97% of Millionaires Use Credit Cards? (Is Dave Ramsey Wrong?)
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- čas přidán 7. 12. 2022
- 97% of Millionaires Use Credit Cards? (Is Dave Ramsey Wrong?)
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Dave and the money guys have two different audiences. Dave is for the folks who are in debt up to their eyeballs and need a new outlook and way of life. Money guys are more for folks that mostly have their act together and need tweaks to their financial path. Neither are wrong.
So true!
This! Dave's mantra is "Don't give a drunk a drink". To people who are used to behaving badly with money, credit cards are definitely the equivalent of giving a drunk a drink.
Yes 100% agree
THIS
No Dave is definitely wrong sometimes
For instance an 8% withdrawal rate in retirement. Historically that has a very low chance of working
Had I tried following Dave’s advice on home purchase I would have never been able to buy a home before prices skyrocketed. I bought the home at 200k and it’s now 450k.
Think of the people saving money since 2015 and just kept getting outpaced because Daves plan is too conservative.
Dave has updated his advice on home purchases. He recommends 20% but says as a first time home buyer you don’t need to do that. Just be ready to pay PMI.
@@jal8631 I've heard that. But man people got clobbered if they took his advice from the start.
@@nerdobject5351so simple minded. I wish you the best but you have alot to learn
Of course he's wrong. His statements are ambiguous and leave out the data that conflicts with his way if thinking.
I read, listen, and watch EVERYONE in Personal Finance and Investing field. Dave Ramsey, Robert Kiyosaki, Ramit Sethi, Suze Orman, David Bach, the late Jack Bogle, the FIRE community, and other CZcamsrs. I take tips from each of them and use them accordingly.
At various stages of my life, their advice has been useful. I have learned to be a student but NOT a follower of any one Financial Guru.
Dave gives a great foundation but I wish I had listened to you guys 10 years ago too. I passed up on buying a house through my 20's because Dave was preaching 20% down payments and now I'm 35 and just bought a house. I'm grateful but I missed out on a ton of equity in the mean time and in 10 years I've paid about $180k in RENT! Makes me want to throw up a little.
Yeah I bought a house before I was "ready" and it has been a great financial move. I bought it in 2019, refinanced in 2020 at a 2.8% rate. Our mortgage is now 10% of our takehome pay because our incomes have increased a ton
Honestly run the math. Even if you save up 20% if you are getting a 15 year mortgage with a payment less than 25% of take home pay you will end up needing a 50% downpayment to qualify
I bought a house at 25 in my budget (in fact my roomates totally coveted my mortgage) and I regret it.
I guess I fit the mold - I have used credit cards extensively for 35 years BUT have never paid even 1 penny of interest to a credit card company…. Many thousands in free money they paid me to use the cards though and an 830 FICO score to boot.
I like to think of credit cards like alcohol. There is nothing wrong with having an occasional drink from time to time, as long as you can do so responsibly. But for many of Dave's audience, they are straight up alcoholics. You can't give an alcoholic a drink and be surprised when they abuse it to the point of reckless drunkenness. They are better off going cold turkey.
Alcohol is always bad for you
@@nathandennis8078🤓
@@nathandennis8078bro shut up
most really old people drink or smoke casually@@nathandennis8078
Dave got me out of debt, the Money Guy Show is making me wealthy. Great job guys. I will NEVER EVER be able to thank you guys enough for the content. Myself and the little woman invested 65% that number is correct 65% of our income this year.
Good for you, man. That's awesome!
David is right about one thing tho, when you are broke, don’t use credit card.
97 percent of millionaires use credit cards. The other 3 percent of millionaires followed the Ramsey plan
Credit cards are bad news for undisciplined people. I simply use mine for day to day expenses, and pay it off. Here in the UK, if a fraudster gets hold of your debit card and spends your money, it can take a long time to get your money back. If your credit card is used in the same way, the bank is the victim. Just don’t hold a balance unless a 0% deal.
