The Great Credick Card GameUpdate After Month Two

So far, Jonny's little experiment is clicking along exactly according to plan. The escrow balance is growing, so the interest accrued on the free money from the credit card companies will continue to increase. The cash-back rewards are also piling up, although there is a significant delay between when the rewards are earned (as purchases post to the accounts) and when the cash is actually received. Realistically it's a 30 to 60-day disconnect depending upon the credit card company and their mechanism for distributing their rewards. For instance, with WaMu, you have to request a check, and they mail it to you two statements (so two months) later. Hence the "Rewards Receivable" outweighs the rewards actually received so far. But several checks/transfers are on the way, and that should pad the surplus nicely.

Stats after two months:

Purchases:	$23,371.91
Payments:	- $1,917.28
Debt Balance:	$21,454.63
Escrow Balance:	$21,594.50
Difference in Debt/Escrow:	+ $139.87
Interest Received:	$64.87
Rewards Received:	$75.00
Interest/Rewards Receivable:	$163.83
Net "Profit":	+ $303.70

The only interesting sidenote this month has been that this experiment has had a pleasant side-effect. Because Jonny is trying to maximize the impact of the experiment, all purchases are being made on credit cards. Each purchase is religiously entered into Quicken (takes only a minute or two each day), so for the first time in years Jonny has a VERY detailed accounting of where the money is spent. With such detailed records, planning a realistic budget and comparing variances between budgeted spending and actual expenditures is a piece of cake. How much Jonny and Mrs. Jonny are spending on some categories is quite shocking. Over time, we'll work toward being more responsible grown-ups and quit spending so much on eating out, fast food, and other questionable expenses.

The results of the project should grow fairly dramatically in the next few months, as large upcoming business expenditures will run the balances up significantly, increasing interest and cash-back. Until then, it will be slow and boring as the free money grows little-by-little.