“Millionaire in the Making” Also Plays the 0% APR Game

Here is yet another Millionaire in the Making. The interesting thing is that he also takes advantage of 0% APR balance transfers on credit cards to earn interest. In this case, he took out $60,000 and looks to earn $1400. If you assume the rate lasts for 12 months, that’s about a 2.33% APR, which is reasonable. I’m glad he’s not speculating in stocks as they are indeed “volatile”.

Other than that, his story is pretty ordinary. As usual, he lives in an area where home prices have skyrocketed and has 72% of his $444,000 net worth in the equity of his house. The good thing is that he is rented out the other 2 rooms in his 3-bedroom, which probably covers much of his mortgage and improves his cashflow. I would’ve probably stretched out his 15-year mortgage to 30-years and use the cashflow to help buy that additional piece of real estate he is looking at. But to each his own, he still is doing better than me for sure.


  1. Susannah says:

    I agree with his assessment of not putting more into a 401(k) than the company will match. I’m young, and I want to retire VERY early, so I will need that money long before a 401(k) will allow me to touch it without incurring a hefty penalty. However, like he said, the match is free money, so make sure to get it.

    Another thing few people consider is that once you put your money into a 401(k) account or an IRA, you are practically locked out of making certain types of investments. There are many types of options and commodity trades that are fairly safe, but which still require some margin to participate in. You can’t do them in an IRA or 401(k), because margin trading is not allowed (however, you can do options trading, it is just very limited in scope). You can do FOREX. It is exceedingly difficult to do real estate, even though it is allowed.

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