5:42 I have a 30 year mortgage. It will be paid off in 15 years or less. I started 2022 owing $263,002.55 and as December 08, 2022, I owe $245,940.39. I write my progress on my bedroom mirror. I see it every day, and it keeps me motivated.
You guys are offering some solid, and reasonable personal financial advice.
Dave had to change the House down payment philosophy. It become impossible to put that much down and keep under 25% with the rise in house prices.
My relative had a beater of a car, and then had an at-fault accident because he ran the tires over the mileage to save money..
think before you buy a hooptie!
If you use CC wisely the lender pays you not vice versa . My housing maintenance costs are significantly reduced by CC rewards today. Early years I paid 0% on balances and would take advantage of zero balance transfer fees. Ramsey is talking to undisciplined folks. He‘s wrong on debt leverage for the savy saver.
I don't like a lot of what Dave says - mainly because of the details. But I'm with him on the 20% down payment for a house. I bought my first real home with an FHA loan and only 3% down back in the '80s. But I'd never do that again because the risk of getting upside down on the mortgage is much too high.
Dave is fine I guess, but George is so self righteous about it. Neither of them would criticize people for buying private label or clipping coupons to save money, but taking advantage of cash back on (responsible) CC purchases is verboten...give me a break
Yes, wrong on many of the bullshit he pushes. This is common knowledge.
I completely agree. I use credit cards, reap its benefits, never paid a cent on interest, accumulated millions of points.
You dont need a "Beater" car. But usually, it's hard to justify ever financing a new car today. The value just isn't there vs. used cars.
Dave says 20% down on a house IF YOU CAN (obviously to avoid PMI). I believe Ramsey Solutions has shifted toward “put down as much as possible”.
Really enjoy your content/opinions guys. Keeps the critical thinking process alive!
I put 0 down lol and got NO PMI.
@@floridajames04 conventional mortgage?
@@phillipsbrad12 haha no. VA.
@bphill24 bought a half million dollar home too.
Both systems have merit but it matters where you are in life fiscally and mentally.
Dave's system is for people who have completely jacked their credit, are in debt to their ears and don't have fiscal self-discipline. It's a boot camp to fix your finances.
TMG is a step above. People who aren't in financial hell but maybe made a questionable financial decision here and there but nothing back breaking. The individual still has a strong base to work off of. I feel their primary beneficiaries are people who may have a relatively small balance on a credit card, living in a house mostly in their means and not driving a brand new luxury car every 3 years on a $70k salary. IE people that are in a place they have extra cash and they just need some guidance on what to do with it (paying down debt vs investing vs saving for a large purchase)
Both camps have good points but one thing is for sure and that is CC debt is as toxic as it gets. Check the average CC balance,, SCARY!!!!
I get a funny feeling whenever dave talks about their study of millionaire's. Like theyre hiding something, or cherry picked the sample
Must be flexible with any plan, completely agree with The Money Guys and I am a diehard fan of The Ramsey Show. Both great channels with lots to offer based on situation.
For the financially, competent credit cards are great
for a lot of people, it’s too much temptation
Auto loans should be avoided if possible,
You can buy yourself a Toyota used for $3000 that will last ages
I disagree with Ramsey credit cards though
But I wonder if the risk is actually worth the small amount of cashback or where do you get. I mean you can't really get that much when all they give is 1%. But yeah I can see if you're very careful it could be helpful but not if you spend an extra 12% on purchases
Dave wouldn't disagree with what you are saying. The problem is a huge chunk of people don't operate within the guardrails. Dave ramsey is for those that have gone over the limit and its hurting them.
I am starting my debt free journey (student loans & credit card left ) but will definitely buy a house with with a mortgage, 10-20% down.
Dave’s obsession with avoiding credit cards is undermined by his insistence in having a budget. If you’re setting and following a budget, there is absolutely no problem with using credit cards and paying them off every month.
Think of a credit card like bourbon. If you’re an alcoholic, you should avoid it. If you aren’t, use it responsibly and it can be a positive in your life.
Bourbon cannot be a positive in your life. At worst, alcohol is downright destructive. At best, it's simply pointless.
