If you have a good relationship with your money you would never pay $120 to have a credit card! You’d never be caught dead paying interest when you don’t pay it off completely! Hells no–you’d never pay foreign service fees when you use it in other countires! You love your money better than that and because you’re a money maverick you get the cards to pay you, right? I just had my US$ and personal MasterCard pay me $187.37 this year and I only paid a $25 fee for the US$ card This is how I did it…
Charge All Your FIXED Costs And Big Purchases
I charge all of my fixed costs onto my no fee BMO MasterCard CashBack card, like gas, insurance, cell phone, gym, utilities, cable, and internet. This way I get cash back on the things I need to use my card on and collect cash back dollars month by month. I also use my card for trips, furniture, and other big one-time purchases, and it all adds up at the end of the year. I got $83.65 back on these things this year. That means free utilities for a month or a nice dinner with a good friend.
Use Cash To Limit Your Monthly Spending
I’m a cash king. I use cash for my day to day spending to fix my spending and then get cash back from my fixed costs that I put on my card. Cash is best for my variable spending on things like clothes, lunches, food, entertainment, and coffees, and is a proven way to lower your spending. Set $300 or whatever you need a week for variable spending and take that cash out at the beginning of the week and don’t take any more out. If I have a crazy champagne and lobster night I know another $300 will come next week!
You Get Extra Perks With Your Card For Free
Gas is another fixed cost that I use my card on. I get an extra 1.5% back when I go to any Shell station in Canada and over a year this really adds up. When I book a trip or make a big purchase like electronics or furniture the card gives me extended warranty and purchase protection plus discounts up to 25% at National Car Rental and Alamo all for FREE.
Get A US$ Card For US Trips
Because I spend a lot of time on business in New York and Los Angeles, I also have a US$ BMO MasterCard CashBack card. I have US$ fixed charges for my business come out on this card that added up to $103.72 – $25 fee this year. If a trip is cheaper in US$ I will use this card, and anytime I make business trips I use this card. It pays me with cash back plus I save the 2-3% foreign service fee my Canadian $ card would charge me each time I used it in the US.
Have Your Bank Pay Your Card For You
Many people don’t know this but you can ask your bank to pay off your balance at the end of each month right from your chequing account. Because I know what all my fixed cards add up to I know how much will come out of my account. I save on transactions that I would use paying each bill separately, I never pay interest by missing payments, and I know that my card will go to zero each month without me taking any action at all. Win, win.
Get the credit card to pay you interest at the end of the year!
Have an amazing week,
Dave
