Stop using your debit card IMMEDIATELY!
If you're using your debit card for anything other than the ATM machine, you're doing it wrong! Do not use your debit card anymore. Only use your rewards credit cards and pay them off as you go and you'll have hundreds if not thousands of dollars in rewards in no time!
Let's back up. Back in 2017, I had a lot of credit card debt. I decided to start getting my shit together once I got a new job and started to pay off my credit card debt. I was thousands of dollars in debt from abusing my credit cards when I was younger. This took a lot of self discipline, but once I tackled my debt, I started a savings account. I literally started at $0. Today, I have over $9,000 in savings. I changed my spending habits and focused on putting all extra money in my savings account. I was having so much fun watching my account grow but I wanted to make even more money. I had heard about rewards credit cards and wondered...what if I used these cards for everything and saved up money that way too? So, I applied for a new credit card: The Chase Freedom Unlimited card. This card gives you 1.5% cash back on every purchase with no limititations and your rewards never expire. At the time, there was a $500 sign on bonus if you spent X amount of dollars in a certain amount of time (today, there's a different sign on bonus, but we'll get to that).
I was a little skeptical and nervous to start using my credit card for everything...how will I remember to pay this off? How will I not mess this up and not get charged an interest or late fee? I'm paranoid about everything, but when it comes to money, I don't want to unwisely spend my money for anything. Despite that, off I went. I paid for groceries, gas (this was before I had an electric car), dining, etc. At the end of each day, I would logon to my Chase account, add up my balance from that day and make a payment in that exact amount. Done. I did this for a few months and realized how easy it actually was. It also made you realize how much extra money you were spending when you're checking on it EVERY day.
After I felt comfortable using the Freedom Unlimted card for a few months, I applied for the regular Chase Freedom card. The difference with this card was you got 5% cash back every quarter on revolving categories. Sometimes it was dining, sometimes it was gas, sometimes it was grocery stores, sometimes it was a mix between a few different options. I was nervous again. I'm going to be using two credit cards and now I have to remember to use the correct card for the correct category and the Unlimited card for everything else AND track and pay both cards. Just like before though, it was as simple as 1, 2, 3. If you really want to make it work and save up money, you can do it.
You would be amazed how fast your cash rewards grow when you are getting 1.5% and 5% back on all your normal purchases. Since I started this process, I've cashed in my rewards twice. The first time was for $500 to pay for tickets at Disneyland and the second time was maybe $100 for another purchase. Even with cashing out twice since 2017, I currently have over $1,960 in cash rewards. I've also added a couple other rewards cards to my rotation. The Citi Double Cash credit card (2% on all purchases, this has now taken the place of me using the Chase Freedom Unlimited card), and the Bank of America customized cash rewards credit card (3% on a category of YOUR choice; I've designated this one to dining as we dine out a lot).
Let's beak down how and when I use my credit cards:
𑇐 Chase Freedom (5% on rotating categories) - currently, the category is grocery stores and PayPal purchases.
Let's back up. Back in 2017, I had a lot of credit card debt. I decided to start getting my shit together once I got a new job and started to pay off my credit card debt. I was thousands of dollars in debt from abusing my credit cards when I was younger. This took a lot of self discipline, but once I tackled my debt, I started a savings account. I literally started at $0. Today, I have over $9,000 in savings. I changed my spending habits and focused on putting all extra money in my savings account. I was having so much fun watching my account grow but I wanted to make even more money. I had heard about rewards credit cards and wondered...what if I used these cards for everything and saved up money that way too? So, I applied for a new credit card: The Chase Freedom Unlimited card. This card gives you 1.5% cash back on every purchase with no limititations and your rewards never expire. At the time, there was a $500 sign on bonus if you spent X amount of dollars in a certain amount of time (today, there's a different sign on bonus, but we'll get to that).
I was a little skeptical and nervous to start using my credit card for everything...how will I remember to pay this off? How will I not mess this up and not get charged an interest or late fee? I'm paranoid about everything, but when it comes to money, I don't want to unwisely spend my money for anything. Despite that, off I went. I paid for groceries, gas (this was before I had an electric car), dining, etc. At the end of each day, I would logon to my Chase account, add up my balance from that day and make a payment in that exact amount. Done. I did this for a few months and realized how easy it actually was. It also made you realize how much extra money you were spending when you're checking on it EVERY day.
After I felt comfortable using the Freedom Unlimted card for a few months, I applied for the regular Chase Freedom card. The difference with this card was you got 5% cash back every quarter on revolving categories. Sometimes it was dining, sometimes it was gas, sometimes it was grocery stores, sometimes it was a mix between a few different options. I was nervous again. I'm going to be using two credit cards and now I have to remember to use the correct card for the correct category and the Unlimited card for everything else AND track and pay both cards. Just like before though, it was as simple as 1, 2, 3. If you really want to make it work and save up money, you can do it.
You would be amazed how fast your cash rewards grow when you are getting 1.5% and 5% back on all your normal purchases. Since I started this process, I've cashed in my rewards twice. The first time was for $500 to pay for tickets at Disneyland and the second time was maybe $100 for another purchase. Even with cashing out twice since 2017, I currently have over $1,960 in cash rewards. I've also added a couple other rewards cards to my rotation. The Citi Double Cash credit card (2% on all purchases, this has now taken the place of me using the Chase Freedom Unlimited card), and the Bank of America customized cash rewards credit card (3% on a category of YOUR choice; I've designated this one to dining as we dine out a lot).
Let's beak down how and when I use my credit cards:
𑇐 Chase Freedom (5% on rotating categories) - currently, the category is grocery stores and PayPal purchases.
𑇐 Bank of America customized cash (3% on a category of your choice) - I've set the category as dining.
𑇐 Citi Double Cash (2% on every purchase) - when I'm not using the first two cards, I'll use this for everything else.
If you're interested in trying this easy process and want a good starter rewards card to dip your toes into the world of credit card cash rewards, I highly recommend the Chase Freedom Unlimited credit card (please use this link as I'll get a bonus for referring you!) When you sign up, you now get a $200 bonus, 5% cash back on gas station purchases up to $6,000 in the first year (is that even possible?!), 3% on dining and drugstore purchases and 1.5% on everything else.
This is not a paid advertisement, I'm just passionate about credit card rewards. The biggest reason is, it's SO easy to do and you're basically just living how you were before, but now you're getting rewarded for every purchase you make. You can look at every new purchase as an opportunity to save money. I love it.
If you have any questions, please let me know in the comments, I'm here to help!
Click here to apply for the Chase Freedom Unlimited credit card.
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