How can one start their credit card journey successfully?

Open a salary account with a bank like SBI, HDFC, or Axis, and get a basic credit card from them to build trust and credit history.

What is the best strategy for using credit cards wisely?

Use credit cards like a debit card, paying full balance monthly to avoid interest. Choose cards aligned with your spending habits for optimal rewards.

What if I already have credit card debt?

Consider taking a personal loan at a lower interest rate to pay off the credit card debt, and stop using the card to prevent further debt.

How to earn and use credit card points effectively?

Understand promotion and conversion rates, transfer points wisely, and utilize cards that offer high rewards on specific transactions, such as travel or dining.

Which credit cards are recommended for travelers?

Cards like American Express Platinum Travel are suited for travelers, offering substantial rewards and benefits on travel-related expenses.

Is it possible to get high returns using credit cards?

Yes, with smart usage and understanding of point systems, credit cards can offer significant returns in the form of travel and hotel rewards.

Are credit cards suitable for everyone?

Only if you can responsibly manage finances and treat the credit limit as a debit card balance. It’s not recommended for those who can’t control spending.

What's the reality of earning points with a high-spending lifestyle?

Even without high spending, understanding the right card usage can earn substantial points. It’s about using cards where they maximize point earning/redeeming.

What’s an example of a major credit card hack?

Use stop-over or excursion flights on airlines like United to explore multiple destinations without extra flight cost.

How do credit card points help with lavish vacations?

Accumulated points can be used for free high-end hotel stays and flights, enabling luxury experiences without high personal expense.

Ultimate Credit Card MasterClass for FREE | Ep 40

01:26:21

https://www.youtube.com/watch?v=MkBulXQ444o

Summary

TLDRThe video content is a comprehensive guide on leveraging credit cards to enhance financial benefits while avoiding typical pitfalls. The discussion involves optimizing credit card selection according to personal income levels and spending habits, ensuring effective use of credit card points for maximum accrual and redemption, especially in travel and accommodation. It addresses common concerns around credit cards being a debt trap and offers strategies to manage potential overspending. Personal stories highlight how strategic card use has led to gaining luxury travel and hotel experiences ostensibly for free, emphasizing the role of credit cards in cost-effective financial management.

Takeaways

💳 Use credit cards as a tool for financial benefits, not as free money.
🏦 Start with a basic credit card from your salary account bank to build credit history.
⚖️ Treat credit card like a debit card; pay full balance monthly to avoid interest.
🌍 Optimize card use for travel to gain free flights and hotels with points.
💡 Understand point conversion rates and transfer bonuses for higher returns.
⚠️ Avoid credit cards if prone to overspending; they should aid financial stability.
🛍️ Choose cards based on spending patterns to maximize cashback and rewards.
📚 Keep learning about the best credit card practices for evolving benefits.
🛫 Explore stop-over flight options to maximize travel experiences without extra cost.
🔍 Research thoroughly to find current best deals and offers in credit cards.

Timeline

00:00:00 - 00:05:00
The video begins with a conversation about the number of credit cards one might have, starting a credit card journey, and the importance of understanding how to effectively use credit cards. They discuss the luxury of a hotel stay which can be achieved for free through smart credit card use, emphasizing the importance of investing saved money elsewhere rather than focusing solely on earning points.
00:05:00 - 00:10:00
The discussion continues to cover the downfall financial story of one participant, detailing how over-leveraging, real estate crashes, and personal health issues led to bankruptcy. This part underscores learning from past mistakes and provides perspective on managing finances wisely despite coming from a place of affluence.
00:10:00 - 00:15:00
As the discussion continues, the focus shifts to the financial journey of another participant, detailing initial earnings, career changes, salary progression, and how investing severance pay during a market downturn turned out to be beneficial. It emphasizes the importance of investing wisely and using career growth strategies to build wealth.
00:15:00 - 00:20:00
Next, the participant provides advice on choosing one’s first credit card, emphasizing on selecting a basic bank-associated card to start building credit trust and history. They stress on not being influenced by flashy social media suggestions and explain the importance of establishing credit history without focusing on immediate rewards or cashbacks.
00:20:00 - 00:25:00
The conversation delves into the common fear of credit card debt, explaining that credit cards are not inherently dangerous if used wisely. The idea that credit cards should be treated like debit cards to avoid debt traps is discussed, along with strategies for getting out of credit card debt using personal loans at lower interest rates.
00:25:00 - 00:30:00
The discussion continues to discuss ways to leverage credit cards responsibly, using examples of potential savings through credit card benefits like cashback and point systems. It further explains that missing a credit card payment slightly might not drastically impact one’s credit score due to consumer protection measures by RBI, but regular defaults can.
00:30:00 - 00:35:00
They discuss myths about credit cards and clarify that significant spending isn't always necessary for high-value rewards if points and transfer strategies are effectively utilized. The practicalities of monitoring spending habits, credit cycles, and redemption of points are discussed to maximize benefits.
00:35:00 - 00:40:00
Continuing, they explore the nuances of point transfers and maximizing redemption values using various partner programs and time-sensitive offers. The importance of researching and understanding these nuances is highlighted, demystifying the process of optimizing credit card benefits to achieve high returns on expenses.
00:40:00 - 00:45:00
The discussion shifts to more sophisticated credit card strategies for frequent travelers or those wishing to maximize lifestyle benefits, exploring options between different cards and how strategic spending on specific cards can yield significant travel or lifestyle perks.
00:45:00 - 00:50:00
High cashback and point return opportunities are discussed, particularly the strategies to maximize benefits with cards like American Express and Axis Bank, highlighting promotional offers that can rapidly accumulate points leading to travel and lifestyle upgrades.
00:50:00 - 00:55:00
Advanced strategies on acquiring premium cards are explained, detailing prerequisites and expenses related to holding such cards. The allure of prestigious cards is discussed in context with their tangible benefits, alongside the importance of aligning credit card type with one’s spending habits.
00:55:00 - 01:00:00
The participant shares personal experiences and the luxury benefits achieved through strategic use of credit card points, emphasizing the power of leveraging credit card points to afford experiences that might otherwise be financially out of reach.
01:00:00 - 01:05:00
Strategies for booking flights and hotels using points are outlined, including 'stopover' and 'excursion' flight strategies which effectively extend travel benefits. They provide practical examples of getting multiple benefits through smart booking tactics.
01:05:00 - 01:10:00
Further explained are aspirational redemption examples with insights into maximizing travel and stay experiences at luxury hotels through strategic credit card point accumulation and usage, highlighting how even moderate spenders can achieve significant perks.
01:10:00 - 01:15:00
The conversation emphasizes that through informed credit card use, non-wealthy consumers can access luxury experiences normally perceived as accessible only to affluent individuals. It’s revealed how credit card strategies transform financial accessibility of such experiences.
01:15:00 - 01:20:00
Concluding, the session underscores the importance of updated knowledge, continuous learning, and staying informed about credit card offers and schemes. It’s a call to strategic financial literacy for sustainable lifestyle enhancement and wise credit use.
01:20:00 - 01:26:21
The discussion wraps up by inviting viewers to learn more through dedicated courses and masterclasses, showcasing the speaker's expertise and teaching initiatives surrounding strategic credit card usage to optimize personal finance and luxury experience access.

Mind Map

Video Q&A

How can one start their credit card journey successfully?
Open a salary account with a bank like SBI, HDFC, or Axis, and get a basic credit card from them to build trust and credit history.
What is the best strategy for using credit cards wisely?
Use credit cards like a debit card, paying full balance monthly to avoid interest. Choose cards aligned with your spending habits for optimal rewards.
What if I already have credit card debt?
Consider taking a personal loan at a lower interest rate to pay off the credit card debt, and stop using the card to prevent further debt.
How to earn and use credit card points effectively?
Understand promotion and conversion rates, transfer points wisely, and utilize cards that offer high rewards on specific transactions, such as travel or dining.
Which credit cards are recommended for travelers?
Cards like American Express Platinum Travel are suited for travelers, offering substantial rewards and benefits on travel-related expenses.
Is it possible to get high returns using credit cards?
Yes, with smart usage and understanding of point systems, credit cards can offer significant returns in the form of travel and hotel rewards.
Are credit cards suitable for everyone?
Only if you can responsibly manage finances and treat the credit limit as a debit card balance. It’s not recommended for those who can’t control spending.
What's the reality of earning points with a high-spending lifestyle?
Even without high spending, understanding the right card usage can earn substantial points. It’s about using cards where they maximize point earning/redeeming.
What’s an example of a major credit card hack?
Use stop-over or excursion flights on airlines like United to explore multiple destinations without extra flight cost.
How do credit card points help with lavish vacations?
Accumulated points can be used for free high-end hotel stays and flights, enabling luxury experiences without high personal expense.

