1 00:00:00,080 --> 00:00:03,159 Speaker 1: Welcome to How the Money. I'm Joel Matt and today 2 00:00:03,240 --> 00:00:26,680 Speaker 1: we're discussing using credit cards as nature intended. Yeah, not 3 00:00:26,840 --> 00:00:29,600 Speaker 1: to immediately polarize everybody, but we think that there is 4 00:00:29,640 --> 00:00:32,199 Speaker 1: a right way of going about using credit cards and 5 00:00:32,280 --> 00:00:36,120 Speaker 1: a wrong way. There's a way that nature intended for 6 00:00:36,200 --> 00:00:37,880 Speaker 1: us to use credit cards, and that's what we're talking about. 7 00:00:37,920 --> 00:00:40,559 Speaker 1: When we crawled forth from the primordial us, there was 8 00:00:40,600 --> 00:00:43,000 Speaker 1: a way to use the plastic properly. And a lot 9 00:00:43,040 --> 00:00:45,440 Speaker 1: of people this is a polarizing topic. That's kind of 10 00:00:45,760 --> 00:00:47,919 Speaker 1: when we started to think about this episode, we were like, man, 11 00:00:47,960 --> 00:00:50,519 Speaker 1: there's there's comments from people right and left in the 12 00:00:50,520 --> 00:00:54,800 Speaker 1: personal finance space, some either deify credit card usage or 13 00:00:54,920 --> 00:00:57,880 Speaker 1: in some demonize it. And you and I were, of 14 00:00:57,920 --> 00:00:59,720 Speaker 1: course in that shades of gray area, and we want 15 00:00:59,720 --> 00:01:02,040 Speaker 1: to talk about how to use them the right way 16 00:01:02,160 --> 00:01:04,960 Speaker 1: because when you do, then you're gonna gain benefits and 17 00:01:04,959 --> 00:01:07,720 Speaker 1: if you use them improperly, you're screwing yourself. Yeah, and 18 00:01:08,040 --> 00:01:09,880 Speaker 1: especially with a topic that does kind of fall in 19 00:01:09,880 --> 00:01:12,080 Speaker 1: that middle ground, it is important for us to come 20 00:01:12,080 --> 00:01:14,320 Speaker 1: back and to revisit a topic like this. Right, it's 21 00:01:14,360 --> 00:01:17,880 Speaker 1: not like a like talking about investing that is really important, 22 00:01:17,880 --> 00:01:19,520 Speaker 1: and we're planning to do that soon as well. But 23 00:01:20,080 --> 00:01:22,160 Speaker 1: when you have a topic like this that could go 24 00:01:22,200 --> 00:01:25,840 Speaker 1: either way, it's probably worth us revisiting these types of 25 00:01:25,880 --> 00:01:28,600 Speaker 1: topics we're eating more often than not. In an attempt 26 00:01:28,600 --> 00:01:30,720 Speaker 1: to be fair, we're even in a steel man the 27 00:01:30,800 --> 00:01:32,600 Speaker 1: arguments from the other side. So we're gonna kind of 28 00:01:32,600 --> 00:01:35,119 Speaker 1: try to take a balanced approach and say, hey, here's 29 00:01:35,200 --> 00:01:38,440 Speaker 1: where caredit cards fall short as a strategy, here's where 30 00:01:38,520 --> 00:01:42,440 Speaker 1: they might make sense, and then you get to decide 31 00:01:42,680 --> 00:01:44,680 Speaker 1: well you think is best based on all the information 32 00:01:44,680 --> 00:01:46,920 Speaker 1: we're gonna try to present here. But before we get 33 00:01:46,959 --> 00:01:49,360 Speaker 1: to that, man, I wanted to mention that when you're 34 00:01:49,400 --> 00:01:52,240 Speaker 1: trying to get someone to make a behavior change, I've 35 00:01:52,280 --> 00:01:54,600 Speaker 1: always thought this, but I've never been great at implementing it, 36 00:01:54,640 --> 00:01:58,440 Speaker 1: But carrots are better than sticks, right, So, and what 37 00:01:58,480 --> 00:02:01,560 Speaker 1: I mean by that depends on how your talking to. Well, 38 00:02:01,560 --> 00:02:03,480 Speaker 1: we think there's literally a conversation Kit and I had 39 00:02:03,560 --> 00:02:06,000 Speaker 1: last night about one of our kids, because trying to 40 00:02:06,000 --> 00:02:08,440 Speaker 1: figure out what is actually gonna work best for this 41 00:02:08,520 --> 00:02:13,320 Speaker 1: particular child given this particular situation, we've tried both neither work, Okay, 42 00:02:13,880 --> 00:02:15,960 Speaker 1: So in this case, sometimes you just have to, um, 43 00:02:16,160 --> 00:02:17,760 Speaker 1: you know, give them up for an option. That's one. 44 00:02:17,760 --> 00:02:21,400 Speaker 1: That's one choice, let's try. But depending on the situation, 45 00:02:22,040 --> 00:02:24,800 Speaker 1: I would say a lot of times a carrot makes 46 00:02:24,840 --> 00:02:29,919 Speaker 1: more sense. And our illustrious power company here where we live, Matt, 47 00:02:30,080 --> 00:02:32,600 Speaker 1: they actually kind of took this to heart and they 48 00:02:32,600 --> 00:02:35,560 Speaker 1: offer a discount for paying early instead of a penalty 49 00:02:35,600 --> 00:02:38,000 Speaker 1: for paying late. And I think that's great, and it 50 00:02:38,080 --> 00:02:40,480 Speaker 1: makes me want to pay my bill early because I 51 00:02:40,480 --> 00:02:43,320 Speaker 1: want to pay the least amount possible. But you don't know, 52 00:02:43,560 --> 00:02:45,640 Speaker 1: I think it is going to incentivize a lot of 53 00:02:45,680 --> 00:02:49,200 Speaker 1: people to approach their power bill the right way, get 54 00:02:49,360 --> 00:02:51,760 Speaker 1: energized about paying it instead of feeling like an idiot 55 00:02:51,760 --> 00:02:54,359 Speaker 1: if they don't pay it on time. Energized and pay 56 00:02:54,360 --> 00:02:56,600 Speaker 1: your power. Yeah. Well, and it makes me think too, 57 00:02:56,639 --> 00:02:58,800 Speaker 1: as a mom and pop landlord, this is the kind 58 00:02:58,800 --> 00:03:01,120 Speaker 1: of thing I'm trying to implement in in my leases 59 00:03:01,160 --> 00:03:03,919 Speaker 1: moving forward with with tenants is to say, hey, instead 60 00:03:03,960 --> 00:03:06,480 Speaker 1: of a late fee for being five days ten late 61 00:03:06,560 --> 00:03:09,399 Speaker 1: days late on your on your rent, how about a 62 00:03:09,440 --> 00:03:13,639 Speaker 1: positive incentive to pay your rent on time. And maybe 63 00:03:13,639 --> 00:03:15,960 Speaker 1: that reframed it for somebody and makes them more likely 64 00:03:16,000 --> 00:03:18,160 Speaker 1: to do that. Yeah, that's true. It just depends on 65 00:03:18,200 --> 00:03:21,080 Speaker 1: the individual, right, because I see a paying quote unquote 66 00:03:21,080 --> 00:03:23,720 Speaker 1: early as just paying on time, like like the way 67 00:03:23,760 --> 00:03:25,520 Speaker 1: I press things. I'm like, oh, yeah, well that's the 68 00:03:25,520 --> 00:03:27,320 Speaker 1: price that you're going to charge me because I pay 69 00:03:27,400 --> 00:03:30,040 Speaker 1: my bill what I'm supposed to as as opposed to 70 00:03:30,200 --> 00:03:32,120 Speaker 1: being penalized when I'm late, you know. And so you've 71 00:03:32,160 --> 00:03:34,120 Speaker 1: got an iron trap up there. A lot of people 72 00:03:34,160 --> 00:03:36,720 Speaker 1: though they're they're easily minis set up to auto pay, 73 00:03:37,560 --> 00:03:39,880 Speaker 1: and so I guess what they're Maybe what the power 74 00:03:39,880 --> 00:03:41,720 Speaker 1: company is trying to do is just incentivized folks to 75 00:03:41,960 --> 00:03:44,000 Speaker 1: get enrolled so that it's not something that you have 76 00:03:44,040 --> 00:03:45,760 Speaker 1: to worry about. Therefore we have to spend less time 77 00:03:45,800 --> 00:03:48,880 Speaker 1: on collections and hounding folks. But yeah, I've not thought 78 00:03:48,920 --> 00:03:50,560 Speaker 1: about doing that with properties, but that could be a 79 00:03:50,640 --> 00:03:53,920 Speaker 1: very very cool way. Maybe if you have a like 80 00:03:54,040 --> 00:03:57,080 Speaker 1: what if you pay before the first like something like that, 81 00:03:57,160 --> 00:03:58,840 Speaker 1: Like if you can pay and have three different prices 82 00:03:58,880 --> 00:04:01,920 Speaker 1: because it's already third first or it's getting complicated, February 83 00:04:02,400 --> 00:04:04,200 Speaker 1: will pay the day before it's do if you pay 84 00:04:04,240 --> 00:04:08,000 Speaker 1: the day before it's do you get a fifty dollar Yeah? 85 00:04:08,320 --> 00:04:10,760 Speaker 1: Like I mean, my guess is that if you implemented 86 00:04:10,760 --> 00:04:14,880 Speaker 1: that tomorrow, more of your tenants would pay before it's due, 87 00:04:14,920 --> 00:04:17,159 Speaker 1: as opposed to like taking that great speriod up until 88 00:04:17,800 --> 00:04:20,680 Speaker 1: you know, the last day possible, even if you went 89 00:04:20,720 --> 00:04:23,400 Speaker 1: ahead and charged, if you went ahead and raise the 90 00:04:23,440 --> 00:04:26,200 Speaker 1: standard rent by fifty bucks, the psychology, what you're saying 91 00:04:26,240 --> 00:04:28,799 Speaker 1: is the psychological component would kick in and cause people 92 00:04:28,800 --> 00:04:30,560 Speaker 1: to pay early. I think so. Yeah, I think so. 93 00:04:30,680 --> 00:04:31,919 Speaker 1: I was glad to see this. I think that's one 94 00:04:31,960 --> 00:04:34,599 Speaker 1: of those things where we we don't give as much 95 00:04:34,640 --> 00:04:37,039 Speaker 1: credence as we could to Psychology is and there's ways 96 00:04:37,080 --> 00:04:39,760 Speaker 1: to motivate people, I think, to do the right thing 97 00:04:40,120 --> 00:04:43,080 Speaker 1: without like making them feel like idiots for you know, 98 00:04:43,240 --> 00:04:45,640 Speaker 1: for being a little late. Instead, let's let's incentivize them, 99 00:04:45,720 --> 00:04:49,359 Speaker 1: let's give a positive encouragement to do the right thing earlier. 100 00:04:49,880 --> 00:04:51,560 Speaker 1: All right. The beer that you and I are going 101 00:04:51,560 --> 00:04:54,520 Speaker 1: to enjoy during this episode is called the Judge and 102 00:04:54,600 --> 00:04:59,040 Speaker 1: this is a chocolate vanilla porter from Memphis made Bruined Company. 103 00:04:59,080 --> 00:05:01,200 Speaker 1: Looking forward to enjoying us one and we will share 104 00:05:01,200 --> 00:05:03,280 Speaker 1: our thoughts at the end of the episode, for sure. 105 00:05:03,320 --> 00:05:05,680 Speaker 1: All right, But let's get onto the subject at Handmatt, 106 00:05:05,760 --> 00:05:08,920 Speaker 1: we're talking about using credit cards as nature intended. And 107 00:05:09,080 --> 00:05:11,280 Speaker 1: if you've been listening for any length of time, Matt, 108 00:05:11,320 --> 00:05:13,080 Speaker 1: you just mentioned that the craft beer we're drinking on 109 00:05:13,120 --> 00:05:16,360 Speaker 1: this episode, of course, any how do money listener knows 110 00:05:16,400 --> 00:05:19,400 Speaker 1: Matt and Joel like beer, right, and not just crap beer, 111 00:05:19,440 --> 00:05:21,960 Speaker 1: but good beer. Right, And we're drinking this one here, 112 00:05:22,400 --> 00:05:24,160 Speaker 1: looking forward to talking about at the end of the episode. 113 00:05:24,200 --> 00:05:26,520 Speaker 1: But crap beer. I don't know. Maybe you said not 114 00:05:26,560 --> 00:05:29,320 Speaker 1: crap beer, you said good beer. Yeah, okay, not crap beer, 115 00:05:29,360 --> 00:05:32,840 Speaker 1: craft beer. Crap beer sounds a lot like craft beer. Yeah, 116 00:05:32,839 --> 00:05:35,760 Speaker 1: there's a several different thing. But I think interestingly enough, 117 00:05:35,760 --> 00:05:37,640 Speaker 1: we're talking about how credit cards can be polarizing, well, 118 00:05:37,800 --> 00:05:41,039 Speaker 1: booze can also be a polarizing subject. We've had emails 119 00:05:41,040 --> 00:05:43,120 Speaker 1: from folks who say they'd like to listen to the show, 120 00:05:43,360 --> 00:05:45,479 Speaker 1: but they just can't do it because of our stance 121 00:05:45,520 --> 00:05:48,440 Speaker 1: on alcohol. We've heard from other folks who attend their 122 00:05:48,440 --> 00:05:51,839 Speaker 1: local religious congregation and they tell us, hey, we'd happily 123 00:05:51,880 --> 00:05:55,240 Speaker 1: tell everyone we know about you guys, but you got 124 00:05:55,320 --> 00:05:57,320 Speaker 1: to kick the beer thing to the curb, and at 125 00:05:57,400 --> 00:05:59,880 Speaker 1: least in some circles, kind of like the one I 126 00:06:00,000 --> 00:06:03,000 Speaker 1: grow up in. Beer can be a polarizing thing. But 127 00:06:03,839 --> 00:06:05,760 Speaker 1: I want to say two things. One we I don't 128 00:06:05,800 --> 00:06:08,360 Speaker 1: fault those folks. If our affinity for beer isn't your 129 00:06:08,400 --> 00:06:11,200 Speaker 1: cup of tea, that's okay. We were not going to 130 00:06:11,320 --> 00:06:13,160 Speaker 1: force you to listen. We can't force you to listen. 