Here’s the thing, I love doing YouTube videos, I love putting out content and I love when people take action on some of the advice that I offer.
But do you know what I LOVE THE MOST?
The comments! Not the simple “Thank you for the video” - the comments from the haters-Those are the ones that I love.
I have been blogging for a while and I am used to these comments now, but I remember in the beginning how much they bothered me. But now, it is just so much fun just proving them wrong.
So haters, have fun with this one!! 🤣
So in one of my more popular videos, it’s the Passive Income Ideas video, I share 11 ways that you can make passive income. One of the ways I talked about is using credit cards to earn rewards points and how that is passive income.
Now we can talk all day long about whether or not that is really passive income or not? That is not what I am going to talk about today. What I want to focus on today is the people that comment that credit card rewards are not passive income, how it is a joke, a crock, etc.
So I am going to show you some of these comments - comments that range from people calling me a con artist, people that are calling ‘BS’, and people that say it just doesn’t happen.
I can tell you that it does work, you can get rewards points and save a ton of money.
So here is one of the most recent times that rewards points were used…...my wife and I recently went to Cleveland with our youngest son. We had plenty of notice before traveling so I had time to look at my rewards points and get the best deal.
So what did we get? Well we got round trip tickets for all three of us, we got three nights hotel stay, and we rented a Cadillac SUV for 3 days. I had almost 600,000 points on one of my cards and I had 140,000 other points that we used. So how much did we save using these points?
The round trip tickets to Cleveland would have cost $1,600, the hotel was Home to Hilton, it was not the top of line hotel, but it was a nice decent room and that saved us $450, on the car rental I got a Cadillac SUV and saved $225. So, adding up all of these charges, our rewards points saved us $2,275. ✈️🚗🏨
Do you see why I think these hater comments are funny? 🤣 I saved a ton of money for that weekend trip.
I have 3 credit cards that I use as my main cards for business and personal spending. We chose the Chase card specifically for travel. Another perk with the Chase Southwest card is you can qualify for a companion pass, if you travel frequently. Your companion can travel with you on SouthWest for FREE! ✈️ You also have the option of changing your companion up to three times per year.
That is how we use our rewards points! Because that is what works for us. We travel frequently and with a family of 5 it can get pretty pricey.
To address the comment about annual fees….yes I have to pay an annual fee but with the $2200+ that I just saved on this Ohio trip, I am still net positive. 💰
Another comment was regarding interest - we don’t pay interest on our cards because we pay off the balance in full each month. So we don’t accrue interest.
We use our cards to pay for as many things as we can, monthly bills, dining out, etc. This way we earn points paying our standard monthly bills each month. By paying our cards off monthly, we don’t have any additional interest costs.
Do you use credit cards to get the rewards points?
If so which ones do you use? Do you prefer the travel cards or the cash back cards?
Maybe I don’t have the best card out there so I want to know…..what’s working for you?
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All you have to do is buy/pay would what you normally buy/pay with your regular debit/cash/checks on the credit card if it gives points/miles. And pay it back instantly on the credit card. (Money working for you) Ok So I typed this comment before the end when he mentioned it. lol
Great video Jeff. My wife and i use credit card and plan ahead for up coming trips. We have gone to Hawaii and saved a lot of money by using a 3 credit cards. We normally like to get the cards around September because we know we will be spending money during the holidays. Most of the cards require us to spend 3000 in 3months. To help with meeting the bonus requirements, I funnel my business spending on my cards to earn flying miles and cash. We wrote an article about our savings and the total cost of our trip on the link below. https://everyothercent.com/how-the-four-of-us-traveled-to-maui-for-less-than-3000/
Hey, Jeff...LOVE your videos! I have one credit card that I use for everything (e.g., gas, cellphone, groceries, car insurance) and I pay it off every couple of weeks. No interest. Also no annual fee on my card. I rack up points and I cash them in (as a credit to my account) every 4-5 months. That's $300+ a year that I'm not paying out of pocket. (I like to keep things simple, so I don't collect points for air travel, hotels, rental cars, etc.) Yes, credit cards can definitely work for you if--IF--you know how to use them properly.
This is a phenomenal video. With the growth I am seeing in my business, this is a strategy I would have no problem using. Between life events coming up and travel her and I both want to do as we grow our individual businesses, this would be extremely advantageous. Keep up the great work in the videos and let your personality shine through.
i'm earning points, never pay any late fees nor have never paid zero interest, since i always pay my bill on time. use my points for family vacations. same way on paying all monthly bills on time! this should be taught in high school!