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Subtitles

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00:00:00
[Music]
00:00:00
I mean in my wallet maybe I have like 10
00:00:02
right now you have you're carrying 10
00:00:03
credit cards with you I think so yeah I
00:00:05
haven't counted but maybe there's more
00:00:06
at home that I don't use anymore I'm a
00:00:09
25-year-old guy or a girl and I need to
00:00:12
start off with my credit card Journey
00:00:14
what is that first credit card that I
00:00:16
should pay if you're going to buy
00:00:17
something and think that I'm going to
00:00:19
pay it over the next 3 months don't get
00:00:20
a credit card and that hotel is
00:00:22
absolutely massive like Pinnacle of
00:00:24
luxury I would definitely rank it in the
00:00:26
top three like how much is a night over
00:00:28
there 40,000 rupes a night okay but with
00:00:30
access Atlas I stay there for free so
00:00:32
you're telling me that if I know how to
00:00:34
spend this 4 lakhs the right way using
00:00:36
an AMX credit card I can get 2 to three
00:00:39
nights of free stay in a festar hotel
00:00:41
don't do that the point is to save your
00:00:43
money take that 10,000 rupees you saved
00:00:45
and put that in an let that grow not
00:00:47
your points just assuming we get let's
00:00:50
say 10% or 8% and you take that amount
00:00:54
and you sip it now it's not 7 and2 lakhs
00:00:57
now it's 38 lakhs that you sip that some
00:01:00
big money what is the most ultimate God
00:01:02
of God credit cards in the world you
00:01:05
have to have literally minimum 1 CR
00:01:07
spending to get invited to this card
00:01:09
more than that actually number two
00:01:10
there's like a 10,000 rupee joining fee
00:01:13
no that's not bad $10,000 rupe $10,000
00:01:15
I'm sorry $110,000 $10,000 joining fee
00:01:18
so 8 lakh joining fees 8 lakh is just
00:01:20
the joining fee to get the card but what
00:01:22
is the reality do you actually need to
00:01:23
spend lacks of rupees or Crowes of
00:01:25
Rupees to you know get these kind of
00:01:26
points no absolutely not uh you just
00:01:29
need to know how to
00:01:38
to let me ask you why are you the credit
00:01:41
card guy why should I listen to you so
00:01:43
sharan honestly you don't need a degree
00:01:45
to be a credit card guy credit cards as
00:01:49
a fundamental use case is something that
00:01:51
only comes with experience you need to
00:01:54
know how to earn the points burn the
00:01:56
points transfer the points all of those
00:01:58
things and there is no book that can
00:01:59
teach you that it only comes with
00:02:01
practical usage and I've been using
00:02:03
credit cards now for eight or nine years
00:02:05
I've been earning points on different
00:02:07
air mile programs different Hotel
00:02:09
programs for all of that that time that
00:02:11
I've been using them I've gotten like I
00:02:13
don't know two two and a half million
00:02:15
points already I've stayed every year I
00:02:17
stay at like uh some vacation I'm doing
00:02:19
domestically internationally I think
00:02:20
this year I just went to the US I'm
00:02:22
going to Canada next month I went to
00:02:25
Singapore last year and Sydney the year
00:02:27
before like right before covid things
00:02:29
like that so in all of these vacations
00:02:31
like are you giving paying the full
00:02:32
price or are you like subsidizing your
00:02:34
prices I never pay for rooms rooms are
00:02:37
basically free all the time wow so be it
00:02:40
hotels be it flights things like that
00:02:42
now though any vacation I go for is
00:02:43
always paid through points or if half of
00:02:46
it is paid like flights is paid through
00:02:48
cash I'm making sure I'm using the right
00:02:50
credit card to earn on it and then I'm
00:02:52
spending on hotels got it so now you've
00:02:54
optimized your life with credit card so
00:02:56
that you don't have to pay for flights
00:02:58
and hotels most of the time time right
00:03:00
yeah so now let's understand how a
00:03:03
common man can do this because the first
00:03:05
question that people might have is okay
00:03:07
Ali you're probably spending crores of
00:03:09
rupees every month so no wonder you're
00:03:11
getting all these points and you know
00:03:12
able to you know get all these free
00:03:14
flights and hotels but what is the
00:03:16
reality does do you actually need to
00:03:17
spend you know lacks of rupees or Crowes
00:03:19
of Rupees to you know get these kind of
00:03:21
points no absolutely not uh you just
00:03:23
need to know how to use the right card
00:03:26
to get you a better return rate then you
00:03:28
need to know how to accelerate create
00:03:30
that return rate with different Transfer
00:03:32
Partners transfer bonuses then there are
00:03:35
certain promotional offers sorry that
00:03:37
come up when you can transfer and get
00:03:39
extra points so you have to know how to
00:03:41
do all of that where should I transfer
00:03:43
sometimes maybe transferring to Air
00:03:44
India will give you a bad conversion
00:03:46
rate maybe transferring to United
00:03:48
Airlines for that same flight might give
00:03:49
you a better conversion rate so things
00:03:51
like that you need to know or you need
00:03:53
to research uh and that's ideally what I
00:03:56
do I'm like AA when it comes to actually
00:03:58
learning all of this stuff so so there's
00:04:00
an actual science behind this it's not
00:04:02
just about getting that credit card and
00:04:04
spending money and getting those cash
00:04:06
back points there's actually a science
00:04:07
behind how to redeem it in the correct
00:04:09
manner 100% right so okay so before we
00:04:12
get to that let's understand a little
00:04:13
bit about yourself can you tell me about
00:04:15
your journey right right from you know
00:04:18
your early days like what makes you who
00:04:20
you are I was uh I'm not ashamed to say
00:04:23
it I was uh born in to a lot of money I
00:04:25
had a fancy house in bandra uh Band
00:04:29
Stand had a SEF facing view all the
00:04:31
works great stuff now then obviously my
00:04:34
dad uh young budding entrepreneur
00:04:36
thought that okay let's get a better
00:04:37
life let's go to America things like
00:04:39
that India is not bad there's nothing
00:04:40
wrong it's just the mindset that people
00:04:42
tend to have so we packed up sold
00:04:44
everything went to America uh lived
00:04:46
there for seven eight uh 10 years
00:04:48
actually almost things were going really
00:04:50
well we had a great business I never had
00:04:51
to ask for anything like the new Game
00:04:54
Boy the new Xbox the new PS I didn't
00:04:56
even know it came out and my dad had it
00:04:58
in front of me so I I didn't get any of
00:05:00
those things but go on tell me I was
00:05:03
about 13 14 and we bought our first
00:05:06
house 7 bhk 7,000 ft Mansion what with
00:05:09
four floors yeah it was all the works
00:05:11
fancy stuff in the US in the US in the
00:05:13
US s BK house yeah yeah in the US yeah
00:05:16
four stories yeah I don't know why but
00:05:19
how much how much did a house like that
00:05:21
cost about a million dollars at that
00:05:22
time which if you compound at that point
00:05:24
of time it's easily so as today's value
00:05:26
it could be like $2 to3 million yeah so
00:05:29
you were rich I was well off in
00:05:32
the US yeah now we had that house we had
00:05:35
the business and there were probably
00:05:37
three or four things that went wrong in
00:05:38
our life all in one go okay now first is
00:05:41
overleveraging it probably took too many
00:05:43
loans for businesses for housing this
00:05:45
and that whatever second is uh was
00:05:49
probably real estate crash and now when
00:05:52
the real estate crash is a house value
00:05:53
became almost half right and we're still
00:05:55
paying the mortgage on the million you
00:05:57
took a loan on the $1 million house but
00:05:59
but now the value of the house is half
00:06:01
but you still have to pay emis on the $1
00:06:03
million and that's a possibility yeah
00:06:05
you have to do that on top of that uh
00:06:08
the recession hit the key areas that we
00:06:11
were running businesses in more than
00:06:13
anyone else it hit us the most Layman
00:06:14
Brothers crisis was a housing crash
00:06:17
right and we had just bought a house
00:06:19
right second is what is the first thing
00:06:20
that happens during a bad recession is
00:06:23
oil prices Skyrocket we had a gas
00:06:26
station and spending in a recession
00:06:28
drops convenience store spend drops no
00:06:30
one's buying that beer wine all that
00:06:32
fancy stuff right so it took a hit there
00:06:34
number three my dad fell sick he had a
00:06:37
health issue right he was diagnosed with
00:06:40
something called colitis which is a step
00:06:41
before colon cancer of sorts and uh
00:06:45
surgeries medical expenses diagnosis
00:06:48
there is no insurance there was no
00:06:50
health insurance okay his medicine
00:06:53
itself my dad's medicine was $200 a day
00:06:56
which is like at that point in time
00:06:57
12,000 rupees a day so those expenses
00:07:00
mortgages all of that and you see as a
00:07:03
14-year-old kid your million dollars of
00:07:06
well millions of dollars that your
00:07:07
family has built going into
00:07:10
negatives within six months of a crash
00:07:12
just because of because the businesses
00:07:14
stopped making money the expenses didn't
00:07:17
stop right the house value okay what's
00:07:20
the solution let's sell an asset let's
00:07:21
sell the house house value is half can't
00:07:24
sell the house also if we sell the house
00:07:26
also the loan is higher than the house
00:07:28
value so then what happened how did you
00:07:31
get out of this debt then uh I think the
00:07:33
house foreclosed the bank seized it but
00:07:35
we moved back to India we sold
00:07:36
everything we could at some form of uh
00:07:40
whatever money we could save and we came
00:07:41
back to India and restarted now if
00:07:42
somebody who's spoiled and has a lot of
00:07:44
money and doesn't see the downturn then
00:07:47
the value of that money is not as strong
00:07:48
it's stereotypical at least maybe some
00:07:50
people are still Frugal or but it's just
00:07:52
the masses in general if you have money
00:07:54
if you if you not seen Financial issues
00:07:57
then that problem doesn't persist but at
00:07:59
the same time if let's say you don't
00:08:01
come with money then you aspire to get
00:08:03
money and you have that ambition to a
00:08:05
certain level correct but I feel that if
00:08:07
you've had money and you've had a taste
00:08:09
of that luxury and then you lose it all
00:08:12
that ambition skyrockets to you want it
00:08:14
back that makes you even more hungrier
00:08:17
than a person who's born poor cool so uh
00:08:21
so ali uh tell me about your financial
00:08:23
Journey like what is your net worth how
00:08:24
did it begin what was your first salary
00:08:26
so walk me through your financial
00:08:28
Journey yeah so I started uh off 8 years
00:08:31
ago um as a hotel management graduate I
00:08:35
started working in uh Mumbai at the St
00:08:38
reges and the front office department so
00:08:41
over there my first salary was 13,500
00:08:44
rupees then uh I realized that I always
00:08:47
had a passion for IT Tech everything uh
00:08:50
growth in that sense and uh about a year
00:08:53
and a half later I moved to a tech
00:08:55
company and uh I have no technical
00:08:57
experience I have no technical
00:08:58
background I not a coder so I thought
00:09:00
what can I do if not uhing if not coding
00:09:04
right I'm like I can speak well I know
00:09:06
how to handle customers I can sell
00:09:08
software if I can't build Tech I can
00:09:10
sell it so after you build a platform
00:09:12
what do you what do you need you need
00:09:13
somebody to sell it like an app so
00:09:16
that's kind of where I joined a company
00:09:18
my salary then went up from like 13,000
00:09:20
to 50,000 I was like very happy cuz I
00:09:23
got a 300% hike in one and a half year
00:09:26
for me right so that was great then I
00:09:29
progressed in my career as a B2B SAS
00:09:31
professional selling sof big software to
00:09:33
B2B companies software to these
00:09:36
companies now uh I then joined LinkedIn
00:09:39
it's a subsidiary of Microsoft uh great
00:09:41
company great culture there my salary
00:09:43
was one one and a half lakh 1.2
00:09:46
approximately then after that uh what
00:09:49
happened after a year at LinkedIn is co
00:09:51
hit and a lot of these tech companies
00:09:53
had layoffs I was also laid off okay so
00:09:56
but I was always managing my money and
00:09:57
things like that so I got laid off from
00:09:59
LinkedIn after a year and uh I feel like
00:10:02
that's the best thing that happened in
00:10:03
my life okay uh so when I got laid off
00:10:06
they gave me a very Hefty Severance P
00:10:09
package like they gave me ESOP money
00:10:11
they gave me uh three months of salary
00:10:14
they gave me incentive bonuses and all
00:10:15
that uh some 7 lakh rupees came in my
00:10:17
account in one go okay for somebody
00:10:19
who's earning uh like one lakh a month
00:10:22
getting 7 laks in one go counting all of
00:10:24
the bonuses is great and I like what do
00:10:26
I do with this money do you to buy a car
00:10:29
no this is where the difference is and I
00:10:32
invested all of it during the downfall
00:10:34
of the stock market in covid and within
00:10:37
a year or the market crashed 40% yeah in
00:10:40
in two years that money doubled tripled
00:10:42
rather yeah and uh after LinkedIn at the
00:10:45
layoff I joined another company called
00:10:47
Autodesk selling uh architecture
00:10:48
software that was about one and a half
00:10:50
lakh salary then uh I joined uh the
00:10:54
current company I work at and I've been
00:10:56
working there for three four years now
00:10:58
and like the average person who has
00:11:02
about seven or eight years of experience
00:11:04
in Enterprise B2B sales makes 40 to 50
00:11:08
LPA a year and I used to hit above over
00:11:11
and above my target so there was it was
00:11:13
uncapped it can go above that and there
00:11:15
were years but it's gone above that and
00:11:17
uh that's where I've always invested
00:11:19
that money there was a time where I made
00:11:21
I think one month salary was 23 lakh
00:11:23
rupees what one month 23 lakhs yeah
00:11:26
because I hit I closed like a six figure
00:11:29
deal hit a number in dollars and I got
00:11:33
like 20% Commission on that and all of
00:11:35
that added up to in one month and at
00:11:38
this point in time I have a eight figure
00:11:40
portfolio that ranges between uh 1.3 to
00:11:43
1.5 CR it's a mix of heavy inequity I
00:11:47
manage my own portfolio this is right
00:11:48
now 1.3 1.5 CR this has happened in the
00:11:51
last8 Years this has happened in the
00:11:53
last eight years but the majority of it
00:11:55
has been the last three I like it I like
00:11:57
it so Ali so I'm a 25-year-old guy or a
00:12:01
girl and I need to start off with my
00:12:03
credit card Journey what is that first
00:12:06
credit card that I should take now I can
00:12:08
give you uh the basic Gan of oh
00:12:12
depending on your expense you should get
00:12:14
a dining credit card or a fuel credit
00:12:16
card but honestly speaking your first
00:12:18
credit card if you're getting a job if
00:12:21
you have a salary uh and they whatever
00:12:23
company you're working for is opening up
