Corporate Credit Cards

Spending on corporate credit cards - the right way

A lot of people, especially in the finance world incur expenses at work. If employees are incurring expenses for travel etc these can rack up to a couple of hundred pounds. Sometimes it takes time to recoup this money back from the company. In that time you may have a shortfall in the cash flow of your current account. Furthermore, you may lose out on the interest that you could have otherwise have earned. Many companies have solved this problem by issuing a corporate credit card to aid cash flow.. The cards tend to have an unlimited credit limit. This is a great solution as it allows employees to incur the large expenses, and claim back the money before the cash leaves your account.

Make money from your expenses

It's really simple to make some cash off these expense transactions. Instead of using the corporate card just use your own cash back credit card to pay for these sorts of transactions. I recently made £30 cash back off of a £500 expense using my 6% introductory cash back card. Easy money, just make sure you pay off the expense in full at the end of every month. Set up a direct debit if you think you're the sort of person who may forget! The company should be putting the money back into your account before you're having to pay back the cash so why would you forego the opportunity to make some extra money!

Obviously, not everyone's cash back card will give such a good rate but every little helps, even if it's 0.5%, why would you waste the opportunity for free cash?

There you have it - a quick way to make a little cash.

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Trading on tips

Advice on trading based on tips

If I could only give you one golden rule to investing that will save you money in the future then it would have to be this: Never ever trade on tips!

It's really simple. If you're down in the pub, chatting to your friends and someone mentions any sort of investment and financial product - the guaranteed thing; the thing that's going to make you rich - do not ever take your friends word as sound financial advice. I don't care how close you think you are to this friend, or what level of success or experience they've had at making money, do not make any transaction purely based on what your friend says. Too many people lose money this way.

I read about Aviva as the next great investment of 2011 back in December of 2010. Not only did I hear about the share from friends but read about the share being tipped in The Times and also on a well known share tipping website. I rushed into the share buying £500 worth...The shares fell by about 20%. I read a little more about the shares and how they were going to be the next great investment. I bought £500 more and justified it to myself that I was averaging up in the long run. The shares fell some more and continued to do very little over the following years. In mid-2012 I sold all my shares, crystallizing a loss of about £150 and reinvested into a mining company  that has since made a 40% return to date. I learnt that there is nothing wrong with crystallizing a loss if you think you've got a good alternative investment. Another early blunder in my investing career, based on a tip from a friend is detailed in a previous post. Please save yourselves the money and don't invest on tips: not even on my tips!

How do I invest if not on tips?

When someone says there's a really good investment, or you read about a share being tipped, go and find some objective evidence and make an impartial judgement. For example, go and look at the financial statements of the company. Ask yourself, how has it done over the last few years? What reasons would I have for investing in this company? What reasons should I not be investing? Be sceptical and you shouldn't go too far wrong.

The problem is that people aren't trying to con you out of money, it's just that they like to sound cleverer than they actually are. They make sweeping statements to sound knowledgeable about a subject. Try to cut through the bullsh*t and see the truth.

So it's simple - unless your friend is Warren Buffett then do not take their advice as truth.

Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

Share Strategy

Investing Unusually

Over the last two and a bit years I have been investing in the UK stock market. I believe that in this relatively short time I have begun to develop my thesis on one method to use to invest in stocks. I must point out that I am careful to point out that my method is by no means the definitive method, nor the most effective, nor even complete. However, I can say that my method has worked for me. Each of my CURRENT holdings has had on average a 27% rise on the price that I first purchased at (note that some of these shares I may have only held for a few months). Furthermore, I believe that others could replicate my logic.

Investing - less waffling, let's get straight to it:

The general idea  is that much of price fluctuation is down to emotion. People seems to overreact to situations. When a certain stock is "in", people go mad for it and the bull run of that stock begins. When a stock is seen as bad, people seem to dump it as quickly as if they were holding a stick of dynamite. Whilst there is usually some underlying reason for buying or selling a stock investors seem to lose their heads a little.

We can utilize the frenzy. Be a contrarian. Go against the crowd. It's simple(ish): Buy what everybody else is selling in an overreaction. In the summer of 2010 the UK (and the rest of the world) were dumping banking shares. The likes of Lloyds and RBS had crumbled from the dizzying heights of 700 pence down to 20 pence. No one was buying banking stocks except a few investors, of which I was once of them. I bought into both banks as well as into Barclays. I have since then seen a return in Barclays of 70%, Lloyds of 58% and RBS of 33% and I plan to hold these for the long term. It is my belief that whilst they may never again reach their past peaks they may at least make me a decent return in the meantime!

How I developed my investment strategy?

The first shares that I bought was Aviva in 2010. I bought it on a recommendation from a well known stocks and shares tip website. In the first few days of owning the shares, they went up in value by about 5%, before tanking after the Japanese earthquake in 2011. Whilst I shouldn't have been trading on tips in the first place, the decline in my share value made me think: wow, I wish I'd bought these Aviva shares now that they've lost half their value. Since then I bought and sold shares in Weir Group after they crashed from 2000 to 1500 pence. I sold them at 1900. I am currently sitting on a 56% profit in Centamin plc after its share price fell dramatically after the miner experienced supply issues in Egypt.

Of course there have been one or two failures as well. I bought into Lonhro after a friend told me about it. I wasn't interested until the price went from 20 pence to 11 pence. However it now sits at 8 pence. What I learnt from this experience is a golden rule that I would tell anyone looking to invest: never invest on someone else's recommendation (even mine!). Stop being lazy and go and do some bloody research!

My method seems to work when I read in the paper about a share price crashing and then researching into the fundamentals of the company. If I feel that it's share price tumble is down to a short term blip (like supply issues or natural disasters) rather than symptomatic of a longer term trend then I will buy. It will become fairly obvious if the share price is a result of a longer term trend if the assets of the company are in decline or turnover and profit have been steadily decreasing. There is nothing complex about this style of research it simply requires a little patience. From my experience, most falls in the stock market are not investment opportunities, however, I am still required to research each big fall from each day in the hope of finding the one Picasso that was thrown away.

Morality of investing

I must point out that this style of investing is not for the person who likes to upgold their morals. The miner, Lonmin Plc were recently experiencing strikes that escalated in 40 or so of their workers being shot. This turned out to be a perfect buying opportunity as the share price fell to a quarter of its peak several months later. Some people may not feel comfortable investing off the back of other people's misery. Personally, I say it doesn't matter. We're here to invest and make money. If you're decisions are affected by your lefty liberal hippy douchey tendencies then I say "go home! You're in the wrong business. Go and set up a charity somewhere and stop wasting everybody's time complaining!" Too harsh? Perhaps. But this style of investing will require you to make every situation into a black and white one as it requires decisiveness and timeliness. If you take too long wondering about the grey areas you'll lose your chance to make large profits.

Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.


Information on this site is not appropriate for the purposes of making a decision for carrying out a transaction or trade nor does it provide any form of advice (investment, tax or legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments, or products.
Always seek advice of a competent financial advisor with any questions you may have regarding a financial matter