
But you don’t have to. Universal Income already exists.
It’s not funded by robots or AI. It’s funded by America’s oil and gas infrastructure, and it pays 10% a year, 42 times a year, to everyone who holds units.
And this year it’s expected to pay a record $53 billion in distributions.
Think of it as your own personal sovereign wealth fund, backed by the biggest energy producer on planet earth.
P.S. Since 2020, the average partnership in P.I.P. has produced 20% avg. annual gains. That’s in addition to the 10% yield. One investor already collects $4,800 a month. Another hasn’t worked in years. Show me something better. I’ll wait. [Enroll in P.I.P. →]This is an advertisement.
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Coffee Break Move
Before your second cup, pull up your card statement and find two numbers: your balance and your interest rate.
If you are comfortable: divide the balance plus a 3% to 5% fee by the number of intro months. That is your monthly payment. Set it up as an automatic payment.
If money is tight: call your current card issuer first. Ask for a lower rate. A short phone call sometimes trims a few points.
Doreen made her call on Wednesday. She is moving the balance, and the new card is going in a kitchen drawer.
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