00:12:25
a salary account for you open that up
00:12:28
and if it's s bi HDFC access whatever
00:12:32
get their sub basic credit card because
00:12:34
that is the easiest to get you won't get
00:12:36
rejected because you've opened a salary
00:12:37
account there they know your salary is
00:12:39
there you they know you're earning money
00:12:40
and they will give you a credit card
00:12:41
credit card is an unsecured loan at the
00:12:43
end of the day they have to see if you
00:12:45
can pay it back so if you have a salary
00:12:46
account in the same Branch or bank then
00:12:49
your chance of rejection is negligible
00:12:51
right so I started my first job got an
00:12:53
access bank account got an access Neo
00:12:55
card access Neo idfc Millennia um HDFC
00:12:59
if you have account it will give you
00:13:00
HDFC money back card if you have ICI it
00:13:03
might give you the coral if you have SBI
00:13:05
you might get that simply click or
00:13:06
Simply Save card but basically any free
00:13:09
or very low value card should be your
00:13:11
first card not of an intention that oh I
00:13:14
need to get cash back I need to make
00:13:15
points from now the intention is I need
00:13:17
to build trust with the banking system
00:13:20
or build my Cil score and six months
00:13:22
later get an MX get a swiggy HDFC card
00:13:25
if you're using on swiy get a flip card
00:13:27
card get a SBI cash back card uh
00:13:30
whatever you want depending let your uh
00:13:32
spending criterias determine what card
00:13:34
you get after 6 months of getting your
00:13:37
first base credit card initially I did
00:13:39
not say this initially I used to say Get
00:13:40
it based on your spending but after the
00:13:42
immense amount of people who have come
00:13:44
to me and told me Ali reject hor card
00:13:46
reject hor card it's not coming it's not
00:13:48
coming this is the one way to not get a
00:13:50
reject on your card so you're saying let
00:13:52
the first card be a free card free card
00:13:54
from your bank where you opening a
00:13:55
salary account and also it's important
00:13:57
because um credit history is a very
00:14:00
important determinant of your credit
00:14:02
score for sure so let's say 5 years
00:14:04
later you don't like this card but it is
00:14:06
also charging an annual fee you might be
00:14:09
inclined to cancel that card which can
00:14:11
affect your credit score so let that
00:14:12
first card uh be a free card so that
00:14:15
that becomes your longest grade history
00:14:17
period and that sort of helps with your
00:14:18
grade score yeah and you don't have to
00:14:20
do the hassle of uh cancelling the card
00:14:22
or downgrading the card or all of that
00:14:24
like if you get a fancy card from day
00:14:26
one and you don't want to use it and you
00:14:27
want to cancel it why do you even want
00:14:28
to get into the Hass get a free card and
00:14:30
keep it in your cupboard if you're not
00:14:31
using it correct so that is the first
00:14:33
card don't worry too much about the Cash
00:14:35
Back Rewards and all of that don't try
00:14:37
to reach for the moons like don't be
00:14:39
influenced by you know what people are
00:14:40
saying on social media you know you can
00:14:42
you know swipe a card and buy a car and
00:14:44
don't try to get that card from day one
00:14:46
because sometimes what happens is for
00:14:48
you to get that kind of a fancy card
00:14:49
from day one the banks might also demand
00:14:51
hey you need to book open an FD also
00:14:54
right because I can't just give you that
00:14:55
card from day one because you have no
00:14:56
credit history so you need to park a lot
00:14:58
of FD in in my bank for you to get that
00:15:00
credit card but you're saying if you get
00:15:02
a very normal basic credit card in the
00:15:05
beginning which is free which is very
00:15:06
easy to get you build that credit
00:15:07
history for 6 months and then it becomes
00:15:09
easy for you to get that fancy credit
00:15:11
card and the bank is not going to you
00:15:12
know ask you to put a FD in that bank
00:15:15
that's exactly why I said you go with
00:15:16
the bank that's giving you the salary
00:15:18
cuz they have proof of your income now
00:15:19
if you don't have a salary a freelancer
00:15:21
you're a content creator if you're
00:15:22
something else that's getting irregular
00:15:24
income like two years back I was
00:15:26
rejected for the infinia because my base
00:15:28
salary didn't meet the three lakh
00:15:30
threshold but I'm showing my commission
00:15:32
my it are more than that give it to me
00:15:34
like no we only look at base salary slip
00:15:36
so these problems happen for any level
00:15:39
of uh credit card you're trying to get
00:15:41
right now that is where you an FD credit
00:15:44
card is not bad like if you're a
00:15:46
freelancer and they don't trust you
00:15:47
that's fine the banking has their own
00:15:49
system they have to if they're giving
00:15:50
you an unsecured loan they need to find
00:15:52
some collateral so fine get a FD backed
00:15:54
card 20,000 rupees for 6 months build a
00:15:57
credit score once your sible is up you
00:15:58
can potentially get an unsecured credit
00:16:00
card then got it got it so now let's
00:16:02
come to the um the heat of the topic
00:16:04
right because a lot of people think
00:16:06
credit cards are evil right while we're
00:16:07
talking about financial literacy being
00:16:10
Frugal with our spending and learning
00:16:11
about how money Works Credit Card is
00:16:13
usually seen as an evil product right
00:16:15
people generally associate credit cards
00:16:17
with hey you're going to get into a debt
00:16:19
you're going to overspend right it's
00:16:21
going to go out of control and it's
00:16:22
eventually going to ruin your life so
00:16:25
what would you say to the masses out
00:16:27
there to people who are watching this
00:16:29
video who are like hey I'm not sure
00:16:31
about credit cards I'm not sure if it's
00:16:33
going to work out for me I might go into
00:16:35
debt so what would you say to someone
00:16:36
like that would change their mind so I
00:16:39
think it's an age-old mindset that
00:16:41
credit cards are bad for you because
00:16:42
they're a debt trap they actually
00:16:45
promote lending and spending more and
00:16:47
those kind of things and that mindset
00:16:50
has a place in society it's not
00:16:52
completely wrong it depends from person
00:16:54
to person now if you're somebody uh who
00:16:57
cannot handle money in their hand like
00:16:59
if you are somebody who has thousand
00:17:01
rupees and the first thing that comes to
00:17:02
your mind is okay where do I spend this
00:17:04
versus where do I save this that is
00:17:06
probably a mindset that either needs to
00:17:08
change or at least reduce a little bit
00:17:10
right uh before you get a credit card
00:17:12
because then you're going to go pretty
00:17:14
crazy on that credit card now the idea
00:17:16
here is if you are someone who can use
00:17:18
it well if you somebody who can use it
00:17:21
mindfully then a credit card is for you
00:17:24
the easiest thing and a lot of people
00:17:25
say it is the credit a credit card helps
00:17:27
people who don't need it
00:17:29
a credit card helps people who treat it
00:17:31
like a debit card H interesting that's
00:17:34
literally the thing if you can treat
00:17:35
your credit card like a debit card
00:17:36
please get it if you're not going to if
00:17:39
you're going to buy something and think
00:17:41
that I'm going to pay it over the next
00:17:42
three months don't get a credit card so
00:17:44
a lot of people get credit card thinking
00:17:45
hey I don't have money credit card is
00:17:47
giving me free money so let me get the
00:17:49
credit card if you are that kind of a
00:17:51
person then don't get a credit card that
00:17:52
is you making money for uh the bank not
00:17:55
for yourself right if you're somebody
00:17:57
that hey I using my debit card
00:17:59
everywhere let me switch to credit card
00:18:00
I'm using UPI everywhere let me switch
00:18:02
to credit card please get a credit card
00:18:04
got it okay so now tell me this let's
00:18:06
say I got my credit card I was stupid I
00:18:09
didn't know what I was doing and now I'm
00:18:10
in a debt of 50,000 Rupees I'm in a
00:18:13
credit card debt and as we all know
00:18:14
credit card debts can go up to 45%
00:18:16
interest rate which is the most
00:18:18
expensive loans in the country what do I
00:18:20
do how do I get out of this mess if
00:18:22
you're in this mess means that you got a
00:18:24
credit card and you didn't use it
00:18:26
smartly like I kind of said right uh so
00:18:29
that's where it's it's okay people make
00:18:32
mistakes early in their life things like
00:18:34
that you have to figure out how to get
00:18:35
out of it and I say majority of the
00:18:37
people who are getting credit cards are
00:18:39
falling into this trap and then they are
00:18:41
the ones saying hey credit cards are
00:18:42
evil don't take credit card because they
00:18:43
didn't understand it themselves but now
00:18:45
how do I get out of this trap that I've
00:18:47
fallen into because sometimes it it is
00:18:49
not as simple as hey I'll just take
00:18:51
money and just pay it back they are
00:18:53
literally trapped it's a you know like a
00:18:55
spiraling down effect right because my
00:18:57
income is not able to pay this back and
00:19:00
the outstanding balance keeps increasing
00:19:02
and the uh I'm just not able to pay
00:19:05
enough to reduce that outstanding
00:19:07
balance so my debt keeps on increasing
00:19:09
this is a dangerous place to be in so
00:19:11
what do I do exactly so first I'll
00:19:13
explain how you get to that 40% number
00:19:14
now credit card companies charge you 3%
00:19:17
plus uh interest rate every month 3% as
00:19:20
an interest rate on your outstanding
00:19:21
amount then they have the penalty fees
00:19:23
and all of those other fees and GST and
00:19:24
tax on top of that so that's where that
00:19:26
12 into 12 months into 3% is 36% plus
00:19:30
fees plus taxes all of that 40
00:19:32
45% now and it's compounding no every
00:19:34
month it's compounding so it's not just
00:19:36
3 into 12 correct three then that
00:19:38
compound and that compound so it
00:19:39
actually becomes very high correct and
00:19:41
that that's where that interest is the
00:19:43
most dangerous interest you can have
00:19:45
like uh I'm not a fan of taking uh loans
00:19:48
that early in life if you're like you
00:19:50
know young and stuck but I would still
00:19:52
say get a personal loan at a 12% yearly
00:19:55
interest and pay off that credit card
00:19:58
bill
00:19:59
and stop using that credit card move to
00:20:01
UPI or uh cash back like linked UPI card
00:20:05
or something where you're not going to
00:20:06
be overspending learn from your mistake
00:20:09
and pay off that credit card debt first
00:20:11
find a nice Emi structure to pay off
00:20:13
that loan ASAP that is manageable 12%
00:20:17
interest is not as bad as a 40% uh list
00:20:20
but what if I can't get the personal
00:20:21
loan because my credit score has gotten
00:20:23
affected because of this credit card
00:20:25
debt that I've accumulated personal loan
00:20:27
also they're saying no I you can get a
00:20:29
personal loan with a guar then okay what
00:20:31
does that mean a guarant is basically
00:20:33
someone who will vouch for you if you
00:20:35
don't pay that loan which could be a
00:20:37
parent or a partner and hopefully you
00:20:39
don't want to let them down so so
00:20:40
basically call Dad yeah no it's not just
00:20:43
called It's not taking money from Dad
00:20:45
it's uh just getting a guaran to help
00:20:48
you get that loan on your name only
00:20:50
right and then you're paying it off and
00:20:51
all of that is fine and find a
00:20:53
structured Emi plan that can actually
00:20:55
pay off that uh with a 12% interest rate
00:20:58
uh that you can potentially get I think
00:21:00
it's it goes up to 16% also the personal
00:21:03
loans the personal loans but it's
00:21:05
compounding right it's based on uh how
00:21:07
much money you owe so if you think from
00:21:09
a flatline perspective it's like 10 11%
00:21:12
if you look at it from like the expanded
00:21:14
amount it's
00:21:15
16% interesting so let's say I'm
00:21:18
somebody who is uh spending about 50,000
00:21:21
Rupees a month that's 6 lakhs a year now
00:21:24
why should I get a credit card I'm like
00:21:26
okay life is going good I'm using my
00:21:27
debit card I'm spending ,000 rupees
00:21:29
every month using my debit card or UPI
00:21:31
why should I get a credit card what is
00:21:33
the monetary benefit like how do I put
00:21:35
that in numbers very simple for example
00:21:38
like what I kind of teach uh a lot of
00:21:41
people about credit cards in general is
00:21:42
that if you switch now there are a lot
00:21:44
of credit cards that have come out that
00:21:46
are uh UPI linked or uh rupe credit card
00:21:50
linked right so you can link your credit
00:21:52
card to UPI and that gives you 2% cash
00:21:55
back okay right so there are certain
00:21:57
cash back s that give you 2% cash back
00:22:00
and anyway swiping you're using it like
00:22:01
it's UPI now shanon if you take 50,000
00:22:04
expense that you have and you put it on
00:22:06
that UPI card that credit card that's
00:22:08
linked to your UPI and use it the same
00:22:10
way and get 2% cash back and that 2%
00:22:13
cash back if you invest in any asset
00:22:16
like there are a lot of companies or
00:22:17
apps that let you invest on a daily or
00:22:19
fractional money there's that jar app
00:22:21
that gives you gold or whatever however
00:22:22
you invest it right now so let's say I
00:22:24
put that 2% cash back and I start an sip
00:22:26
in a mutual fund correct you start a mut
00:22:28
Mutual Fund mutual fund will give you 12
00:22:29
13% returns I'm saying let's say you
00:22:31
don't even do that you put half in
00:22:32
mutual fund you put half in FD you get
00:22:34
an average Blended return of 10% uh put
00:22:37
some in a bond whatever right over 20
00:22:40
years you've gotten 7 and a half lakh
00:22:42
rupees for free just by using that cash
00:22:45
back Ard and the whole point of this is
00:22:47
not 7 and a half laks now what do you
00:22:49
preach Sharon you say that uh inflation
00:22:51
you got to beat inflation right you got
00:22:53
so 7 and a half lakhs 20 years from now
00:22:55
is nothing is one3 the value assuming
00:22:59
right now that that doesn't sound as
00:23:01
great but what I kind of talk about is
00:23:04
not getting 2% back there are cards that
00:23:06
give you 8 10
00:23:08
15 given scenarios where you can get 20
00:23:10
25 cash per back in terms of like
00:23:14
flights hotels returns whatever it is so
00:23:16
you're saying there are ways to get up
00:23:17
to 25% cash back on credit cards yeah
00:23:20
just assuming we get let's say 10% or 8%
00:23:24
and you take that amount and you sip it
00:23:26
now it's not 7 and a half lakhs now it's
00:23:29
38 lakhs that you've siped no that's big
00:23:31
money over 20 years that is some big
00:23:33
money
00:23:34
so if I'm not using credit cards I'm
00:23:37
literally leaving up to 40 lakh rupees
00:23:39
on the table if I'm assuming that I'm
00:23:41
spending 50,000 Rupees per month yeah so
00:23:44
imagine if your expenses are double
00:23:45
triple that Min is double triple right
00:23:49