131 00:06:13,360 --> 00:06:16,040 Speaker 1: But it's also important to mention that we can't please everyone. 132 00:06:16,360 --> 00:06:18,160 Speaker 1: You know, we might not say it enough, but we 133 00:06:18,320 --> 00:06:21,400 Speaker 1: practice moderation. Matt and I do. We we don't drink 134 00:06:21,640 --> 00:06:25,040 Speaker 1: very much. We limit our intake and that's a really 135 00:06:25,080 --> 00:06:27,880 Speaker 1: important thing to us. But yeah, there are other things 136 00:06:27,880 --> 00:06:30,480 Speaker 1: that can be just as polarizing. Light credit cards. Everyone's 137 00:06:30,480 --> 00:06:32,520 Speaker 1: got a hot take out there. They're either the greatest 138 00:06:32,520 --> 00:06:36,480 Speaker 1: thing since sliced bread or they'll ruin you overnight. But reality, 139 00:06:36,520 --> 00:06:38,040 Speaker 1: it's a bit more nuanced, and that's what we want 140 00:06:38,080 --> 00:06:43,880 Speaker 1: to discuss today. Nuanced or being logical, balanced approach. These 141 00:06:44,120 --> 00:06:48,480 Speaker 1: are not prize attributes in our society today. They specially 142 00:06:48,480 --> 00:06:51,440 Speaker 1: when it comes to mass media. A hefty TikTok following yeah, 143 00:06:51,560 --> 00:06:54,479 Speaker 1: hot takes and off the cuff remarks does end up 144 00:06:54,520 --> 00:06:57,200 Speaker 1: getting all the press. There is often little room for 145 00:06:57,279 --> 00:06:59,040 Speaker 1: those shades agree that we talked about in the world 146 00:06:59,040 --> 00:07:02,600 Speaker 1: that we live in. On that note, billionaire businessman Mark 147 00:07:02,640 --> 00:07:05,680 Speaker 1: Cuban he uh, he recently said that if you use 148 00:07:05,720 --> 00:07:09,159 Speaker 1: credit cards, you don't want to be rich. Obviously, great 149 00:07:09,200 --> 00:07:11,600 Speaker 1: hot take for all the writers over there at CNBC. 150 00:07:13,000 --> 00:07:15,160 Speaker 1: I love that kind of stuff. Start writing this article now. 151 00:07:15,320 --> 00:07:18,400 Speaker 1: He makes it sound like credit cards are the devil 152 00:07:18,560 --> 00:07:23,040 Speaker 1: with those remarks, kind of like Bobby Boucher uh foodsball territory. 153 00:07:23,640 --> 00:07:25,960 Speaker 1: But of course they are not. Uh. In fact, there 154 00:07:26,000 --> 00:07:28,080 Speaker 1: are a lot of how the money listeners out there 155 00:07:28,080 --> 00:07:31,880 Speaker 1: who are on their wealth building journey while simultaneously using 156 00:07:32,040 --> 00:07:35,200 Speaker 1: credit cards. We most definitely fallen into that camp as well, 157 00:07:35,200 --> 00:07:38,080 Speaker 1: where we are with you on that. So today we 158 00:07:38,160 --> 00:07:39,920 Speaker 1: are going to discuss the pros and the cons of 159 00:07:39,960 --> 00:07:41,760 Speaker 1: credit cards, and then we're gonna talk about how to 160 00:07:41,960 --> 00:07:45,160 Speaker 1: use credit cards most effectively, how does that you can 161 00:07:45,200 --> 00:07:47,760 Speaker 1: optimize that use. We're gonna discuss all of that today, 162 00:07:47,800 --> 00:07:50,119 Speaker 1: all right, So let's let's do it because and let's 163 00:07:50,240 --> 00:07:53,240 Speaker 1: first give some credence maybe to Mark Cuban, because he 164 00:07:53,400 --> 00:07:56,440 Speaker 1: is right at least in part uh. And and let's 165 00:07:56,520 --> 00:07:58,520 Speaker 1: go through some of the biggest reasons to not use 166 00:07:58,560 --> 00:08:00,640 Speaker 1: credit cards. Some of the main reasons at the people 167 00:08:00,640 --> 00:08:03,040 Speaker 1: who say that they are the devil, why did they 168 00:08:03,080 --> 00:08:04,440 Speaker 1: say that. Well, we're gonna get into that in just 169 00:08:04,480 --> 00:08:06,760 Speaker 1: a second. But I think human is right when he 170 00:08:06,760 --> 00:08:09,559 Speaker 1: says credit cards aren't going to make you rich, that's true. 171 00:08:10,520 --> 00:08:12,200 Speaker 1: Agree with him on that and say that he said 172 00:08:12,240 --> 00:08:15,000 Speaker 1: that they're going to keep you from getting rich. Well, yeah, 173 00:08:15,040 --> 00:08:17,160 Speaker 1: that's a good point. But like if he's talking about 174 00:08:17,240 --> 00:08:19,080 Speaker 1: like that they won't make you rich, I think that, 175 00:08:19,320 --> 00:08:22,040 Speaker 1: you know, I could get behind that, Like nobody's gonna 176 00:08:22,240 --> 00:08:23,680 Speaker 1: sign up for all the credit cards in the world 177 00:08:23,680 --> 00:08:25,360 Speaker 1: and be like, that's how I didn't look at all 178 00:08:25,360 --> 00:08:27,960 Speaker 1: the secret to my success bonus points and rewards, that's 179 00:08:27,960 --> 00:08:30,080 Speaker 1: how I funded retirement. No, it's gonna take a whole 180 00:08:30,120 --> 00:08:31,960 Speaker 1: lot more than that. Right, if we were to talk 181 00:08:31,960 --> 00:08:34,520 Speaker 1: about wealth Matt for building wealth for like three hours, 182 00:08:34,840 --> 00:08:36,960 Speaker 1: it's unlikely the credit card usage would even come up 183 00:08:36,960 --> 00:08:39,480 Speaker 1: in that conversation. There are so many more levers that 184 00:08:39,520 --> 00:08:43,079 Speaker 1: you need to pull. Credit cards are a peripheral way 185 00:08:43,559 --> 00:08:47,959 Speaker 1: to boost your finances, right There not some magic secret 186 00:08:48,000 --> 00:08:51,880 Speaker 1: sauce to building wealth. That's that's for sure. And uh, 187 00:08:52,240 --> 00:08:54,680 Speaker 1: it's still that doesn't mean that they can't play a 188 00:08:54,840 --> 00:08:58,320 Speaker 1: role in your personal finances. But before you know, we 189 00:08:58,480 --> 00:09:01,319 Speaker 1: talk about the property what we like about credit cards, 190 00:09:01,400 --> 00:09:04,880 Speaker 1: let's just pay some service and talk about the biggest 191 00:09:04,920 --> 00:09:07,560 Speaker 1: cons to using them and some of the reasons that 192 00:09:07,600 --> 00:09:10,880 Speaker 1: people should consider avoiding credit cards altogether. Of course, yeah, 193 00:09:11,200 --> 00:09:12,800 Speaker 1: I mean you said earlier that we're gonna steal man. 194 00:09:13,120 --> 00:09:15,440 Speaker 1: That being said, we are always careful and we always 195 00:09:15,480 --> 00:09:18,000 Speaker 1: want to make sure that folks are using credit cards 196 00:09:18,160 --> 00:09:20,200 Speaker 1: the right way, because if you do not use this 197 00:09:20,320 --> 00:09:23,920 Speaker 1: financial tool properly, it really could shipwreck your finances. Right, 198 00:09:23,960 --> 00:09:26,680 Speaker 1: if you can't pay the bill on time and in full, 199 00:09:26,720 --> 00:09:29,079 Speaker 1: it's going to cost you big money every single month 200 00:09:29,120 --> 00:09:32,079 Speaker 1: because interest rates they're going up, and so that means 201 00:09:32,160 --> 00:09:35,280 Speaker 1: that your lack of disciplined use, your your lack of 202 00:09:35,320 --> 00:09:37,439 Speaker 1: discipline spending is going to cost you even more money. 203 00:09:37,800 --> 00:09:40,959 Speaker 1: And this is of course the biggest potential downfall of 204 00:09:41,080 --> 00:09:44,280 Speaker 1: using credit cards, and even a few months of poor 205 00:09:44,320 --> 00:09:46,480 Speaker 1: credit card usage can dig you a hole so deep 206 00:09:46,480 --> 00:09:49,400 Speaker 1: that it will often take you years then to climb 207 00:09:49,440 --> 00:09:51,800 Speaker 1: out of it. And so while this is a major 208 00:09:51,840 --> 00:09:55,200 Speaker 1: con and certainly is a reason for caution, like this 209 00:09:55,240 --> 00:09:57,800 Speaker 1: alone doesn't lead us to think that credit cards should 210 00:09:57,880 --> 00:10:00,520 Speaker 1: be off limits. I mean we're talking about how a 211 00:10:00,520 --> 00:10:02,080 Speaker 1: credit card is a tool, right, Like it makes me 212 00:10:02,080 --> 00:10:05,319 Speaker 1: think about just using like a knife in the kitchen, 213 00:10:05,559 --> 00:10:07,839 Speaker 1: and just because it could potentially cause you harm, does 214 00:10:07,840 --> 00:10:09,439 Speaker 1: that mean that that is now a tool that you 215 00:10:09,520 --> 00:10:13,200 Speaker 1: completely avoid for the rest of your life. No, absolutely not. 216 00:10:13,760 --> 00:10:16,960 Speaker 1: You instead learn how to properly hold a knife. You 217 00:10:17,040 --> 00:10:21,040 Speaker 1: learn how to dice vegetables or in your case, trim 218 00:10:21,040 --> 00:10:23,560 Speaker 1: fat off of a brisk ul um. Yeah, eventually I 219 00:10:23,559 --> 00:10:25,360 Speaker 1: was like, that does not compute. I don't need vegetables. 220 00:10:25,679 --> 00:10:29,240 Speaker 1: You learnable occasionally, but you learn how to take care 221 00:10:29,240 --> 00:10:31,559 Speaker 1: of a knife, how to keep it sharp, because all 222 00:10:31,600 --> 00:10:34,360 Speaker 1: of these things are just the proper way of using 223 00:10:34,440 --> 00:10:37,840 Speaker 1: that tool. Like to say, it's such a infantalizing view 224 00:10:37,840 --> 00:10:40,120 Speaker 1: to say that, oh, this could cause you harm, therefore 225 00:10:40,200 --> 00:10:43,640 Speaker 1: you shouldn't ever be allowed to use it. That is 226 00:10:43,760 --> 00:10:45,840 Speaker 1: not the approach that we take when it comes to 227 00:10:46,280 --> 00:10:48,040 Speaker 1: things like credit cards or other tools in our life. 228 00:10:48,160 --> 00:10:50,560 Speaker 1: You're right and fantializing it. We're treating adults like children. 229 00:10:50,640 --> 00:10:53,680 Speaker 1: And it's and it's not that there aren't risks here 230 00:10:53,760 --> 00:10:55,720 Speaker 1: when we use credit cards. That's what we're talking about now. 231 00:10:55,800 --> 00:10:57,800 Speaker 1: The first one you just mentioned improper use. If you 232 00:10:57,920 --> 00:11:00,600 Speaker 1: use a credit card improperly in your racking up debt 233 00:11:00,840 --> 00:11:03,040 Speaker 1: because you can't control your spending, that's one reason to 234 00:11:03,080 --> 00:11:06,560 Speaker 1: consider not using them at all. Another another reason that 235 00:11:06,640 --> 00:11:08,520 Speaker 1: a lot of people point to, and I think they 236 00:11:08,559 --> 00:11:11,000 Speaker 1: make a good point, is that it can lead to overspending, 237 00:11:11,120 --> 00:11:13,839 Speaker 1: right because even if you can and do use the 238 00:11:13,920 --> 00:11:17,360 Speaker 1: tool properly, there are other potential downsize to using plastic 239 00:11:17,440 --> 00:11:20,760 Speaker 1: for everything. And some folks they spend more using a 240 00:11:20,760 --> 00:11:23,320 Speaker 1: credit card because it doesn't feel like real money to them. 241 00:11:23,400 --> 00:11:25,480 Speaker 1: Swiping it's just so easy, and Gus, we're not really 242 00:11:25,559 --> 00:11:28,679 Speaker 1: swiping anymore. We're more like inserting or tapping, which I did. 243 00:11:28,720 --> 00:11:30,920 Speaker 1: I love tapping. Tapping is the great It's the greatest. 