My husband and I use credit cards for everything and pay them off in full every month. We LOVE the Capital One Venture card because it's double points on everything you buy and the annual fee is really low. I think the initial bonus was something like 50,000 points. We've paid for cruises several times with our points and we're saving them up now to cover a good chunk of our Alaska adventure next fall!
Hi, just a comment, but you must be charging thousands per month, because once you get what ever bonus points you get initially , you dont get them again, and usually those are a big chunk, so then you have to be charging up the Kazoo !!!,,,, i went to asia in 2015 and i used like 85000 pts just for the airlines, but then it takes me Yearssssss to accumulate more points ,,,, do you have a secret sauce in getting points? i think thats why people believe people lie about points etc or believe you are lying,,, instead of you saying, yeah, i charge thousands of dollars during the month, and you must be, in order to get so many points,,,, and it takes me years to get them... being truthful,, thats all,,,,, any remarks? any special sauce in getting points?
thanks for your comment, but you have to be very disciplined, since CC leads to over buying since it seems to be using other peoples money, primarily the banks in this case, which in turn is really ours too , those who pay interest on these card and fees. The gratification is instant until you get the bill and you have to pay it. I dont know of any card you can use to pay your home or car, if there was one, then points would be huge, but that would lead to a super mess as in the 2008 housing meltdown, so theres a reason thats not done or allowed. I mean how much can you eat on a monthly basis, haha, just over thinking, thanks again
This is what we do to visit our Grandkids 3 to 5 times a year. We use Southwest, Alaska, and Hawaiian. We have had 3 or 4 trips to Hawaii covered by rewards. Just started Cap One Venture to see about expanding our horizons in our travel. Yes, we pay them off every month.
I will say this . if you plan on using credit cards to cash in the rewards then YOU HAVE TO BUDGET. that means that you have to have the cash in the bank before you make the charge. If you choose not to do that then do the Dave Ramsey thing and live on cash only. If you do choose to budget then there is a reward available for your good behavior.
I have a friend who had enough rewards points to take his family (wife and 2 kids) as well as mother-in-law to Spain for 10 days. That included all first class tickets, hotel, and rental car. The only thing they paid for was spending money. Granted, this was an anomaly as he traveled ALOT for his job and racked up an enormous amount of points with Marriott, car rental, and Delta. So, it is definitely possible.
Nice video! That's funny, I'm a huge fan of Dave Ramsey and I know he hates credit cards, but I think he is more pointed to an audience who has no self control or financial education. Properly managed credit cards are great! My wife and I just got back from a trip to Mexico paid for by our cashback off our PayPal cards we use for personal and business! We bought a house and did a complete remodel paid for all on the cards. Paying off the balances every two weeks, just like your wife. No interest, no annual fees, money invested gaining appreciation, and a trip to Mexico! Rewards don't work if you don't have any money to spend and your not in business. For those that are in business and spend money, they work great! Oh, and was this WHW!?!??!
Haters can't beat you, you just made of bettet ingredients. Well done brother!
I came across your channel just recently, and I want to say thank you! Thank you so much Jeff, for all your effort you've putting through those videos. Keep up with the outstanding content.
BIG SUPPORT FROM ISRAEL !!!👍👍💪💪
My credit card gives me 5% Cash Back on Amazon during the holiday season. Last year I did my holiday shopping and bought myself a Nintendo Switch and got enough rewards to get Snipperclips Plus at no cost to me :)
Credit cards can be very dangerous to those who overspend and to younger people who don't understand finances yet. However, those who use them wisely can benefit greatly from them. Even the cards with annual fees you can come out WAY ahead on. If you're going to spend $5,000 why not get 1-5% back versus 0% via debit card or cash?
Just got a new credit card Bank of America with 2 or 3% permanent CASH BACK, no annual fee, no signing up category.
AND SIGN UP FOR A CHECKING ACCOUNT and they will give you ANOTHER 10% on your CASH BACK!!!!
Using reward points for cash back that allows me to get gift cards via Chase. I love it because I can give the gift cards to my Grandchildren. I have benefited from family members who travel a lot gifting me with reward points. Just, please pay off the credit card purchases in 30 days.
Yep. I use a cash back cc. Save my cash and use it for Christmas gifts to keep me from going into January debt. I use it for everything I can. I pay it off on time every month. Haven't paid CC interest in 10 years. Love it!
LOL I remember that video. Didn't someone else say something like "how is writing a book passive income? you need to write a book, that's not passive income"? It's like people expect something for nothing.
