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Money Mastery Method 4 - Let Your Expenses Work For You!

Idea by Rick Jensen
Author:
The Travel Bug

You’ve probably heard of “letting interest work for you.” This is old, but wise advice. Here’s some newer advice that I’d like to give. Let your interest work for you, but allow your expenses to work for you too!

With some of the credit programs available today you can earn money on the products that you will normally spend money on.

There are different credit cards that can earn you up to 5% cash back when you use them. The rules for the cash back credit cards vary, and depending on your circumstances you’ll probably only get about 1 or 1.5% back. I realize that this doesn’t see like that much, but every little bit helps! It especially helps when you see how much that 1.5% has accumulated over a year. The best part is that you were going to purchase those products anyway - why not let someone pay you for it?

Before you get “excited” about this, you should be warned about credit cards. Some people have a difficult time with credit cards because they spend as if “it’s not real money.” Don’t use a credit card if you have a difficult time disciplining your self financially. If you find yourself going crazy, JUST STOP! Remember, the only reason why you buy things on credit is because they are paying you to do so. It’s not because you don’t have the money “right now.” If you don’t have the money “right now,” then you probably shouldn’t be buying it!

Let me tell you how this Cash Back Award has been spent by some of my friends:

I have some friends who take their annual Cash Back Award and use it on the vacation of their choice. Because my friend owns a business, he is continually purchasing things for his business.

The money that he spends for airfare, meals, bills, and other expenses all go to increase his Cash Back Award. He will be spending that money no matter what - so why not get a little kickback? Because of the amount that he spends for his business, his kickback ends up paying his expenses for a week in Hawaii with his entire family. I’d say that’s worth it!

If you choose to use your credit card as a “money maker,” there are a few things you may want to do so you don’t get into trouble.

First, check your balance often. I look at my balance on the internet at least twice a week. It helps me to keep in focus what I have spent and where that money goes.

Second, keep a budget. Go through your expenses monthly to see exactly how much you spend. Stay within the thresholds of your budget. If you can’t stay within your budget with the cards - - cut ‘em up immediately! If you can, be prepared to expect a reward at the end of the year.

Third, when you start seeing your Cash Back Award accumulating, decide how you’d like to spend it. We usually use ours for a vacation. Though our vacation may not be as lavish as to take my whole family to Hawaii, there have been times where I have been able to pay for a timeshare get-a-way or even a cruise. You may be thinking, “How can he buy a cruise or a timeshare vacation with his kickback? He must spend quite a bit of money!”

Nope, but I do know where to find the travel deals and recently wrote an e-book on where to find them. It’s called The Travel Bug, and if you want to use your Cash Back Award on some great deals, I recommend getting my book! It can save you hundreds, if not thousands of dollars.

From Rick Jensen at The Travel Bug

Note from Christopher - I use a credit card that pays down my mortgage with the "cash back" and I've paid down hundreds of dollars of principal by using this method.

"The Travel Bug" Will Save You Money On Family Vacationing, Timeshares, Cruises, and Much, Much, More!

When it's time for my cruise, I'll contact Rick and have him find a deal for me. He does know how to travel!