244 00:11:30,960 --> 00:11:33,480 Speaker 1: It's so much, so much better. Like I hate inserting 245 00:11:33,520 --> 00:11:36,160 Speaker 1: the well, the inserts. It felt like a step backwards, right, 246 00:11:36,200 --> 00:11:37,920 Speaker 1: like like we've been swiping for years and then they 247 00:11:37,960 --> 00:11:39,520 Speaker 1: switched to the insert and then on top of that 248 00:11:39,520 --> 00:11:42,719 Speaker 1: it's got that like sound effect, which but just being 249 00:11:42,720 --> 00:11:44,200 Speaker 1: able to set it on top of like the little 250 00:11:44,240 --> 00:11:47,400 Speaker 1: square device for like a split second. I love it. 251 00:11:47,400 --> 00:11:50,560 Speaker 1: It's nice, right and it's but it just doesn't trigger 252 00:11:50,600 --> 00:11:53,040 Speaker 1: the same psychological response that happens when we fork over 253 00:11:53,080 --> 00:11:55,720 Speaker 1: actual greenbacks we need. That's what they say. Yeah, when 254 00:11:55,720 --> 00:11:56,920 Speaker 1: you have to reach into your wallet and we have 255 00:11:56,960 --> 00:11:58,960 Speaker 1: to pull out cash, it's like there's some sort of 256 00:11:59,040 --> 00:12:01,640 Speaker 1: like meant whole pain that comes along with it that's 257 00:12:01,640 --> 00:12:03,720 Speaker 1: actually good for us. Is what the study is, literally 258 00:12:03,720 --> 00:12:06,079 Speaker 1: giving something over. But there's also there's been there's other 259 00:12:06,080 --> 00:12:08,280 Speaker 1: studies that say the opposite. Yeah, that as well well, 260 00:12:08,320 --> 00:12:11,319 Speaker 1: And there's also I think part of it is generational 261 00:12:11,440 --> 00:12:13,520 Speaker 1: and it's changing exactly. And I think we've heard from 262 00:12:13,520 --> 00:12:16,120 Speaker 1: a lot of our younger listeners who say, actually, it's 263 00:12:16,120 --> 00:12:19,000 Speaker 1: more painful for me to use my credit card. Cash 264 00:12:19,040 --> 00:12:21,720 Speaker 1: feels like the free money. So I think depending on 265 00:12:21,760 --> 00:12:24,880 Speaker 1: how you are raised, what era you were born in, 266 00:12:25,320 --> 00:12:27,880 Speaker 1: that it might not ring true in the same way. 267 00:12:28,040 --> 00:12:30,440 Speaker 1: But I think it isn't important to mention some people, 268 00:12:30,920 --> 00:12:34,240 Speaker 1: probably good chunk of people are more likely to overspend 269 00:12:34,360 --> 00:12:38,600 Speaker 1: because maybe they get excited about earning the rewards, or 270 00:12:39,000 --> 00:12:42,480 Speaker 1: they just or it doesn't make them feel the pain 271 00:12:42,600 --> 00:12:45,320 Speaker 1: of spending money in the same way when they're using plastic, 272 00:12:45,360 --> 00:12:47,520 Speaker 1: when they're using a credit card and so yeah, I 273 00:12:47,559 --> 00:12:50,559 Speaker 1: think that is a potential problem that credit card users 274 00:12:50,600 --> 00:12:53,160 Speaker 1: run up against. Yeah, they're they're they're definitely seems like 275 00:12:53,520 --> 00:12:55,520 Speaker 1: I mean, if you were only using cash, I would 276 00:12:55,559 --> 00:12:58,520 Speaker 1: totally agree with the fact that it's going to seem 277 00:12:58,559 --> 00:13:00,840 Speaker 1: like there's more of a finite amount of resources, right, 278 00:13:00,840 --> 00:13:02,720 Speaker 1: because that's the thing with credit card the envelope method. 279 00:13:02,800 --> 00:13:05,480 Speaker 1: You can't overspend exactly. Yeah, when you've got a credit card, 280 00:13:05,960 --> 00:13:07,600 Speaker 1: or even a debit card for that matter, I mean, 281 00:13:07,720 --> 00:13:09,760 Speaker 1: you're not really thinking about how much do I have 282 00:13:09,880 --> 00:13:13,479 Speaker 1: left in this particular category. When it comes to groceries 283 00:13:13,600 --> 00:13:16,280 Speaker 1: or you know, eating out, it does feel a bit 284 00:13:16,320 --> 00:13:18,760 Speaker 1: more limitless, which which I totally get. Yeah, And so 285 00:13:18,880 --> 00:13:21,920 Speaker 1: even if you are not using it improperly in a way, 286 00:13:21,920 --> 00:13:23,920 Speaker 1: like even if you are disciplined about paying that credit 287 00:13:23,920 --> 00:13:26,200 Speaker 1: card built off on time and in full each month, 288 00:13:26,440 --> 00:13:29,240 Speaker 1: you still might end up spending more than you'd like to. 289 00:13:29,559 --> 00:13:32,439 Speaker 1: And that is a problem, right, because you're trying to 290 00:13:32,480 --> 00:13:34,400 Speaker 1: accomplish all sorts of money goals, and if you're spending 291 00:13:34,400 --> 00:13:36,400 Speaker 1: too much because it's easy, that's a problem. And I 292 00:13:36,400 --> 00:13:38,199 Speaker 1: think one thing that could remedy this mat There was 293 00:13:38,240 --> 00:13:41,440 Speaker 1: a study I saw about printing credit card balances on 294 00:13:41,520 --> 00:13:44,720 Speaker 1: receipts every time we purchased something that would be helpful. 295 00:13:44,720 --> 00:13:46,560 Speaker 1: I think then all of a sudden, it wouldn't feel 296 00:13:46,559 --> 00:13:48,520 Speaker 1: limit less because you're like, oh, that's how much I 297 00:13:48,559 --> 00:13:50,760 Speaker 1: have left, okay, yeah, Or that's how much I've spent 298 00:13:50,840 --> 00:13:53,240 Speaker 1: this month, that's what the balance is at. Those kind 299 00:13:53,280 --> 00:13:57,160 Speaker 1: of reminders I think would trigger something in us that 300 00:13:57,200 --> 00:14:00,520 Speaker 1: would be helpful. So, yeah, limits can be helpful, when 301 00:14:00,559 --> 00:14:03,040 Speaker 1: balances can be helpful. That's going to happen in time soon. 302 00:14:03,120 --> 00:14:04,839 Speaker 1: But I kind of wish it would because I think 303 00:14:04,840 --> 00:14:07,000 Speaker 1: that would at least help on this front. Yeah, But 304 00:14:07,160 --> 00:14:10,559 Speaker 1: going back to maybe what some more younger listeners are experiencing, 305 00:14:10,600 --> 00:14:13,360 Speaker 1: I'm I totally agree. I am because the majority of 306 00:14:13,400 --> 00:14:16,240 Speaker 1: my finances are digital. Anytime I have cash on hand, 307 00:14:16,240 --> 00:14:18,080 Speaker 1: it does not feel like real money because I don't 308 00:14:18,080 --> 00:14:19,840 Speaker 1: have a way for accounting for that money. It's not 309 00:14:19,920 --> 00:14:22,480 Speaker 1: incorporated into my overall finances, and so it really does 310 00:14:22,520 --> 00:14:24,000 Speaker 1: just feel like I could spend it on whatever the 311 00:14:24,000 --> 00:14:25,800 Speaker 1: heck I want to spend it on. It feels like 312 00:14:25,800 --> 00:14:31,040 Speaker 1: blow money. Uh, And so I told her exactly, it's 313 00:14:31,040 --> 00:14:32,520 Speaker 1: like I got a couple of twenties in the wallet. 314 00:14:32,560 --> 00:14:35,760 Speaker 1: I forgot those were there, but yeah, definitely something to 315 00:14:35,800 --> 00:14:39,280 Speaker 1: keep in mind. Another con to credit cards, um and 316 00:14:39,280 --> 00:14:42,480 Speaker 1: so what's interesting is that the last one so overspending, 317 00:14:42,760 --> 00:14:44,400 Speaker 1: Jesse meets him. He actually kind of touched on that 318 00:14:44,440 --> 00:14:47,120 Speaker 1: a little bit. He's talking about an experiment that he's 319 00:14:47,120 --> 00:14:49,200 Speaker 1: going to be conducting this year on himself. So Jesse 320 00:14:49,320 --> 00:14:51,480 Speaker 1: meets him, the founder of y NAB you Need a 321 00:14:51,480 --> 00:14:53,200 Speaker 1: Budget when when he came on the show. When he 322 00:14:53,200 --> 00:14:55,160 Speaker 1: came on the show, yeah, we'll link to that episode 323 00:14:55,240 --> 00:14:58,040 Speaker 1: in our show notes because we had an awesome conversation 324 00:14:58,080 --> 00:15:01,480 Speaker 1: about budgeting during that episode. But he also touched on 325 00:15:01,800 --> 00:15:04,520 Speaker 1: an aspect of credit cards that we haven't really explored, 326 00:15:04,560 --> 00:15:07,400 Speaker 1: which is again why I'm glad we're having this conversation now, 327 00:15:07,440 --> 00:15:11,720 Speaker 1: which is he brought up, I guess the moral nature 328 00:15:11,720 --> 00:15:13,200 Speaker 1: of credit cards. You know, he like, he brought the 329 00:15:13,240 --> 00:15:15,600 Speaker 1: question as to whether or not it's ethical, and I 330 00:15:15,640 --> 00:15:18,600 Speaker 1: think that's worth that's worth considering the fact that some 331 00:15:18,640 --> 00:15:22,120 Speaker 1: folks benefit at the expense of others. That's that's definitely 332 00:15:22,160 --> 00:15:24,840 Speaker 1: one of the downsides of credit cards. Estimates show that 333 00:15:24,880 --> 00:15:30,760 Speaker 1: fifteen billion dollars is redistributed annually from uneducated consumers who 334 00:15:30,760 --> 00:15:35,280 Speaker 1: are using their credit cards improperly to educated ones the 335 00:15:35,280 --> 00:15:37,880 Speaker 1: credit cards and you know, it's not the same as 336 00:15:38,240 --> 00:15:41,400 Speaker 1: the lottery. But the truth is that lottery tickets, right, 337 00:15:41,440 --> 00:15:43,800 Speaker 1: they often act like an additional tax on the poorest 338 00:15:43,960 --> 00:15:46,960 Speaker 1: in our society. Uh. And the tax dollars from a 339 00:15:46,960 --> 00:15:49,920 Speaker 1: lot of purchases, they often fund things that then benefit 340 00:15:50,000 --> 00:15:54,840 Speaker 1: those who have more, like funding higher education for middle 341 00:15:54,920 --> 00:15:57,920 Speaker 1: and upper class kids. Well, credit card rewards are only 342 00:15:57,960 --> 00:16:01,720 Speaker 1: a reality because a certain subset of the population ends 343 00:16:01,760 --> 00:16:04,800 Speaker 1: up paying the bank uh pretty big money and interest 344 00:16:05,040 --> 00:16:08,400 Speaker 1: on a consistent basis. That's where all those dollars come from. Uh. 345 00:16:08,440 --> 00:16:11,720 Speaker 1: And so with that mind, should we avoid using them 346 00:16:11,720 --> 00:16:14,360 Speaker 1: because of this dynamic? Right? Like should you not take 347 00:16:14,360 --> 00:16:17,080 Speaker 1: the scholarship money out there because of how these tax 348 00:16:17,120 --> 00:16:20,680 Speaker 1: dollars were regarded? Well, we don't think so. That that 349 00:16:20,760 --> 00:16:24,040 Speaker 1: being said, you know, these are personal questions that you'll 350 00:16:24,080 --> 00:16:26,320 Speaker 1: have to wrestle with. And for me, I think another 351 00:16:26,360 --> 00:16:29,480 Speaker 1: way to maybe think about this is like supply and demand, right, 352 00:16:29,480 --> 00:16:32,280 Speaker 1: And so, as an individual, if you want to no 353 00:16:32,320 --> 00:16:35,400 Speaker 1: longer participate in using credit cards because you feel the 354 00:16:35,440 --> 00:16:38,880 Speaker 1: rewards that you're getting are maybe unjust what you're doing, 355 00:16:38,960 --> 00:16:42,400 Speaker 1: you're you're basically removing one small little bit of demand 356 00:16:42,880 --> 00:16:45,600 Speaker 1: of those rewards from the banks. But the thing is 357 00:16:45,600 --> 00:16:49,360 Speaker 1: is that demand doesn't then immediately translate into reduced need 358 00:16:49,480 --> 00:16:53,560 Speaker 1: for supply because the bank's essentially act as like a MetalMan. 359 00:16:53,760 --> 00:16:57,000 Speaker 1: And even though you're demanding less from the bank, does 360 00:16:57,000 --> 00:16:58,760 Speaker 1: that mean that they're going to demand less from the 361 00:16:58,760 --> 00:17:02,080 Speaker 1: people who are using credit cards and properly no. In fact, 362 00:17:02,200 --> 00:17:04,679 Speaker 1: banks are better off because they're saying, Okay, there's a 363 00:17:04,680 --> 00:17:07,080 Speaker 1: fewer rewards we need to we need to this smart 364 00:17:07,119 --> 00:17:10,120 Speaker 1: you need to pay that guy who's feeling conflicted about 365 00:17:10,119 --> 00:17:12,919 Speaker 1: about using our cards. And so if you want to 366 00:17:12,960 --> 00:17:15,119 Speaker 1: do that, I think that's that's totally fine. But you know, 367 00:17:15,200 --> 00:17:19,479 Speaker 1: the our approach is to instead don't address the demand 368 00:17:19,520 --> 00:17:23,280 Speaker 1: side of the equation, instead look at the supply part 369 00:17:23,359 --> 00:17:25,679 Speaker 1: of the equation. First of all, I think it's better because, 370 00:17:25,880 --> 00:17:29,640 Speaker 1: like you are directly helping and hopefully educating and informing 371 00:17:29,680 --> 00:17:31,840 Speaker 1: an individual as to how it is that they should 372 00:17:31,840 --> 00:17:34,640 Speaker 1: be using a credit card, and so literally there's changed 373 00:17:34,680 --> 00:17:36,880 Speaker 1: that's happening there for that person who who you're able 374 00:17:36,920 --> 00:17:40,520 Speaker 1: to impact. But secondly, you are directly impacting the amount 375 00:17:40,560 --> 00:17:43,240 Speaker 1: of money that these banks are making, and it forces change, 376 00:17:43,359 --> 00:17:46,040 Speaker 1: right like they no longer have a choice. At some point, 377 00:17:46,080 --> 00:17:48,400 Speaker 1: if enough people get educated and know enough people start 378 00:17:48,480 --> 00:17:51,720 Speaker 1: changing habits and they're not paying interest to Visa and 379 00:17:51,760 --> 00:17:54,479 Speaker 1: Master cards, they will have to then change the reward program. 380 00:17:54,560 --> 00:17:56,560 Speaker 1: They're not gonna be able to offer the robust rewards. 