This is a conceptual post, that will hopefully allow you to be more creative with your spending habits. The notion of gateways assigns a distinct event to each transaction, allowing you to track and maximize the flow of your money. I call it the gateway notion each transaction has the opportunity to stay within the system, or exit out of it. This concept was underlying the milemadness tournament in that the rules stated people must have a finite amount of money ($5,000) and it must not exit the system (through the gateway).
As an example. If you were to buy say $1,000 of gift cards and load them onto the evolve App and then pay your mortgage, it would exit the system. The money has been spent, and you would need a new cash flow to replace the $1,000. Sadly, many things in life do still require that we pay for them, so there are many ‘exit events’ that will occur. However, understanding the flow can help you defer the exit, boosting rewards!
Remember, the moment that your money exits the system, it can no longer be passed through a gateway. So the question is, if you were once satisfied with earning credit card points instead of paying cash, how many times do you want to earn those points on the same expense before you pay cash? Just one time is pretty boring don’t you think?
Can you figure out how I turned my $500 American Airlines lapchild fee into a cost of $482.05 and earned 1250 AA miles?
- Gateway1 ???
- Gateway2 ???
- Gateway3 ???