so okay so now it's not crores but uh
00:23:53
right but now I am able to appreciate uh
00:23:56
the uh the financial impact of not using
00:23:59
a credit card uh in terms of numbers now
00:24:03
tell me what are some myths around using
00:24:06
credit cards um which most people are
00:24:09
not aware of so the first myth is I'll
00:24:12
talk about like two main myths okay so
00:24:13
first is uh a lot of people say like you
00:24:15
you just gave one oh credit cards are
00:24:17
bad for you they're a debt trap they
00:24:18
things like that if you can use it well
00:24:20
it is not a debt trap it is easily
00:24:22
something that can make you so much
00:24:23
money that you can like I said save 40
00:24:27
uh lak RUP over a course of time now the
00:24:30
other myth that I get a lot of and I get
00:24:32
a lot of hate for is that oh Ali you're
00:24:34
just talking about all these expensive
00:24:36
hotels and flights if you're getting
00:24:37
like you know a one lakh flight means
00:24:39
you're probably spending 50
00:24:41
lakhs right so because the conditional
00:24:44
mindset is that these points are worth 1
00:24:46
2% Max correct right so you have to
00:24:48
spend 50 lakhs if you want to get a one
00:24:50
lakh flight but that's not true my
00:24:52
expenses on a credit card don't exceed
00:24:54
12 13 lakhs in a year okay right huh so
00:24:58
I try to keep my expenses as low as
00:25:00
possible but I try to put as much as I
00:25:02
can on credit cards right now even on a
00:25:05
13 lakh expense I am able to do one trip
00:25:08
a year uh domestically or
00:25:10
internationally at least internationally
00:25:12
if I'm doing it it can pay for an
00:25:13
economy ticket for two so it depends on
00:25:16
which cards you're using and where
00:25:17
you're capping out on those cards where
00:25:19
you're spending more on other cards so
00:25:21
that's the biggest thing and the idea of
00:25:24
compounding these benefits is
00:25:26
exponential because 2% if you double
00:25:29
becomes four four becomes 8 8 becomes 16
00:25:32
that's how you get the 16 20 and 32%
00:25:34
return rates when you double them in
00:25:36
certain scenarios I'll give you an
00:25:37
example now there is this card called
00:25:39
access Atlas right when you spend 100
00:25:42
rupees it gives you two points but when
00:25:44
you transfer those two points to a
00:25:46
partner program it becomes Four Points
00:25:49
so it you you get four points in let's
00:25:51
say eor hotels now acor hotels has
00:25:54
another conversion where those four
00:25:56
points are worth 8 rupes okay so
00:25:59
automatically your 100 rupees spent is
00:26:02
not giving you two rupees or two points
00:26:04
it's converting to a or giving four and
00:26:06
four giving eight and then if you
00:26:08
transfer during a bonus or if you take
00:26:09
Milestone points or other things that I
00:26:11
also can include that's how it
00:26:13
exponentially gives you 8 16 30% returns
00:26:17
depending on where and how you spend
00:26:18
your on different cards interesting so
00:26:21
the first myth is that you don't need to
00:26:23
be spending a lot of money to get those
00:26:24
free flights and hotels even if you're
00:26:26
somebody spending let's say five six
00:26:27
laks a year you can still you know maybe
00:26:30
get a free hotel stay or a free flight
00:26:32
for an international or a domestic
00:26:33
vacation but the hack is to know how to
00:26:36
redeem those points what partner hotels
00:26:38
to use it for and what what are the
00:26:40
right cards for you so that is the first
00:26:42
myth um is there uh there there's this
00:26:45
common U complaint that I hear from
00:26:47
people that fine credit cards are great
00:26:50
I'm going to get a lot of points but if
00:26:52
I miss my credit card payment even once
00:26:55
right see we are not we are human beings
00:26:56
we are not perfect every month on one
00:26:58
month we have to pay that amount back
00:27:00
and as human beings we forget we might
00:27:02
not remember all the time so if I forget
00:27:05
it even once my credit score is going to
00:27:07
dip because of my credit score dipping
00:27:09
I'm I'm going to be charged very high
00:27:10
interest rates when I eventually take a
00:27:11
home loan or a vehicle loan so is that
00:27:14
really true like do I is it like can I
00:27:18
never miss a credit card payment because
00:27:20
of which my credit score goes down so
00:27:22
what you said is true to an extent that
00:27:24
uh your credit score does drop if you uh
00:27:27
Miss payments to to a certain extent
00:27:28
I'll dive deeper into that but missing a
00:27:30
payment uh extensively or many times can
00:27:32
dip your credit score and you will get
00:27:35
uh it will impact your housing loans in
00:27:37
the future and that's why you should get
00:27:39
a credit card very early even if you're
00:27:41
minimally using it just to build that
00:27:42
credit score now uh credit cards missing
00:27:46
a payment on credit cards for me is uh
00:27:49
not an excuse I think I I think it's
00:27:51
nothing more than an excuse because for
00:27:54
example if I get a credit card on Jan
00:27:56
1st my statement cycle starts on Jan 1st
00:27:58
now I can use that credit card for 30
00:28:01
days till Jan 30th not having to worry
00:28:03
about it Jan 30th I'm getting the bill
00:28:05
on email I'm getting the bill on
00:28:06
whatever app notification I'm using and
00:28:08
then on top of that credit card company
00:28:10
is giving me another for 15 to 20 days
00:28:13
so Feb 20th I have to make the payment
00:28:15
of what I swiped on Jan 1 2D 3rd or
00:28:18
something right now if you are not
00:28:20
paying for 30 days then they're giving
00:28:22
you 15 20 days extra leeway then you're
00:28:24
not paying there also then RBI has also
00:28:27
mandated that if you miss your payment
00:28:29
let's say on Feb 20th and you pay on Feb
00:28:31
you remember later maybe some uh
00:28:33
something happened there was an accident
00:28:34
Hospital whatever right something
00:28:37
happens and you pay a day late or two
00:28:38
days late the RBI is there for consumers
00:28:40
like us it's there for the public where
00:28:43
the bank can't charge you or you can't
00:28:45
have your Cil score reduced if you make
00:28:47
that payment within one two or 3 days
00:28:50
within three days so even after waiting
00:28:52
for 50 days after the due date has
00:28:55
crossed even then the RBI is saying okay
00:28:57
ch two extra days yeah because you it's
00:29:00
okay you forgot but two more extra days
00:29:02
for your credit score to not be affected
00:29:04
yeah I think it's three days and yeah it
00:29:05
doesn't get affected you might be
00:29:07
charged a penalty but your crate score
00:29:09
might still might not be affected yeah
00:29:11
your civil score if it gets hampered you
00:29:13
can always raise a case and it can be
00:29:15
sorted for you now that does not mean
00:29:17
I'm saying that oh keep that in your
00:29:19
mind and pay 3 days late all the time in
00:29:21
50 days make your payment it's more than
00:29:23
enough there are so many apps reminders
00:29:24
that give you this now and I have like
00:29:27
10 credit cards maybe I use three or
00:29:29
four at one go at one time but still
00:29:31
it's never hard to manage your payments
00:29:33
like you get your salary on a certain
00:29:35
day right make that day the payment day
00:29:37
right and just make sure that your
00:29:39
credit uh Cycles are sinking with
00:29:41
somewhere around that day right so it
00:29:43
makes it easier for payments got it cool
00:29:46
so now let's say I am a person who is
00:29:48
earning 12 lakhs perom living in
00:29:51
Bangalore Mumbai or Chennai and I want
00:29:53
to use a credit card to get a free stay
00:29:57
at a festar hotel tell me the blueprint
00:29:59
on how do I achieve this and I'm
00:30:00
spending around 50 50 60,000 Rupees per
00:30:03
month absolutely so first uh thing is I
00:30:06
would suggest you get an American
00:30:07
Express Platinum travel card now if you
00:30:09
are somebody who is getting a credit
00:30:11
card for the first time you will
00:30:12
probably not be able to get an AMX card
00:30:15
AMX cards a lot of people think are uh
00:30:18
very aspirational very high and they are
00:30:21
uh they are very great cards best
00:30:22
support best service but the eligibility
00:30:24
criteria for an AMX card like the one I
00:30:26
just said the Platinum travel is only 6
00:30:28
lakh rupee salary so you can get that
00:30:30
fairly early in your career now the
00:30:32
thing about this card is that when you
00:30:34
spend 4 lakh rupees on this card like
00:30:38
credit card enthusiasts call this the
00:30:39
Char lak card like this is only good for
00:30:41
spending four lakhs in a year now you've
00:30:43
already told me that you spent six to
00:30:45
seven lakhs so just four lakhs is
00:30:46
covered in this card okay right now you
00:30:49
spend four lakhs what this card gives
00:30:51
you is around 48,000 points okay when
00:30:55
you spend 4 lakhs when you spend 4 lakhs
00:30:57
okay right now these 48 to 50,000 points
00:30:59
that you ear you can earn more also if
00:31:00
you accelerate buy vouchers things like
00:31:02
that I teach all of that in my class so
00:31:03
50 60,000 points easy but bare minimum
00:31:06
48,000 points you're getting from this
00:31:08
right now this 48,000 points can be
00:31:11
transferred you can transfer it to
00:31:13
Singapore Airlines you can transfer it
00:31:15
to Qatar you can transfer it to Virgin
00:31:18
Atlantic you can transfer it to uh
00:31:20
Marriot Hotels now Marriot Hotels has a
00:31:23
1 is to one conversion rate so your
00:31:25
48,000 points become 48,000 Marriot
00:31:27
points okay okay right now there is a
00:31:29
hotel that opened up one year back uh in
00:31:31
rishikesh It's called The Western
00:31:33
rishikesh there are many hotels there
00:31:35
are some in Bangalore I can name a few
00:31:36
more also there's some in Delhi like
00:31:38
West and Sona and whatever we take the
00:31:40
rishikesh example that hotel cost 35 to
00:31:42
40,000 rupees per night okay if anyone's
00:31:45
watching this just Google Western
00:31:46
rishikesh look at that property images
00:31:48
it's pretty crazy it's a very
00:31:49
aspirational Hotel 35,000 rupees a night
00:31:52
and if you look in points if you go on
00:31:53
the marri website go to bonvoy uh that's
00:31:56
their loyalty program log in uh click on
00:31:58
Western rishikesh over there and uh
00:32:00
directly click on book with points
00:32:02
you'll see that it cost 25,000 points it
00:32:05
used to be 18,000 now they've increased
00:32:06
it now it's 25,000 points so points are
00:32:08
lesser than the actual rupee value yeah
00:32:10
so first you find the you earn the
00:32:12
points on the MX now AMX I I gave
00:32:14
minimum conversion 50,000 points you can
00:32:16
actually make 60,000 also okay 60 70,000
00:32:19
also okay so the first is uh 50,000
00:32:21
points on MX now you can transfer MX to
00:32:24
marot at a 1 is to one conversion but in
00:32:27
November December they always have a 30%
00:32:29
bonus for last two years they've been
00:32:31
doing this so your 50,000 points become
00:32:33
65,000 points so during November and
00:32:35
December there is some season or
00:32:37
something there is a Marriot and MX
00:32:39
partnership where or a deal that they
00:32:41
say oh you can transfer your MX points
00:32:43
for a 30% extra to marry it during the
00:32:46
end of the year yeah which is when
00:32:47
usually people want to party yeah so
00:32:49
November you can transfer it transfers
00:32:51
within 48 Hours uh directly of 50,000
00:32:53
points become 65,000 points so now I can
00:32:57
say three three nights almost three
00:32:58
nights right and if you use gifter which
00:33:00
is a portal where you can buy vouchers
00:33:03
uh if you buy vouchers on let's say you
00:33:05
get that MX card and you buy Amazon
00:33:07
vouchers uh on gifter you get 3 x points
00:33:10
so these small small things like in
00:33:12
detail we can go but in detail if we go
00:33:14
you'll get bored but uh the point is
00:33:17
this can get you 60 70,000 points I
00:33:20
easily make 60,000 points on my Platinum
00:33:23
travel I converted to Mar giving me
00:33:25
78,000 points that gives me 3 to nights
00:33:28
in the West in rishikesh uh and uh that
00:33:31
itself is worth one one 1.2 lakhs so I'm
00:33:34
easily making 25% returns if I choose to
00:33:36
stay at that hotel if you choose a
00:33:38
different Hotel point conversion so
00:33:40
almost everyone who's watching this
00:33:41
podcast is definitely spending around
00:33:42
30k per month so 30k per month is almost
00:33:45
4 lakhs a year so you're telling me that
00:33:47
if I know how to spend this 4 lakhs the
00:33:49
right way using an AMX credit card I can
00:33:52
get two to three nights of free stay in
00:33:54
a fstar hotel without breaking a sweat
00:33:57
easy
00:33:58
got it yeah and this is a real okay so
00:34:03
uh but the the the drawback of AMX a lot
00:34:06
of people complain that AMX is not
00:34:07
accepted anywhere like how do I uh you
00:34:10
know go through this like wherever you
00:34:12
go AMX they're like you know AMX is not
00:34:14
accepted it's either Visa or Mastercard
00:34:16
because AMX I think they charge very
00:34:18
high uh percentage fee so a lot of
00:34:20
people complain saying that what's the
00:34:22
point of having having an AMX credit
00:34:23
card if I can't even spend it so what is
00:34:26
the hack around this is there a hack in
00:34:28
the first place yeah there is so first
00:34:30
off uh fundamentally uh an AMX can't be
00:34:33
your first credit card you should always
00:34:34
have a Visa or Masters backup now you
00:34:36
can probably whatever Bank you have go
00:34:38
to them ask for any free card build your
00:34:40
Cil over 6 months then apply for an MX
00:34:42
so wherever MX is not accepted you at
00:34:43
least have some other card to use number
00:34:45
one number two is what I do and I've
00:34:48
never had a problem with MX is uh I
00:34:51
specifically buy vouchers from this site
00:34:54
called MX gifter you every site has
00:34:57
spelling
00:34:58
gyft AMX gifter I just need to Google
00:35:02
this why I said AMX gifter is because
00:35:04
gifter gftr is a voucher site where you
00:35:07
can buy vouchers now gifter has
00:35:09
partnered with many credit card
00:35:11
companies to give extra points if you
00:35:13
buy it from that credit card company's
00:35:15
portal so you can type in HDFC gifter
00:35:18
access gifter MX gifter so it's not just
00:35:21
limited to yes it's this is great for
00:35:23
anybody right and you can buy these
00:35:25
vouchers on the site and you'll get
00:35:27
extra points on access they give some
00:35:28
extra coins on HDFC you get like 5x
00:35:31
points uh and on AMX also there's like a
00:35:34
3X on this card different cards have
00:35:36
different whatever so you get more
00:35:38
points from that so first I'm buying
00:35:40
vouchers on gifter what voucher am I
00:35:42
buying they have 200 vouchers for
00:35:44
everything so for example if I'm going
00:35:46
to pantalons and if I buy 10,000 rupees
00:35:49
worth of clothes and if that pantalon
00:35:51
sales uh that cashier tells me sorry sir
00:35:53
we don't accept AMX say no problem I'll
00:35:56
go on uh gifter buy the 10,000 rupee
00:35:59
voucher of pantalon uh and with my MX
00:36:02
card with 3x points then show okay this
00:36:05
