Thanks for these videos. Agreed that the key is how you use your card. Why I have been listening to Dave Ramsey for a while now, but each time I have used it(not often yet) I pay it off that week. I have set it up a few months back to where the bills at the start of each month will be paid with it. I’ll reevaluate how I’m doing.
@minoritymindset hi jaspreet my friend is getting ten bands next year He is not responsible but he just doesn't wanna blow it on dumb stuff what should he invested all that
I want to apply for a credit card what would be the smart way of using it? And should I keep money in my debit card to make the payments on the credit card?
@@MoneyMan28 An undisciplined person who cannot depend on the person in the mirror to pay their debts on time or a day early would have to pay between 15 and 20%. A disciplined person can rack up all kinds of protections, perks and benefits by using a credit card, not overspending and paying on time so as not to get bogged down & incur the interest rate charges.
@@blackwunk Banks only care about profit and don't lend out money for free, maybe one day you cannot pay the full balance within 20 days in the next 40 years and then have to pay interest.
He has a completely different audience. Dave Ramsey talks to the average American which cant control their spending. Jaspreet is talking to the minority of us that are good with our money and can control our spending. I don't have near the expenses he does and I still get around 1-2k in cash back from my credit card.
I can see the mushroom cloud off Dave's head. That said when you run a business especially you spend and pay off debt a lot. Its not worth it to use a debit card. Now my PayPal business debit with my rewards credit card is truly supercharged.
Save up 3 months worth of expenses before using a credit card. The financial discipline it takes to save that amount of money, say $3K covers rent, food, utilities and gas for the month prepares you to use credit responsibly.
I ALWAYS use my debit card. I’ve had credit cards in the past ...and that experience helped me prove to myself that my self discipline “needs work”. So until I successfully deal with that issue, I will continue to just use my debit card.😒
Could always get a credit card and set it up so that it auto withdraws from your debit card to pay it off daily. This way if you swipe your credit card, you are also swiping your debit card and will over withdraw . It usually takes a day or two for it to process but it basically can turn you credit card into a mini debit card.
I never use a credait card out of religion. A muslim is forbidden to use it because we have to agree with the usurious term, that is to give consent to the credit company to penalize you upon delay payment. It's a jahiliyyah riba and it's a grave sin.
I feel the same way. This is my issue. Yes I pay off my credit card weekly but the problem is I spend hundreds more a month when I use my credit card. Until I get a hold of that I’m switching to debit card and cash
I get money back. Saved up 3k as it has no time limit, only money limit. And if I withdraw it into my savings I get 10% back. Meaning, I get free money for saving up money. Plus points at select gas station, which is awesome to get a free tank every once in awhile cuz I drive a lot for work.
Thanks to this channel I have no more negative things on my credit and my credit card balance is $0! I use my cards but I pay them off right away to get the points and build my credit. Now I'm going to start working on my school loans! I started investing as well. This channel has helped me. Thank you so much!!!!!!!
I've earned $27,586 in cash back from my Bank of America Visa since 2004. I just pay the balance at end of month and rarely use a debit card. Great video!
Nice! The key here is if you are already going to buy it use the cc. And get cashback. You will always buy more than what you actually get in cashback.
The credit cards companies do not make money solely on monthly payments. They also charge the swipe costs to the merchants, who in turn charge the customers. We have to pay a premium for products and services to swipe in general.
So true. I broke down how a capital one quicksilver one is a good idea if you spend enough on it and pay it off. Im 2 months in and my cash back almost justifies it already.
I use mine for groceries, gas, and anything else that will allow me to pay with a card like utilities and my cell phone bill. Then I pay off the balance with the cash I was going to use anyways and earn rewards without paying interest.
@@marcihf217 You're welcome, just dont fall into the trap. You HAVE to only use it for stuff you already have the cash to buy and dont ever skip a month. Too many people fall into debt because when it comes time to pay the monthly statement off so you dont pay interest, they say "I'll just use this money for something else" and it snowballs from there.
@@financemadesimple-personal2086 No problem. I only buy if I need something and can afford it. I always pay my bills in full. I have seen to many people fall into the trap of debt. 🙂
That is perfectly fine, but the only thing is that you could get a little bit more if you used a credit card, it works for me but, that shouldn't mean that everyone should do it, living below your means it's a great strategy as well.
The one video that got to me was when you said above everything else starting a buisness is the sure fire way (and riskiest) to wealth. But if you've done your research and you belive in what you do , the sky is the limit !" Something like that
very true that's why as a newbie it's always advisable to consult a platform where professional devote their time and skills to earn huge profits for investors at a minimum rate.
The real problem with credit cards is in peoples mindset. Some people thinks that they are banking getting 1.5% (or other perks), which led to overspending. I use debit and credit cards as that 1.5% (or a little bit more with hacks) return is really nothing at the end of the day (vs the amount you can overspend looking to your "rewards" portfolio). I also pay immediately every time I use my credit cards, effectively using them as debit cards
I do this with my fidelity rewards card and it lets me transfer that money into my brokerage account. I then invest that money and earn more. So far in a year I have gotten about 1200 in rewards without paying a single cent in interest.
Some debit cards have rewards/cash back! I work at the local credit union and we offer grow debit cards where you earn 1.75 (was 2%) on balances under 25k and then our rewards where you earn points on purchases that can be redeemed for cash or prizes. I’ve always banked there so I never understood why this wasn’t the same across other banks/credit unions
Great video Jaspreet. But the sad part is people lack self control over there finances. It is a mental issue that Dave Ramsey talks about that when you have a credit card you are more likely to overspend. And I actually agree with him. I only use my credit card for things like auto payments like my cell phone donations and gym membership. Then I set auto pay from my checking account auto pay to cover that set it and forget it. I use cash Jaspreet when you have cash you are less likely to had it over because of the pain sensors it activates of seeing it go away and not come back. Sorry Jaspreet I didn't want to listen to a random guy on TH-cam for this video.
