Need ideas for an idea

[onesixseros]

Hey folks, new here. Just rattling the cages for some help.

Would love some great tips on how to make some funds out of zero dollars. Best way I can think of is using a few credit cards to fund a savings account with high interest, then when the payments are due withdraw the funds prior to being slugged with interest fees.

Dumb idea or do you have any others? Be glad to get some help on this one.

 

[DaveM]

 

[Hooray]

Here's an idea: have a job, save money, buy stuff that appreciates.

 

[Ace in the Hole]

Would you consider trading your time and effort for money?
You get funds and it doesn't really cost you anything.
You get experience too which is worth more than money.

 

[Terry_w]

Here's an idea: have a job, save money, buy stuff that appreciates.

How boring!

 

[Kinnon Bell]

I like your thinking and inventive blog.

If you withdraw cash of a credit card you have no interest free days and pay interest from day 1 of around 21%pa. Then you've got the cash advance fee which is probably close to the cash rate anyway.

There are ways to use credit cards to your favour of you are disciplined by using balance transfers with $0 balance cards. Siting the cash in an interest bearing account may get you to a $1m but you'll be long dead before it does.

I think you need to think outside the square a bit more. Take a bit of risk if you can afford to.

 

[Terry_w]

Once I made a large cash withdrawal from a credit card. I paid cash for a car. I then did a balance transfer which was 0% for the life of the transfer. After a whille it turned into a hassle paying everymonth and once I missed the deadline and then got hit with interest. In the end i just paid it all off early.

 

[Paul@PFI]

I recall (apprently a true) story in media several years back about a old miner out at lightning ridge. He had a terminal illness. He gave all he owned away and blew his cash at the pub in his final weeks. He prepaid his funeral and the after party at the pub a few days before he died. On a bank credit card.

The savings from a card scheme as described in the original post has about the same merits as living off shopping rewards. You need to spend a massive sum to warrant the benefit being material. I say spend as cash advances have fees and zero free days. If you spend 20-50 times your annual income I can only see debt.

Property can be very good as a low deposit can generate a massive return on investment. Thats called leverage. A $100k deposit on a $500k property can appreciate to $600k and represent a 100% ROI.

 

[nhg]

Can't remember who posted it but someone talked about their money lesson to their little sister on Somersoft a year or so ago (Could have been Deltaberry?).

She went to different cafes offering to provide their cakes.
Went to the Sarah Lee factory and bought the cakes on a 30 day account.
Cafe would pay her and she would leave the money in her interest account.
She would pay off the cakes after the 30 days was up.
No money down (NMD), used other peoples money (OPM), so minimum risk, high profit. If she could have the cakes delivered direct to customers and automise payment, that would make it, other peoples time (OPT). Best combination for a scalable business.

I taught that to my little cousins. One started a colouring in competition at school. $2 entry fee. Local business could advertise on the borders and at the bottom. They provided the prizes for free. How many kids go to each school?

I started my business like this too. $0 upfront, word of mouth advertising. Used cash advance from first job to purchase tools. Purchased new tools with each job. Now have pretty much all the tools (didn't use my original tools from properties as it was a new venture with a friend). I sub-contract the labour and supply the tools as needed.

 

[Ace in the Hole]

Sales = Win !
An extraordinary salesperson will succeed in any situation under any circumstances.
Sales/negotiating/deal making.
This is something where you can start with nothing and have unlimited gains.

 

[S.T]

I remember reading about people trading things, starting off with something tiny and building right up then selling it off and enjoying the profit. Maybe trade your way to a $1mill property?

 

[mrdobalina]

Property can be very good as a low deposit can generate a massive return on investment. Thats called leverage. A $100k deposit on a $500k property can appreciate to $600k and represent a 100% ROI.

Actually, that's a 20% return on investment.... and a 100% return on equity.

No different to any other asset class.