I love getting cash back for my credit cards. It makes you feel—wait... I owe $14,000?!
Credit cards are like sweet potato pie.
No they're not! Either you hate credit cards or you love them, there's no one between,
kind of like sweet potato pie. I only use a credit card to make my purchases, I
don't even own a debit card and I hate using cash, because my credit card pays
me to use it—But, it has been brought to my attention that a lot of people are not
using their credit cards the right way. Nope. Can't even look at you right now...
That's why today I'm gonna go over 7 ways you are using your credit cards
wrong, so make sure you watch this video until the end, but, before we get into
that hit that, thumbs up button below because it's kind of like a virtual high
five, and subscribe to the Minority Mindset YouTube channel, that way you don't
miss our new videos every single week. First, you are spending what you don't
got. There are about 250 million adults in America, out of which 70% own a credit
card, which is about 175 million, now out of those 175 million people, just over
half of them—or 95 million of those people—have out standing credit card
debt, and they are losing in the credit card game, because they are paying a
crazy interest rate on every single purchase they make, while 80 million of
those people are winning in the credit card game because they are getting free
trips, perks, bonuses, and cashback just for using their credit card.
I want you—put a smiley face here—to be in this minority of the people, and not
be there. Credit cards are a tool that amplify your spending habits. If you
cannot control your spending, credit cards are going to fuel your bad
financial habits, so if that's you, you should not be using a credit card.
But Jaspreet! What about my cash back?! One percent cash back doesn't make up
for the twenty five percent interest that you're paying, which is why you need to
make sure that you are a disciplined spender before you use a credit card, but,
you also need to make sure: Two, that you use your rewards! One third of all credit
card users have never redeemed any of their rewards, ever. Let me draw you a
little picture here. So this circle that's a little lopsided, represents
everybody who has a credit card. Now, just over half of these people, like we just
talked about, are using their credit card wrong, and are losing because these are
the people paying interest. Well, one-third of all credit card users
who are getting rewards, which means they have to be on this side because these
are the people that are paying the interest, are not using them. That only
leaves this people that are using credit cards right, and to their advantage, and
are winning in the credit card game. Let's put a little smiley face here, this
is where you want to be! When I was a kid, my Mom would always tell me: "Finish your
food Jaspreet, there are hungry people in India." I'm gonna rephrase that
to make it a little bit more applicable here; "Use your rewards people, there are a
lot of people in debt that wish they had them!" Third: make sure your perks don't suck.
You ever see those videos where parents go to their kids and say: "Guess what, you
can have some money. The only catch is, you have to pick which
hand do you want, and one hand has more money than the other". Well, you get to do
the exact same thing with your credit card, except this time you get to see
what's in my hands. Which would you rather prefer? When I got my first credit
card, I knew nothing about credit cards. I went to my bank, I asked for a credit
card and I was it. Hmmm? But not all credit cards are created equal. Ugh, it's 2020, you
can't say that Jaspreet. Some credit cards will reward you with more cashback,
bigger bonuses, more perks, and better rewards than other credit cards, for free.
I learned this the hard way because my first credit card gave me next to
nothing, which is why I no longer have that credit card. Now, I look for credit
cards that will give me the most cash back, because when I have cash in my hand
I can use it however I want. I can even use my cash to invest in my
credit card company. The only exception I have to my cash back only rule, is for a
travel card—if and only if—you travel at least a few times a year. I'm not gonna
do a full breakdown of every credit card in this video, but my team already put
together a few blog posts with my favorite cash back credit card, the best
credit cards for travel cards, and my favorite business credit card. If you
want to see them, I already linked them in the description
below for you to check out. You don't have to enter in any information to read
them, these are just articles on our website, where we do a full breakdown of
the card, the perks, the signup bonuses, and everything in between.
So, if you want to up your credit card game, and make sure you're getting the best
perks, and the most cash back, check out the articles are linked in the
description below. Fourth: you've got too many credit cards. I don't like the idea
of signing up for 25 credit cards this way I have one credit card for gas, one
for restaurants, and one for toilet paper. I get four percent cashback on toilet
paper with my "Visa toilet card". The more credit cards you have, the more likely
you are to screw something up, which is a mistake that I don't want to pay for,
which is why you have to make sure, five: that you use a credit card like a debit
card. The majority of people think that their credit card is a magical piece of
plastic that just prints out free money. Mr. Magic Plastic, can I please have a
free pair of shoes? Oh, thank you! And these are the same people who get abused
by their credit card. If you want to use your credit card to your advantage, you
need to treat your credit card like a debit card, instead of treating your
credit card like a machine that prints you free money. Use your credit card to
only make the purchases that you would normally make with cash, and then pay off
your entire credit card balance each and every month without missing a month, this
way, you never have to pay a penny in interest, and to help you with that, six:
Make sure your limit isn't too high. For some reason that I don't think I'll ever
understand, people think it is cool to show off how high their credit limit is.
What's up guys? Take a look, my bank says that I can borrow fifty thousand dollars
of their money, and I only have to pay them back twenty nine point nine eight
percent of my life. If your monthly expenses are five thousand dollars a
month, you don't need a thirty five thousand dollar monthly credit limit. So,
I want you to call up your credit card company and say: "Hi, I'd like
to get my credit limit adjusted". Oh, you'd like to raise your credit limit? Sure, I'd
be happy to help you with that! Uh, no. I'd like to lower my limit. Lowering your
limit is kind of like wearing a credit card seatbelt, because now your savings
are protected from a spending accident. And number seven: you don't even know
your credit card. Let me ask you a question: how big was your credit card
signup bonus? $200. How much cash back do you get? One and a half
percent. Do you get purchase protection? I'm not sure. What about fraud protection
insurance? Oh, uh blhuuh... Most people can tell you what their sign up bonus was and how
many points they get but after that, it's just crickets... And your perks
disappearing. If you go out and you buy a new watch, and then you lose it, some
credit card companies will pay you for a new one. Other credit card companies
will take the manufacturers warranty on your laptop or on your phone, and extend it
for a year, just because you used your credit card. These rewards can be really
useful, but they're worthless unless you know that they actually exist, so I
want you to take five minutes and go research all the rewards, perks, and
bonuses that your card has to offer, this way, you can use your card to the max.
Without actually maxing it out... And to help y'all with this, we already broke all this
information down with some of our favorite cards in the articles in the
description below. Thank you for watching, if you enjoyed this video, share with one
friend, and if you don't want to miss your new videos on entrepreneurship,
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