381 00:17:56,600 --> 00:17:59,000 Speaker 1: The massive sign up onuses is the great travel points 382 00:17:59,000 --> 00:18:01,159 Speaker 1: and the great secondary works like all that kind of stuff. 383 00:18:01,160 --> 00:18:03,600 Speaker 1: Like they just have to say we gotta tamp down 384 00:18:03,600 --> 00:18:05,159 Speaker 1: on all this, and credit cards are going to be 385 00:18:05,160 --> 00:18:08,879 Speaker 1: as lucrative anymore. But I don't know of another way 386 00:18:09,280 --> 00:18:12,000 Speaker 1: to up end the system. And so just focusing on 387 00:18:12,040 --> 00:18:14,479 Speaker 1: the demand side, in my opinion, just feels flawed. It's 388 00:18:14,520 --> 00:18:18,760 Speaker 1: because thanks will continue to make bookoos of cash and 389 00:18:18,800 --> 00:18:21,080 Speaker 1: then use that money to build nice buildings and all 390 00:18:21,080 --> 00:18:23,639 Speaker 1: the cities of other quarters well, and it makes me 391 00:18:23,640 --> 00:18:26,560 Speaker 1: think of credit scores. Just because the credits scoring system 392 00:18:26,600 --> 00:18:31,399 Speaker 1: is flawed and the big credit heures suck majorly, that 393 00:18:31,440 --> 00:18:33,520 Speaker 1: doesn't mean we opt out completely and we say credit 394 00:18:33,560 --> 00:18:35,760 Speaker 1: scores don't matter. There's like a game we have to play. 395 00:18:35,840 --> 00:18:37,480 Speaker 1: We have to be savvy about the game. We're playing, 396 00:18:37,800 --> 00:18:39,920 Speaker 1: and it doesn't mean we have to buy into a 397 00:18:39,960 --> 00:18:43,040 Speaker 1: hook line and sinker, but it does. But I think 398 00:18:43,359 --> 00:18:47,719 Speaker 1: removing ourselves from the equation isn't necessarily helping broader society, 399 00:18:47,720 --> 00:18:49,879 Speaker 1: and it's not the best move for us personally. But 400 00:18:50,320 --> 00:18:52,360 Speaker 1: by the way, we are all on that notebat, we're 401 00:18:52,359 --> 00:18:55,359 Speaker 1: all paying a price for the reality of credit cards 402 00:18:55,359 --> 00:18:57,720 Speaker 1: no matter what we do, because Visa and master Card 403 00:18:57,760 --> 00:19:00,400 Speaker 1: they make money from those swipe fees or the tap 404 00:19:00,440 --> 00:19:03,080 Speaker 1: fees now you might call them, And very few retailers 405 00:19:03,160 --> 00:19:06,399 Speaker 1: charge credit card users more than cash payers, So if 406 00:19:06,400 --> 00:19:09,320 Speaker 1: you're paying in cash, you're actually subsidizing the benefits of 407 00:19:09,359 --> 00:19:12,280 Speaker 1: credit card users receive because that swipe fee is built 408 00:19:12,400 --> 00:19:15,000 Speaker 1: into the sticker price. So you kind of might think 409 00:19:15,040 --> 00:19:17,560 Speaker 1: about it like that too, you're kind of overcoming some 410 00:19:17,600 --> 00:19:21,160 Speaker 1: of that swipe fee by using credit cards. Well, but um, yeah, 411 00:19:21,160 --> 00:19:23,240 Speaker 1: So these are a few things. They're very much worth 412 00:19:23,280 --> 00:19:26,280 Speaker 1: considering if you can't use them properly, if they lead 413 00:19:26,320 --> 00:19:29,160 Speaker 1: you to overspend, if you're not sure about the ethical 414 00:19:29,560 --> 00:19:32,479 Speaker 1: ramifications of credit cards, and if if you are worried 415 00:19:32,600 --> 00:19:35,400 Speaker 1: about kind of the way the system works. Those are 416 00:19:35,800 --> 00:19:38,639 Speaker 1: decent reasons I think to opt out, they're worth mentioning 417 00:19:38,640 --> 00:19:41,000 Speaker 1: at least. But now that we've talked about the downsides 418 00:19:41,040 --> 00:19:43,720 Speaker 1: of credit card usage, Matt, let's talk about the pros 419 00:19:43,960 --> 00:19:46,359 Speaker 1: and then we're actually going to give a credit card 420 00:19:46,640 --> 00:19:49,360 Speaker 1: optimization strategy that Matt and I've kind of thought through. Well, 421 00:19:49,359 --> 00:20:00,920 Speaker 1: we'll get to that right after this. Are we are 422 00:20:00,960 --> 00:20:03,800 Speaker 1: talking about the proper way to use credit cards as 423 00:20:03,880 --> 00:20:06,080 Speaker 1: nature intended. And now that we just covered all the 424 00:20:06,119 --> 00:20:08,000 Speaker 1: cons and hopefully I feel like we did make a 425 00:20:08,000 --> 00:20:11,320 Speaker 1: pretty good case against using credit cards, even though we 426 00:20:11,359 --> 00:20:15,720 Speaker 1: started making an argument for I guess for last we 427 00:20:15,760 --> 00:20:18,480 Speaker 1: did not opting out there. I think there's just a 428 00:20:18,480 --> 00:20:21,200 Speaker 1: more effective way of going about that with your actions 429 00:20:21,440 --> 00:20:23,639 Speaker 1: on both. In both cases it's a very small impact 430 00:20:23,640 --> 00:20:25,760 Speaker 1: that you're gonna have, but one of those still feels 431 00:20:25,760 --> 00:20:28,520 Speaker 1: more impactful than the other. Well, and some individuals like that. 432 00:20:28,520 --> 00:20:30,520 Speaker 1: That's kind of uh. That's not a reason I don't 433 00:20:30,520 --> 00:20:34,200 Speaker 1: think to ban credit cards or for everybody out there 434 00:20:34,200 --> 00:20:36,199 Speaker 1: not to use them, but I think those some of 435 00:20:36,200 --> 00:20:39,600 Speaker 1: those things will apply to some people. And if you 436 00:20:39,640 --> 00:20:41,800 Speaker 1: can't use credit cards wisely, we have always said this 437 00:20:41,920 --> 00:20:43,800 Speaker 1: that you shouldn't be using them, and that totally and 438 00:20:43,880 --> 00:20:45,359 Speaker 1: let's be honest. When we look at the numbers, it 439 00:20:45,480 --> 00:20:48,800 Speaker 1: is something close to half of Americans don't use credit cards. Wisely, 440 00:20:48,840 --> 00:20:50,960 Speaker 1: they're not paying off their balance on time and in 441 00:20:51,000 --> 00:20:52,560 Speaker 1: full of your month. And if you are one of 442 00:20:52,600 --> 00:20:55,120 Speaker 1: those people, you shouldn't be using credit cards at least 443 00:20:55,119 --> 00:20:56,880 Speaker 1: for now. That doesn't mean that at some point, once 444 00:20:56,880 --> 00:20:59,439 Speaker 1: you get your act together, that you can't start to 445 00:20:59,480 --> 00:21:02,320 Speaker 1: re implement credit cards into how you use it. I'd 446 00:21:02,359 --> 00:21:04,040 Speaker 1: go slow and steady and trying to make sure you 447 00:21:04,080 --> 00:21:07,000 Speaker 1: don't keep yourself in this in the same position that 448 00:21:07,080 --> 00:21:09,520 Speaker 1: you are in. But it's really important that to mention 449 00:21:09,560 --> 00:21:11,600 Speaker 1: that for a lot of people, credit cards do not 450 00:21:11,640 --> 00:21:13,600 Speaker 1: make the most sense. Sure that being said, I think 451 00:21:13,600 --> 00:21:16,639 Speaker 1: for our listeners, hopefully it's it's a higher percentage of 452 00:21:16,680 --> 00:21:18,840 Speaker 1: folks who are their bills off. I would it's more 453 00:21:18,840 --> 00:21:21,360 Speaker 1: like a D at least a D, I would hope. Yeah, 454 00:21:21,400 --> 00:21:24,120 Speaker 1: what do you think? And I think so basically, there's 455 00:21:24,119 --> 00:21:25,600 Speaker 1: a lot of people who really know what they're doing. 456 00:21:25,600 --> 00:21:28,080 Speaker 1: They're optimizing, and so this is a thing where yeah, 457 00:21:28,119 --> 00:21:31,080 Speaker 1: they're like, well, yeah, I get that that's half Americans, 458 00:21:31,119 --> 00:21:33,720 Speaker 1: but yeah, it's probably I think more of our listeners 459 00:21:33,800 --> 00:21:35,560 Speaker 1: might be percent of how the money listeners right might 460 00:21:35,600 --> 00:21:37,600 Speaker 1: be wrestling with, like the ethical side of things, and 461 00:21:37,600 --> 00:21:40,159 Speaker 1: hopefully we gave some I don't know, at least a 462 00:21:40,160 --> 00:21:43,040 Speaker 1: framework to help you to think about that for yourself. 463 00:21:43,560 --> 00:21:46,159 Speaker 1: But let's now talk about some of the prose, some 464 00:21:46,240 --> 00:21:49,440 Speaker 1: of the arguments for using credit cards today, which, first 465 00:21:49,440 --> 00:21:50,760 Speaker 1: of all, I mean it kind of feels like a 466 00:21:50,800 --> 00:21:53,440 Speaker 1: necessity in our modern society, which I mean, I guess 467 00:21:53,440 --> 00:21:56,360 Speaker 1: they aren't. Like you could use cash in some places 468 00:21:56,440 --> 00:21:59,280 Speaker 1: and use a debit card everywhere else, but just given 469 00:21:59,359 --> 00:22:02,560 Speaker 1: the reality of online commerce, it's really tough to get 470 00:22:02,600 --> 00:22:05,280 Speaker 1: by without plastic in general. Can be like Amazon, I'm 471 00:22:05,280 --> 00:22:08,000 Speaker 1: gonna mail you dollar bills? How's that gonna work out? Like? 472 00:22:08,280 --> 00:22:10,360 Speaker 1: Can I send you a check? Like is that even possible? 473 00:22:10,359 --> 00:22:12,320 Speaker 1: I don't know. I don't think it is, don't think uh. 474 00:22:12,400 --> 00:22:15,480 Speaker 1: And like similarly, Amazon actually does have some sort of 475 00:22:15,960 --> 00:22:18,840 Speaker 1: weird system where you can go to a particular place 476 00:22:18,840 --> 00:22:21,080 Speaker 1: and deposit cash and have it credited to your account. 477 00:22:21,160 --> 00:22:23,000 Speaker 1: And forget exactly how that works, but I'm pretty sure 478 00:22:23,000 --> 00:22:25,160 Speaker 1: they have something like that. But I'm going to look 479 00:22:25,160 --> 00:22:27,199 Speaker 1: that up because a lot of actually fascinated by that. 480 00:22:27,240 --> 00:22:29,480 Speaker 1: They're one of the only online retailers that offer something 481 00:22:29,520 --> 00:22:31,000 Speaker 1: like that. Okay, so it kind of makes me think 482 00:22:31,040 --> 00:22:34,479 Speaker 1: about how necessary it is to have a car today, 483 00:22:34,680 --> 00:22:36,760 Speaker 1: right because there, you know, someone could argue that they 484 00:22:36,760 --> 00:22:40,800 Speaker 1: aren't totally necessary. That's that's definitely true. But your life 485 00:22:40,840 --> 00:22:44,000 Speaker 1: would look a lot different if you only got around 486 00:22:44,000 --> 00:22:46,200 Speaker 1: with your two legs, or if you only got around 487 00:22:46,520 --> 00:22:49,520 Speaker 1: on a bike. Having a car it comes in handy 488 00:22:49,560 --> 00:22:51,280 Speaker 1: when it's raining, when you're trying to get get out 489 00:22:51,320 --> 00:22:53,080 Speaker 1: of town. Our recent trip to Louisville would have looked 490 00:22:53,119 --> 00:22:55,000 Speaker 1: a lot different if we didn't take a car. It 491 00:22:55,000 --> 00:22:58,560 Speaker 1: would have uh. And similarly, it's really handy to have 492 00:22:58,600 --> 00:23:01,480 Speaker 1: a credit card you use every now than I mean, 493 00:23:01,600 --> 00:23:03,199 Speaker 1: we'll get some rewards in a little bit, but like, 494 00:23:03,200 --> 00:23:05,439 Speaker 1: how else are you gonna pay for those plane tickets 495 00:23:05,480 --> 00:23:07,840 Speaker 1: to Tahiti? You know, I'm not gonna pay for those 496 00:23:07,960 --> 00:23:11,199 Speaker 1: like using cash, use the points for that. I'm not 497 00:23:11,200 --> 00:23:13,320 Speaker 1: going to Tahiti, by the way, I'm still working on 498 00:23:13,320 --> 00:23:16,399 Speaker 1: that the Southwest Companion pass there. But we'll talk about 499 00:23:16,440 --> 00:23:18,040 Speaker 1: you know, debit cards in a little bit and why 500 00:23:18,080 --> 00:23:20,800 Speaker 1: we think they are actually inferior. But since we gave 501 00:23:20,840 --> 00:23:23,520 Speaker 1: some of the best arguments against using credit cards. You 502 00:23:23,520 --> 00:23:25,240 Speaker 1: know the fact that you might spend more that is 503 00:23:25,320 --> 00:23:28,760 Speaker 1: questionable from an ethical standpoint. Let's definitely make sure that 504 00:23:28,800 --> 00:23:31,400 Speaker 1: we are giving some of the best reasons for using 505 00:23:31,440 --> 00:23:33,560 Speaker 1: them as well. Let's do it, okay. One thing, they 506 00:23:33,560 --> 00:23:37,000 Speaker 1: help you establish a credit score. And I mentioned before 507 00:23:37,000 --> 00:23:39,359 Speaker 1: the break the credit scoring model not our favorite, but 508 00:23:40,000 --> 00:23:42,560 Speaker 1: bottom line, it's how the financial industry works, and it's 509 00:23:43,280 --> 00:23:47,560 Speaker 1: you know, when