I love Dave Ramsey. I follow his advice and teachings religiously. Except for one thing….
I have one credit card and use it regularly.
Dave Ramsey advises against using any sort of credit card, but we have found it actually earns us a lot of money just by shopping normally.
I use cash for about 50% of our purchases, clothes, decorations, restaurants, spending money, kids music lessons. We use a Discover Card for the other half of our purchases, such as utilities, groceries, gas and online purchases. We are very diligent at paying the card off each month and mainly use it for items that are unable to accept cash, such as online purchases.
Our Discover Card offers a 1% cashback bonus on all purchases and a 5% cashback bonus for a variety of purchases. The 5% rotates monthly from gas to groceries to travel. We make about $300-$400 a year just by using our credit card.. We use this money to pay for our Christmas. You could use it for paying off debt, put it towards retirement or college savings, or treat yourself to a little mini vacay. The options are endless!
If having a credit card would tempt you to spend more money than you normally would then DO NOT sign up for one.
If and ONLY IF you are able to use a credit card responsibly and pay it off monthly, I highly recommend signing up for one that offers a cashback option. In the 10 years we have been using our card we have earned around $4,000. Sounds like a pretty sweet deal to me!
And every other thing Dave Ramsey says I follow to a T!
I may receive compensations for sign ups made through my provided link. All opinions are honest and reflect how I live my daily life.