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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, etc. 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.
They also have an extra rewards center. The rewards center gives you the option to shop at many popular online stores, (Old Navy, Gap, Target just to name a few) through the Discover link and you will earn 5% cashback on these purchases. Before I buy ANYTHING online, I always go to the Discover website and check to see if they have a cashback option for that store.
We make about $300-$400 a year just by using our credit card. (YAY for free money!!) We use this money to pay for our kids Christmas. Think of all the possibilities you could use it for though! Such as 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. It is NOT worth the temptation. If this is your situation the cashback Ebates offers would be a great alternative for you.
However, 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! Just by shopping like we normally would! It’s the easiest $4,000 I’ve ever made!!
And every other thing Dave Ramsey says I follow to a T!