I’ve been heavy on the credit card game for the past 6 years. And I’ve at least received $10,000 in return.. airline tickets, cash back, gift cards etc.
I totally agree. I have been paying my monthly bills (phone, cable, electric) via my credit card. Everything is done automatically and I set up the payment to get deducted from my checking account every month.. i get lots of perks, points and cash back! I've taken many free vacations this way!
After I paid my CC debt. I was on the mindset just use my debit card. I finally understood the game. I have slowly switch most of my purchase and automatic bills to my CC and I just pay it back. Only purchase what you would normally purchase. My mind was blown when you said you don’t even have a debit card.
I keep my emergency savings in my checking account with 3 percent apr. I have to use the the debit card at least 12 times a month to get dividends. I use the credit card for bigger purchases to get points so I can get free stuff. I pay it off every month.
I have been doing this for about six months. I have always paid my debit off just not with a credi card. Come to find out those 1-2% cash back adds up over time. 🤔 plus the purchase protection
@@TheToymaster11 yup . It’s true . I have the Amazon prime Chase card and what I do is I pay all of my utilities and car insurance with that card every single month and all of my groceries and because Whole Foods is owned by Amazon I get five points back on top of points back out to eat as well . It gives me Amazon points so at the end of the year like last year I had over $600 in points saved up and I bought all of my Christmas shopping during the holidays with my points.
@@hikersguidetotheu.s.1911 I had gotten my first bank account in 36 years last May and had beginners bottom credit and Amazon denied me. I've been doing what the man on the channel says and now my credit score is over 700+ I think I'll try applying for the Amazon card again I should make it this time. LoL I have a strict no interest no shipping rule and was using my debit card previously. I just love this guy he's always got some nugget of financial information that I can learn from.
I disagree with Dave Ramsey on some things. Credit cards are great. I see it as an option to help save my bank account dwindling away my money. I really do despise paying groceries, clothes, eating out on a debt card. I cringe 😬 when I swipe at places. CCs are lifeline. You can pay off what you spend. You can’t do that on debt, you have to until you get paid to build your cash in your bank account. I enjoyed this video. 👍🏿
Thank you to the people that can not control their spending. Creditcard points have paid for many of my flights and most of the things I buy on Amazon. Life is good.
Over the last 5-10 years I've spent thousands of dollars in interest charges, this is the price I paid for being irresponsible financially. Now I'm financially literate and I'm dedicated to making back that money from the credit card companies
Although I’m a big Dave Ramsey fan, this is how I pay for everything. I had a contractor business for 30 yrs. We paid all our bills through Amex card and paid 0 interest. We would put about $30,000 a month on it, pay it off and had well over 1,000,000 points. We used it for free travel, free everything. You MUST pay it off every month. Great advice
It's kind of insane how I'm literally at the debit card stage... the fearful semi-poor money mindset. I'm ready to move on to the richer mindset + FUN, BABY!! Thankyou, Jaspreet. You changed my mind!
Lol I'd been at this stage too last year; had been so scared to do anything but my friend pushed me to put some money in trading, now I get 3k weekly, paid for a capital one cc on Tuesday
@@VeryEmotionalNogginThoughts My friend and I don't have the slightest idea either lol. She's studying business admin so she's really good at finding stuff where we put in money and it grows. if you'd like I'd show you how you can start it and let it pay you weekly.
@@Bobthebuilder-ux2oz This is completely foreign to me. Is there some resources I can read to start? Only if you're okay with it and it doesn't take much of your time.
Note: None of the the advice in this video applies in Australia. The lower interest rates and pass through of merchant fees on transactions with excessive fees means that you end up paying more in account and transaction fees for the credit card than you get back on benefits. YMMV in other countries.
I believe in everything he said but financial institutions will not refund you back your money just because something was stolen unless it was lost in the mail. Please don't call them for that or your dispute will be denied.
Debit cards also puts a hold on (sum of the money) on your card, and your bank considers it as cash not available. So you may run into cases where your debit purchase(s) get declined. I pay everything I possibly can with my cash back credit card (Except gas stations, because the cost differential is bigger than the reward money I would have gotten, so I pay cash) Discover card every quarter offers 5% cash back at grocery or markets. So during that quarter, all my groceries goes on my Discover card, the other 3 quarters of the year, it goes on my regular card. End of the year, FREE MONEY!! Christmas gifts for me and my family with FREE MONEY.
Not entirely true. Depends on the country where you live in. In Oceania, you do not get much benefits for using a credit card instead you will be paying annual fees (even for a basic CC) and transaction fees. Also, there is no concept of credit history (it actually decreases your borrowing capacity). People are more financially savvy and live on credit than debt.
PLEASE make sure to read your credit card agreement. Not all of these perks apply. Plus sometimes they will send you something saying they are revising their terms of service.
I don't think all the great benefits you have stated works for ALL CREDIT CARDS. Because at least I know the example where there is insurance on products like the Gucci scarf when it gets missing. I don't think I have that luxury on my credit cards.
