Ideas on how to set up recurring payments for long term savers

I have always been a saver but I didn't always know what money actually is. Gold is money, currency is paper backed by promises. I was the kind of person who would put 5% to 10% of my paycheck into a saving account every payday. I set up recurring payments similar to what I did in the past. I set up weekly payments from my credit card that would be about 10% of my paycheck. There are a few ways to do this.

My preferred method is credit card (of course this would depend on what country you live in and if you have credit card debt) I get 1.5% cash back on all purchases (which includes GoldMoney deposits) and everything else I buy, plane tickets, bills, grocery everything. I pay my total credit card balance off every month so I have never paid a cent in interest but I have used my cash back bonus points to buy a few hundred dollars in gold. If you don't have a balance you will not pay any interest, your credit score goes up and you get cash back. The only thing better than having gold is getting free gold!

After the credit card my next option would be a debit card. Although you will not get earn any credit it is better to buy gold with money you actually have. Going into debt buying gold is a bad idea because the price of gold may drop. If you NEED your gold due to job loss, medical emergency or something other unforeseen circumstance. You will have to sell gold at a loss, pay the fee's, you and now you still owe the money for buying the gold and probably have credit card interest as well.

The reason I prefer credit card or debit card over bank wire is the cash back bonus points on a credit card instead of the bank wire transfer fee and still need to go down to the bank. All these fees add up over time to what could have been used to buy more gold.

Over time buying gold the same way you would save money in the past will really add up, plus the rises and drops in the gold price when you purchase would average out. Remember Gold money is for savings, not for daily spending for coffee in the morning. Use fiat cash for that, fiat is just monopoly money anyway.

Comments

  • paddy10tellyspaddy10tellys Posts: 249 Bronze ✭✭✭
    edited November 2016
    @Tom_Bacco the trouble is that Goldmoney need people to be actively spending on their goldmoney cards, as well as buying & redeeming gold frequently - their business model relies on it. That's how they make a profit. Alternatively, they could start charging you in various other ways, for looking after your gold... there has to be something in it for them. Otherwise, why would they bother?
  • GoldIsCurrencyGoldIsCurrency Posts: 1,794 Gold ✭✭✭✭✭
    edited November 2016
    @paddy10tellys People will spend it. I am in for longer term savings but when the price of gold has moved up I have loaded gold onto my Goldmoney Card and have bought various things. It is my understanding that management is on top of all the data and they are seeing that people do spend their gold holdings/savings.

    Every user will be different. Some users saving for their children's education, a car, a house a vacation whatever the desire is. When the time is right people will redeem into their bank account, goldmoney card, goldmoney merchants or maybe just into some physical gold.

    Considering Goldmoney just lowered the fee's to 1/2 a percent within spot I am very confident that gold is being used as money the way their mission has been, to democratize gold.
  • Tom_BaccoTom_Bacco Posts: 47 Copper ✭✭
    @paddy10telly @GoldIsCurrency I get that everyone is different and GoldMoney is doing this for a profit or there is no reason for it. A business is not a charity and I get that. The way I see it Gold money makes 1/2 a percent every payday I make a deposit and I do this weekly, I want to expand goldmoney to other so they can go the same. However I cannot see the logic in using the Goldmoney debit card like I would any other credit/debit card. Gold IS money but it will cost you the 1/2 percent when you buy, a 1/2 percent when you sell, plus you will owe tax on capital gains that will happen as the gold price fluctuates. In saving for something important I future it makes sense but for day to day transactions it doesn't make sense to me when you can avoid fee's by using your basic debit card or credit card if you have no interest. I cannot recommend people do this if I don't see the logic behind it myself. I do try and grow GoldMoney so they can make the 1/2 percent on millions hopefully buying a little gold every paycheck making GoldMoney profitable and grow but the fees don't make day to day coffee purchases reasonable to me. Again for that reason I recommend people use this as a savings account/emergency fund and deposit a little every week till the day comes they need it. I preach what I practice and practice what I preach. I'm not saying your wrong but I just have a different approach.
  • paddy10tellyspaddy10tellys Posts: 249 Bronze ✭✭✭
    @Tom_Bacco @GoldIsCurrency you are right, of course and if goldmoney gets the balance right they they & we will prosper. I totally buy their proposition so I invested in gold with them & bought shares in the company. I have an awful lot riding on all of us getting the balance just right...
  • GoldIsCurrencyGoldIsCurrency Posts: 1,794 Gold ✭✭✭✭✭
    @Tom_Bacco We all have different approach's and that is what will make this platform successful.

    In regards to the debit card. I live in Canada but have a USD card. Whenever traveling to the USA it can be used and avoid all those FX fee's. It becomes the most cost effective route over credit cards or obtaining USD cash at the bank before leaving for travel.

    With the recent reduction to only 1/2 a percent it could bring in a different type of user wanting to use the platform just for a gold trade versus an ETF. So many different use's not to forget about the utilization of the platform to send remittance funds. Although the growth there will pivot on Goldmoney's ability to start offering many different currency choices for the goldmoney card.
  • Tom_BaccoTom_Bacco Posts: 47 Copper ✭✭
    GoldISCurrency I get using it when traveling to avoid conversion fees and bank fees and have advocated it in the past but for day to day spending I cannot see the logic in using the Goldmoney debit card like I would any other credit/debit card. as an American It will cost you the 1/2 percent when you buy, a 1/2 percent when you sell, plus you will owe the 18% or 28% tax on capital gains that will happen as the gold price fluctuates. At least for Americans it would make the most sense primarily as savings or emergency fund because of capital gains taxes that is way more of a issue than the goldmoney fees
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