your statement on the 1st, but doesn't require payment until the 15th. This means that the charges of $515, some of which date back to the third day of the previous month, aren't due until the 15th of the next month. Since interest is only charged on the unpaid portion of your monthly balance, this represents a month-and-a-half interest-free loan! If you have a $1,000 credit limit (or two $500 credit cards), you can continue charging on the card into the second month before ever paying for the first month's charges.

What's the big deal? Well imagine you had $1,000 sitting in a money market savings account yielding 5 percent. Your money would be earning interest for you. In essence, you would be earning money each time you used your credit card.

Balance Transfers - Another Way
To Turn The Credit Card Game On It's Head

If you have a higher credit limit, credit cards can be used for the short-term financing of larger purchases. Say you had a $10,000 credit limit and you wanted to buy a new sofa for $2,500. The financing options at furniture stores are normally rip-offs, so why not finance the purchase yourself? You could have an interest-free loan for up to 45 days (maybe 60, depending on your credit card's "grace period"), during which time you could save the money to pay off the entire amount, or at least a portion. And the best thing about your mailbox being constantly flooded with credit card offers is that oftentimes you can transfer existing credit card balances to new cards with introductory interest rates of 0 percent!

For example, imagine you purchased a used car for $9,000 - completely on your credit card. Conventional wisdom would say this was a terribly foolish thing to do, but you know better. You have already been offered and approved for an additional card with a $10,000 credit limit, and an introductory interest rate of 0 percent for one full year. After making one payment on your existing card's balance, you transfer $8,500 to your new card, where you can pay it off in full with 12 payments of $708 - all principal, no interest. After that, you'll own the car, debt-free.

If the $708 was too much for you, you could pay less each month, of course. An even riskier, but potentially rewarding strategy would be to pay as little as possible on the new card, and then hope for another 0 percent introductory offer coming in the next year. There's nothing illegal or even unscrupulous about playing the credit card game this way - it only makes financial sense. Credit card companies exist to make money from your mistakes, but if you're a vigilant consumer, you can invert the game and make money for yourself! What's even better, if a bit strange, is that the credit card companies will find you all the more desirable. So the next time you read an article in which the financial guru tells you to tear up your credit cards, do yourself a favor and tear up the magazine instead.

"Blonde Dad"

A blonde guy gets home early from work and hears strange noises coming from the bedroom. He rushes upstairs to find his wife naked on the bed, sweating and panting.

"What's up?" he asks.

"I'm having a heart attack!" cries the woman.

He rushes downstairs to grab the phone, but just as he is dialing, his 4-year old son comes up and says, "Daddy! Daddy! Uncle Ted's hiding in your wardrobe and he's got no clothes on!"

The guy slams the phone down and storms upstairs into the bedroom, past his screaming wife, and rips open the wardrobe door.

Sure enough, there is his brother, totally naked, cowering on the wardrobe floor.

"You scumbag!" says the husband. "My wife is having a heart attack and you're running around with no clothes on scaring the kids!"

Want to be the person who always has something interesting to say? Train yourself to look at things from other perpectives. What would the Buddha say about this? How would a Martian view it? What's the opposite perspective? The point isn't to ask others silly questions, but to ask yourself, to see what interesting ideas result. Do this until it is a habit, and you'll always have something interesting to add to a conversation.

Want systematic creativity in poetry? Put a word on each of 40 cards; 10 nouns, 10 verbs, 10 adjectives, and 10 random words. Shuffle, deal out four cards, and write a 4-line poem using one of the words in each line. My wife has had poems published that were created with this technique. Your mind will find a poetic use for any word if you use this method often.

Read More