is the voucher take this if you're not
00:36:07
taking the MX card got it I still did it
00:36:10
number two is pantalon is and you earned
00:36:12
3x points as well I earned 3x points and
00:36:14
I got to use my MX more than that is I
00:36:17
will go to gifter and buy Amazon pay
00:36:20
vouchers okay okay Amazon pay vouchers
00:36:23
for me is like money I'll explain why
00:36:25
I'll buy 10,000 rupees worth of Amazon
00:36:27
pay vouchers and I'll add it to my pay
00:36:28
balance in Amazon right now that Amazon
00:36:31
pay balance can be used for anything I
00:36:33
shop on Amazon like I have a dog so I'm
00:36:36
buying dog food pet treats pet suppli
00:36:38
all on Amazon next is uh I pay all of my
00:36:42
bills credit cards don't give points on
00:36:44
utilities most credit cards don't when
00:36:45
you mean utility you mean like
00:36:46
electricity bill electricity bill phone
00:36:48
bill water bill uh it could also be
00:36:51
insurance payments all of that uh
00:36:54
education fees credit cards don't give
00:36:56
points for this usually they don't
00:36:57
because this is like a mandatory expense
00:36:59
and people are spending lacks of rupees
00:37:00
so credit card companies are losing
00:37:01
money when they give points on this but
00:37:04
the loophole here is that you can add
00:37:06
Amazon pay balance and pay all of these
00:37:08
on Amazon pay so I add 10,000 rupees to
00:37:11
my Amazon pay balance every month I got
00:37:14
3x points on that and I got points on my
00:37:18
electricity bill because I paid it not
00:37:20
by credit card I paid it through Amazon
00:37:21
pay balance which I got through my
00:37:23
credit card so when you pay through
00:37:25
Amazon pay balance again you get more
00:37:26
points no I bought the Amazon pay
00:37:28
voucher got and that gave me 3x points
00:37:31
got it huh right huh so and then using
00:37:33
the Amazon pay balance you are paying
00:37:35
electricity bill correct correct all
00:37:37
technically I'm getting points on my
00:37:38
credit card for paying that electricity
00:37:40
got it got it so that's another loophole
00:37:42
that you figured out yeah so I pay my
00:37:43
electricity I pay my Broadband bills all
00:37:45
on Amazon with Amazon pay balance so
00:37:47
that is how you get 3x points so that is
00:37:50
where AMX comes in handy where one it
00:37:52
works everywhere online number two try
00:37:54
to optimize for vouchers number three
00:37:57
pay utilities through gifter and number
00:37:59
four connect your Amazon pay balance to
00:38:01
all of these third party sites that also
00:38:04
accept wallet now when you go to any
00:38:06
site let's say you're booking a cab on
00:38:07
Uber it will ask you how you want to pay
00:38:09
UPI credit card at the bottom last one
00:38:12
will show wallet click on wallet they
00:38:14
take Amazon pay balance on Uber also on
00:38:17
Uber also my Amazon pay balance is
00:38:18
linked with zomato with swigi with
00:38:20
instamart with zepto with Uber with all
00:38:22
of those right so Amazon pay balance is
00:38:24
going everywhere right now I go to a
00:38:26
restaurant restaurant has told me sorry
00:38:28
sir we don't accept MX no problem I open
00:38:30
zomato there's a pay now feature on
00:38:32
zomato itself you pay now over there
00:38:35
they have some card discounts also or
00:38:37
they have some like 150 rupees off even
00:38:39
if you pay by the app so I'm getting
00:38:40
some 10% off there on top of that I'm
00:38:43
paying through Amazon pay
00:38:44
balance so in that so even if a
00:38:46
restaurant doesn't accept there are I
00:38:48
smile and I say I'm paying through
00:38:50
zato nice so it's never really a problem
00:38:54
I felt but uh yeah certain cases let's
00:38:57
say say if you're going to a local
00:38:58
vendor uh local shop to buy Dal sugar
00:39:02
and all maybe there you can't use it
00:39:05
maybe big basket might be slightly more
00:39:07
expensive so there you maybe don't want
00:39:09
to spend but there you can use a cash
00:39:10
back card or something interesting so
00:39:13
Okay so we've covered a simple SBI
00:39:15
cashback card now we've also talked
00:39:17
about AMX Platinum Card which allows me
00:39:19
to get like free hotels andum travel
00:39:21
card Platinum travel card which gets me
00:39:23
free hotels and flights now I want you
00:39:25
to tell me what credit cards you have
00:39:27
right because now I want to go you know
00:39:29
I want to go through that entire journey
00:39:30
of as a person get richer and richer how
00:39:33
fancier does the credit cards get like
00:39:35
take me till the ultimate billionaire
00:39:37
level status let's start with you R what
00:39:40
credit cards do you have okay let let's
00:39:42
see I'll share with I'll share my
00:39:44
journey actually in terms of what cards
00:39:45
I have how I got there like how many do
00:39:47
you have how many credit cards do you
00:39:48
have I mean in my wallet maybe I have
00:39:50
like 10 right now you have you're
00:39:51
carrying 10 credit cards with you I
00:39:53
think so yeah I haven't counted but
00:39:54
maybe there's more at home that I don't
00:39:56
use anymore but yeah I actually started
00:39:59
with uh access bank it was an access Neo
00:40:02
credit card uh and that got upgraded to
00:40:04
this select card so uh this card is what
00:40:07
I started with this was my starter card
00:40:09
my starter credit card was an access
00:40:11
bank Neo credit card okay right and that
00:40:14
was I just got my first salary and they
00:40:16
opened salary account and I said what
00:40:17
credit card do you have I proactively
00:40:19
said what credit card even when my first
00:40:20
salary 13,000 rupees I'm still my
00:40:22
mindset is what credit card do you have
00:40:24
how can I build my credit 13,000 rupes
00:40:27
salary yeah okay that when you got your
00:40:28
credit card yeah that's when I got my
00:40:29
first credit so this was your first one
00:40:31
they upgraded it to a select card but it
00:40:33
was called access Neo okay so this is
00:40:34
one what else do you have then after
00:40:36
that card uh after one year as soon as I
00:40:38
built my Cil score I got uh the American
00:40:42
Express membership rewards card so I
00:40:43
didn't waste any to get the American
00:40:45
Express you need to First build some
00:40:46
credit score they will never give it to
00:40:48
you as a first card okay so American
00:40:49
Express or MX is only given to people
00:40:51
who have some great history this is a
00:40:53
six-year old card not even changed it
00:40:55
wow but uh color is fully gone it's gone
00:40:57
but that I still use it till dat till
00:40:59
date because it has good reward rates
00:41:01
here and there H so this is okay this is
00:41:04
the second one this is the card you
00:41:05
should get uh when your salary is maybe
00:41:07
30 40,000 you're spending up to between
00:41:10
12 to 20,000 rupees an American Express
00:41:12
membership reward card is the card you
00:41:14
should get this is the American Express
00:41:15
membership Rewards Card okay you should
00:41:17
not spend more than 2 and a half lakh
00:41:18
rupees on this card okay so if your
00:41:20
expenses less than 20K a month this use
00:41:23
this for 20K use this wherever is not
00:41:25
accepted got it that's it
00:41:28
on top of that when your expenses
00:41:30
increase I added an American Express
00:41:32
Platinum travel card which we just
00:41:34
talked about the Platinum travel card
00:41:35
now this is what the Char lak card so I
00:41:38
used to spend four lakhs on this
00:41:40
anything more than that I used to spend
00:41:42
uh on thisuh uh so about six lakhs of my
00:41:44
expense was covered there okay let's go
00:41:47
up man I want to see how the rich rich
00:41:48
live next then there was a phase a very
00:41:51
Contra like a very controversial phase
00:41:54
where this card was the best card in
00:41:55
India which is this it's called the axis
00:41:57
Magnus card two years back okay two
00:42:00
years back access bank wanted to get
00:42:02
into the premium segment they had cards
00:42:05
but uh more than two years back two and
00:42:07
a half years back now they had to build
00:42:08
a plan uh to take over hdfc's Card
00:42:11
Market where every hni customer was
00:42:13
either using an HDFC infinia or an ICI
00:42:15
Emerald or a jet miles card or something
00:42:18
right and they had to build a strategy
00:42:20
so they built a strategy where they
00:42:21
literally gave away free money M so
00:42:24
they're burning money they burned so
00:42:26
much money in the acquisition strategy
00:42:29
to get h& I to buy this card to get this
00:42:31
card what so special about this this
00:42:33
card was giving 30 40% return rate if
00:42:36
you spend one lak a month wow I milked
00:42:39
this card for a year and a half okay
00:42:41
where I got I spent a lak a month even
00:42:44
if my spend was not one lakh that month
00:42:46
even if my spend was let's say 70 80k I
00:42:49
was like one lakh you have to hit to get
00:42:51
the bonus points you go on minra you buy
00:42:53
like 20,000 of gold huh oh okay okay and
00:42:56
uh you're spending also wisely you're
00:42:58
spending to buy assets only that's a big
00:43:01
unusual hack buying gold on mtra is also
00:43:04
considered as a legitimate expense on
00:43:06
credit card H and it maybe cost 5 6%
00:43:09
more than my dweller but I'm getting 30%
00:43:11
back on that and because of uh people
00:43:15
like that I wouldn't say me but people
00:43:17
like that who abused this okay abused
00:43:20
this to a level you can't imagine where
00:43:22
they're buying lacks of gold on four
00:43:24
different cards just for that and
00:43:26
selling it back and keeping the margin
00:43:27
of between that they had to aggressively
00:43:30
devalue this card uh quite a bit so that
00:43:34
was when I but these kind of
00:43:36
opportunities keep coming again and
00:43:37
again in the market and we need to be
00:43:39
hearing you know about credit cards yes
00:43:41
got it correct so what is the next now
00:43:43
this is for what income level this card
00:43:45
one lak a month so if you spend uh so
00:43:47
I'm making like 20 lakhs per ano yeah
00:43:49
maybe 25 lakhs per I would not suggest
00:43:51
it anymore now I would suggest uh next
00:43:54
next I'm getting richer tell me what's
00:43:56
next now I'm making 30 lakhs per or 40
00:43:59
lakhs perom what is next there you go so
00:44:01
now this card got devalued I'm looking
00:44:03
for an alternative now at this point of
00:44:05
time my expenses as my career progressed
00:44:07
was around uh 10 to 12 lakh rupees so
00:44:10
I'm spending four on this one two on
00:44:12
this one and I needed something for more
00:44:14
expense spending more on this is not
00:44:16
worth there's no nothing beneficial
00:44:17
above 4 lakh okay and Magnus got
00:44:19
devalued so what is next you switch to
00:44:22
access
00:44:23
Atlas okay this card um the base return
00:44:26
rate on on this card if you spend
00:44:28
anywhere go to a shop and spend it's
00:44:30
5.3% okay if you transfer it wisely it's
00:44:32
5.3% can go up to 78 if you transfer to
00:44:35
accor hotels which is even more but
00:44:37
normal swiping on this card gets you 5%
00:44:39
travel swiping gets you 11% okay if I'm
00:44:42
booking a flight an indigo flight don't
00:44:44
book it on make my trip with this card
00:44:46
book it on indigo.com like or the site
00:44:49
that's an interesting and directly you
00:44:50
will it's uh not even a hack it's just
00:44:52
reading the tnc's reading about the card
00:44:55
benefits you read the terms and
00:44:56
conditions you have to to learn the
00:44:58
benefits or at least the reward rates
00:45:00
and the conversions and where it can be
00:45:03
used where it can't be used and guess
00:45:04
what this card's exclusion criteria is
00:45:07
rent is gold is education fees things
00:45:11
like that you cannot use to get points
00:45:14
okay so axis learned from where they
00:45:16
made mistakes with the Magnus what
00:45:18
people were finding as loopholes and put
00:45:20
that in the exclusions put that as
00:45:21
exclusions got it got now I know how
00:45:25
much your rent is huh now imagine if you
00:45:27
had to pay your rent with a card and got
00:45:29
30% back I would be going on
00:45:31
International vacation every week yeah
00:45:33
so imagine how I milked that for a year
00:45:34
and a half and that's where so I've
00:45:37
always been Frugal with my points making
00:45:39
points through the American Express
00:45:40
cards but once in a while these hacks
00:45:42
come access Atlas also I feel is very
00:45:44
overvalued even now I think that it can
00:45:47
potentially get devalued further it's
00:45:48
one of the best cards in the market it's
00:45:50
very easy to get so what I'm realizing
00:45:52
is that there is no such thing as a best
00:45:54
card forever you need to be updated when
00:45:56
it gets de valed it is your job to see
00:45:58
in the market which is the next best
00:45:59
card and that requires a lot of research
00:46:01
and reading the terms and conditions
00:46:03
absolutely and the mindset at least that
00:46:05
I follow and if you want to follow or I
00:46:07
should think you should You' be wise to
00:46:08
follow is uh make hay while the sun
00:46:11
shines situation where don't think that
00:46:15
uh this card uh has been going well it
00:46:17
will get devalued in 6 months so I won't
00:46:19
get it get the card make hay while the
00:46:23
sunshines that's the situation right and
00:46:26
earn and burn earn your points use them
00:46:29
even if the value are getting not the
00:46:31
best value out of it let's say you're
00:46:33
getting not one rup value or lesser
00:46:35
value still use it because you don't
00:46:37
know when the next devaluation of any
00:46:39
other program is also coming right the
00:46:41
point is to save your money people start
00:46:44
earning points and then they get this
00:46:45
high of points that I want to make 500k
00:46:47
points 600k points then you know save my
00:46:50
points and okay I won't use my points
00:46:52
I'll book that flight with money no the
00:46:54
point is to use the points and save your
00:46:56
money
00:46:57
m not accumulate the points accumulate
00:47:00
the points to a level and have a plan
00:47:02
but if you have a flight coming and you
00:47:04
have extra points and you don't have a
00:47:06
use for those points some people will
00:47:08
still say n let me keep accumulating and
00:47:11
make a bigger plan out of it and let me
00:47:13
pay with my actual money for this
00:47:16
flight don't do that the point is to
00:47:19
save your money take that 10,000 rupees
00:47:21
you saved and put that in an sa let that
00:47:23
grow not your points got it got it
00:47:25
because other it might get valued and
00:47:27
then you're going to be in trouble what
00:47:30
next move on now uh what happened is uh
00:47:33
so now I'm earning 30 laks perom this is
00:47:35
the card so the axis Atlas is good to
00:47:38
spend up to 15 lakh rupees okay right at
00:47:41
15 lakh rupees the the that's the last
00:47:44
Milestone you get extra 5,000 bonus
00:47:46
points when you hit the 15 lakh
00:47:48
threshold you get bonus points at 3 lakh
00:47:50
7 and a half lakh uh 15 lakh so when you
00:47:52
hit that threshold the B there's no
00:47:54
bonus points after 15 m so if you're
00:47:57
somebody who spends 19 lakhs there is no
00:48:00
better combination credit cards are
00:48:03
