Dear friends, this is my 300th post on blogger. Thanks for your readership and keeping it interesting (blow kiss, blow kiss). Now, you wise ones, blow some holes into this one (because there are holes). Seriously, I want to see who I am dealing with out there. Find the flaw in the logic.
My paypal moneymarket account earns 4.03 percent. Yours does to if you have one. I get a fee of 30 cents plus 1.2 percent per transcation. The difference of the percentages is 2.83 (minus 30 cents) in my favor. So why wouldn't I run up my credit card on a monthy basis and pay it off with my paypal account?
15 comments:
Okay I'm too tired to think about that one, but wanted to say congrats on the 300th post!
I've stopped in from time to time and enjoy reading. Here's a funny fact for ya - I read Mike's blog for probably 18 months or so before even commenting or anything.
I would see "Fajita" as a commenter and always had a mental image that you were female.
I didn't know for a long time that you could click on a name and go to their blog which is when I realized my error!
That tickled me, and I hope it does you too. :) On the other hand, you may just want to delete this comment.
Amy, your comment about your wrong assumption about my gender might not be your caused by anything generated from you, but rather your keen insight into my childhood trauma. I spent the first ten years of my life being told I was girl (not that girls are bad, but if you are a boy you don't want to be one) by my older brother. I guess it comes out in my writing.
Faj--
You still make me laugh, friend! I was talking about you tonight at our LifeGroup. (We are planting a church in Odessa, TX!) The question was, "How does God show us our blind spots?" I remembered a prayer I heard you pray many times a decade ago--"Lord, show me all the ways I don't love you." It isn't an easy prayer to pray. It requires lots of humility and purity of heart. Something I've always admired in you.
Our group felt really challenged by that, a bit fearful of the outcome, but very curious to see what God might do in answer to that kind of humble request. I think our group will have an interesting conversation next week!
Thanks for the encouragement to seek the heart of God--even so many years later!
Here are some things to consider:
4.03 percent is earned over what period of time? As in, if you have $100 there today, when will your account equal $104.30?
Also consider that most money markets penalize any withdrawals/payments out of the account. (Does that the 30 cents plus 1.2 percent apply to payment from the money market?).
Paypal is probably bringing in over 6% on your money market, so that is where their earnings are coming from.
Credit card rates are typically much, much higher than 4.03%, so the assumption is that you never carry a balance on your credit card.
So, finally, I get to the end: If you have enough money to pay off your credit card fully every month, then of course it is advisable to allow your money to "work for you" and make you a bit of extra money while it is sitting around for the month.
A final thing to consider is this: If you can pay off your credit card every month, why not get a card that will rack up hotel points or frequent flyer miles or something that can be useful. (I should take my own advice).
Jason, thanks for the counsel, but you missed the error of the scheme. Anyone else?
Whoa, that's a prayer.
Amy, your your mother's child.
And, Your brother did WHAT?
Oh, there is a trick to this...sort of like a riddle. I didn't analyze it that closely yet...I'll have to take a second look.
This reminds me of that hotel logic puzzle:
Three people check into a hotel. They pay $30 to the manager and go to their room. The manager finds out that the room rate is $25 and gives $5 to the bellboy to return. On the way to the room the bellboy reasons that $5 would be difficult to share among three people so he pockets $2 and gives $1 to each person. Now each person paid $10 and got back $1. So they paid $9 each, totalling $27. The bellboy has $2, totalling $29. Where is the remaining dollar?
(I can explain where the dollar went if you can't figure it out).
Alas, there are now two greatr mysteries lingering int he homefront cyberland.
Anyone going bust these up?
I'm gonna have to come back one more time for all-out analysis. It has to have something to do with the length of time and the earning/fee rates. If the 4.03 is yearly rate and you are paying 1.2%+ every month then that 1.2%+, even compounded for the year after 12 payments should not exceed 4.03%. Therefore, I still cannot find any holes in the logic.
Jason, your persistence has rewarded you. Send your mailing address to my e-mail and I will send you a free copy of my book. Merry Christmas.
My e-mail is cgonzalez@betterlife.org
Jason, your persistence has rewarded you. Send your mailing address to my e-mail and I will send you a free copy of my book. Merry Christmas.
Oh, there is a trick to this...sort of like a riddle. I didn't analyze it that closely yet...I'll have to take a second look.
Faj--
You still make me laugh, friend! I was talking about you tonight at our LifeGroup. (We are planting a church in Odessa, TX!) The question was, "How does God show us our blind spots?" I remembered a prayer I heard you pray many times a decade ago--"Lord, show me all the ways I don't love you." It isn't an easy prayer to pray. It requires lots of humility and purity of heart. Something I've always admired in you.
Our group felt really challenged by that, a bit fearful of the outcome, but very curious to see what God might do in answer to that kind of humble request. I think our group will have an interesting conversation next week!
Thanks for the encouragement to seek the heart of God--even so many years later!
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