I'm not particularly happy with credit card regardless, since you start every month in dept (or more rather less money). It's not like you are not able to pay it back from the salary, but the fact that your salary is used up the day you get it. Government takes the share, rent, utilities, and then you have to pay a larger sum to pay back credit card dept every time you get salary, leaves you with a very sad feeling that you have much less to spend. And of course if you have no money left you start using the credit card again, ramping up a dept and the monthly cycle repeats. You need to weigh in if this would balance out the benefits? Travel lounges? - no, we are in the middle of a pandemic. Nobody travels. And although I considered lounges in the past for peace and quiet, it is not that big of a deal to wait outside. Buyers insurance? Avoid ebay, check Trustpilot before spending a lot of money in a new shop, and make sure you don't buy noname crap, brand reputation in most cases gives you the same treatment as payment protection. It's worth for a company to help you with your issue rather than you go off the rails complaining on the internet about them and their CS. Extended warranty? You can get that on most products for money. If you buy risky electronics it's usually worth getting, especially for bigger purchases like TV or laptop.. So for me at least the benefits from credit card does not overcome the negative stuff. I had credit card for years, I always payed back everything when I got my salary, so didn't have problem from it, but it's very easy to abuse and misuse it. I'd much rather just spend what money I have.. Ragarding the video, you could have just cut it in half, and explain people how to use it if they have it. That should have been enough :D
Thank for that perspective; I've never looked at it in that manner. Guess that is why I am where I am right now. Gonna change to your method, as I understand the logic behind it.
Hi Jaspreet , It all depends on the individual. As a minimalist who doesn’t spend much on wants and mainly on needs , I have no need for a credit card . For me Debit card is king . Take care
Jaspreet used the only Seinfeld episode I liked to teach a valuable lesson: But with a credit card as long as you pay it off completely ON TIME! 👍🏾 Much love from Detroit.
The only time I use cash is if either the merchant doesn't accept credit, has a high percentage fee that would fully negate my rewards, or the minimum purchase is way more than I want to spend.
Have been cashless for well over 5 years now. If you book trips on your CC you can get insurance that way instead of buying additional cancellation etc..Also, had my purse stolen once and it was NBD because I don't carry any cash. Ended up getting evrything back but at that itme I had already cancelled everything and new cards were in the mail by then...No purchases had been made on the cards.
Jaspreet, I really appreciate and respect you saying that you did not think like that but now you changed. This is really key! To be open, flexible means you are an open-minded guy. Keep hustlin’ !!
Most people get at least 2 paychecks a month. Pay your credit card twice a month. That way that bill doesn't have any extra zeros that you weren't expecting. Thanks for the great info!
I believe that it’s best summed up like this: If you are using a credit card to increase your credit score, then you are the ones that shouldn’t have a credit card. You are the poster child for Ramsey’s argument. Why do you want a higher credit score? So you can borrow, aka spend, more money.
Wait a minute now Just paused this video for a doubt in mind If I loose my Gucci Scarf and call credit card company they will cancel the charge on my credit card? How is this possible Has anyone experienced this? Ok time to continue watching the video Agree everything else said. I am a debit card user . But will start using CC
I took your advice a year ago, I turned off my debit card, applied for a credit card and only use my chase cash back credit card for my everyday purchases. My credit score went up 100 points, I have been given $300.00 in cash back for using it and I even made $35.00 back the other day, for just paying my AT&T bill! I am now a true believer if you use a credit card the right way, you will be rewarded! Thank you!
Yep, same here. I paid all my bills using my credit cards. About the only place that I don't use it on is property tax - an extra 3% added if using credit card so I don't use it here.
I do this very often for business inventory purchases and expenses! I always pay it completely off before the monthly statement. PayPal Business Debit Card also has great cash back rewards sometimes, like unlimited $20 back for every $1000 in purchases. By taking advantage of cashback rewards and never carrying over a balance, it allows me to get hundreds in cash back per month. However, my mom always tells me to not use credit cards because she's hooked onto Dave Ramsay's teachings, which I totally understand from a spending habit control POV. At the end of the day discipline is so so important.
Always look forward to the information I get from his videos, and anticipating the first time he says “Below!”...Not sure anyone else does this as well
Great video! Definitely agree. Video suggestion: layout a budget and find the best credit cards for each line item. ie groceries - credit card that gives highest back in that. travel, restaurants etc, would it be too crazy to have a specific card for each budget line item that companies give cash back for?
The credit card rewards are nice, but the credit card company's charge the merchant a fee for the purchase. In turn a lot of merchants are just passing that fee onto the customer in the form of a credit card service fee. There was a time many years ago when merchants were not allowed to do that.
I learned my lesson back in 2019 I showed to Virginia on military orders. Then shortly after that went on holiday leave back home to Texas. Sometime before the time I left and arrived in Texas. Someone cloned my Navy Federal Credit Union debit card. So, even though I had been in Texas for almost two weeks, someone had been spending my money all over Virginia. The person cloned my card then made an extremely small purchase of $1 to test it. Then, started spending more and more larger sums of money on food spots, smoke shops, and other stores. I had never felt so violated in my life. Luckily, Navy Federal had some good fraud protection policies and we went line by line on my statement to make sure I got all of my money back.
I loved using credit card gives me so much rewards and cash back. Set my auto payment pay the full amount and don't worry about missing payment or paying interest.
I agree with Jaspreet, I stopped using debit and became more mindful in my spending. All our expenses goes to a "Clothing rewards" credit card. We pay off the balance every month and basically have over $1000 of free clothes every year. Doing this can get you in trouble really quick if you don't have the discipline in staying within a budget. Also I have an old AmEx that has a $150 balance that I pay minimum to. This keeps that whole "revolving balance" in check.
Has anyone experienced this? When I was doing my own taxes, I read that the IRS gets your debit & credit card spending history. So if you’re self employed & you’re spending way more than you’re making, you can get red flagged for audit. 😬
Im a senior in college and just got my first credit card- Ive been using debit and cash- even though Ive never had difficulty with restraint. My parents just suggested waiting. So Im happy to do this and just make sure I know to pay in time
I made $1114 last year in cashback from my credit cards and Rakuten. It would be more but Rakuten stopped giving cashback for Amazon purchases. I pay off the balance every month. Cash spenders claim that studies prove you will spend less when paying cash versus swiping. I can't say if it's true or not because I haven't used cash for a long time.