subjective people will all have their uh
00:48:05
preferences of their but I can still
00:48:07
strongly say on this podcast that there
00:48:08
is no better combination than an access
00:48:11
Atlas and an AMX plat travel for
00:48:14
somebody spending 20 lakh rupees a year
00:48:17
15 on Atlas four on uh AMX plat travel
00:48:22
that combination sorts you out up to 20
00:48:24
lakhs right T there's the infinia I IC
00:48:27
Emerald those are very conditional right
00:48:30
but uh one card better than this is like
00:48:34
the HDFC infinia just because of its
00:48:37
Prestige and the fact that you don't
00:48:38
have it I am an axess boy so I don't
00:48:41
have an HDFC INF I have it maybe I can
00:48:43
show mine maybe you want to show yours
00:48:45
yeah that's the card Sharon has in his
00:48:47
wallet this one the HDFC infia like this
00:48:51
is a very very popular card I mean I
00:48:52
obviously got this because everybody was
00:48:54
like this is the best credit card in the
00:48:56
country but why is it called the best
00:48:58
credit card in the
00:48:59
country because it is for certain
00:49:03
categories okay what I mean by that is
00:49:05
the HDFC infinia is one of the I would
00:49:08
say there are two best credit cards in
00:49:10
India HDFC infinia and access Magnus
00:49:13
burgundy okay HDFC infinia gives you a
00:49:15
base convers base return rate of 3.3%
00:49:18
okay axis Magnus burgundy gives you a
00:49:20
base return rate of 4.8% is better HDFC
00:49:24
INF fia's uh smart by portal
00:49:27
so smart buy is a portal where you can
00:49:30
buy flights or hotels or vouchers at uh
00:49:35
and get extra points accelerated points
00:49:37
so if your base return rate on infinia
00:49:39
is
00:49:40
3.3% uh when you spend on vouchers or
00:49:43
spend on flights you get 5x so your
00:49:46
return rate becomes 16% 16 and a half
00:49:48
got it right got it when you book hotels
00:49:51
you get 10 x
00:49:52
points that's 33% 33% so if you book a
00:49:56
10 10,000 rupee hotel room on the smart
00:49:58
bu portal you're getting 33% back 3,
00:50:04
3,333 points back and the what is the
00:50:06
value of 1 Point 1 point is one Rupee
00:50:08
minimum wow when you use it towards
00:50:11
flights or hotels now on that same
00:50:13
portal so if I'm spending a lck on
00:50:16
hotels in this flight in in this card
00:50:18
you're saying I can get 33,000 rupees
00:50:20
worth of points no there's a small catch
00:50:23
to that it's capped at accelerated
00:50:25
points of 50 ,000 points extra per month
00:50:29
so if you're spending 40,000 rupes
00:50:31
you're making
00:50:32
12,000 almost 15,000 back okay and that
00:50:35
is the Smart usage of this card got it
00:50:37
and that is why it has an issue or
00:50:40
that's why I compare it to the Magnus
00:50:43
burgundy and don't give this the number
00:50:44
one title of the best card because of
00:50:47
certain exclusions like this where you
00:50:49
can't it's capped so if you're a uh hni
00:50:52
or an hni you're still going to struggle
00:50:55
with this card because because of its
00:50:57
cappings so you will not it's not
00:50:58
unconditional 33% so it is not meant for
00:51:02
the uh hni segment it's meant for the h
00:51:05
Uhn who don't care about points or
00:51:07
something if you're somebody who wants
00:51:08
to maximize there are better options
00:51:10
it's quite difficult also to get this
00:51:11
card like what I've heard is that to get
00:51:13
this card uh one of the minimum
00:51:15
requirements is that you have to pay 36
00:51:17
lakhs in income tax in any given year
00:51:19
which means this person is making like 1
00:51:21
and a half crores in income is there a
00:51:24
way around this because not a lot of
00:51:25
people make that kind of money but still
00:51:27
want to use the benefits of this card
00:51:29
yeah so how to get an infinia from a
00:51:32
business perspective you're right having
00:51:33
an ITR like that but from a salary
00:51:36
perspective uh you need to have a net
00:51:39
there's a few options uh of ways to get
00:51:42
this first is you should ideally have a
00:51:44
three lakh Net salary hitting your
00:51:46
account okay that means with your 30%
00:51:49
slab and everything it's ideally at
00:51:51
least tax monthly income should be 3
00:51:53
lakhs that means that a CTC of at least
00:51:56
50 LPA okay when you minus taxes and all
00:51:59
TK you'll get around three lakhs or
00:52:01
around that much right uh so that is the
00:52:04
first criteria and this there is no work
00:52:06
around to this the only work around to
00:52:08
this is keeping having a TRV total
00:52:10
relationship value with bank with the
00:52:12
bank what does that mean to Rel means uh
00:52:14
if you have fds with the bank and if you
00:52:17
have a ulip with the bank uh uh that the
00:52:21
life insurance policies and stuff which
00:52:23
I highly don't recommend but uh if you
00:52:25
have those polic IES maybe old school
00:52:27
people at that point of time when there
00:52:29
were lesser investment instruments uh
00:52:31
highly valued ulips and things like that
00:52:33
so when you have a TRV of over 40 lakhs
00:52:36
then they can give you this card so if I
00:52:39
have a 40 lakh FD with HDFC then they
00:52:41
can give me this card potentially yeah
00:52:42
right but still quite quite difficult
00:52:44
imagine the opportunity cost of keeping
00:52:46
a 40 L FD Prov unless it's like you know
00:52:48
a hedge against the market or something
00:52:50
fine but yeah and another thing is you
00:52:52
have to have prior credit history you
00:52:54
have to have a another credit card from
00:52:56
each DFC that has at least an 8 lak
00:52:58
limit M and uh you should and if you
00:53:02
want to bypass some of these things if
00:53:04
you get a lower end
00:53:06
card like a HDFC regalia gold or an HDFC
00:53:09
diners black which is one or two levels
00:53:12
lower than the infinia and if you spend
00:53:14
8 lakh rupees on that within 6 months
00:53:18
then you can apply for an infinia uh
00:53:20
then and they'll give it to you if your
00:53:21
credit limit is above 8 lakhs right so
00:53:24
there are different uh ways to get the
00:53:26
infia but uh the first criteria is
00:53:30
making more money now now let's let's go
00:53:32
to the next level right I'm it's it's
00:53:34
fine this is 30 40 lakhs spend great
00:53:36
like what is the most prestigious credit
00:53:39
card in the world yeah so I'll give you
00:53:41
a few examples you have it no no I don't
00:53:44
looking I thought going to put it I
00:53:45
don't I have one lower than the most
00:53:47
prestigious and we'll talk about it but
00:53:50
uh yeah I I'll take it in line so the
00:53:52
first thing is somebody who's
00:53:55
spending very
00:53:57
extensively on these on criteria like
00:54:00
travel like you know the people who will
00:54:01
go to Bali and maldiv and us and Dubai
00:54:04
and have those trips and things like
00:54:05
that who spend two three four lakh
00:54:07
rupees on their card the axis Magnus
00:54:10
burgundy is the best card for them two
00:54:12
three laks per month you're saying per
00:54:13
month okay yeah because 2 three lakhs
00:54:15
per month spending access burgundy is
00:54:17
the best so burgundy is the type of
00:54:19
account and if you have a burgundy
00:54:20
account and opt for an access Magnus
00:54:22
burgundy 30,000 fees plus tax you get
00:54:25
that card the reason that card is
00:54:27
insanely good for somebody spending that
00:54:28
much is unlike the HDFC infinia which I
00:54:31
told you has these accelerated Point
00:54:33
caps this card doesn't have a cap so I
00:54:37
should get that then what that mean yes
00:54:39
what that means is when you spend one
00:54:41
and a half lakh rupees in a month that 1
00:54:44
and a half lakh will give you an average
00:54:46
4.8% return rate 5% but the moment you
00:54:50
spend anything above 1 and a half lakh
00:54:53
in that same month the conversion rate
00:54:56
almost triples you get 14% wow okay so
00:54:59
if you're going to spend let's say 4 and
00:55:01
a half lakhs in one month okay right uh
00:55:04
first one and a half lakh is giving you
00:55:06
4 4.8% second one and a half lakh is
00:55:08
giving you 14% thirdd one and a half L
00:55:11
is also giving you 14% okay so your
00:55:13
Blended average is above 10 11% and as a
00:55:15
rich hni you don't want to worry about
00:55:17
seven cards K calu is your one no
00:55:20
brainer card just swipe it everywhere
00:55:22
got it minus the exclusion criterias but
00:55:24
that's it and it's called the a EP
00:55:26
accelerated earning program got it so
00:55:28
that is a card that I would definitely
00:55:30
recommend for an hni who spending 2
00:55:32
three lakhs a month two three lakhs or
00:55:34
two three four lakhs a month yeah that's
00:55:35
it now uh an alternative to this card
00:55:37
for somebody who just wants lifestyle
00:55:40
let's say they don't care about the
00:55:41
return rate but they care about the
00:55:43
lifestyle benefits like getting a conage
00:55:46
or getting uh like you know Hotel
00:55:48
statuses like a married gold membership
00:55:50
plus memberships from acor all these
00:55:53
other benefits and a good return rate
00:55:55
and support system then you go in the
00:55:57
AMX ecosystem one above uh the Platinum
00:56:00
travel two above the Platinum travel is
00:56:01
this card what is that this is the
00:56:03
American Express very very fancy show me
00:56:06
this is the American Express Platinum
00:56:08
Card so this is a charge card okay a
00:56:11
charge card is different from a credit
00:56:13
card the only difference is that you
00:56:14
cannot have an Emi on this if you
00:56:17
spend very interested Oh I thought it'll
00:56:20
come to that I thought it's metal it is
00:56:22
metal metal yeah so so okay so what how
00:56:26
much for this card this card cost 78,000
00:56:29
rupees with tax per
00:56:31
year okay yeah and you pay that much I
00:56:35
pay that much every year for this card H
00:56:37
it's my first year uh I will probably
00:56:40
renew it because I'll get a renewal
00:56:41
bonus or something uh because I've hit
00:56:44
the spend criteria on it but uh that's
00:56:47
ideally where how much do you need to
00:56:49
spend on this card to make the 78,000
00:56:52
rupees annual charges free so for the
00:56:54
first year actually I got a great deal
00:56:55
so uh when I got this card the fee of
00:56:58
this card was uh 72,000 they increased
00:57:01
it recently so when I paid 72,000 they
00:57:03
gave me 135,000 points as a joining
00:57:06
bonus and one point is one rupe one
00:57:09
point is uh one rupe if you transfer it
00:57:12
smartly even if you transfer it on an
00:57:14
average it's 50 PES so you got around 30
00:57:17
50,000 Rupees so 135,000 points means I
00:57:20
got 67,000 odd rupees back on paying
00:57:23
72,000 so my joining fee only paid is
00:57:26
free then it's free and I use that uh
00:57:29
those points towards my Canada Trip I
00:57:31
booked a United flight uh recently uh so
00:57:34
that was very easy so but for next year
00:57:36
you have to pay that 72,000 rupees or
00:57:38
can you make that free uh I can't make
00:57:40
that free I can ask them based on how
00:57:42
much you spent in the previous year 10
00:57:43
20 30 lakh rupees I 20 lakh is The Sweet
00:57:47
Spot they'll give you some benefit 35
00:57:49
40,000 rupees back uh so if the renewal
00:57:52
benefit makes sense then that card then
00:57:55
then it can worth so now what is a
00:57:57
charge card how is a charge card
00:57:58
different from a credit card I didn't
00:58:00
even know that there's something called
00:58:01
a charge card yeah so a credit card and
00:58:03
charge card are the same in terms of
00:58:06
spending on it then the statement credit
00:58:08
comes out when that statement comes out
00:58:10
you have to pay the bill within 15 or 20
00:58:12
days okay so that part is same that part
00:58:15
is same credit card gives you the option
00:58:17
of hey if you don't have enough money
00:58:19
you can make this uh Emi or you can pay
00:58:22
minimum due correct right and that's
00:58:24
where they make the money on interest
00:58:26
charge cards do not have that option you
00:58:30
have to pay the full amount at the end
00:58:33
of that 50-day period so that is the
00:58:36
difference that is one difference the
00:58:37
other difference uh is that uh charge
00:58:40
cards don't have a
00:58:41
limit what there's no limit on this card
00:58:44
there's no you can go swipe it for 20
00:58:45
lakhs right
00:58:46
now and there's no limit they will have
00:58:49
a shadow limit does that mean that means
00:58:52
that based on your expenses it whatever
00:58:55
they will put a cap of a very high cap
00:58:58
like if my other cards have a 78 lakh
00:59:00
rupee limit they'll put a shadow of 4X
00:59:02
that maybe this card will have a shadow
00:59:03
cap of 30 lakhs right maybe it will get
00:59:06
denied at 30 lakhs maybe it'll get
00:59:07
denied at but I can like call them up
00:59:09
and say hey please let me do it yeah so
00:59:12
technically I can go out and buy a car
00:59:13
with this you can go out and buy a car
00:59:15
with the best card to buy a car with is
00:59:17
that axis Magnus burgundy card the card
00:59:19
before this 30 you would have seen a lot
00:59:21
of influencers talking about getting
00:59:23
cars and getting 17 18% return rates and
00:59:27
uh because of the uncapped nature of the
00:59:29
card wow so if I'm spending if I'm
00:59:31
buying like a 20 lakh car let's take an
00:59:34
example of a Volkswagen tyon which is
00:59:36
what I bought that you're saying I can
00:59:39
get a 20% return yeah 17.5 it can be
00:59:44
even 25% if you transfer it uh to a
00:59:47
prominent Hotel partner so like 5 lakhs
00:59:49
worth of points back and I can use that
00:59:51
to book hotels 5 lakhs worth of hotels
00:59:54
yes okay
00:59:56
a lot of hn I are going to start doing
00:59:58
that now you should have the access
00:59:59
Magnus B but then it's a conditional
01:00:01
card right it's not like you're going to
01:00:03
buy a car every month of course of
01:00:04
course but uh yeah any large expenses
01:00:06
should be done on that card and no other
01:00:08
now you have better now this is so
01:00:10
what's the speciality of this card like
01:00:11
why is this so like you said this is two
01:00:13
levels below the this is one level below
01:00:16
the top American Express card but one
01:00:18
reason I have this card is they have 10x
01:00:21
accelerators and 20x accelerators on
01:00:25
certain now I consider this card to give
01:00:27
between a 1.2 to a 2.4% return rate okay
01:00:31
if you calculate the points if you
01:00:33
transfer to Marriot and get a good hotel
01:00:35
2.4% on this card now when I spend on
01:00:38
Air India I get 10x points okay if I
01:00:42
spend on certain criteria certain
01:00:44
Partners Air India if I'm buying
01:00:46
chocolate from Coco card if I'm shopping
01:00:47
I'll shop on Tata click because they
01:00:49
have a 10x partner with this okay so
01:00:51
they basically they have 10x partners
01:00:52
and if you shop on those Partners you
01:00:55
will get that 10x reward Point yeah so
01:00:57
10x reward point is what around instead
01:00:59
of 2.5% it's 25% right they have 20x
01:01:03
Partners also like what like it's a site
01:01:06
called dar dar is a site where you can
01:01:10
buy luxury goods like you know the
01:01:12
people buying the BGA bags and the Louis
01:01:15
Vuitton jackets and the Jimmy Chu shoes
01:01:19
