I heard this song on Family Guy and immediately thought of you..
It goes a little something like this:
“Cause I have $30,000 in credit card debt, 🎵
When they call, I tell them I can’t pay it back yet.” 🎶
There’s a little more to it, but I think you got the main point:
90% of people are dumba**es with their credit cards (AKA not-credit-card people).
These are people who use credit cards for almost everything and have trouble paying it all off, causing them to pay interest.
The other 10% of people make smarter decisions with their plastic cards (AKA credit card people).
These are people who earn the benefits of using a credit card like points, cash back, and programs WITHOUT paying interest on the monies they borrow.
The question is… if you are a credit card person, how do you make the most of using your credit cards…
WITHOUT falling into DEATH traps like taquitos and dum dum stuff that’ll kill you in the frozen food aisle at Walmart?
Well, here’s how:
(DISCLAIMER: This is for credit card people ONLY. If you’re not a credit card person and you’re not responsible using a piece of plastic, then DO NOT read ahead.)
- Set a f**king budget
I shouldn’t have to tell you this one.
You already know the drill:
50/30/20 rule.
- Understand your card’s rewards structure
There are 2 parts to every credit card’s reward structure:
- Types of rewards you get back – cash back, flight miles, or points
- Categories your rewards apply to – groceries, dining, gas, etc.
Credit card companies can either offer different rewards based on the category (3% back on groceries, 2% back on dining, etc.) or offer a flat % back on all purchases.
See what your credit card company offers and how you can leverage your purchases to get the most out of your cards.
- Use credit cards for everyday purchases
We all have monthly bills that need to get paid like utilities and groceries.
In cases like these, you can get easy points by paying with a credit card and then paying off the card afterward.
Again, this needs to be within your budget.
OR ELSE DEAATTTHHH.
- Use debit for riskier purchases
Don’t let your debit card get sad because he’s not getting used.
Using debit is great for anything you buy that:
- You don’t think you can pay back in time.
- Is in the Want category; not the Need category.
Think TVs, hotel rooms, restaurants, etc.
This will help you use your brain when you spend your monies and avoid impulse spending on bulls**t you don’t need.
- Leverage shopping programs
All credit card companies offer special offers so you can earn extra points or get cash back on purchases you’d make anyway.
These change at least once a month so check your portal and see what you can save on or get more cash back on.
NOTE: This is normally a marketing tactic to get you to buy more stuff. Don’t fall for it. Use this to your advantage to just buy the stuff you need.
- Set some mo’ f**kin spending alerts
Keep your spending in check and set spending alerts on your credit cards.
That way if you go over your budget or overspend on F**KING TAQUITOS, you can’t tell yourself…
“Oh, I didn’t know I spent so much money on Starbies and taquitos…”
Dumbo, you got an email, a text message, and a notification on your phone from Discover.
You ain’t fooling anyone.
Again, this is for CREDIT 👏 CARD 👏 PEOPLE 👏 ONLY. 👏
If you’re not a credit card person, please do yourself a favor and give your credit cards to your pet hamster or a local chimpanzee.
They’ll be more responsible with it than you.
Taquitos,
Caleb Hammer
P.S.
The reason why I talk down against using credit cards for most people is because credit cards allow you to make brain-rot decisions.
You don’t think when you use a credit card.
You can just swipe and deal with the consequences later…
And this sets so many people back from pursuing bigger goals like saving up for retirement and investing their money.
But if you’re responsible with your credit card (or you just don’t use it in general), you don’t have to worry about that.
Instead, you can focus on more important, long-term decisions.
You can build an emergency fund that can help you during rough times…
You can save up for retirement with a high-yield savings account…
You can invest in stocks and help to build compound wealth (with platforms like MooMoo who offer a fractional share bundle for first deposits)…
See what I did there 😏
Simply put:
Being wise with your credit card allows you to be wise with the rest of your finances.
Make smart decisions with your spending = better decisions with your finances.
If you’re making smart, big boi decisions already and have extra money saved up, you can start investing and potentially building your wealth with MooMoo.
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*New User Promo: The rewards are mutually exclusive and end May 28, 2024. See moomoo.com/us/support/topic4_410 for additional terms & conditions.
Deposit Bonus – Fractional shares are illiquid outside of Moomoo Financial Inc. (MFI), and cannot be transferred. Each of the 10 fractional shares were initially worth $5, totaling $50, based on the closing price on 03/14/2024. The actual value received will vary based on market conditions.
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Securities are offered through Moomoo Financial Inc., Member FINRA/SIPC. The creator is a paid influencer and is not affiliated with Moomoo Financial Inc. (MFI), Moomoo Technologies Inc. (MTI) or any other affiliate of them. The experiences of the influencer may not be representative of the experiences of other moomoo users. Any comments or opinions provided are their own and not necessarily the views of MFI, MTI or moomoo. Moomoo and its affiliates do not endorse any trading strategies that may be discussed or promoted herein and are not responsible for any services provided by the influencer. This advertisement is for informational and educational purposes only and is not investment advice or a recommendation to engage in any investment or financial strategy. Investing involves risk and the potential to lose principal.