It's like creating its own bank because if every person paid a $1 in interest a month and paid their balances off each month. With a million customer's that would be a million dollars a month the bank makes almost for free. If the bank has some pay out there still ahead on electronic's and write off the money spent. The bank makes its own bank again within itself.
Canadian here! I have a ton of credit cards and I use them all for the cash back and reward points. If it wasn't for the pandemic I would have been able to use my free lounge passes at the airport. The best credit cards in my wallet are Scotiabank passport visa infinite (6 free airport passes- i think yearly), scotiabank gold amex (points vary between 1-5pts), Tangerine World Mastercard (cashback) and bmo visa infinite (5 pts per $1 spent) easy to get points. All my cards are paid in full.
Absolutely spot on. I use my credit card for everything for over 20 years. I accidentally had interested charged 2 times. I was busy and forgot to pay off my card for about a month and was momentarily baffled when I saw this “interest payment” for a few bucks. Hahaha. I literally have paid less than $50 credit card interest and have used my card for well over $2,000,000 in my life. I have more points to fly than I can use. When different banks call me to offer a new card they tell me they have a better rate than mine and when I tell them I pay zero interest they seem to think I am lying. Then I tell them what I mean. I also take advantage of the priority baggage and boarding and the lounges. Saves so much stress when travelling. And we can stay away from the bulk of the crowds.
I use my credit card religiously also. Given a long time ago when I was younger I got myself into credit card debt cause I didn't know how to use it but after I got out of it I came out an even better person and have hella frequent flyer miles. Anxiously waiting for my free trip:)
@@leonrobinson8180 The tendency to buy a magazine or candy at the checkout counter is far greater when using a credit card. Slightly less with a debit card and far less than that when paying with cash.
Beware....Business credit cards have absolutely NO fraud protection whatsoever. You are legally responsible for the entire balance until the card number is cancelled. Some banks will modify that, but there is no law limiting your fraud liability for business cards like there is for consumer cards.
I never use debit cards as if someone gets that then they can get access to your money and it is a pain fixing it all. (getting your money back,over drafts and bounced checks because of it) I only use cash back credit and pay it off every month. Best way to go.
I've signed up for three new cards in the past couple months for the sign up bonuses (over $1000 each). I made some videos on the top cards for 2021 and some of the new cards I got.
Even after watching this video i still would like to pull cash on my purchase. These are all the perks. Credit card wants you to use so somehow keep monthly balance and pay interest on it. Sometimes even though you are rich and have tons of money you will have credit card balance and pay interest.
My wife and I are 31 and we have been doing this since we turned 18. We both have never paid a penny in credit card interest. Just on my card i will have enough points to buy a PS5 once they are available....just by stuff i would need to buy anyways.
Love the Seinfeld references! I remember that episode. The average joe doesn't have self control or financial knowledge so Dave is reaching for them. But as you mentioned, his ZERO credit card plan doesn't account for #4 which is very important also ...
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Thank you for watching! If you enjoyed this video, you should watch - Why I NEVER Use A Debit Card: th-cam.com/video/6rLXNAPN6DA/w-d-xo.html
Thanks for these videos. Agreed that the key is how you use your card. Why I have been listening to Dave Ramsey for a while now, but each time I have used it(not often yet) I pay it off that week. I have set it up a few months back to where the bills at the start of each month will be paid with it. I’ll reevaluate how I’m doing.
@minoritymindset hi jaspreet my friend is getting ten bands next year He is not responsible but he just doesn't wanna blow it on dumb stuff what should he invested all that
Plus he's probably gonna have to give some to family because there gonna expect something
I want to apply for a credit card what would be the smart way of using it? And should I keep money in my debit card to make the payments on the credit card?
How can I use credit wisely?
Just with anything, self-control is key
That's what these other people don't understand.
That’s why i don’t use my credit cards anymore.
Completely right
I said it before and I'll say it again: "Best financial education, anywhere!"
No argument here, don't know why anyone would use anything other than a credit card.
No with credit cards you gotta pay 15 to 20 percent in interest but debit cards are free
@@MoneyMan28 An undisciplined person who cannot depend on the person in the mirror to pay their debts on time or a day early would have to pay between 15 and 20%. A disciplined person can rack up all kinds of protections, perks and benefits by using a credit card, not overspending and paying on time so as not to get bogged down & incur the interest rate charges.
@@blackwunk Banks only care about profit and don't lend out money for free, maybe one day you cannot pay the full balance within 20 days in the next 40 years and then have to pay interest.
@@financemadesimple-personal2086 Because they’re actually using their brain
Dave Ramsey would go mad watching this
He has a completely different audience. Dave Ramsey talks to the average American which cant control their spending. Jaspreet is talking to the minority of us that are good with our money and can control our spending. I don't have near the expenses he does and I still get around 1-2k in cash back from my credit card.
@@stevenbowdich6716 but majority of people live on credit and majority of them use the excuse “reward points”
@@TopVillain that’s the issue!
I can see the mushroom cloud off Dave's head. That said when you run a business especially you spend and pay off debt a lot. Its not worth it to use a debit card. Now my PayPal business debit with my rewards credit card is truly supercharged.
it only applies to Americans, the rest of world has no benefits on credit cards at all
Save up 3 months worth of expenses before using a credit card. The financial discipline it takes to save that amount of money, say $3K covers rent, food, utilities and gas for the month prepares you to use credit responsibly.
good tip
Excellent advice.
I agree 👏🏾👏🏾
I ALWAYS use my debit card. I’ve had credit cards in the past ...and that experience helped me prove to myself that my self discipline “needs work”. So until I successfully deal with that issue, I will continue to just use my debit card.😒
Could always get a credit card and set it up so that it auto withdraws from your debit card to pay it off daily. This way if you swipe your credit card, you are also swiping your debit card and will over withdraw . It usually takes a day or two for it to process but it basically can turn you credit card into a mini debit card.