@@amireallythatgrumpy6508 well said, Dave
Dave's advice is for 2 reasons. 1. for the spend-oholics, the people who have no self control. and 2. because he doesn't want to contribute to the CC companies that prey on these people, the CC companies take money from them, and also take money from the businesses through transaction fees. so it's a practical, and moral thing.
With a credit card you spend more... if you can afford to spend more and pay it off... than sure why not.
No statistically people spend more that doesn't mean you specifically. Statistically you're also 510 but that doesn't mean every man is
I would love to compare two sample groups with followers of these methods and followers of Dave Ramsey, and see who are more financially successful. I guarantee it’s the latter.
You are losing on thousands of cash back. Especially for a business.
If you pay them off every month, there is nothing wrong with them.
Dave thinks because you have one, you will use it and go into debt. He thinks no one have self control.
Generally speaking he's right. Most people spend more when they have a CC vs when they pay in cash (he cites studies) however if you don't fall into the category of people who can't make and stick to a specific budget then Dave's advice is too conservative and you will miss out on lots of opportunity cost while being terrified of debt. You need to know yourself; if you are an alcoholic then "a few beers" is much more problematic than if you aren't an alcoholic.
@@jamespungello8361 Those "studies" didn't take into account whether you would have paid the same with cash of not.
Like if 2 people made a shopping list. 1 paid with cash, and 1 with credit.
They both stuck to their shopping list. But the one that paid with credit card, wound up spending more.
That does not mean that they paid more for it if their paid in cash.
Also if you pay cash you're overpaying for everything. Stores build the 1-3% credit card processing fees into prices for everything. So if you're NOT using credit cards to get the cashback benefits, you're paying the increased prices.
I don't want to use a credit card, but how to rent a car without a credit card ?
Use a debit card?
@@Billy_W Lots of them you can't.
@@saulgoodman2018 what are you talking about? I’ve been using a debit card to rent cars for years.
@@artemkalinchuk Not all banks will let you though.
@@saulgoodman2018 I’m curious which banks don’t let you? I have multiple accounts at different banks and had no issues whatsoever.
Like anything in life, listen to different points of view. I disagree with Dave on buying cars, credit cards and home buying. But, agree with him on buying rental property..pay cash, because when you lose a renter and the house is empty for a while, it's not as stressful if the house is paid for. I'm also a car guy, so sometimes leasing makes sense FOR ME, if I wanted the option of having a new car every few years..
The real key is there is room in the financial world for different plans that can still bring you success. I’ve listened to Dave for well over two decades and he’s absolutely pivoted over the years in the way he responds today vs back then. His patience (some probably can’t believe this) has increased ten fold. I think he realizes eventually he needs to pass the torch and I think he’s already starting to move in that direction.
Before I learned how to manage money, I did not want a credit card. Too easy to just put it on the card. But when I really got the hang of managing money and I was doing it well, I did get a credit card and I use it for most of my monthly spending (groceries, gas, etc.) and I pay it off every single month. I turn in the rewards for Amazon cards. If there ever came a time I was not paying it off every single month, I would cut the card up pronto. A lot of the people Dave Ramsay is helping with money managing skills just aren't there yet and it is much better for them to not have a card and they should be working on building up that emergency fund and savings accounts etc.
4:23 Dave Ramsey says 25% of your net income.
Dave says that you can rent a hotel room without a card. LOL ok…
I've been getting hotel rooms for years with my debit card.Where the heck have you been? Under a rock somewhere???
@@darlenepaul2918 damn you Ramsey bootlickers sure are aggressive.
You can. The problem with many people is that they don't have the funds available for the hold they put on the debit card. Before I went completely credit card, I would use a debit card, no problem. I travelled 200 days a year or more from 2004-2014, no issues using a debit card and hotel room.
what's with the money guy show talking this much about the ramsey show?? :)
I know. Between the clickbait titles, stupid thumbnails, and now all this Ramsey nonsense, the channel is going down hill. It is very sad to see what Brian's passion project turned into.