and the like all of that fancy stuff for
01:01:21
10 so places where a shirt cost 2 three
01:01:23
laks those kind of places yeah for
01:01:26
example it can be lower also like I'm
01:01:28
not in that income bracket but my mom
01:01:29
really likes sunglasses and uh for her
01:01:32
birthday I bought a DOL Shan gabana
01:01:34
white color sunglass which was on sale
01:01:36
for 15,000 rupees okay now I got 50%
01:01:39
back on that in points 50% yeah because
01:01:43
2.5 is the base conversion oh 20x and
01:01:45
20x did wow so it's like this card is
01:01:47
helping people who are anyway buying
01:01:49
luxury goods to get like 50% discount
01:01:52
correct it's between 25 to 50 depending
01:01:56
on how you transfer it if you transfer
01:01:57
it to a flight in economy ticket maybe
01:02:00
25% if you transfer it to a business
01:02:02
class flight or a luxury hotel 40 50% so
01:02:05
I can get business class flight tickets
01:02:06
also 40% discount yeah 40% discount no
01:02:09
it can pay that 40% can pay towards that
01:02:13
business class flight got it got it so
01:02:15
if I'm spend uh but what do I need to
01:02:17
spend it on to get that 40% like it
01:02:20
could be like what like what am I
01:02:21
spending it on you're spending it on dar
01:02:23
dar is for luxury goods yes if you're
01:02:26
spending it on Air India or any of the
01:02:29
10x partners then you're getting those
01:02:31
10x points so this is how you accumulate
01:02:33
the points uh very simply said if you
01:02:35
swipe this card you're getting 2.5% back
01:02:39
if you use gifter you get 5x so 12.5%
01:02:43
back gifter is for your Amazon voucher
01:02:45
and all of thatuh if you use it on one
01:02:48
of the 10x Partners like Coco cart tat
01:02:51
click tat click luxury tat click luxury
01:02:53
I bought a YSL perfume recently I have
01:02:55
what is y YSL is a brand that has fancy
01:02:58
perfumes how much for a perfume uh 7
01:03:00
8,000 rupees uh minimum for a nice
01:03:03
perfume right so I bought a YSL perfume
01:03:06
from there and uh that I got 25% back
01:03:10
because I got it from Tata click luxury
01:03:12
and that 25% points that you get you can
01:03:14
use it on flights and hotels for sure
01:03:16
like I basically the rich people like
01:03:19
you they spend on luxury goods and then
01:03:22
use those points to get free business
01:03:24
class flights and five star hotel
01:03:26
that is the hack exactly but most rich
01:03:28
people don't know about this they're
01:03:29
just spending for everything exactly all
01:03:32
right okay now let's come to the Big
01:03:33
Daddy what is the most ultimate God of
01:03:36
God credit cards in the world so it's
01:03:39
more of a status card it's uh the
01:03:42
American Express Centurion credit card
01:03:44
the Black Card okay right I saw this
01:03:46
card for the first time I think uh seven
01:03:49
years ago for the first time like I was
01:03:51
holding it uh and I was working in
01:03:53
hotels I was taking check in and check
01:03:55
out of different h& I guests that keep
01:03:57
coming I worked at the sa reges in
01:03:59
Mumbai itself okay now zoravar kalra
01:04:02
came to my hotel zoravar calra he owns
01:04:05
uh Masala Library uh his dad used to own
01:04:09
Punjab Grill and uh he owns a chain
01:04:11
called massive restaurants like Louis
01:04:13
Burger is his okay uh and things like
01:04:16
that so uh he came and he swiped his
01:04:19
Centurian card and I was
01:04:21
like what is this card and it's a black
01:04:25
amican American Express card and I
01:04:26
swiped it and uh it was very heavy
01:04:29
looked great heavier than this similar
01:04:32
but yeah slightly more premium okay and
01:04:35
uh then I went home and I uh read about
01:04:39
this card and I was like you have to
01:04:41
have literally minimum 1 CR spending to
01:04:44
get invited to this card more than that
01:04:46
actually okay uh so to spend one CR a
01:04:48
year to even get that invite it's invite
01:04:50
only yeah it's invite only now they're
01:04:51
giving it to lesser uh salary brackets
01:04:54
first and then you meet that criteria
01:04:57
number one number two there's like a
01:04:59
10,000 rupe joining fee oh that's not
01:05:02
bad 10,000 rupes $1,000 I'm sorry
01:05:04
$10,000 $10,000 joining fee so8 lakh
01:05:07
joining fees 8 lakh is just the joining
01:05:09
fee to get the card plus GST yeah okay
01:05:12
then on top of that there is a annual
01:05:15
fee of three lakhs every year you have
01:05:18
to pay no matter what okay you no
01:05:20
spending waver this that uh and that
01:05:23
three lakh you have to pay just to keep
01:05:24
the card and what what is the speciality
01:05:27
about this card if you're looking to
01:05:29
recoup that money you will not recoup
01:05:32
that in terms of return rate on that
01:05:34
card like maybe if you're spending one
01:05:36
CR and the return rate is and you spend
01:05:39
it smartly on 10x and 20x partners like
01:05:41
I said maybe it can uh make you can get
01:05:44
those benefits and maybe they'll give
01:05:45
you a decent joining bonus or something
01:05:47
if I'm spending one CR let's say on
01:05:50
luxury items and it's very much possible
01:05:52
for you know H and to spend one CR on
01:05:55
luxury Goods so if I play my cards right
01:06:00
I'm going to get 20 crores worth of
01:06:02
points no 50% so 50 lakhs no you're
01:06:06
saying okay okay so it's a 50% correct
01:06:08
correct so 50 lakhs correct so 50 lakhs
01:06:10
worth of points which I can use on first
01:06:13
class first class flights business class
01:06:16
flights and if you optimally use it yeah
01:06:18
you'll get uh 50 lakhs worth of benefits
01:06:20
in hotels or business class flights if
01:06:22
you use it just sa you'll still get 25
01:06:25
lakhs okay yeah damn so so with these
01:06:28
super premium credit cards the bank
01:06:30
usually knows that these guys will not
01:06:31
default because they're super rich so
01:06:33
their strategy is actually to acquire
01:06:35
them acquire such rich people to start a
01:06:38
relationship with that bank and then
01:06:39
eventually that rich person will
01:06:41
probably buy some FD or some insurance
01:06:43
product with them or get a loan from
01:06:45
them due to which they're able to make
01:06:47
money from the back end 100% I have the
01:06:49
access Magnus card I'm very keen on make
01:06:52
getting the burgundy like I can get it I
01:06:55
can get the infinia I can get the
01:06:56
burgundy but my spend does not justify
01:06:59
it right unless I'm spending 2 and a
01:07:02
half lakhs the Magnus burgundy doesn't
01:07:04
make sense a month the max is mag Magnus
01:07:06
so that's the the other thought process
01:07:08
you need to have is that don't let your
01:07:11
credit card Define your spending
01:07:14
strategy your you get your spending
01:07:17
strategy should Define your credit card
01:07:19
how much you spend should Define what
01:07:20
credit card you get okay so I need to
01:07:22
have multiple credit cards so if if you
01:07:25
uh uh are eligible for an infinia or uh
01:07:29
Magnus burgundy and you have to pay that
01:07:31
12 or 30,000 in fees right does not mean
01:07:34
you need to get it just because you're
01:07:36
eligible if your spend doesn't me match
01:07:38
it so what is the craziest trip that you
01:07:41
have planned using credit card points
01:07:43
which essentially made it very dirt
01:07:44
cheap for you so I'll give you uh two
01:07:47
examples here number one is uh it's
01:07:49
actually uh hack for Airlines called a
01:07:52
stop overflight right uh now what means
01:07:55
is uh in Layman language when let's say
01:07:58
you're going to America okay uh and
01:08:01
let's say you're taking an eard flight
01:08:02
you'll have a layover in Abu Dhabi okay
01:08:04
and then you'll go to the US after that
01:08:06
right so when you are staying in Abu
01:08:08
Dhabi for 6 hours until your flight
01:08:10
connecting flight takes off that 6 hours
01:08:13
is called a layover right right a
01:08:15
stopover is when you're spending more
01:08:17
than 24 hours in that country right so
01:08:20
what did I do U few years back when I
01:08:22
went to Sydney right uh I went VI
01:08:24
Singapore Airlines I with points it was
01:08:26
about uh 46,000 points one way uh like
01:08:30
close to 90 something th000 points use
01:08:32
my MX cards got that and uh you can on
01:08:35
Singapore Air you can book a stop over
01:08:38
in the hub now I'm traveling Bombay to
01:08:40
Sydney the stop over is where Singapore
01:08:42
right so automatically on their app
01:08:44
itself it gives you the option let's say
01:08:46
I'm going on 20th to 30th of the month
01:08:49
20th itself first flight to Singapore
01:08:52
stay 4 days in Singapore then from there
01:08:54
take go back to the the airport after 4
01:08:56
days and go to Sydney I cover two
01:08:58
countries without paying for the flight
01:09:01
okay so I literally in that same points
01:09:03
which was taking me to Sydney I told
01:09:05
them that hey normally The Layover would
01:09:08
be 2 hours and then I'll give me a
01:09:09
two-day layover instead or over you can
01:09:11
do that you can do that to on Turkish
01:09:13
Airlines you can do that on Singapore
01:09:15
Air Singapore Air on the app itself you
01:09:16
can do it Turkish you have to call them
01:09:18
but you can always still tell them that
01:09:20
hey I don't want to lay over I want to
01:09:21
stop over okay so three four days you
01:09:24
can spend in singap and then go to
01:09:26
Sydney yeah so you got like two
01:09:28
International vacations in one flight
01:09:29
correct do that with your EA do that
01:09:31
with the Turkish Airlines you're going
01:09:32
to Europe you're going via turkey take
01:09:35
four days in Istanbul then go that way
01:09:38
the first thing is stop over flights so
01:09:39
you can cover two trips in one number
01:09:41
two is uh a trip that I'm doing next
01:09:43
month so I'm traveling uh business uh
01:09:46
via United Okay uh to the US now I'm
01:09:51
traveling to I'm traveling to Canada
01:09:52
sorry I'm traveling to Canada uh I just
01:09:54
came from the US I'm traveling to Canada
01:09:56
in November right uh for my sister's
01:09:59
wedding and uh I booked via United now
01:10:02
most of my points I had on my AIS Atlas
01:10:05
and it was costing me 98,000 points one
01:10:08
way VIA business class and return was
01:10:10
about 190k is half in economy but 190k
01:10:13
points or so return trip uh from Bombay
01:10:17
to Vancouver uh VI business and then
01:10:20
back yeah 190k total 190k points this is
01:10:23
return trip 90 98k one way okay yeah so
01:10:27
about otherwise 49k for economy so
01:10:30
double for business but double for
01:10:32
business doesn't you don't mind that
01:10:35
because if you think about it 49k you're
01:10:37
paying on economy 98k you're paying on
01:10:39
business but in rupees if you had to do
01:10:42
that an economy ticket might be one lakh
01:10:44
but a business class ticket is not two
01:10:46
lakhs a business class ticket is like
01:10:47
three lakhs so usually if you look in
01:10:50
rupees the conversion rate between a
01:10:52
economy ticket and a business class
01:10:54
ticket is usually 3 to 4X that's why
01:10:58
business is so prestigious right but in
01:11:00
points it's only 2x that is where the
01:11:02
ROI or value comes that's why you get
01:11:04
that 40 50% that I was talking about on
01:11:06
like the that card that's why business
01:11:08
class flights give you better Roi and uh
01:11:11
I'm not somebody who needs to travel
01:11:12
business I can travel economy but I just
01:11:14
came from the US I flew Air India from
01:11:17
uh Delhi to Chicago 16 hours it was
01:11:21
hard so yeah I've heard some bad stories
01:11:24
about Air India to direct to I am a huge
01:11:27
fan of Air India and I hope they do
01:11:29
better I am literally the number one
01:11:30
cheerleader I want them to do better but
01:11:33
it was tough 16 hour flight yeah so uh
01:11:36
that's a little tough in economy and
01:11:38
obviously if you have the points why not
01:11:39
use them and it'll help with content too
01:11:42
right so it's like through credit card
01:11:44
points business class is just twice as
01:11:46
expensive as economy but if you had to
01:11:48
actually pay with cash it could be three
01:11:50
to four times more expensive most of the
01:11:51
time correct if you see a 50k ticket
01:11:53
it'll be one and a half lakh in business
01:11:55
interesting right but that's not the
01:11:56
hack what is the hack the hack is
01:11:58
something called as an Excursion flight
01:12:01
Excursion flight yeah what is an
01:12:02
Excursion Excursion is let's say you're
01:12:04
taking a vacation to us right you went
01:12:07
to Chicago just now right right then
01:12:09
from Chicago you went to Miami you flew
01:12:11
from Chicago to Miami that Chou flight
01:12:14
is called an Excursion
01:12:15
flight it's like a small trip around
01:12:18
that destination city okay yeah yeah
01:12:20
yeah so a small trip you do within a
01:12:21
trip is an Excursion flight and a lot of
01:12:23
people do it on Euro trips right you go
01:12:24
to let's say London and then maybe you
01:12:26
want to go to Ireland I did that let's
01:12:28
say you want to go to Paris and then
01:12:29
maybe some others you can take train or
01:12:31
bus also but then let's say you're going
01:12:32
to Germany from Paris then maybe you
01:12:34
need to take a flight so that's called
01:12:35
an Excursion flight what did I do I had
01:12:37
to go to Vancouver for the wedding I
01:12:39
have friends in Toronto that Excursion
01:12:42
flight if you book a return trip via
01:12:44
United that Excursion flight which would
01:12:46
have costed me another $300 becomes
01:12:49
free how it's just you can Google it
01:12:52
United Excursion perk it's just a hack
01:12:54
on United they give that to when you
01:12:56
book with points so I got a business
01:12:59
class flight to Vancouver in 98k points
01:13:03
using on United only on United yeah okay
01:13:05
now I go from Vancouver after the
01:13:07
wedding to Toronto okay and then from
01:13:10
toron and that flight also I get
01:13:12
business class because uh because you
01:13:14
booked the business class ticket so they
01:13:15
give you Excursion also business okay
01:13:17
but three hours excursion business
01:13:19
doesn't matter but great to have it free
01:13:22
and that becomes free so I Sav $300
01:13:24
there which I would have otherwise paid
01:13:26
and on the way back is also included so
01:13:29
the whole return trip of threeway was
01:13:32
paid in that one return trip so it's
01:13:33
called the Excursion flights that you
01:13:35
get for free got it got it so all of
01:13:38
this comes with only experience and this
01:13:40
is s s years of experience talking yeah
01:13:42
this is experience and just being that K
01:13:44
and learning all of this stuff so that's
01:13:47
kind of the difference in terms of
01:13:49
learning this and that's why uh a lot of
01:13:51
people are getting into this now and uh
01:13:54
the biggest factor is that the credit
01:13:56
card Market in India is growing so much
01:13:59
right right and I went to the US just
01:14:02
now I visited my aunt okay and she was
01:14:03
asking me about my Canada Trip and she's
01:14:05
I said I have some credit card points
01:14:07
and I proceed to explain to her what
01:14:09
that means and my 65 year old Aunt who
01:14:11
lives in the US so yeah you're going to
01:14:13