we're talking about an easily identifiable way 510 00:23:47,960 --> 00:23:52,000 Speaker 1: of determining your credit worthiness, this is how it's done, right, 511 00:23:52,080 --> 00:23:54,320 Speaker 1: this is how it's done now. And so you need 512 00:23:54,359 --> 00:23:57,440 Speaker 1: to play the game to boost your score, and uh, 513 00:23:57,600 --> 00:24:00,800 Speaker 1: credit cards help you do that. Responsible credit card usage 514 00:24:00,840 --> 00:24:03,040 Speaker 1: is one of those things that will contribute to a 515 00:24:03,160 --> 00:24:07,200 Speaker 1: robust credit score. I mean yeah, like like is the 516 00:24:07,520 --> 00:24:11,320 Speaker 1: I guess the new the new inquiries for credit Like 517 00:24:11,359 --> 00:24:13,560 Speaker 1: that is the only thing that wouldn't necessarily be impacted 518 00:24:13,960 --> 00:24:15,960 Speaker 1: by you having a credit card. Literally everything else that 519 00:24:16,000 --> 00:24:17,880 Speaker 1: makes up your score is impacted by having a credit 520 00:24:17,920 --> 00:24:19,800 Speaker 1: card and paying it and using it properly. Yeah, and 521 00:24:20,160 --> 00:24:22,240 Speaker 1: it's going to impact so many different things, right, having 522 00:24:22,240 --> 00:24:24,320 Speaker 1: that great credit score, like what you pay for car 523 00:24:24,400 --> 00:24:25,840 Speaker 1: insurance and that we just talked about it on a 524 00:24:25,840 --> 00:24:28,760 Speaker 1: Friday flight. How much more you pay for car insurance 525 00:24:28,760 --> 00:24:30,800 Speaker 1: if your credit score sucks a lot more, it's like 526 00:24:30,840 --> 00:24:33,159 Speaker 1: double like no joke. And so if you want to 527 00:24:33,160 --> 00:24:35,600 Speaker 1: pay three thousand dollars a year because your credit score 528 00:24:35,600 --> 00:24:37,879 Speaker 1: stinks because you said, I'm you know, I don't want 529 00:24:37,920 --> 00:24:40,640 Speaker 1: to play by I'm not playing by your rules, Well 530 00:24:41,080 --> 00:24:42,680 Speaker 1: you can do that, but it's gonna cost you money 531 00:24:42,680 --> 00:24:44,600 Speaker 1: in the long run. And so smart credit card usage 532 00:24:44,720 --> 00:24:47,320 Speaker 1: over time will propel your score upward, which is a 533 00:24:47,320 --> 00:24:49,960 Speaker 1: good thing when it comes to borrowing to get that 534 00:24:50,000 --> 00:24:52,320 Speaker 1: home loan or know what you pay for car insurance, 535 00:24:52,400 --> 00:24:55,200 Speaker 1: it's just going to have major ramifications on that front. 536 00:24:55,680 --> 00:24:57,680 Speaker 1: It's also a good reason to have a credit card 537 00:24:57,720 --> 00:25:00,880 Speaker 1: if you're planning to do some travels civically, if you're 538 00:25:00,920 --> 00:25:03,840 Speaker 1: looking to travel overseas. Again, you could use a debit 539 00:25:03,840 --> 00:25:07,240 Speaker 1: card here, but credit cards they offer a superior exchange rate, 540 00:25:07,359 --> 00:25:09,439 Speaker 1: and they ensure that that that you don't have to 541 00:25:09,480 --> 00:25:11,879 Speaker 1: carry around a bunch of cash on your person and 542 00:25:11,960 --> 00:25:13,760 Speaker 1: of in a foreign place. You know, like you don't 543 00:25:13,760 --> 00:25:16,880 Speaker 1: have to keep that cash fanny pack around your waist 544 00:25:16,920 --> 00:25:18,720 Speaker 1: tucked into your pants, and I don't wanna have to 545 00:25:18,760 --> 00:25:21,280 Speaker 1: mess with that, right, Some of our favorite cards come 546 00:25:21,280 --> 00:25:24,680 Speaker 1: with a zero percent foreign transaction fee, so there's no 547 00:25:24,760 --> 00:25:27,600 Speaker 1: charge to you there, But the exchange rate is also 548 00:25:27,640 --> 00:25:29,520 Speaker 1: going to be better for you than pulling cash out 549 00:25:29,600 --> 00:25:32,000 Speaker 1: of an A t M. With your debit card as well. 550 00:25:32,560 --> 00:25:35,320 Speaker 1: I like taking my no foreign fee debit card as well. 551 00:25:35,359 --> 00:25:37,080 Speaker 1: And in case I am looking to pull a little 552 00:25:37,080 --> 00:25:39,480 Speaker 1: bit of cash if you're gonna visit like a like 553 00:25:39,520 --> 00:25:41,280 Speaker 1: an open air market, that kind of thing where they're 554 00:25:41,280 --> 00:25:43,280 Speaker 1: only taking cash. But there's no way I would travel 555 00:25:43,320 --> 00:25:46,520 Speaker 1: without an actual credit card in order to make most 556 00:25:46,520 --> 00:25:49,400 Speaker 1: purchases that that you would incur while you're abroad, for sure. Yeah, 557 00:25:49,400 --> 00:25:51,800 Speaker 1: you definitely want a little bit of loose cash for 558 00:25:51,880 --> 00:25:53,919 Speaker 1: some things, you know, depending on where you're going and 559 00:25:53,960 --> 00:25:57,280 Speaker 1: what you're gonna do tip having some on hand for that. Yeah, 560 00:25:57,320 --> 00:25:59,720 Speaker 1: And like let's say you're getting food at a little 561 00:26:00,119 --> 00:26:02,120 Speaker 1: stall on the street or something like that, Like you're 562 00:26:02,119 --> 00:26:03,600 Speaker 1: probably gonna want to pay in cash there, so you're 563 00:26:03,600 --> 00:26:05,399 Speaker 1: gonna want to have some cash on your person. But 564 00:26:05,520 --> 00:26:08,120 Speaker 1: credit cards for all of the purchases overseas just makes 565 00:26:08,119 --> 00:26:11,320 Speaker 1: sense to me. That's a really important reason to have them. Also, 566 00:26:11,840 --> 00:26:15,240 Speaker 1: credit cards come with superior protections. And there was actually 567 00:26:15,280 --> 00:26:18,359 Speaker 1: an article in the Washington Post last week, Matt where 568 00:26:18,400 --> 00:26:22,320 Speaker 1: the author mentioned that she had charge from Apple on 569 00:26:22,400 --> 00:26:25,280 Speaker 1: her card. No, she had not just bought a new MacBook. 570 00:26:25,560 --> 00:26:27,840 Speaker 1: It was a fraudulent purchase. And and if that had 571 00:26:27,840 --> 00:26:30,480 Speaker 1: happened with her debit card, she'd have an even bigger 572 00:26:30,520 --> 00:26:33,320 Speaker 1: problem on her hands. She'd be trying to claw back 573 00:26:33,800 --> 00:26:36,760 Speaker 1: stolen funds, which would have impacted her ability to pay 574 00:26:36,760 --> 00:26:39,040 Speaker 1: her other bills. Instead of just trying to get a 575 00:26:39,040 --> 00:26:42,880 Speaker 1: fraudulent charge removed, which is a little pain in the butt, 576 00:26:43,040 --> 00:26:45,199 Speaker 1: it would have been a much, much bigger headache. And 577 00:26:45,200 --> 00:26:47,479 Speaker 1: and plus, if it takes you a while to notice, 578 00:26:47,800 --> 00:26:50,160 Speaker 1: you could be out that money. For good debit cards, 579 00:26:50,160 --> 00:26:54,000 Speaker 1: they just don't have the same protections, uh federally speaking, 580 00:26:54,040 --> 00:26:56,679 Speaker 1: from a legal standpoint as credit cards. And this is 581 00:26:56,720 --> 00:26:59,480 Speaker 1: something that doesn't get mentioned enough, but it is something 582 00:26:59,520 --> 00:27:02,440 Speaker 1: we see as a vitally important reason to prioritize credit 583 00:27:02,480 --> 00:27:06,359 Speaker 1: cards as a method of payment. Those superior protections and 584 00:27:06,400 --> 00:27:09,560 Speaker 1: the fact that you'll be hassled far less if fraud 585 00:27:09,880 --> 00:27:12,600 Speaker 1: does occur. Man, those are two big check marks right 586 00:27:12,600 --> 00:27:15,440 Speaker 1: there in the credit card box from yeah. Yeah. Debit cards, 587 00:27:15,480 --> 00:27:18,760 Speaker 1: they do have some protection, but you have to notice 588 00:27:18,760 --> 00:27:21,720 Speaker 1: fraudulent transactions or you have to notice that your cards missing. 589 00:27:22,000 --> 00:27:24,360 Speaker 1: If you don't notice that within two days, you can 590 00:27:24,400 --> 00:27:27,199 Speaker 1: be on the on the hook for up to bucks. Uh. 591 00:27:27,280 --> 00:27:29,040 Speaker 1: Here's the other thing, here's the real kicker, dude, if 592 00:27:29,040 --> 00:27:32,760 Speaker 1: you don't notice within two months, and I'm sure most 593 00:27:32,760 --> 00:27:34,320 Speaker 1: of our listeners again are thinking, how would you not 594 00:27:34,320 --> 00:27:38,720 Speaker 1: notice a charge leaving your checking account? Of it? Who 595 00:27:38,800 --> 00:27:41,199 Speaker 1: do not budget, who do not track their expenses? And 596 00:27:41,240 --> 00:27:43,359 Speaker 1: if that's you and there's been a fraudulent charge and 597 00:27:43,359 --> 00:27:46,560 Speaker 1: it's been over two months, specifically sixty days, uh, there 598 00:27:46,600 --> 00:27:49,119 Speaker 1: is no limit to the amount of money that you 599 00:27:49,160 --> 00:27:52,119 Speaker 1: are liable for. Uh. And so with with credit cards 600 00:27:52,320 --> 00:27:55,280 Speaker 1: oftentimes there well there is a maximum of fifty dollars, 601 00:27:55,280 --> 00:27:58,520 Speaker 1: but most cards say that you are liable for zero 602 00:27:58,600 --> 00:28:02,160 Speaker 1: dollars for any fraud and the charges another pro Another 603 00:28:02,240 --> 00:28:04,800 Speaker 1: argument for using credit cards is either it's it's easier 604 00:28:04,800 --> 00:28:07,479 Speaker 1: to track spending and so maybe you're thinking, well, I 605 00:28:07,560 --> 00:28:10,480 Speaker 1: do better, you know, putting cash in an actual envelope. 606 00:28:11,000 --> 00:28:14,440 Speaker 1: But if you're tracking your finances using digital means, like 607 00:28:14,640 --> 00:28:17,639 Speaker 1: why nap you need to budget or using mint, it 608 00:28:17,800 --> 00:28:20,800 Speaker 1: is so much easier to categorize and actually keep up 609 00:28:20,800 --> 00:28:23,040 Speaker 1: with your spending into At the end of every year, 610 00:28:23,119 --> 00:28:25,520 Speaker 1: Kate and I we always do a year, an annual review, 611 00:28:25,720 --> 00:28:27,560 Speaker 1: and we look at where it is that we have 612 00:28:28,119 --> 00:28:30,360 Speaker 1: spent our money that year. We compare it to previous years. 613 00:28:30,359 --> 00:28:32,720 Speaker 1: Like I've got a special sheet and I copy and 614 00:28:32,720 --> 00:28:34,399 Speaker 1: paste all of those expenses over and we get to 615 00:28:34,440 --> 00:28:37,440 Speaker 1: see different trends and we can see that, oh, wow, 616 00:28:37,480 --> 00:28:40,600 Speaker 1: we are spending a lot more uh this this year. 617 00:28:40,640 --> 00:28:43,040 Speaker 1: One of the things was was our grocery bill uh. 618 00:28:43,040 --> 00:28:45,240 Speaker 1: And partly we've talked about this, but once we started 619 00:28:45,280 --> 00:28:48,640 Speaker 1: shopping at Costco, we we saw that skyrocket. But it 620 00:28:48,680 --> 00:28:52,960 Speaker 1: allows us to make some of these overarching, large changes 621 00:28:53,120 --> 00:28:55,280 Speaker 1: to our budget. It allows us to kind of tighten 622 00:28:55,320 --> 00:28:57,840 Speaker 1: the belt in certain areas. It allows us to say, hey, 623 00:28:58,040 --> 00:29:00,160 Speaker 1: we didn't spend in this one area even that we 624 00:29:00,200 --> 00:29:02,000 Speaker 1: had set aside a certain amount of money. Let's make 625 00:29:02,040 --> 00:29:05,000 Speaker 1: sure that we are working harder to spend our money 626 00:29:05,000 --> 00:29:07,640 Speaker 1: in ways that we say is actually important to us. 627 00:29:08,000 --> 00:29:09,920 Speaker 1: But you know, knowing where your money is going it 628 00:29:10,040 --> 00:29:13,320 Speaker 1: is a personal finance necessity, and spending our credit cards 629 00:29:13,360 --> 00:29:16,600 Speaker 1: and having those transactions accumulating just in one place like that, 630 00:29:16,640 --> 00:29:20,760 Speaker 1: it makes it so much easier from a money management perspective. Essentially, 631 00:29:20,760 --> 00:29:22,680 Speaker 1: your statement that you receive, that you receive every month. 