As I continue to look for additional opportunities to save or earn more money, I am realizing that I might not be taking advantage of my normal recurring monthly expenditures. I do try and pay for as many expenses with cash and/or a debit card, but I realize this is a monthly cash burn that I might not be as efficient as possible. But I ask myself, why not and try and earn 1% to 2% back on those monthly expenses?
As I evaluate going down this route, here are the few critical areas that are important to me:
#1. Need to be very disciplined and pay off the monthly balance in full, not to accrue and credit card interest. With credit card rates at 15% or higher, one slip in a monthly full balance payment will eliminate any cash back that you earn from the credit card.
#2. If you currently have a few credit card accounts open, I would sift through those and see what options you have. No reason to open up yet another credit card, unless you feel that you have to so you can minimize impact to your credit score.
#3. If you don’t have a current credit card account that you can utilize, there are many options out there. Please make sure you don’t apply for one that has an annual fee or doesn’t fit into your monthly spending habits. There are many sites and resources that provide you some current options, here are a few that I visited in determining which one works best:
Best Cash Back Credit Cards by CardRating
Credit Cards with Cash Back features by NerdWallet
Cash Back Credit Cards by USNews
Let me know if you are able to take advantage of this passive income idea, and how much success have you had with it?
I am a finance professional with over 20 years of experience and very passionate about all topics related to finance; enjoying the aspect of teaching and educating others along the way. All in all, I will show you how big this money tree can get over time as I get the branches (Earn, Save, Invest) as high as possible…Click here to see my financial progress to date: How high is the Money Tree?
