Making money

T. has developed a rather interesting short term earning project which I have decided to use myself.  For the past two years she has taken advantage of credit card offers for 0% loans and balance transfers to set up interest earning cd accounts with her credit union.  The first one she worked was for $20,000 at 4.75% for six months.  She paid the credit card its monthly charge and collected the interest on the money from her cd.  A cool $950 before taxes.  Then she did a balance transfer for $6000 for 13 months at 0% that she turned into a personal loan to her sister at 3.5% for the same time period.  Another $210 in profit.  This year she started with a 27,500 loan at 1.9% for 6 months which she was able to bank at 5.1%.  That’s another $850 and on top of that she was able to do another balance transfer for 21,000 at 0% for 13 months so that when she pays back the remainder of the original amount of 27,500 (approx. $4000) she will have  continued to earn money on OPM for 19 months.  Since she has investment property tax write-offs available, she figures all of the earnings will be tax free.  And of course, she has rolled the earnings into short term cds, too.  



  1. Minimum Wage said

    The rich get richer and the poor get poorer. Is this a great country or what?

  2. rhbee said

    Actually the rich get richer because they work their butts off to get started. T. started working at the age of nine for her parents concession business. She has vivid memories of after school hours spent frying hamburgers and fries, or travelling around the country in a motorhome from one event to another. If it hadn’t have been for athletics (she was an all star softballer and got a basketball scholarship to Northern Arizona) she might not have finished high school. As it was she had to drop out of college anyway, but that didn’t stop her from working out a business. She started a roadside fruit stand and built that up to a four stand enterprise but that crashed when an employee wrecked one of her delivery trucks and the insurers took it all. So she started again, this time with me as a partner. We worked 18 to 20 hour days during the fair season, slowly built our business to the point after six years where we only have to work that business one month of the year. It nets about 50K a season. The rest of the year she manages our one fruit and vegetable business working about 45 hours a week while I manage my dance business and manage our business affairs. While all this was going on, she and I raised a son who finished college and now at 22 has started his own small electrical engineering firm. About 6 yrs ago T. started teaching herself the stock market and investment business. And we started buying real estate. At age 43, her net worth is somewhere around $500,000. Far from rich. There isn’t a day that goes by that she isn’t looking for another way to use her smarts, energy, and earned income to make herself a more secure person. Using OPM is just one of those strategies.

  3. […] of 2007, having added one more property this year, ready to total it all up again.  Of course, other things have occurred to add to the picture but for this discussion I want to stay on the real estate idea.  Three […]

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