use miles a miles H they already know
01:14:16
65y old I could go over here and tell
01:14:18
anybody they won't understand what is
01:14:20
air miles and air points but in the US
01:14:22
it's just so widely used that everyone
01:14:25
knows it right and that is what India is
01:14:27
going to be in the next 10 years so now
01:14:30
tell me the craziest Hotel experience
01:14:31
that you've had you know a hotel that
01:14:33
you would never go otherwise using your
01:14:34
own money but something that you could
01:14:36
go only because of credit card points
01:14:38
I've only traveled uh quite a bit
01:14:41
domestically um I've stayed at you know
01:14:43
for example the JW in Singapore for like
01:14:44
a night I've stayed uh here and there in
01:14:47
different hotels uh so one of the best
01:14:50
hotels to actually stay at in India and
01:14:51
I'm going in a couple months uh is the
01:14:54
Raffles in udur
01:14:55
okay right this uh hotel is actually on
01:14:58
an island in udur and the whole island
01:15:00
is the hotel so when you book it they'll
01:15:03
receive you over there they'll take you
01:15:04
in a boat to Raffles ofur and that hotel
01:15:07
is absolutely massive like Pinnacle of
01:15:10
luxury I would definitely rank it in the
01:15:11
top three hotels in India like I would
01:15:14
call it number one personally speaking
01:15:15
like how much is there a night over
01:15:16
there 40,000 rupees a night okay right
01:15:19
but with access Atlas I stay there for
01:15:21
free like I will use the access Atlas
01:15:23
transfer my points to a COR th000 access
01:15:25
atlus points can give me a night there H
01:15:29
interesting so that's one hotel you can
01:15:31
stay at I stay at a lot in Bangalore
01:15:34
here and there but the best redemptions
01:15:37
are luxury hotels abroad okay give you
01:15:41
an example I'll give you two or three so
01:15:43
one that I want to stay at uh is the
01:15:46
Ritz scon in males okay now if you stay
01:15:50
here for five
01:15:52
nights the points point value is around
01:15:56
four or 5 lakh rupees okay it costs
01:15:59
around 100K points per night okay and if
01:16:01
you stay there for five nights married
01:16:03
gives you fifth night free okay and the
01:16:06
rupee value of one of these nights is 1
01:16:08
lakh Rupees is
01:16:09
2,600 2,500 to $3,000 per night but if
01:16:14
in terms of rupee value how much would
01:16:15
it be in terms of rupee value
01:16:17
$2,500 into five nights is
01:16:20
$12,500
01:16:22
$12,500 is 10 lakh Rupees
01:16:25
so people actually spend that kind of
01:16:27
money to stay for five nights 10 lakh
01:16:28
Rupees yeah that the hotel is running
01:16:31
it's not dead so and Ritz Caron is a
01:16:33
huge name and if you see the hotel see
01:16:35
the room there every room has its own
01:16:39
Infinity pool that actually goes into
01:16:43
the ocean okay and it's an it's a
01:16:45
lifetime experience for most people
01:16:47
you'll never forget that experience yeah
01:16:49
and five nights there is more than
01:16:50
enough and there are some expenses like
01:16:52
if take a SE plane to get there Hotel
01:16:54
food is expensive where will you go and
01:16:55
while you swim to another Island to get
01:16:57
food you'll have to eat there that
01:16:59
expense is there but the stay 12 lakh
01:17:02
rupes of stay is done in 500k points
01:17:05
that's giving you more than two two and
01:17:07
a half% value of your marri points this
01:17:09
is another so wait 5 lakh Points how do
01:17:11
I get these Five lakh Points how much do
01:17:12
I have to spend to get Five lakh Points
01:17:14
how do I use credit cards effectively to
01:17:17
spend the least amount of money and get
01:17:19
this 10 lakh rupees worth of stay in
01:17:21
this five star hotel for free in the
01:17:24
least amount amount of money yeah uh I
01:17:26
would use the American Express Platinum
01:17:28
travel card plus the American Express
01:17:30
membership rewards card so these two
01:17:32
cards yeah I would transfer them I would
01:17:34
spend four lakhs on this 2 lakhs on this
01:17:36
so I spent six lakhs and how many points
01:17:37
six and a half lakhs you spend if you
01:17:39
transfer during transfer bonus this is
01:17:40
easily 100 120k points okay all right
01:17:44
second and if you have a partner and uh
01:17:47
my you main partner like my spouse your
01:17:49
spouse potentially then uh they could
01:17:52
get the same two cards and spend six
01:17:54
lakhs okay okay and make the same 100
01:17:56
120k points so we have around 250k
01:17:58
points correct you need 500k points do
01:18:00
it for 2 years so if we do this for 2
01:18:02
years we can afford that place for free
01:18:05
correct what did you spend 6 lakhs 6
01:18:07
lakhs 13 lakhs plus 2 years so 26 lakhs
01:18:10
pay 10
01:18:11
lakhs so it's like 40% almost 35% return
01:18:15
and that's also manageable for most
01:18:17
people spending 6 lakhs yeah of course
01:18:19
in a year right right so that's one way
01:18:22
to do it in a Frugal manner then
01:18:24
obviously if you're a heavier spender
01:18:25
the AIS atst or Magnus Burg and he can
01:18:27
get you there much faster but that's one
01:18:29
example another example actually it's
01:18:31
going viral on the internet right now uh
01:18:33
is how you can stay at the JW Marriot in
01:18:37
Masai Mara in Kenya okay for like a Jung
01:18:40
uh like what are those uh I went to that
01:18:42
recently last year I went Masai Mara the
01:18:45
the Safari right yeah the Safari Place
01:18:46
yeah so they actually have a JW marri
01:18:49
that's opened up there no I didn't stay
01:18:50
at the JW I stayed in something else now
01:18:52
you go back and stay at the JW okay huh
01:18:54
but that hotel cost $3,000 a night it's
01:18:57
an all-inclusive I definitely didn't
01:18:58
stay there $33,000 a night two and half
01:19:00
lakhs per night two and half lakhs per
01:19:02
night and you can stay there in about
01:19:04
550k points for five nights okay and
01:19:08
what's so special about this hotel it's
01:19:10
an allinclusive Hotel uh you have to pay
01:19:12
a little bit for like the park fees but
01:19:14
it's probably the Pinnacle of luxury
01:19:16
it's they are the most nice staff they
01:19:19
are the the food is included in the
01:19:21
hotel the Jungle Safari and all of those
01:19:24
things are definitely things that uh
01:19:26
like are an experience for most people
01:19:28
and it's just like a lifetime experience
01:19:31
that people do no one is going to spend
01:19:33
$155,000 from like at least an upper
01:19:35
middle class perspective on that right
01:19:37
so it gets you there in points like got
01:19:40
it I think it's great like if I'm
01:19:43
staying there and I'm paying with points
01:19:45
and I see the person next to me
01:19:46
sunbathing at that pool I'm thinking
01:19:48
he's paid money for
01:19:50
this so it just feels good that you're
01:19:53
getting there so what I've understood
01:19:55
from this long discussion is that
01:19:57
obviously there is no end to human
01:19:59
desires right money at the end of the
01:20:01
day is used for having experiences in
01:20:03
life be it going on International
01:20:05
vacation staying at fancy hotels going
01:20:07
in business class flights and all of
01:20:08
that and 90% of people in India feel
01:20:13
like they can't afford all of these
01:20:14
luxuries in life unless they become a
01:20:16
koty and they only think that only
01:20:18
people who are H and you hni I can even
01:20:20
think of affording these kind of
01:20:22
expenses but by having this discussion
01:20:24
and talking to you for the last 1 one
01:20:26
and a half hour what I'm coming to
01:20:27
realize is that you don't need to be
01:20:29
ultra wealthy to live the ultra wealthy
01:20:31
life even if you are a middle class
01:20:33
Indian who knows how to effectively
01:20:36
leverage credit card points and hack the
01:20:39
system you can still live the life of
01:20:41
the ultra wealthy by living a modest
01:20:44
lifestyle that is the you know the
01:20:47
mind-blowing um Revelation for me that
01:20:50
you don't need to be a kodati to live
01:20:53
the kodati lifestyle absolutely and
01:20:56
that's literally what I preach use
01:20:57
credit cards like it's a debit card and
01:20:59
get maximum value out of it yeah uh
01:21:02
obviously that's not going to last and
01:21:04
uh it's not something that uh will
01:21:06
continue to stay in perpetuity to for
01:21:08
you to get you know 15 20 25 so
01:21:11
definitely use them use them smart uh
01:21:13
there are downsides every coin has two
01:21:15
sides so make sure you're somebody who
01:21:17
is using credit card the smart way I
01:21:20
can't stop saying the fundamental
01:21:22
thought process you should have is
01:21:24
always get get something back when
01:21:25
you're spending something the credit
01:21:27
card companies in general will make
01:21:29
money off of the transaction fees
01:21:32
correct right when you're paying at that
01:21:34
POS system there's two 2% charge going
01:21:37
back to that credit card company or the
01:21:39
bank right corre you are paying that 2%
01:21:41
charge and you're not getting anything
01:21:42
back for it corre if you are using UPI
01:21:45
or if you are using uh debit or if
01:21:47
you're using cash right try to get
01:21:49
something back because that inflated
01:21:51
price that 300 rupee Burger includes the
01:21:54
price of that transaction fee so you're
01:21:56
saying companies like McDonald's and all
01:21:57
of them KFC and all is now adding that
01:21:59
extra transaction fee to the End
01:22:01
customer because they have to anyway pay
01:22:03
that to the credit card company 100% so
01:22:05
might as well use the credit card and
01:22:06
get that cash back correct interesting
01:22:08
but the fundamental uh requirement of
01:22:11
using credit card is that be sensible
01:22:14
right do not let it get the better of
01:22:16
you because money at the end of the day
01:22:17
can also be a slippery slope just like
01:22:20
how it can give you the luxuries of life
01:22:21
it can also put you into Financial ruin
01:22:23
right and credit card companies wouldn't
01:22:25
exist if there weren't people like that
01:22:27
who are making those mistakes so of
01:22:30
course people have been watching this
01:22:31
podcast and have gotten all of these
01:22:33
knowledge bites but when it comes to
01:22:35
implementation that's a different ball
01:22:37
game altogether and if you do not
01:22:39
implement it correctly then you end up
01:22:41
losing more money than actually gaining
01:22:42
from this and credit card companies are
01:22:44
profiting from you so I'm sure a lot of
01:22:46
people would be like you know how can I
01:22:47
talk to Ali directly know how can I you
01:22:50
know actually Implement all the things
01:22:51
that has been learned on this podcast so
01:22:53
how can they do that yeah I I love the
01:22:55
plug but uh yeah so I work with you
01:22:58
Sharon on a lot of these things and I
01:23:01
lead the credit card piece that we're
01:23:03
running at the 1% club uh we run master
01:23:05
classes every week so if you're
01:23:07
interested in learning more about credit
01:23:09
cards and if you want to idly know how
01:23:11
you can optimize your credit card
01:23:13
expense and use the right card for you
01:23:15
how many people do you teach every week
01:23:16
about 5,000 people in a month so about
01:23:18
1,00 to 1500 people it's going up as the
01:23:21
popularity increases but yeah I teach 5
01:23:24
6,000 people every month on credit cards
01:23:26
through our Master Class interesting uh
01:23:28
then we have the 1% club uh app which
01:23:31
has the entire course of credit cards
01:23:33
right uh for me the biggest USP of that
01:23:35
is refreshed content because this game
01:23:37
keeps changing every I think that's the
01:23:39
main thing right like for example you
01:23:40
give this example of this axis Magnus
01:23:44
which was you know all the Rave about a
01:23:46
year back but after they devalued now
01:23:48
it's junk right so it's very important
01:23:50
to stay up to dat and uh it's not just
01:23:52
about okay this is the credit best
01:23:54
credit card I'll just go get it no it's
01:23:55
about learning those skill set learn how
01:23:57
to fish right because it's more about
01:24:00
the mentality and the knowledge of
01:24:01
credit card science rather than knowing
01:24:03
oh this is the credit card for me I'm
01:24:04
going to use this for the rest of my
01:24:05
life yeah so this master class is
01:24:07
something where we teach people the
01:24:09
right credit card and I'm not afraid to
01:24:11
tell people right now that oh the axis
01:24:14
uh Atlas is great or the AMX plat travel
01:24:16
is great and I'm giving you the fish
01:24:18
because I know that that fish giving you
01:24:20
the fish is going to solve your meal for
01:24:21
today 6 months down the line you're
01:24:23
going to come back to me and you need to
01:24:24
know correct what the right card is at
01:24:26
the right time so every Saturdays you
01:24:28
come live and you teach this and we're
01:24:30
building out a credit card advisory
01:24:32
where we will have people I train and
01:24:33
teach and also me where you can book
01:24:36
time one-on-one and okay people can also
01:24:38
come one-on-one call with you very soon
01:24:40
yeah where you'll tell them exactly what
01:24:41
me and I'm building a team so depending
01:24:43
on spend thresholds and what you want to
01:24:44
talk about we will have someone to
01:24:46
customize the tailor made credit card
01:24:48
plan just for you interesting fantastic
01:24:51
thank you so much for your time Ali I
01:24:52
think your seven years of EXP experience
01:24:54
has now been condensed into this 1 and a
01:24:57
half hour of discussion I hope people I
01:25:00
hope I think this is just going to be a
01:25:02
huge huge drop in the social media
01:25:05
because this knowledge very few people
01:25:07
know and to get this sort of knowledge
01:25:09
you need to have that actual experience
01:25:11
go through thousands of forums read
01:25:13
those terms and conditions and packaging
01:25:16
all of this in this one and a half hour
01:25:17
podcast I think this is going to be
01:25:20
like I don't know what's going to happen
01:25:22
but I'm pretty sure it is it is like I I
01:25:24
think the value of this podcast is in
01:25:26
crores if like let's say 500,000 people
01:25:28
or 1 million people watch this imagine I
01:25:30
think credit card companies are going to
01:25:31
change their policies if all of these
01:25:33
people start implementing whatever has
01:25:35
been taught I have personally learned so
01:25:36
much I think I'm going to get this bad
01:25:38
boy uh the Platinum charge and see what
01:25:41
I can do with this cuz even I don't like
01:25:43
going in economy flights I need to
01:25:45
figure out how to go in business class
01:25:46
flights like you but yeah thank you so
01:25:48
much I think it there was something for
01:25:50
everybody even somebody who's spending
01:25:52
20 30k per month somebody who spending
01:25:54
50 60k per month somebody who's spending
01:25:56
2 to three lakhs per month and also
01:25:58
somebody who's spending crores every
01:26:00
month I think this podcast had it had
01:26:02
something for everybody so thank you so
01:26:04
much and uh let's see how this goes I'll
01:26:07
see you guys in my master class give me
01:26:09
a follow and I'll see you in the next
01:26:11
one
01:26:15
[Music]