632 00:29:22,720 --> 00:29:25,320 Speaker 1: It's almost as if you have your own personal like 633 00:29:25,400 --> 00:29:27,640 Speaker 1: c f A and they're just like sending you financial 634 00:29:27,680 --> 00:29:30,760 Speaker 1: reports of like here you go, sir uh. And that's 635 00:29:30,800 --> 00:29:32,680 Speaker 1: not necessarily something you have if you if you are 636 00:29:32,720 --> 00:29:35,760 Speaker 1: doing the cash envelope system for sure. Yeah all right, 637 00:29:35,880 --> 00:29:38,280 Speaker 1: So another pro of credit cards, and this one is 638 00:29:38,320 --> 00:29:41,080 Speaker 1: the calling card really that most people associate as the 639 00:29:41,080 --> 00:29:42,880 Speaker 1: biggest benefit of credit cards, which might not be the 640 00:29:42,920 --> 00:29:45,160 Speaker 1: biggest benefit, but it's it's at least the one that 641 00:29:45,280 --> 00:29:47,560 Speaker 1: gets the biggest headlines, and that is the rewards that 642 00:29:47,600 --> 00:29:50,120 Speaker 1: you get from using credit cards. It's good, good that 643 00:29:50,160 --> 00:29:52,240 Speaker 1: we say the best for last. Yes, yeah, well there's 644 00:29:52,280 --> 00:29:55,120 Speaker 1: more too, but we'll save that for later. But yeah, 645 00:29:55,160 --> 00:29:57,800 Speaker 1: every everyone knows about this part of credit cards, and 646 00:29:57,800 --> 00:29:59,960 Speaker 1: that's what most people are hankering for. Right. They can 647 00:30:00,000 --> 00:30:02,680 Speaker 1: mentioned on every single commercial and and you know, we 648 00:30:02,720 --> 00:30:05,840 Speaker 1: talk about the massively lucrative sign up bonuses and and 649 00:30:05,880 --> 00:30:09,040 Speaker 1: then even more recurring rewards that smart people can maximize 650 00:30:09,040 --> 00:30:12,160 Speaker 1: to the tune of thousands of dollars a year, or 651 00:30:12,200 --> 00:30:14,480 Speaker 1: if you know you're not into dollars as much or 652 00:30:14,480 --> 00:30:17,320 Speaker 1: into more valuable travel perks, you can do that as well. 653 00:30:17,720 --> 00:30:19,920 Speaker 1: And here's the other thing that makes these credit card 654 00:30:19,960 --> 00:30:23,239 Speaker 1: rewards so valuable is that you don't get taxed on them, right, 655 00:30:23,280 --> 00:30:25,280 Speaker 1: which just makes them even better. Because if you sign 656 00:30:25,360 --> 00:30:27,760 Speaker 1: up for a new bank account to score a bonus, 657 00:30:27,800 --> 00:30:30,080 Speaker 1: which I have done I did this past year, that 658 00:30:30,120 --> 00:30:33,000 Speaker 1: money gets taxed. I just got in the mail my 659 00:30:33,200 --> 00:30:35,960 Speaker 1: t N I N T from a bank saying hey, 660 00:30:36,040 --> 00:30:38,160 Speaker 1: I'm glad you got the sign up bonus. Now Paynicle 661 00:30:38,200 --> 00:30:40,360 Speaker 1: Sam a portion of it. And so while that was 662 00:30:40,360 --> 00:30:42,520 Speaker 1: still a good move for me to make, credit card 663 00:30:42,560 --> 00:30:47,480 Speaker 1: bonuses don't come with any sort of taxes associated with them, 664 00:30:47,520 --> 00:30:50,880 Speaker 1: and the rewards can be significant. But again, and I 665 00:30:50,880 --> 00:30:52,840 Speaker 1: feel like we're gonna have to keep saying this, don't 666 00:30:53,000 --> 00:30:56,000 Speaker 1: let the rewards tail wag the dog. Credit card rewards 667 00:30:56,000 --> 00:30:59,280 Speaker 1: can be great, but spending more to juice your rewards 668 00:30:59,440 --> 00:31:03,320 Speaker 1: is fool And that's again part of what the naysayers 669 00:31:03,320 --> 00:31:05,760 Speaker 1: will say about credit cards. Well, people get so excited 670 00:31:05,760 --> 00:31:07,560 Speaker 1: about these rewards that they end up spending more than 671 00:31:07,560 --> 00:31:09,719 Speaker 1: they should. And it's true for some people that they 672 00:31:09,800 --> 00:31:11,600 Speaker 1: end up doing that, and you have to be careful. 673 00:31:11,640 --> 00:31:14,320 Speaker 1: You have to be cautious because rewards can be great, 674 00:31:14,560 --> 00:31:16,640 Speaker 1: but if you're spending more to get more rewards, it's 675 00:31:16,680 --> 00:31:19,480 Speaker 1: just like spending money when you weren't intending to because 676 00:31:19,520 --> 00:31:22,520 Speaker 1: something was fifty off. I got this great discount, you know, 677 00:31:22,600 --> 00:31:24,880 Speaker 1: and it's like, well, yeah, but you weren't planning on 678 00:31:24,920 --> 00:31:27,320 Speaker 1: buying that, and so actually you you like to think 679 00:31:27,320 --> 00:31:29,520 Speaker 1: that you saved, but you spent. Yeah, I totally agree. 680 00:31:29,560 --> 00:31:31,320 Speaker 1: I think it's the same folks that might find fall 681 00:31:31,360 --> 00:31:34,320 Speaker 1: prey to a really sweet deal, a really big sale, 682 00:31:34,480 --> 00:31:36,600 Speaker 1: would be like, look how much money I saved. It's like, well, 683 00:31:36,840 --> 00:31:38,560 Speaker 1: what if that sale didn't exist and you didn't spend 684 00:31:38,560 --> 00:31:40,080 Speaker 1: any of that money at all to begin with? Where 685 00:31:40,120 --> 00:31:41,760 Speaker 1: you plan on my not that thing? Anyway, if you 686 00:31:41,800 --> 00:31:44,960 Speaker 1: weren't yeah, again, you spent. You didn't say exactly, yeah, 687 00:31:45,000 --> 00:31:46,920 Speaker 1: so it's yeah, like you said, important to keep in 688 00:31:47,000 --> 00:31:49,680 Speaker 1: mind that those rewards, certainly they're not gonna make you rich, 689 00:31:49,760 --> 00:31:51,880 Speaker 1: but they can be a nice perk. But in order 690 00:31:51,920 --> 00:31:55,840 Speaker 1: to make sure that your desire for rewards isn't working 691 00:31:55,880 --> 00:31:59,160 Speaker 1: against you. It's crucial to use your cards properly. Um, 692 00:31:59,200 --> 00:32:01,760 Speaker 1: those rewards can feel exciting, right like, it can feel 693 00:32:01,760 --> 00:32:04,160 Speaker 1: a lot of fun as you're getting thousands, you know. 694 00:32:04,240 --> 00:32:06,520 Speaker 1: It's it's also smart that they're not tying it to 695 00:32:06,560 --> 00:32:08,560 Speaker 1: the actual dollar reward that you get, but it's to 696 00:32:08,640 --> 00:32:11,240 Speaker 1: the scent, you know. You know, it's just like, oh, 697 00:32:11,320 --> 00:32:14,920 Speaker 1: eighty thousand points. It's like yeah, yeah, like eighty thousand pennies, 698 00:32:15,000 --> 00:32:17,200 Speaker 1: you know, yeah, I know it sounds nicer than it is, 699 00:32:17,200 --> 00:32:21,160 Speaker 1: so exactly, it's slightly inflated there. But if you spend 700 00:32:21,520 --> 00:32:23,960 Speaker 1: more because the bank says you can, right, or if 701 00:32:23,960 --> 00:32:25,920 Speaker 1: you can't pay the bill on time every single month, 702 00:32:26,000 --> 00:32:30,080 Speaker 1: using credit cards does not make sense. Minimum payments they 703 00:32:30,080 --> 00:32:32,800 Speaker 1: are not enough. The full balance needs to be paid. 704 00:32:32,920 --> 00:32:35,000 Speaker 1: You've got to be disciplined in order for the rewards 705 00:32:35,040 --> 00:32:38,400 Speaker 1: to make sense, if not just completely avoid them all together. Okay, 706 00:32:38,480 --> 00:32:40,520 Speaker 1: let's address debit cards here for a second to Matt, 707 00:32:40,560 --> 00:32:42,720 Speaker 1: because we mentioned that they don't come with the same 708 00:32:42,760 --> 00:32:46,840 Speaker 1: protections as credit cards, but a lot of people, a 709 00:32:46,880 --> 00:32:49,160 Speaker 1: lot of people think, well, they're basically the same thing, 710 00:32:49,440 --> 00:32:52,880 Speaker 1: and so I'm going to use debit cards because what's 711 00:32:52,880 --> 00:32:55,880 Speaker 1: the difference, and it's preventing me from racking up debt 712 00:32:56,160 --> 00:32:58,880 Speaker 1: and spending money that I don't have. And while I 713 00:32:58,960 --> 00:33:03,680 Speaker 1: get that, like desire, I get the impetus. They might 714 00:33:03,720 --> 00:33:06,400 Speaker 1: look the same, but they they're not the same, and 715 00:33:06,440 --> 00:33:08,360 Speaker 1: they don't have the same protections, and they don't offer 716 00:33:08,400 --> 00:33:10,760 Speaker 1: the same rewards either. There's no sign up bonuses for 717 00:33:10,800 --> 00:33:13,280 Speaker 1: debit cards. There are no free travel perks. There are 718 00:33:13,280 --> 00:33:16,760 Speaker 1: also rarely any cash back rewards attached to debit cards either. 719 00:33:17,160 --> 00:33:18,800 Speaker 1: In fact, you know, one of the only ones we 720 00:33:18,840 --> 00:33:20,840 Speaker 1: know of is the Discover debit card, which gives you 721 00:33:20,880 --> 00:33:24,240 Speaker 1: one percent cash back. So that's at least our favorite 722 00:33:24,240 --> 00:33:27,320 Speaker 1: from a debit card perspective. But even that's still not 723 00:33:27,440 --> 00:33:29,760 Speaker 1: as rewarding as spending the spending you do with the 724 00:33:29,760 --> 00:33:32,920 Speaker 1: credit card. But I think the biggest downer is those 725 00:33:32,960 --> 00:33:35,920 Speaker 1: protections that debit cards lack that credit cards have. If 726 00:33:36,080 --> 00:33:38,640 Speaker 1: changers were made to federal law to make debit cards 727 00:33:39,360 --> 00:33:41,720 Speaker 1: have the have those exact same protections, I think I 728 00:33:41,760 --> 00:33:45,120 Speaker 1: would feel more comfortable pushing people in that direction. But yeah, 729 00:33:45,160 --> 00:33:47,360 Speaker 1: I don't want my cash ripped out of my account 730 00:33:47,560 --> 00:33:49,440 Speaker 1: and then have to go like begging the bank to 731 00:33:49,480 --> 00:33:51,400 Speaker 1: keep it back. That sounds like a pain in the butt. 732 00:33:51,600 --> 00:33:54,560 Speaker 1: But after the break, we're gonna talk about credit card optimization. 733 00:33:54,600 --> 00:33:56,440 Speaker 1: How can you make the credit cards that you have 734 00:33:56,480 --> 00:33:58,920 Speaker 1: worked better for you or get the one that maybe 735 00:33:58,960 --> 00:34:01,680 Speaker 1: makes the most sense for how you spend. Well, we'll 736 00:34:01,680 --> 00:34:13,760 Speaker 1: talk about that right after this. And it's now time 737 00:34:13,840 --> 00:34:18,200 Speaker 1: for the credit card optimization segment of our episode today, Joel. So, 738 00:34:18,280 --> 00:34:21,120 Speaker 1: let's say someone's listening, they're on board with using their 739 00:34:21,320 --> 00:34:23,879 Speaker 1: credit cards properly, right like they've got that souber view 740 00:34:24,080 --> 00:34:26,759 Speaker 1: of how credit cards work, and maybe now you want 741 00:34:26,760 --> 00:34:29,319 Speaker 1: to use them as a way to nab some rewards. 742 00:34:29,760 --> 00:34:31,399 Speaker 1: And if that's you, so much of this, so much 743 00:34:31,400 --> 00:34:33,680 Speaker 1: of your strategy is going to depend on how it 744 00:34:33,880 --> 00:34:37,440 Speaker 1: is that you use credit cards and specifically what categories 745 00:34:37,600 --> 00:34:40,040 Speaker 1: you spend the most money on. So let's go ahead 746 00:34:40,120 --> 00:34:42,440 Speaker 1: now and mention what we're gonna call the how the 747 00:34:42,520 --> 00:34:47,360 Speaker 1: Money super Chill credit card optimization strategy. Brandy so sweet 748 00:34:47,360 --> 00:34:50,440 Speaker 1: on that, Matt's a mouthful, but we think this is 749 00:34:50,640 --> 00:34:53,200 Speaker 1: this really is an effective approach for most folks out there. 750 00:34:53,600 --> 00:34:57,320 Speaker 1: So let's now discuss what this three card approach entails. 