@@stevenbowdich6716
Hmmm. Good to know🤔. I might just look into that.
THANKS.
I never use a credait card out of religion. A muslim is forbidden to use it because we have to agree with the usurious term, that is to give consent to the credit company to penalize you upon delay payment. It's a jahiliyyah riba and it's a grave sin.
@@Hasnanembong
That must help prevent devout Muslims from falling into the credit card debt trap.
👍🏽‼️
I feel the same way. This is my issue. Yes I pay off my credit card weekly but the problem is I spend hundreds more a month when I use my credit card. Until I get a hold of that I’m switching to debit card and cash
Started only using my credit card. Save on bank fees and get points.
Yup
If only other people understood....
I get money back. Saved up 3k as it has no time limit, only money limit. And if I withdraw it into my savings I get 10% back. Meaning, I get free money for saving up money. Plus points at select gas station, which is awesome to get a free tank every once in awhile cuz I drive a lot for work.
credit cards charge 15 to 20 percent interest, debit cards are free
@@MoneyMan28 you pay immediately and pay no interest. You just get point!
Thanks to this channel I have no more negative things on my credit and my credit card balance is $0! I use my cards but I pay them off right away to get the points and build my credit. Now I'm going to start working on my school loans! I started investing as well. This channel has helped me. Thank you so much!!!!!!!
Same
I've earned $27,586 in cash back from my Bank of America Visa since 2004. I just pay the balance at end of month and rarely use a debit card. Great video!
Well tell us how many thousands of dollars you had to spend in order to get that bad. I bet you then see you didn’t win the credit card companies won.
@@lionessrising he pays his balance every month, Get it ?
Nice! The key here is if you are already going to buy it use the cc. And get cashback. You will always buy more than what you actually get in cashback.
there's no free money, the money was yours since the beginning
The credit cards companies do not make money solely on monthly payments. They also charge the swipe costs to the merchants, who in turn charge the customers. We have to pay a premium for products and services to swipe in general.
Cashback and rewards from credit cards are the way to get a return on money we have to spend.
The downside to that is we spend more with credit card. I’m trying to decide what I want to do regarding this in 2021
So true. I broke down how a capital one quicksilver one is a good idea if you spend enough on it and pay it off. Im 2 months in and my cash back almost justifies it already.
@@lionessrising Exactly! Cash back CREDIT CARDS also encourage more spending to get more cash back, IMO.
@@FinancialMaintenance right
and to get wrecked in case of something bad happens
I need to start using my credit card more. I pay it off in full every month so I know I am disciplined.
I use mine for groceries, gas, and anything else that will allow me to pay with a card like utilities and my cell phone bill. Then I pay off the balance with the cash I was going to use anyways and earn rewards without paying interest.
@@financemadesimple-personal2086 I need to start doing that! Thanks.
@@marcihf217 You're welcome, just dont fall into the trap. You HAVE to only use it for stuff you already have the cash to buy and dont ever skip a month. Too many people fall into debt because when it comes time to pay the monthly statement off so you dont pay interest, they say "I'll just use this money for something else" and it snowballs from there.
@@financemadesimple-personal2086 No problem. I only buy if I need something and can afford it. I always pay my bills in full. I have seen to many people fall into the trap of debt. 🙂
I use debit card because it is where they give me my salary. I still carry cash. I budget my necessities and live below my means.
That is perfectly fine, but the only thing is that you could get a little bit more if you used a credit card, it works for me but, that shouldn't mean that everyone should do it, living below your means it's a great strategy as well.
You should be able to change where your money goes with your employer to a bank account. Then you can use a credit card.
I don’t have a credit card either, and I don’t have time to deal with the payment and payoffs. Perfectly happy with debit card.
@@dewbedew26 That's why there is the minority mindset people. ✌️
The one video that got to me was when you said above everything else starting a buisness is the sure fire way (and riskiest) to wealth. But if you've done your research and you belive in what you do , the sky is the limit !" Something like that
Thank you very much minority mindset. But if you really want financial freedom you've got to stop saving money, start investing some part of it .
invest in bitcon,gold, silver,buy stock, Forex market, commodities.just invest and save yourself.
@@christophermillar2006 what if you don't know how to trade any of these
I mean,i see your point.some people have the money and are willing to invest.but the problem is where to.
i see your point some have the money and are willing to invest, but the problem is were to.
very true that's why as a newbie it's always advisable to consult a platform where professional devote their time and skills to earn huge profits for investors at a minimum rate.
I pay mostly with credit card, except in places that don't take credit cards, and small business(because they do have to pay CC fees).
thumbs up specifically for the seinfeld reference.
I prefer "They're real, and they're fabulous!" But I'm a guy, so... :)
Remember.....it's not a lie....if you believe it ! (motto of ALL bankers, advertisers, media, politicians, etc.)
The real problem with credit cards is in peoples mindset. Some people thinks that they are banking getting 1.5% (or other perks), which led to overspending. I use debit and credit cards as that 1.5% (or a little bit more with hacks) return is really nothing at the end of the day (vs the amount you can overspend looking to your "rewards" portfolio). I also pay immediately every time I use my credit cards, effectively using them as debit cards
I do this with my fidelity rewards card and it lets me transfer that money into my brokerage account. I then invest that money and earn more. So far in a year I have gotten about 1200 in rewards without paying a single cent in interest.
thats smart, like jaspreet says, let the money you make make you even more money!
@@tonyrobinu6412 exactly
Some debit cards have rewards/cash back! I work at the local credit union and we offer grow debit cards where you earn 1.75 (was 2%) on balances under 25k and then our rewards where you earn points on purchases that can be redeemed for cash or prizes. I’ve always banked there so I never understood why this wasn’t the same across other banks/credit unions
I’d like to add sometimes CC have roadside and rental car assistance
@@ES-qu1jd you can get roadside assistance from your car insurance as well. Haven’t had AAA in years.