@@thynnus2422 may be they ran out of stuff tp talk about. I mean there's only so much you can say about financial strategies..
For a 15 vs 30 year mortgage, I wouldn't describe it as more purchasing power. I'd say leverage more debt.
I agree, but if you are purchasing your first home, you probably do need the extra purchasing power that comes with extending the mortgage.
@@NickVetter i am not arguing what you should do. Just accurate description of what is being done is important
330k subscribers vs millions…
Why all these digs on Dave? It feels like since they recorded that episode with Ramsey Solutions, TMG has just been out to disprove his methods. It lacks class and reminds me of political attack ads😂
To be clear, I agree with the money guys and love their advice, but I think I’m taking a break from them for a bit.
What do you expect from a dude that has a Zero FICO🧐
Guess what ??A multi millionaire has no golldang need of a FICO score!!!!
@@darlenepaul2918 He preaches that nobody needs one including Joe Sixpack🤯
Dave follows God's rules for money. I followed the Dave Ramsey plan and am now completely debt free including a paid off mortgage. Nothing feels better financially. Love the Money Guy Show but no mention of the biblical factors involved in serving/honoring God throughout this debt free financial freedom journey. Keep up the great work guys. The borrower is slave to the lender. Most people for whatever reason can't handle a credit card. too much YOLO and FOMO in people. Takes a lot of discipline to pay off a credit card every month, year after year.
Fake God have nothing to do with anything. They don't pay your bills.
What do myths and fairy tales have to do with sound money management? You don't have to be religious to be smart with money and do good things with it.
👍👍👍
Dave's practices are probably great for people that are 'bad' with money. For the rest of us who are responsible savers/spenders/investors, his doctrine doesn't really make a lot of sense.
There is no "rest of us".
Everyone has cards to travel globally so don't bs!! You can't go anywhere without them. So get real!!
I followed daves plan until the pay off house early stuff and then switched to the money guy plan (had only recently discovered the money guy show). Dave is a "you can't possibly fail this" plan and money guy is more about smart maximization. I think you graduate to money guy later once you put out all of the fires in your early life.
Well said.
I use credit cards almost exclusively for all purchases but I do pay the balance off every month. I love the protections and rewards my credit cards gives me. I decided years ago however that I would never again make a bank rich and it works for me. I think Ramsey has some good principles to follow, but they should be guidelines and not all or nothing principles. Good job guys explaining this. A financial journey is about discipline and what works in your situation.
I guess I am in the 1%. Millionaire status. And in the 3%. I don’t use a credit card. I also have never bought a new car and put 20% on a 15 year mortgage. Paid it off in 11 years 4months. No debt. Paid for house and mutual funds. 1.25m net worth.
I'm a millionaire, and I use credit cards.
From what I've heard, Dave's no-credit-cards-ever stance rests on three arguments: (1) you might temporarily lose your mind and spend money you don't have, (2) studies show that people spend more when they use credit cards, because spending cash activates "pain" centers in the brain, and (3) it's wrong to benefit from credit-card rewards because you're profiting off the backs of other credit-card users who are in debt over their heads.
I've never had any problem with (1). On (2), I don't really want to put myself in pain when I spend - when I spend money I can afford and have budgeted for, I want it to be a positive experience. And by the logic of (3), it's also wrong to have money in an interest-bearing savings account (because the only way banks can pay you interest is if your savings become somebody else's debt), but I never hear him make that argument.
Why fool with it at all, pay cash.
@@alinatamashevich3354 "Cash" doesn't give you an effective 2% discount on everything you buy. That "tiny" 2% savings, invested over a working career, will make you more than $1,000,000.00 richer than you would be using cash. An extra MILLION+ dollars just by choosing a 2% cash back card over cash.
@@libertarian4323 Nope, you overspend to get that piss ant 2%. Again, Cash is King, all else.....Jokers
@@alinatamashevich3354 And my numbers are correct, but I doubt you have the mathematical abiliy to understand "future value" calculations. Maybe one of your more mathematically inclined friends can explain it to you. That 2% you so cluelessly dismiss can amount to over $1M over time.
