This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Well, d*mn: Thank you credit cards
I never thought about this until I wrote the following article, “I’m Slowly Eradicating My 1 Year Emergency Fund,” and belabored the idea of how using a credit card earns you more money than leaving your money in a bank account, then I was like, “I have to write a follow-up piece!”
First off, I started un-liquidating my emergency fund because the cash was sitting there doing absolutely nothing.
It wasn’t working on my behalf; it wasn’t increasing in value; it wasn’t doing what money should be – working 24/7 to increase your net worth.
I do not recommend you un-liquidate your emergency fund; I’m only telling you why I’m doing it for my portfolio.
I intend to transition to a 90%/10% investment/liquid strategy to expedite my financial growth and not allow my money to sit still.
Credit Cards Cash Back Rewards Is A Nifty Strategy
Many credit cards provide 1.5% cash back on your purchases.
If you’re spending an automatic $6,000 monthly on expenses, that is about $100 in cash-back rewards.
No, it’s not a ton of money, but if you’re already going to spend it, you might as well earn some money.
Then you have the credit card companies that offer extra cash back rewards if you spend your money on specific shopping categories, and that’s when you can hack the system and increase your earnings even more.
Why Savings Accounts No Longer Work For Me
There is no longer any point in keeping your money locked away in a dark and depressing savings account that earns you zero interest and earns the bank countless interest.
The banks have really figured it out.
An old friend got me a book that teaches you how to think like a bank.
You’re likely to increase your net worth if you think like a bank. Banks know how to leverage money and make it work on their behalf to multiply exponentially.
We must think the same to increase our net worth exponentially.
Just Be Sure
If you utilize a credit card, pay that statement off each month, or you will be stuck with interest that cannibalizes your money.
Credit card interest payments are one of the highest expenses for people; avoid it by setting up automatic payments and never spending money on your credit card that you don’t have the money to pay back.
A mentor recommended paying off a credit card purchase immediately after you make it.
Doing this ensures you get the points and never run up a balance.
Make money work around the clock for you, 24/7medium.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.