Sometimes your auto insurance has better road side service than AAA
Great video Jaspreet. But the sad part is people lack self control over there finances. It is a mental issue that Dave Ramsey talks about that when you have a credit card you are more likely to overspend. And I actually agree with him. I only use my credit card for things like auto payments like my cell phone donations and gym membership. Then I set auto pay from my checking account auto pay to cover that set it and forget it. I use cash Jaspreet when you have cash you are less likely to had it over because of the pain sensors it activates of seeing it go away and not come back. Sorry Jaspreet I didn't want to listen to a random guy on TH-cam for this video.
Started doing this in 2019.... You DEFINITELY have to be diligent on making the payments on time and quick!
I’ve been heavy on the credit card game for the past 6 years.
And I’ve at least received $10,000 in return.. airline tickets, cash back, gift cards etc.
Nice
The problem with everybody using credit cards is that companies had to increase prices (and continue to do so) in order to cover the fees.
I totally agree. I have been paying my monthly bills (phone, cable, electric) via my credit card. Everything is done automatically and I set up the payment to get deducted from my checking account every month.. i get lots of perks, points and cash back! I've taken many free vacations this way!
After I paid my CC debt. I was on the mindset just use my debit card. I finally understood the game. I have slowly switch most of my purchase and automatic bills to my CC and I just pay it back. Only purchase what you would normally purchase. My mind was blown when you said you don’t even have a debit card.
I keep my emergency savings in my checking account with 3 percent apr. I have to use the the debit card at least 12 times a month to get dividends. I use the credit card for bigger purchases to get points so I can get free stuff. I pay it off every month.
This is actually what I currently do . And it makes a lot of sense
I have been doing this for about six months. I have always paid my debit off just not with a credi card. Come to find out those 1-2% cash back adds up over time. 🤔 plus the purchase protection
@@TheToymaster11 yup . It’s true . I have the Amazon prime Chase card and what I do is I pay all of my utilities and car insurance with that card every single month and all of my groceries and because Whole Foods is owned by Amazon I get five points back on top of points back out to eat as well . It gives me Amazon points so at the end of the year like last year I had over $600 in points saved up and I bought all of my Christmas shopping during the holidays with my points.
@@hikersguidetotheu.s.1911 I had gotten my first bank account in 36 years last May and had beginners bottom credit and Amazon denied me. I've been doing what the man on the channel says and now my credit score is over 700+
I think I'll try applying for the Amazon card again I should make it this time. LoL
I have a strict no interest no shipping rule and was using my debit card previously.
I just love this guy he's always got some nugget of financial information that I can learn from.
@@annahgibbus8 100% facts. I watch him and @graham Stephen daily and both helped me repair all my credit last year in a 6 month period .
I disagree with Dave Ramsey on some things. Credit cards are great. I see it as an option to help save my bank account dwindling away my money. I really do despise paying groceries, clothes, eating out on a debt card. I cringe 😬 when I swipe at places. CCs are lifeline. You can pay off what you spend. You can’t do that on debt, you have to until you get paid to build your cash in your bank account. I enjoyed this video. 👍🏿
Pay that credit card before the statement ending date. Do not wait till the bill due date, keep that debt off your statement and credit score
Thank you to the people that can not control their spending. Creditcard points have paid for many of my flights and most of the things I buy on Amazon. Life is good.
Over the last 5-10 years I've spent thousands of dollars in interest charges, this is the price I paid for being irresponsible financially. Now I'm financially literate and I'm dedicated to making back that money from the credit card companies
Although I’m a big Dave Ramsey fan, this is how I pay for everything. I had a contractor business for 30 yrs. We paid all our bills through Amex card and paid 0 interest. We would put about $30,000 a month on it, pay it off and had well over 1,000,000 points. We used it for free travel, free everything. You MUST pay it off every month. Great advice
It's kind of insane how I'm literally at the debit card stage... the fearful semi-poor money mindset. I'm ready to move on to the richer mindset + FUN, BABY!! Thankyou, Jaspreet. You changed my mind!
Lol I'd been at this stage too last year; had been so scared to do anything but my friend pushed me to put some money in trading, now I get 3k weekly, paid for a capital one cc on Tuesday
@@Bobthebuilder-ux2oz I have no idea about trading. To me it's so much like gambling to me.
@@VeryEmotionalNogginThoughts My friend and I don't have the slightest idea either lol. She's studying business admin so she's really good at finding stuff where we put in money and it grows. if you'd like I'd show you how you can start it and let it pay you weekly.
@@Bobthebuilder-ux2oz This is completely foreign to me. Is there some resources I can read to start? Only if you're okay with it and it doesn't take much of your time.
@@VeryEmotionalNogginThoughts nahh I've got enough time lol. What's your emai|?
Loving this channel more and more. Entertaining and financially literate? Can't beat that.
No credit card debt and I use my credit card to get the benefits.
Note: None of the the advice in this video applies in Australia. The lower interest rates and pass through of merchant fees on transactions with excessive fees means that you end up paying more in account and transaction fees for the credit card than you get back on benefits. YMMV in other countries.
I believe in everything he said but financial institutions will not refund you back your money just because something was stolen unless it was lost in the mail. Please don't call them for that or your dispute will be denied.
Debit cards also puts a hold on (sum of the money) on your card, and your bank considers it as cash not available. So you may run into cases where your debit purchase(s) get declined.
I pay everything I possibly can with my cash back credit card (Except gas stations, because the cost differential is bigger than the reward money I would have gotten, so I pay cash)
Discover card every quarter offers 5% cash back at grocery or markets. So during that quarter, all my groceries goes on my Discover card, the other 3 quarters of the year, it goes on my regular card.