@@libertarian4323 BTW, I have a MBA in accounting and finance. Over spending to try and make 1M from piss ant cash back is a suckers bet. Sleep well
You guys are right on the money and after getting myself 100% debt free many years ago I kept putting that money into investments instead of debt payoff and it's really making a huge difference. Cash back rewards on my credit cards really add up when spending 10-20k on stuff every year and by keeping my expenses relatively low even after getting a better paying job I can really see how all of these strategies make sense. Now with a nearly maxed credit rating I'm in the market for a house with plenty of leeway despite having purchased a new plugin hybrid car that keeps expenses low and had a huge rebate.
4:17 - "More than 25% of your gross income?" Is that before even things like the 401k deduction?
Dave to get out of debt.
The Money Show for investment (mid life).
Heritage Wealth Planning for real life retirement cost numbers. (Late 50's). You may not need millions.
I think Dave's argument is less about credit cards being financially incorrect, but more of a moral stance. Because they are so toxic for those that cannot keep up with their spending habits. Then they forever get stuck on owing a ton of money that pays for everyone else's cash back.
I HATE this argument because I know they have mentioned multiple times that they go to casinos and gamble for fun. Where do casinos get money from that they pay you if you win? Exact same concept, but much worse honestly
This is basically the message I gave my daughter. Credit Cards and loans are tools, they are not evil. You have to figure out what you can afford each month and stay well below that number. Paying down the debt when you have extra, should always be a top consideration. As a college student who has to work while going to school, it’s a valuable lesson to learn early.
In the early years, it’s ok to have longer loans as long as you reevaluate every pay bump. Every raise or increase in pay is money you never had before, using that to speed up paying your debt will help you in the long run. Once you pay off those early year loans you can focus on wealth. Of course, if you can manage to not get loans in the first place and live without for a bit longer than you might get a jump start on wealth but it is very difficult. Most people in their younger years are rushing to grow up so they will probably choose a few loans along the journey. It is not evil or wrong, you just have to manage what you can afford and how hard you are willing to work.
Idk if I agree. It kinda sounds like lifestyle inflation by financing purchases based on your future incomes. I also think it's a little evil for the young people thinking they need to finance a car and end up with a 16% interest rate. We still have to remember that the majority of Americans are bad with credit cards, and anyone can fall into the trap. It's great that you are educating your daughter so she can hopefully avoid the downsides.
@@NickVetter definitely can be a slippery slope, especially for those who don’t get the education and hand holding from a parent. It does require ground work and learning basic skills.
The other benefits of using a credit card is the ability to balance bills and income. From my daughter’s situation, income doesn’t always show up in time to pay the bills. Using a credit card so you make one payment at end of month can be a huge benefit. Always pay it off and save a little nest egg to cover 1 month expenses (not including emergency savings). These tricks can help you get through the bumps when going to college on a tight budget.
@@MrMaramor that to me also sounds like living pay check to paycheck
@@NickVetter Many young adults start out paycheck to paycheck especially when in college. But you are only paycheck to paycheck if you never build up at least 1 month of expenses. Even still, with a parent walking a young adult through these steps and there to help as needed, they learn how to be independent and self sufficient.
When the jobs pay little and the hours unpredictable there is little you can do but ride the wave and invest in your self so later you don’t have to struggle.
My daughter was working 3 jobs at one point while going full time to college. She is down to 1 job now with a 2nd job that is flexible. All of this is to reduce the need for more student loan debt and help cover living expenses. She also decided to buy a car, so she has to make up the payment. I cover insurance and maintenance.
The shocking thing is she has been doing this since high school and none of her friends in high school or college understand how to manage money or bills, and they always ask her. It’s shocking how many young adults in high school or college have 0 understanding of even basic skills. Even more disgusting is how many parents don’t teach basic money and life management skills to their kids before college.