Great video though Jeff. You're definitely using credit cards to their maximum potential. I'm the same, I use my cards for everything that I can whilst ensuring that I pay the complete balance each month -- that way I don't pay the banks any interest and I can maximise the interest I earn on my own money in a savings account. I tend to always go the cashback option to pay off the annual fees and then let the points accumulate.
It seems like 2 haters disliked this video!! LOL
Would it be fair to say you are combining credit card cashback with travel hacking - whereby you buy at the right time and get huge discounts and your money can go multiple times further? Can't we do the travel hacking just as effectively with our own real money? If so, it would be fairer to compare the original value of the cashback?
The main reason people like Dave Ramsay hate credit cards is that it greatly reduces friction for people to spend money they do not have. Psychologically, people will be aware they are paying an annual fee, and therefore they need to earn enough cashback (spend enough) to end up 'ahead'.
I hope I don't come across as a hater at all, I've really enjoyed your videos. I just genuinely don't quite agree here.
I have a Disney Chase Visa that earns 1% Disney Dream Reward Dollars with no annual fee. I collected the reward dollars for several years and was able to collect $1900 that I put toward the purchase of a Walt Disney World vacation that cost $2500. Our 6-day Disney vacation for three at All-Star Music resort with 5-day park passes cost $600. I would've had even more reward dollars, but the reward dollars start expiring after five years so when they first started retiring, I would cash them out to buy Christmas presents at The Disney Store. I later learned that you could buy Disney gift cards online with the reward dollars and the gift cards do not expire. Had I known that earlier, my Disney vacation could've been free. The remaining $600 did not actually cost me $600 because I went to Target to buy Disney gift cards at 5% off...so the remaining $600 actually only cost me $570.
Saw you and your buddys stealing baseballs from little kids the other day. Is that gonna be your next tip? Go to baseball games, steal baseballs from children and sell them on ebay? J/k, that was pretty funny/random seeing you on TV being in the middle of all that
It can be done. I use one card for everything and pay them with bank transfer. Racking up points. I mean your gonna spend money anyway might as well get cash back or miles rewards points or whatever. Great job. Plenty of videos on credit card hacking to learn how to maximize rewards. It helps to have good credit of course to get the best reward cards.
When my credit was good I had that card and American express gold no limit my score was 740 lost it all now I'm working to get back on top but yeah even when my card was cancelled I got to keep my South West points great card for travel also thanks for all the videos their very helpful
Credit card rewards are real and worth it. I've been able to book round trip flights from South FL to Omaha, Washington DC, Japan and Europe twice (the second time for three people on points). Same for several different hotel rooms and car rentals. - as long as people pay their balance off at the end of the month... It's totally worth it. The other key is to sign up when the bonuses for signing up are at its highest... Sorry haters. - keep up the great content.
Just about a year ago I did a complete personal finance 180. Before that I used to be TERRIBLE with my money. Now I have systems in place to where I know exactly in any instant how much I have coming in and going out. Later I started to utilize the power of credit cards, not only as a way to get rewards but also to help pay down debts via balance transfers and 0% intro apr's. Whenever I try to explain my systems to people I see the glaze in their eyes lol. Now I don't have overdraft fees, now I have a savings account, now I have an INVESTMENT account, now I have no fear of credit cards and use them to their full potential. Where people fall short is that they simply don't understand, or take the time to learn and understand, about finances and the tools that are out there. They would rather listen to their friends who also have no idea what they're talking about or they use the experiences of their own failures and rather than figuring out how to avoid making those mistakes again they simply push that fear onto others. It really is a system of the blind leading the blind. One last thing I want to highlight is that don't take Jeff's example and expect the same thing for yourself. As he mentioned he uses credit cards for his businesses so he makes a lot more purchases on those cards than most people will therefore he has way more points to use than most people do. Don't let that be an excuse to not utilize the system though. Take the time to find the right card for you and which will give you the greatest value. Most of all use the cards RESPONSIBLY!!! Sorry for the long comment
Get an all around 3% cash back card
No annual fee card
I love my Discover Card and my Chase Freedom Card. They are category cards though so you have to login and sign up for the extra reward points (every 3 months).
The base cash back on both those cards is 1% cash back (or other gift cards, etc.), even without signing up. FREE MONEY IS FREE MONEY
So funny! let the haters hate. I know you are right and those rewards points DO work! I prefer to use mine for hotels. Pay for my flight so I can chose what I want.... after all, we spend a lot more hours/days at the hotel then on the flight.
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