751 00:34:57,880 --> 00:35:01,800 Speaker 1: And first of all, we think definitely includes the American 752 00:35:01,800 --> 00:35:06,040 Speaker 1: Express Blue Cash Preferred card. That's one that most folks 753 00:35:06,160 --> 00:35:08,520 Speaker 1: will benefit from. It is important to point out that 754 00:35:08,560 --> 00:35:12,520 Speaker 1: this card comes with a annual fee, which sounds like 755 00:35:12,760 --> 00:35:16,399 Speaker 1: bad news bears, but you are looking at a six 756 00:35:16,440 --> 00:35:20,120 Speaker 1: percent cash back reward at grocery stores as well as 757 00:35:20,200 --> 00:35:23,080 Speaker 1: on streaming subscriptions as well. Joe and I we both 758 00:35:23,120 --> 00:35:26,759 Speaker 1: love this card because we've got bigger families and be 759 00:35:26,880 --> 00:35:29,560 Speaker 1: we purchase a ton of groceries. That being said, it 760 00:35:29,800 --> 00:35:32,440 Speaker 1: may not be worth it if let's say you're single, 761 00:35:32,680 --> 00:35:35,160 Speaker 1: maybe you live by yourself, or you're always eating takeout, 762 00:35:35,239 --> 00:35:38,560 Speaker 1: like because really, the grocery store is the main feature 763 00:35:38,719 --> 00:35:41,800 Speaker 1: of this card exactly. And if that's the case, uh, 764 00:35:41,960 --> 00:35:45,040 Speaker 1: you would be wasting every single year were you to 765 00:35:45,040 --> 00:35:47,160 Speaker 1: get this card. Uh. And so an important number to 766 00:35:47,200 --> 00:35:49,359 Speaker 1: keep in mind. There's a break even point between this 767 00:35:49,480 --> 00:35:51,840 Speaker 1: card and the version of this card that does not 768 00:35:51,920 --> 00:35:53,960 Speaker 1: come with a fee. But the break even point is 769 00:35:54,000 --> 00:35:56,760 Speaker 1: that you need to be spending at least eighty dollars 770 00:35:56,800 --> 00:36:00,000 Speaker 1: a month on groceries in order to make the annual 771 00:36:00,120 --> 00:36:02,560 Speaker 1: fee for this card worth it. Yeah, and I know 772 00:36:03,040 --> 00:36:05,480 Speaker 1: a lot of people, especially if if they have a 773 00:36:05,920 --> 00:36:08,439 Speaker 1: significant other, a partner, or even just a kid or two. 774 00:36:08,440 --> 00:36:11,360 Speaker 1: They're definitely spending more than that, especially given what's happened 775 00:36:11,400 --> 00:36:14,399 Speaker 1: with inflation and groceries this past year. Your family spend 776 00:36:14,400 --> 00:36:16,920 Speaker 1: two hundred bucks a month just on eggs. It feels 777 00:36:16,920 --> 00:36:19,439 Speaker 1: like it right now. It certainly does, right And so yeah, 778 00:36:19,480 --> 00:36:22,759 Speaker 1: if you're spending in the plus range on groceries, this 779 00:36:22,840 --> 00:36:25,319 Speaker 1: is probably the first credit card you should have in 780 00:36:25,360 --> 00:36:28,120 Speaker 1: your wallet, right, I mean six percent, Like literally, you're 781 00:36:28,120 --> 00:36:29,840 Speaker 1: not going to find any card out there that is 782 00:36:29,880 --> 00:36:32,960 Speaker 1: paying or cash back percentage this high, not that, not 783 00:36:33,000 --> 00:36:37,000 Speaker 1: anywhere close. Using get this card, pay for your streaming, 784 00:36:37,040 --> 00:36:39,719 Speaker 1: and pay for your groceries with it, and it's going 785 00:36:39,800 --> 00:36:43,560 Speaker 1: to pay for itself for sure. And the next card 786 00:36:43,760 --> 00:36:47,600 Speaker 1: in this super show credit card optimization strategy is the 787 00:36:47,640 --> 00:36:51,799 Speaker 1: City Custom Cash Card, which clocks in at five in 788 00:36:51,880 --> 00:36:55,160 Speaker 1: any single category of spending. So this is where your 789 00:36:55,160 --> 00:36:57,920 Speaker 1: personal spending patterns come into play, because if you spend 790 00:36:58,120 --> 00:37:01,000 Speaker 1: a big chunk of change every month eating out, then 791 00:37:01,080 --> 00:37:02,400 Speaker 1: this is the card you're gonna want to use it 792 00:37:02,480 --> 00:37:06,000 Speaker 1: restaurants and if you spend a ton at different gas stations, 793 00:37:06,200 --> 00:37:09,200 Speaker 1: or let's say you spend a bunch at home depot 794 00:37:09,239 --> 00:37:11,840 Speaker 1: and lows right, well, then this is your gas or 795 00:37:11,960 --> 00:37:15,360 Speaker 1: home improvement card. And then literally right on the card 796 00:37:15,600 --> 00:37:18,040 Speaker 1: with the sharp piece that you get those max rewards 797 00:37:18,040 --> 00:37:21,200 Speaker 1: in that specific category, and always use that credit card 798 00:37:21,239 --> 00:37:23,920 Speaker 1: in that one place. Don't spend it anywhere else because 799 00:37:23,920 --> 00:37:26,520 Speaker 1: you're only getting one percent on other categories. But the 800 00:37:26,520 --> 00:37:29,560 Speaker 1: City Custom Cash Card is a great card for people 801 00:37:29,600 --> 00:37:32,960 Speaker 1: to have to use and basically their top spending category. Yeah, 802 00:37:33,000 --> 00:37:35,320 Speaker 1: beyond feel like everybody, most folks are going to be 803 00:37:35,360 --> 00:37:37,520 Speaker 1: going to the grocery store. It depends on how much 804 00:37:37,560 --> 00:37:39,200 Speaker 1: you actually spend at the grocery store as to whether 805 00:37:39,239 --> 00:37:41,000 Speaker 1: or not the Amix Blue Cash prefer It is gonna 806 00:37:41,000 --> 00:37:42,680 Speaker 1: be worth it. But the next you're looking at that 807 00:37:42,760 --> 00:37:45,560 Speaker 1: City Custom Cash Card. And then lastly, we think that 808 00:37:45,600 --> 00:37:49,279 Speaker 1: everyone should have a basic two cash back card. There 809 00:37:49,320 --> 00:37:52,040 Speaker 1: are two of these out there that have been around 810 00:37:52,040 --> 00:37:54,720 Speaker 1: for a number of years now that we consistently recommend. 811 00:37:54,800 --> 00:37:57,839 Speaker 1: First of all, the Fidelity Visa is great. Uh, And 812 00:37:57,880 --> 00:38:00,840 Speaker 1: what's cool about this card You can saw those rewards 813 00:38:00,920 --> 00:38:05,080 Speaker 1: straight into an IRA, which is super cool. You know, like, 814 00:38:05,120 --> 00:38:07,400 Speaker 1: we're totally fine with you earning points for free travel. 815 00:38:07,680 --> 00:38:10,640 Speaker 1: I like free flights, but at least with the monetary 816 00:38:10,680 --> 00:38:13,280 Speaker 1: perks that you get from these straight up cash back cards. 817 00:38:13,480 --> 00:38:16,080 Speaker 1: I love the idea of you using them as a 818 00:38:16,120 --> 00:38:19,400 Speaker 1: way to invest for your future, right, Like, this is 819 00:38:19,400 --> 00:38:21,880 Speaker 1: an income that you're banking on, uh and so instead 820 00:38:21,880 --> 00:38:24,359 Speaker 1: of splurging maybe a little bit extra, just toss those 821 00:38:24,400 --> 00:38:27,120 Speaker 1: those few extra dollars every month into your roth IRA 822 00:38:27,320 --> 00:38:30,720 Speaker 1: or into even a taxable brokerage account if you're already 823 00:38:30,719 --> 00:38:33,040 Speaker 1: maxing out your IRA. But it would be really cool 824 00:38:33,080 --> 00:38:36,320 Speaker 1: to see just how much those reward dollars could grow 825 00:38:36,520 --> 00:38:40,680 Speaker 1: for your future when invested, uh in, particularly if you 826 00:38:40,719 --> 00:38:43,879 Speaker 1: are finding it difficult to get investing or or maybe 827 00:38:43,880 --> 00:38:45,719 Speaker 1: you're finding that you haven't been able to max out 828 00:38:45,960 --> 00:38:47,600 Speaker 1: some of you know, your IRA A and I think 829 00:38:47,600 --> 00:38:49,080 Speaker 1: this is an awesome way to kind of give you 830 00:38:49,120 --> 00:38:53,040 Speaker 1: that boost that future you will most definitely appreciate. Yeah, 831 00:38:53,080 --> 00:38:56,800 Speaker 1: So this credit card optimization strategy really entails getting three cards. 832 00:38:56,840 --> 00:38:59,399 Speaker 1: The m X Blue Cash Preferred is one, the City 833 00:38:59,400 --> 00:39:01,919 Speaker 1: Custom Cash is two, and then a two percent cash 834 00:39:01,960 --> 00:39:04,799 Speaker 1: back card is third, either the Fidelity Visa the match 835 00:39:04,840 --> 00:39:07,960 Speaker 1: just mentioned, or the City Double Cash, which is another 836 00:39:07,960 --> 00:39:10,439 Speaker 1: one of our favorites that consistently pays two percent cash 837 00:39:10,440 --> 00:39:13,120 Speaker 1: back on everything, which is also well worth considering. So 838 00:39:13,200 --> 00:39:16,640 Speaker 1: get those three cards, and that's really for most people 839 00:39:17,120 --> 00:39:21,200 Speaker 1: going to optimize your rewards without overthinking it. Right, It's 840 00:39:21,239 --> 00:39:24,040 Speaker 1: a it's a simple strategy to maximizing rewards. And we 841 00:39:24,280 --> 00:39:27,400 Speaker 1: actually have an article kind of outlining how this works 842 00:39:27,560 --> 00:39:29,400 Speaker 1: that will link to in the show notes for this 843 00:39:29,440 --> 00:39:31,239 Speaker 1: episode that you can check out and you can kind 844 00:39:31,239 --> 00:39:33,239 Speaker 1: of read and see like, Okay, now this makes sense 845 00:39:33,239 --> 00:39:35,440 Speaker 1: because hopefully I was talking about it makes sense, but 846 00:39:35,520 --> 00:39:38,040 Speaker 1: sometimes reading it makes will help it make more sense. 847 00:39:38,080 --> 00:39:40,799 Speaker 1: But some of you might be saying, well, I can 848 00:39:40,840 --> 00:39:43,239 Speaker 1: optimize more than that, though, right of course you can, 849 00:39:43,360 --> 00:39:46,960 Speaker 1: Like I think we just wanted to offer a an 850 00:39:47,000 --> 00:39:50,319 Speaker 1: easy like way to start for people to say, like, 851 00:39:50,600 --> 00:39:52,360 Speaker 1: you don't have to overthink it, and there's ways for 852 00:39:52,400 --> 00:39:54,359 Speaker 1: you to get six percent back on a lot of things, 853 00:39:54,400 --> 00:39:55,799 Speaker 1: five percent back on a lot of things, and two 854 00:39:55,840 --> 00:39:58,040 Speaker 1: percent back on everything else, and you don't have to 855 00:39:58,080 --> 00:40:00,920 Speaker 1: deal with rewards and redemption ends and stuff like that 856 00:40:00,960 --> 00:40:04,759 Speaker 1: for travolving categories things changing like that's personally, I'm not 857 00:40:04,800 --> 00:40:06,680 Speaker 1: a huge fan of that. I don't like jumping through 858 00:40:06,719 --> 00:40:08,799 Speaker 1: some of those additional hoops. The ability to kind of 859 00:40:08,800 --> 00:40:11,800 Speaker 1: set it and forget it is what this optimization strategy 860 00:40:11,840 --> 00:40:13,920 Speaker 1: is all about. It's like a simple method really for 861 00:40:14,000 --> 00:40:16,960 Speaker 1: people to do the basics to score the low hanging 862 00:40:17,040 --> 00:40:20,040 Speaker 1: fruit by using credit cards. But then yeah, if you're 863 00:40:20,040 --> 00:40:22,120 Speaker 1: a superorganized person, you might might make sense for you 864 00:40:22,160 --> 00:40:24,760 Speaker 1: to open additional cards over time to score extra rewards. 865 00:40:25,040 --> 00:40:26,960 Speaker 1: We're not against that at all, and Matt and I 866 00:40:27,040 --> 00:40:29,520 Speaker 1: we do that ourselves, but yeah, I just wanted to 867 00:40:29,600 --> 00:40:31,799 Speaker 1: at least give you that simple strategy. But like, because 868 00:40:31,840 --> 00:40:34,640 Speaker 1: let's say you're a renter. The Built credit card is 869 00:40:34,719 --> 00:40:37,560 Speaker 1: literally the only credit card on the market that offers 870 00:40:37,560 --> 00:40:41,120 Speaker 1: you rewards just for paying rent, and it is possible. 871 00:40:41,280 --> 00:40:44,399 Speaker 1: This is a real card, and and there's not any 872 00:40:44,440 --> 00:40:47,240 Speaker 1: other card that offers the same feature, Like, you can't 873 00:40:47,280 --> 00:40:51,040 Speaker 1: get get paid, get rewards for paying rent except for 874 00:40:51,360 --> 00:40:53,600 Speaker 1: with this credit card. You can check out our review 875 00:40:53,640 --> 00:40:55,720 Speaker 1: of that card at how the Money dot com slash 876 00:40:55,760 --> 00:40:58,360 Speaker 1: Built b I lt But you know, this would be 877 00:40:58,400 --> 00:41:01,600 Speaker 1: a very solid fourth card renters, even if you only 878 00:41:01,680 --> 00:41:04,880 Speaker 1: use it to pay rent each month. There's no annual 879 00:41:04,920 --> 00:41:08,480 Speaker 1: fee either, which makes this one really worthwhile and attractive. Uh, 880 00:41:08,520 --> 00:41:10,439 Speaker 1: and you can also go to our how to Money 881 00:41:10,640 --> 00:41:12,719 Speaker 1: credit card tool how the Money dot Com slash credit 882 00:41:12,719 --> 00:41:14,719 Speaker 1: cards as credit card tool out there, man, and you 883 00:41:14,760 --> 00:41:16,720 Speaker 1: can click a few buttons and you can easily filter 884 00:41:16,840 --> 00:41:19,560 Speaker 1: based on kind of the rewards that that you're looking for. Specifically, yes, 885 00:41:19,600 --> 00:41:22,560 Speaker 1: specifically by whether or not you're looking at getting cash back, 886 00:41:22,640 --> 00:41:25,200 Speaker 1: or if you're looking for points from an airline, and 887 00:41:25,200 --> 00:41:27,719 Speaker 1: then specifically what airline that you are looking to get 888 00:41:27,760 --> 00:41:30,120 Speaker 1: those points with. And if you're a business owner, some 889 00:41:30,160 --> 00:41:32,319 Speaker 1: of those business cards are even more lucrative, and you 890 00:41:32,320 --> 00:41:34,479 Speaker 1: can click the business button right there and you can 891 00:41:34,560 --> 00:41:37,280 