I am glad I have had the opportunity to at least set a foundation for my daughter. It won’t be easy, and there will be bumps but the foundation is strong.
The difference can be attributed to the target audience. People who become successful (millionaires) typically have a lot of self-discipline. Dave's audience is weak in that area. Regarding investing ... I LOVE index funds. Low fees, match the market's results. Share in the growth of the economy.
Dave uses debit cards in one account with his spouse. He does this to keep everyone on the same page and hold each other accountable for purchases. He is basing this philosophy off a study that came out saying that when people use credit cards, they spend anywhere from 11-25% more than if it is a debit card. This makes sense when you see that physical amount of money in your account being drained as opposed to putting everything on a credit card and just hoping you didn't overspend at the end of the month. This also makes sense because credit card companies are in the market of making money. They want you to overspend so they can collect the most interest. They've seen all the studies as well.
I don't agree with Dave about mortgages. The only way my husband and I could get to 20% of our income for housing, was a 30 year mortgage. We have fully planned out having it paid off 15 years before retirement and 10 years into the actual loan. We had a late start at life from student loan debt/military because our families were thoroughly wiped out from job loss and couldn't afford to pay for our schooling in STEM. I would so much rather have life wiggle room, then worry about long term interest paid, but if people can manage a 15 year loan in their area, it is a better plan.
I started using credit cards after paying off most of my student loans. It’s okay to use credit cards, but it helps to clean up some debt so you don’t dig yourself into a hole
Daves entire existence is giving lessons to people who have destroyed their lives with debt. No wonder he teaches dont use credit cards. He is lecturing child-adults. These people do not have spending habits of adults. To his credit, he also lives what he preaches
But if you know how to spend like an adult, the benefits of credit cards are totally worth it.
Yes, 97 percent of millionaires use credit cards but none of them made all of their money from them. Check Mate!
That's a Ramsey straw man argument that is utterly meaningless.
Dave is dealing with people that Can't handle money and are deep in debt. TMG deals with people that don't carry credit card balances.
They all have wealthy privilege a house is not a good investment when you don’t have a good job to pay the mortgage most people are living paycheck to paycheck because housing is too expensive
You guys are getting a lot of mileage from Dave Ramsey related content. 🤔
Well yeah....I started with Dave and moved up to The Money Guy show.
Dave is great...I don't always agree with his moral stance on things, turns out I'm a financial mutant. Now my wife and I are hooked on the Money Guy and these videos really help explain and validate our thoughts.
It can be nerve-wracking to go against someone like Dave's advice and this helps boost confidence that although we disagree on details, we are still headed in the right direction.
@@Megrim3 I totally agree. Dave gives a great foundation but I wish I had listened to the money guy 10 years ago too. I passed up on buying a house through my 20's because Dave was preaching 20% down payments and now I'm 35 and just bought a house. I'm grateful but I missed out on a ton of equity in the mean time.
You should never by a new car it is a dumb investment cars depreciate
97% of your clients use credit cards? No offense but who cares. So your followers follow YOUR advice and use credit cards (not to mention your not saying how many people you even surveyed). Ramsey has done the largest study of USA millionaires ever (not just people who follow him). 10,000 millionaires. What did he find? "73% of millionaires have never carried a credit card balance in their lives." So the majority of Millionaires do NOT use credit cards. You guys are not being upfront here-
They are already
Millionaires 🤷🏽♂️
It's a little slimy how you go to Dave's place, buddy up with him, talk about how "people try and pit us against each other", and then two weeks later you're out here with the Dave is wrong content. Ride the wave while you can. Real slimy you guys, not a good look.
Yes, may hellfire rain upon them for not agree 100% with everything Dave says. I have to ask whether you actually watched the podcast in question because you don't seem to have fully absorbed it. While they were trying to be very non-confrontational, they brought up some of the differences in their approach while they were talking with Dave, and Dave's response was (I'm paraphrasing) "We don't do things exactly the same way, but both of our approaches lead people to a better spot, keep doing what you're doing". You're being even more dogmatic than Dave, and that's saying something.
