When looking through the speeches of Warren Buffett, he covers a very familiar topic that every household has considered a time or two. When he talks, business students listen. Warren Buffett on credit cards raises factors that a business owner should think about before getting one. Credit cards are a critical component for emergency situations.
In Warren’s studies, he talked about the importance of having a credit card because if you are planning on being responsible, the best thing for you to do it pay your credit card bill every month. As an owner, you don’t want your bills to cause debt. The specific purpose for the credit card being used has to be a purpose that would cause you not to be able to work, put your family in a position to ask you for help while you are working, or you don’t have the cash right at that moment.
Warren Buffett feels that if you own the credit card company, that is even better. If you have all of your objectives organized, there is a greater chance for you to become successful. You don’t want to become overwhelmed with credit card debt.
Buffett can handle a bigger credit card bill than most people. He sees the credit card creating more income for him. Perhaps, you have an item that is expensive that’s charged on your account, if you auction the product off, you may end up making a profit off of it.
When Buffett talks about credit cards, he loves the fact that you can charge the account and pay later. Sometimes, he doesn’t have cash at different events that he attends. With that being said, Buffett feels like a credit card is safer for him that having money on him to pay for an item. You don’t want to mislead anyone into the mindset of wanting to steal from you. Since people do recognize him. Warren Buffett continues to be cautious.