Speaker 1: filter by that. Yeah, that's an awesome tool. But aside 892 00:41:37,280 --> 00:41:39,480 Speaker 1: from the specific credit cards out there, there are a 893 00:41:39,520 --> 00:41:41,120 Speaker 1: couple of ways that we want to discuss here to 894 00:41:41,160 --> 00:41:44,200 Speaker 1: make credit cards work even better for you, and we 895 00:41:44,239 --> 00:41:47,480 Speaker 1: would recommend you trying to negotiate with your credit card 896 00:41:47,560 --> 00:41:51,120 Speaker 1: issue where specifically to ask for a reduction on that 897 00:41:51,200 --> 00:41:53,600 Speaker 1: annual fee. Some of those travel cards out there, the 898 00:41:53,600 --> 00:41:57,480 Speaker 1: annual fee it's pretty stinking high. And case some point here, 899 00:41:57,480 --> 00:42:02,000 Speaker 1: our friend Scott Rickens, he literally had chat GPT. So 900 00:42:02,120 --> 00:42:04,400 Speaker 1: that's the you know, the AI that has been all 901 00:42:04,440 --> 00:42:06,920 Speaker 1: up in the headlines Uh, you're living under a rock 902 00:42:06,960 --> 00:42:10,720 Speaker 1: if you missed GPTU. He had it right a script 903 00:42:10,760 --> 00:42:14,279 Speaker 1: for him to ask for an annual fee reduction. He 904 00:42:14,280 --> 00:42:16,080 Speaker 1: said it was it was super easy to do, saved 905 00:42:16,160 --> 00:42:18,520 Speaker 1: him five hundred bucks. He's talking. I think it was 906 00:42:18,560 --> 00:42:20,719 Speaker 1: like the is amex Platinum card that he was referring to. 907 00:42:20,800 --> 00:42:24,360 Speaker 1: It's got like a five four annual fee, but it 908 00:42:24,440 --> 00:42:27,920 Speaker 1: only took him ten minutes. Will link to the Twitter 909 00:42:28,000 --> 00:42:30,000 Speaker 1: thread where he was talking about that. But you know, 910 00:42:30,040 --> 00:42:31,759 Speaker 1: to to be able to have your cake and eat 911 00:42:31,760 --> 00:42:34,600 Speaker 1: it too by by getting a great card with sick perks, 912 00:42:34,600 --> 00:42:38,440 Speaker 1: with sick benefits, all while avoiding hefty fees. We're all 913 00:42:38,440 --> 00:42:40,560 Speaker 1: for that. Yeah, Okay. One other way to kind of 914 00:42:40,600 --> 00:42:44,360 Speaker 1: maximize credit cards in your life is to take advantage 915 00:42:44,400 --> 00:42:47,279 Speaker 1: of the hidden benefits that credit cards offer and the 916 00:42:47,360 --> 00:42:49,399 Speaker 1: rewards a sign up bonuses, those get all the press. 917 00:42:49,480 --> 00:42:51,719 Speaker 1: That's what you know again is in the commercials, that's 918 00:42:51,719 --> 00:42:54,920 Speaker 1: what they're publicly touting. But the best credit cards offer 919 00:42:55,040 --> 00:42:58,680 Speaker 1: benefits that go beyond those headline rewards. So for instance, 920 00:42:58,719 --> 00:43:00,880 Speaker 1: with some cards, you can get primary a rental car coverage. 921 00:43:00,920 --> 00:43:03,120 Speaker 1: That's actually what that built card. I just mentioned that. 922 00:43:03,280 --> 00:43:06,040 Speaker 1: How the money dot Com slash b I lt that 923 00:43:06,120 --> 00:43:08,840 Speaker 1: card that can where you can earn for paying rental. 924 00:43:08,880 --> 00:43:12,040 Speaker 1: You can also get primary rental card coverage, which is incredible. 925 00:43:12,080 --> 00:43:15,359 Speaker 1: Not many cards even offer that, all with zero annual fee. 926 00:43:15,400 --> 00:43:18,000 Speaker 1: I mean that that's a really sweet secondary park that 927 00:43:18,040 --> 00:43:21,520 Speaker 1: most people don't talk about. Chrip cancelation insurance comes with 928 00:43:21,600 --> 00:43:25,520 Speaker 1: other credit cards to airport lounge access. Cell phone insurance 929 00:43:25,640 --> 00:43:28,760 Speaker 1: if you pay your cell phone bill with a particular card, 930 00:43:29,000 --> 00:43:31,920 Speaker 1: like the Built card every single month. It's one of 931 00:43:32,000 --> 00:43:35,080 Speaker 1: those things where you drop your phone, you lose your phone. 932 00:43:35,280 --> 00:43:38,280 Speaker 1: Guess what, it's ensured. Those can be just as rewarding 933 00:43:38,280 --> 00:43:41,000 Speaker 1: though as the headline cash back number and the travel 934 00:43:41,040 --> 00:43:44,759 Speaker 1: words you might get with some cards. It's just worth mentioning, Like, 935 00:43:44,880 --> 00:43:46,839 Speaker 1: dig into that fine print and see, okay, well, what 936 00:43:46,840 --> 00:43:50,319 Speaker 1: what is this credit card offering in addition to just 937 00:43:50,360 --> 00:43:53,600 Speaker 1: two percent cash back or in addition to that five 938 00:43:53,640 --> 00:43:56,120 Speaker 1: percent in my favorite category? What else is it gonna 939 00:43:56,120 --> 00:43:58,719 Speaker 1: give me on top of that? And then optimize your 940 00:43:58,719 --> 00:44:01,800 Speaker 1: credit card use accordingly? That's right, man, dig into those benefits. 941 00:44:01,960 --> 00:44:04,799 Speaker 1: And if you use credit cards properly, they can kind 942 00:44:04,800 --> 00:44:07,600 Speaker 1: of act like an interest free loan. Uh, not only that, 943 00:44:07,640 --> 00:44:10,400 Speaker 1: they can award you even greater benefits like cash rewards, 944 00:44:10,440 --> 00:44:13,840 Speaker 1: free travel. That's what we've been discussing just now again. 945 00:44:14,040 --> 00:44:17,160 Speaker 1: Do the banks get rich off of folks using credit cards? Yeah, 946 00:44:17,400 --> 00:44:19,080 Speaker 1: there are too many people out there who are using 947 00:44:19,080 --> 00:44:21,920 Speaker 1: credit cards poorly. The rest of us wouldn't have access 948 00:44:21,960 --> 00:44:24,680 Speaker 1: to these perks if they started changing their spending habits 949 00:44:25,040 --> 00:44:26,839 Speaker 1: and if they pay their their credit card debt off, 950 00:44:27,320 --> 00:44:30,520 Speaker 1: if credit card rewards evaporated, because that became a reality, 951 00:44:30,800 --> 00:44:33,920 Speaker 1: would we be happy about that? Absolutely? But that's not 952 00:44:34,120 --> 00:44:36,239 Speaker 1: the way that the world works. That's not how our 953 00:44:36,280 --> 00:44:39,800 Speaker 1: financial system are. You know, it's not structured that way, 954 00:44:39,880 --> 00:44:42,920 Speaker 1: at least not yet. Uh. And so we've all got 955 00:44:43,000 --> 00:44:46,600 Speaker 1: to make up our mind about how and even if 956 00:44:46,760 --> 00:44:49,480 Speaker 1: we're going to partake and use credit cards in the 957 00:44:49,520 --> 00:44:52,040 Speaker 1: world that's polarized by them here at how the money. 958 00:44:52,160 --> 00:44:55,239 Speaker 1: We are all for smart use. But this is one 959 00:44:55,320 --> 00:44:58,400 Speaker 1: that we think good folks can hopefully agree to disagree on. 960 00:44:58,920 --> 00:45:01,360 Speaker 1: I agreed. And and the way if you're listening to 961 00:45:01,400 --> 00:45:03,640 Speaker 1: this and you're like, I'm in credit card debt, well 962 00:45:03,640 --> 00:45:06,920 Speaker 1: that's something that's like a hot high priority for us, 963 00:45:07,000 --> 00:45:08,200 Speaker 1: is we want to see you get out of that. 964 00:45:08,480 --> 00:45:11,280 Speaker 1: And we've got resources on how to money dot com 965 00:45:11,320 --> 00:45:14,879 Speaker 1: to help you figure out make a plan to pay 966 00:45:14,880 --> 00:45:17,360 Speaker 1: off your debt, and prior episodes as well that speak 967 00:45:17,400 --> 00:45:19,799 Speaker 1: to debt payoff and creating a plan so you can 968 00:45:19,800 --> 00:45:22,640 Speaker 1: get rid of it sooner than later. That's really important, 969 00:45:22,680 --> 00:45:25,320 Speaker 1: and it's really important that you not use those credit 970 00:45:25,320 --> 00:45:28,000 Speaker 1: cards for the time being while you're getting out of it. 971 00:45:28,000 --> 00:45:29,560 Speaker 1: You don't want to continue to dig yourself a hole 972 00:45:29,600 --> 00:45:31,359 Speaker 1: while you're also trying to crawl out of it. Like 973 00:45:31,520 --> 00:45:34,320 Speaker 1: that's that's not a good strategy. So if you haven't 974 00:45:34,360 --> 00:45:36,560 Speaker 1: had good habits with credit cards, we want you to 975 00:45:36,640 --> 00:45:40,120 Speaker 1: develop those, but maybe wait until after you're out of 976 00:45:40,120 --> 00:45:43,160 Speaker 1: the debt all the way to even consider starting again. 977 00:45:43,640 --> 00:45:45,040 Speaker 1: And and also, by the way, if you want to 978 00:45:45,120 --> 00:45:48,360 Speaker 1: learn more about our super chill credit card optimization strategy, 979 00:45:48,400 --> 00:45:50,680 Speaker 1: you can go to how the Money dot com slash 980 00:45:50,719 --> 00:45:52,920 Speaker 1: optimized to check that one out. But Matt, let's get 981 00:45:52,960 --> 00:45:55,160 Speaker 1: back to the beer for this episode. This one was 982 00:45:55,200 --> 00:45:58,640 Speaker 1: called The Judge and it's by Memphis Made Brewing Company. 983 00:45:58,920 --> 00:46:01,560 Speaker 1: Or your thoughts on this chock Vanilla porter, I thought 984 00:46:01,560 --> 00:46:04,520 Speaker 1: it was pretty tasty. Man. We don't often have porters 985 00:46:04,560 --> 00:46:07,680 Speaker 1: here on the show, and so I'm always it's always 986 00:46:07,719 --> 00:46:10,400 Speaker 1: fun to have a different style that we don't often 987 00:46:10,640 --> 00:46:13,640 Speaker 1: frequently drink. But that being said, I felt like, uh, 988 00:46:14,320 --> 00:46:15,880 Speaker 1: you know, when you have a piece of toast and 989 00:46:15,880 --> 00:46:17,719 Speaker 1: it's been toasted like a little bit too long and 990 00:46:17,760 --> 00:46:21,080 Speaker 1: it gets it's not like bitter, but it has been 991 00:46:21,160 --> 00:46:23,120 Speaker 1: like a little bit of those like bitter chocolate notes 992 00:46:23,600 --> 00:46:26,520 Speaker 1: like on the malts, like on the actual grains. That's 993 00:46:26,520 --> 00:46:28,880 Speaker 1: what this one kind of reminded me of, especially the 994 00:46:29,080 --> 00:46:31,759 Speaker 1: first sip I took. I don't know, that's the that's 995 00:46:31,840 --> 00:46:33,440 Speaker 1: definitely what came to mind, Like before you put the 996 00:46:33,440 --> 00:46:35,480 Speaker 1: butter on there. Uh you know, so I feel like 997 00:46:35,480 --> 00:46:37,080 Speaker 1: the butter kind of sweetens it up a little bit. 998 00:46:37,320 --> 00:46:39,560 Speaker 1: But yeah, that being said, I definitely enjoyed it. Nice 999 00:46:39,600 --> 00:46:41,879 Speaker 1: would you think, Yeah, I mean, well, chocolate vanilla, I'm 1000 00:46:41,920 --> 00:46:44,000 Speaker 1: kind of a basic dude. I like chocolate vanilla, like 1001 00:46:44,040 --> 00:46:46,799 Speaker 1: give me a swirl ice cream calling I'm a happy guy. 1002 00:46:47,560 --> 00:46:50,040 Speaker 1: So this one, yeah, it's like because those the two 1003 00:46:50,040 --> 00:46:54,720 Speaker 1: basic ingredients kind of had that swirl elements that taste 1004 00:46:55,080 --> 00:46:58,200 Speaker 1: going on. So nice. I liked it, and porters aren't 1005 00:46:58,320 --> 00:47:00,800 Speaker 1: typically my favorite, but I thought this one was was 1006 00:47:00,840 --> 00:47:03,000 Speaker 1: pretty tasty. Yeah, well, it's just nice to have some 1007 00:47:03,040 --> 00:47:06,160 Speaker 1: of these darker flavors without getting really filled up. And 1008 00:47:06,200 --> 00:47:09,080 Speaker 1: oftentimes you will get filled up more often with a 1009 00:47:09,120 --> 00:47:11,400 Speaker 1: stout and with a porter. You get all that flavor, 1010 00:47:11,680 --> 00:47:13,600 Speaker 1: but you get it without all that body, without all 1011 00:47:13,719 --> 00:47:17,040 Speaker 1: without all that weight. That's a little bit lighter for sure. Exactly. 1012 00:47:17,680 --> 00:47:19,640 Speaker 1: All right, Well, I definitely enjoyed it. That's gonna do 1013 00:47:19,719 --> 00:47:21,879 Speaker 1: it for this episode. For folks who want the show notes, 1014 00:47:21,960 --> 00:47:23,520 Speaker 1: you can find those up on our site at how 1015 00:47:23,520 --> 00:47:25,400 Speaker 1: to money dot com and will link to a lot 1016 00:47:25,440 --> 00:47:27,799 Speaker 1: of the resources that we mentioned in today's show. But Matt, 1017 00:47:27,840 --> 00:47:30,359 Speaker 1: that's gonna do it for this episode. Until next time, 1018 00:47:30,800 --> 00:47:32,920 Speaker 1: best Friends Out, Best Friends Out.