End of the year, FREE MONEY!! Christmas gifts for me and my family with FREE MONEY.
Watching other videos are time liabilities.....Minority report is a time asset!
Always love watching your videos. You have helped me make some good financial decisions. Thank you
Not entirely true. Depends on the country where you live in. In Oceania, you do not get much benefits for using a credit card instead you will be paying annual fees (even for a basic CC) and transaction fees. Also, there is no concept of credit history (it actually decreases your borrowing capacity). People are more financially savvy and live on credit than debt.
PLEASE make sure to read your credit card agreement. Not all of these perks apply. Plus sometimes they will send you something saying they are revising their terms of service.
I don't think all the great benefits you have stated works for ALL CREDIT CARDS. Because at least I know the example where there is insurance on products like the Gucci scarf when it gets missing. I don't think I have that luxury on my credit cards.
I'm not particularly happy with credit card regardless, since you start every month in dept (or more rather less money). It's not like you are not able to pay it back from the salary, but the fact that your salary is used up the day you get it. Government takes the share, rent, utilities, and then you have to pay a larger sum to pay back credit card dept every time you get salary, leaves you with a very sad feeling that you have much less to spend. And of course if you have no money left you start using the credit card again, ramping up a dept and the monthly cycle repeats.
You need to weigh in if this would balance out the benefits? Travel lounges? - no, we are in the middle of a pandemic. Nobody travels. And although I considered lounges in the past for peace and quiet, it is not that big of a deal to wait outside. Buyers insurance? Avoid ebay, check Trustpilot before spending a lot of money in a new shop, and make sure you don't buy noname crap, brand reputation in most cases gives you the same treatment as payment protection. It's worth for a company to help you with your issue rather than you go off the rails complaining on the internet about them and their CS. Extended warranty? You can get that on most products for money. If you buy risky electronics it's usually worth getting, especially for bigger purchases like TV or laptop..
So for me at least the benefits from credit card does not overcome the negative stuff. I had credit card for years, I always payed back everything when I got my salary, so didn't have problem from it, but it's very easy to abuse and misuse it. I'd much rather just spend what money I have..
Ragarding the video, you could have just cut it in half, and explain people how to use it if they have it. That should have been enough :D
Thank for that perspective; I've never looked at it in that manner. Guess that is why I am where I am right now. Gonna change to your method, as I understand the logic behind it.
Thank you for your advice it is so well received
Hi Jaspreet ,
It all depends on the individual. As a minimalist who doesn’t spend much on wants and mainly on needs , I have no need for a credit card . For me Debit card is king .
Take care
Jaspreet used the only Seinfeld episode I liked to teach a valuable lesson:
But with a credit card as long as you pay it off completely ON TIME! 👍🏾
Much love from Detroit.
The only time I use cash is if either the merchant doesn't accept credit, has a high percentage fee that would fully negate my rewards, or the minimum purchase is way more than I want to spend.
Jaspreet !!!! Love ur videos bro... honestly the best content on youtube... very educational and informative.. keep it up braaaa !!!!
Have been cashless for well over 5 years now. If you book trips on your CC you can get insurance that way instead of buying additional cancellation etc..Also, had my purse stolen once and it was NBD because I don't carry any cash. Ended up getting evrything back but at that itme I had already cancelled everything and new cards were in the mail by then...No purchases had been made on the cards.
I haven’t paid my phone bill in almost a year because my credit card points do. It’s lovely.
Jaspreet, I really appreciate and respect you saying that you did not think like that but now you changed.
This is really key! To be open, flexible means you are an open-minded guy.
Keep hustlin’ !!
This was the best revelation that ever happened to me! Now I make all purchases on my credit card and it is so smart! Free cash! Thank you for this!!!
Most people get at least 2 paychecks a month. Pay your credit card twice a month. That way that bill doesn't have any extra zeros that you weren't expecting.
Thanks for the great info!
Wait.....my Gucci scarf was stolen and the CC company will stand behind that???? WTF, where have I been?
🤣🤣🤣
Dave Ramsey just had an Anurism.
I believe that it’s best summed up like this:
If you are using a credit card to increase your credit score, then you are the ones that shouldn’t have a credit card.
You are the poster child for Ramsey’s argument.
Why do you want a higher credit score? So you can borrow, aka spend, more money.
Wait a minute now
Just paused this video for a doubt in mind
If I loose my Gucci Scarf and call credit card company they will cancel the charge on my credit card? How is this possible
Has anyone experienced this?
Ok time to continue watching the video
Agree everything else said.
I am a debit card user . But will start using CC
Jaspreet, when do you sleep?! How you upload well thought-out content so regularly is completely beyond my imagination. Very nice work man!
I took your advice a year ago, I turned off my debit card, applied for a credit card and only use my chase cash back credit card for my everyday purchases. My credit score went up 100 points, I have been given $300.00 in cash back for using it and I even made $35.00 back the other day, for just paying my AT&T bill! I am now a true believer if you use a credit card the right way, you will be rewarded! Thank you!
The rich stay rich by investing like and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
@Philip Scott that won't bother if you trade with Anthony Dylan
I spend more on credit than when I use cash. Using credit makes me feel like a carefree person with a bottomless pit of money.
Everything on credit all the time.
You are everywhere lol
Till you are caught in a cash advance charge.
@@rickychen4798 you have to use them correctly. Jaspreet has said this multiple times- know what you can afford, not just what you can pay for.
Yep, same here. I paid all my bills using my credit cards. About the only place that I don't use it on is property tax - an extra 3% added if using credit card so I don't use it here.