@@Alan-jk1yi They are 100% capitalizing on the moment by creating a chain of controversial content for clicks. It is what it is, but awkwardly transparent.
@@ESPPsycho So, are you suggesting they should simply never mention their guests ever again after their respective shows, even if the people who listen to show continually make comparisons? Yeah, they are capitalizing off Dave's interview. That's the whole point of having famous guests.
So no one dare question the "great man", even when it's obvious to anyone with financial acumen that the "grest man" has serious flaws in his teaching, along with financial conflicts of interest?
Wow I really got some of you going. I like the Money Guy show more than Dave's show. All I'm saying is the integrity was back burner on these recent Dave clickbait videos.
Please stop trying to ride Dave Ramsey’s coat tail. I follow both of your CZcams pages but you guys are reaching here.
You don’t see Dave trying to poach your listeners…. Just stop.
No Dave isn’t wrong, several studies, even one done by MIT shows people spend 12-18% more money when using a CC. That far exceeds any benefit you will get from a CC. I don’t care if millionaires use CC, data and studies show it’s not helping you financially. You’re pretty arrogant to think you are outsmarting the CC companies.
I make my purchasing decisions based on the numbers in my monthly budget and my checking account, so I guarantee that’s not applicable to everyone lol. I spend less than 10% of my credit limit on gas and groceries that would be purchased regardless of whether or not I had a credit card, and I pay it off immediately for the sake of building a credit score and increasing my opportunities of where I can rent, getting better mortgage interests rates (more easily than manual underwriting, plus lower interest based on my research) and I’m someone who also has followed Dave Ramsey for years. I have a positive net worth at 22 years old. It’s a matter of not being a normal consumer who doesn’t have self control or a plan for their spending. You’re arrogant for thinking such a statistic applies to every person to ever exist, so maybe you should work on critical thinking skills, and expand your financial knowledge base lol.
@@Ionfwthesehoes ahh so you’ve played with snakes to date and haven’t been bit. You will eventually. If you spent $50K in a year on a CC, could prove you didn’t spend more verses the alternative, at best that would generate you in about $1,500 in benefits. $1500 isn’t going to make anyone rich, it’s not with the bs to me. Guarantee you over the long term that snake will bite and will erode any “benefits” you think you are getting.
Studies show? You mean statistics.
That means some people do and some people don't
There is a famous quote about statistics"lies damn lies and statistics"
@@johngill2853 no I mean studies, look them up. They were done by MIT and Dunn and Bradstreet. You need to know the context of that quote you just shared, it was referring to figures from the government, these are not government numbers I shared. What you shared is naive, if you don’t trust data then you don’t trust facts.
@@jal8631 it's a study not everybody on the study had the same data. It's like saying every man is 5 ft 10. They're 5'10 on average just like people spend more on credit cards on average
Does every man you know be 5'10 tall
Here's how my wife and I use credit & debit cards:
We know ourselves well enough that using credit cards for all expenses will lead to some overspending for things like food, miscellaneous, entertainment, etc. We are working on the root causes for those struggles, but until then we don't use CC's for variable expenses like that.
- Fixed Expenses: We put all of our auto-pay bills like cell phone, water, electric, streaming services, etc. on our credit cards. These are fixed expenses and auto-pay from our "Bills" checking account every month. We accrue points & rewards without overspending for those purchases.
- Variable Expenses: We set aside a certain amount from our paychecks every month to use for variable expenses like food, eating out, entertainment, toiletries, miscellaneous, etc. We use our debit card for it to provide a boundary that's easy for us to track. If an emergency comes up during the month, we have a discussion and decide if we should put on the CC or transfer a little from savings.
We also use our CC's for travel for the travel protections, redemptions of points/miles, and reward programs for elevated experiences. These are budgeted expenses that's easy for us to maintain.
This has proved very helpful to us to leverage the benefits & protections of CC's while keeping us from overspending during the season we are in.
One day we hope to have the discipline to use CC's for all purchases without overspending.
Gosh i love brian 🫶