My Chosen Credit Card

July 27, 2010|By David Lester
If you’ve been following my blogs you’ll know that I prefer to use cash when I can.  I love hard currency for a number of reasons.  For instance I find that you spend less, you have a natural spending ceiling (it’s gone when it’s gone), you get better prices for big purchases, and it is harder to part with than just swiping away.
I do however use credit cards when there is a financial benefit to me.  I calculate all of my monthly expenses that can be charged to my card and have them come off automatically each month. This saves me time and service fees – I’ve made sure that I can never miss a payment now.  All my gas is charged to the card and I also charge large payments like computers, hotels or airline flights to extend their warranties and add travel protection.  My choice of credit card reward program is an annual fee free card that gives me some sort of points.  If I charge $590 a month I used to get .5% cash back on everything and 1.5% back on my gas purchases, which would give me $59.40 back a year for free just from my monthly resources not including my big purchases like trips, furniture and electronics. Remember that I didn’t pay a yearly fee so that money is all gravy for me!  I have found a new card that saves me even more which I have outlined after my expenses.
Monthly Charges:
Mobile Phone                    $60
Television/Internet          $80
Electricity                           $40
Gym                                      $50
Gas                                       $200
Car Insurance                    $145
Home Insurance               $15
Just recently I have found a no charge cash back card. It’s called the MBNA Smart Cash MasterCard and it is no annual fee card that gives 3% on gas, 3% on groceries and pharmacies, and 1% on everything else.  Based on my spending it dramatically increases my cash back at the end of the year!   They even have a promotion right now where you can get 5% back on all purchases for 6 months. On the same purchases from above I’d get $118.80 a year before my large purchases.  That equals some cool shoes that I can enjoy for free based on my financial prowess and saves me a ton of time not paying all of those bills independently.  Time that I can be kickin’ back with my new free kicks.
Have an awesome Tuesday,
David Lester
About David Lester

David Lester is a best selling author and professional Financial Coach, helping people be better with their money. David has written a personal finance book that breaks with traditional attitudes towards finance and describes his own philosophy to money that he has gained through his personal and professional experiences. His philosophy on money applies to many areas of everyday life, including banking, investing, goal setting, shopping and entertainment.