You're a good borrower, most prefer to own
I do this very often for business inventory purchases and expenses! I always pay it completely off before the monthly statement. PayPal Business Debit Card also has great cash back rewards sometimes, like unlimited $20 back for every $1000 in purchases. By taking advantage of cashback rewards and never carrying over a balance, it allows me to get hundreds in cash back per month. However, my mom always tells me to not use credit cards because she's hooked onto Dave Ramsay's teachings, which I totally understand from a spending habit control POV. At the end of the day discipline is so so important.
Always look forward to the information I get from his videos, and anticipating the first time he says “Below!”...Not sure anyone else does this as well
Great video! Definitely agree. Video suggestion: layout a budget and find the best credit cards for each line item. ie groceries - credit card that gives highest back in that. travel, restaurants etc, would it be too crazy to have a specific card for each budget line item that companies give cash back for?
The credit card rewards are nice, but the credit card company's charge the merchant a fee for the purchase. In turn a lot of merchants are just passing that fee onto the customer in the form of a credit card service fee. There was a time many years ago when merchants were not allowed to do that.
San Francisco AGREES!
I learned my lesson back in 2019 I showed to Virginia on military orders. Then shortly after that went on holiday leave back home to Texas. Sometime before the time I left and arrived in Texas. Someone cloned my Navy Federal Credit Union debit card. So, even though I had been in Texas for almost two weeks, someone had been spending my money all over Virginia. The person cloned my card then made an extremely small purchase of $1 to test it. Then, started spending more and more larger sums of money on food spots, smoke shops, and other stores. I had never felt so violated in my life.
Luckily, Navy Federal had some good fraud protection policies and we went line by line on my statement to make sure I got all of my money back.
I loved using credit card gives me so much rewards and cash back. Set my auto payment pay the full amount and don't worry about missing payment or paying interest.
I agree with Jaspreet, I stopped using debit and became more mindful in my spending. All our expenses goes to a "Clothing rewards" credit card. We pay off the balance every month and basically have over $1000 of free clothes every year. Doing this can get you in trouble really quick if you don't have the discipline in staying within a budget. Also I have an old AmEx that has a $150 balance that I pay minimum to. This keeps that whole "revolving balance" in check.
One of my favorite TH-cam channels
I also have a hard time buying liabilities.
Has anyone experienced this? When I was doing my own taxes, I read that the IRS gets your debit & credit card spending history. So if you’re self employed & you’re spending way more than you’re making, you can get red flagged for audit. 😬
It's hard to go into credit card debt if you have the money to pay the credit card off every month. That's the problem.
Im a senior in college and just got my first credit card- Ive been using debit and cash- even though Ive never had difficulty with restraint. My parents just suggested waiting. So Im happy to do this and just make sure I know to pay in time
That's true! last year I made $400 in cash back and only paid $20 in an entire year.
I made $1114 last year in cashback from my credit cards and Rakuten. It would be more but Rakuten stopped giving cashback for Amazon purchases. I pay off the balance every month. Cash spenders claim that studies prove you will spend less when paying cash versus swiping. I can't say if it's true or not because I haven't used cash for a long time.
Unless you use it correctly, The interest and fees you pay on credit cards out weight the benifits
Alot of other people say the benefits arent worth it for the credit cards
It's like creating its own bank because if every person paid a $1 in interest a month and paid their balances off each month. With a million customer's that would be a million dollars a month the bank makes almost for free. If the bank has some pay out there still ahead on electronic's and write off the money spent. The bank makes its own bank again within itself.
not going to lie, I started laughing when he said "I used to despise going to the airport because, I don't what it is." love these videos!
Canadian here! I have a ton of credit cards and I use them all for the cash back and reward points. If it wasn't for the pandemic I would have been able to use my free lounge passes at the airport. The best credit cards in my wallet are Scotiabank passport visa infinite (6 free airport passes- i think yearly), scotiabank gold amex (points vary between 1-5pts), Tangerine World Mastercard (cashback) and bmo visa infinite (5 pts per $1 spent) easy to get points. All my cards are paid in full.
Absolutely spot on. I use my credit card for everything for over 20 years. I accidentally had interested charged 2 times. I was busy and forgot to pay off my card for about a month and was momentarily baffled when I saw this “interest payment” for a few bucks. Hahaha. I literally have paid less than $50 credit card interest and have used my card for well over $2,000,000 in my life. I have more points to fly than I can use. When different banks call me to offer a new card they tell me they have a better rate than mine and when I tell them I pay zero interest they seem to think I am lying. Then I tell them what I mean. I also take advantage of the priority baggage and boarding and the lounges. Saves so much stress when travelling. And we can stay away from the bulk of the crowds.
I use my credit card religiously also. Given a long time ago when I was younger I got myself into credit card debt cause I didn't know how to use it but after I got out of it I came out an even better person and have hella frequent flyer miles. Anxiously waiting for my free trip:)
Studies performed by M.I.T. and others show that using a credit card creates over spending.
True. But you can overcome that with a budget
@@leonrobinson8180 The tendency to buy a magazine or candy at the checkout counter is far greater when using a credit card. Slightly less with a debit card and far less than that when paying with cash.
Citi DoubleCash gives 2% cash back on everything. I think of it as a way to soften the blow of inflation.
Beware....Business credit cards have absolutely NO fraud protection whatsoever. You are legally responsible for the entire balance until the card number is cancelled. Some banks will modify that, but there is no law limiting your fraud liability for business cards like there is for consumer cards.
I never use debit cards as if someone gets that then they can get access to your money and it is a pain fixing it all.
(getting your money back,over drafts and bounced checks because of it) I only use cash back credit and pay it off every month. Best way to go.
I've signed up for three new cards in the past couple months for the sign up bonuses (over $1000 each). I made some videos on the top cards for 2021 and some of the new cards I got.
Even after watching this video i still would like to pull cash on my purchase. These are all the perks. Credit card wants you to use so somehow keep monthly balance and pay interest on it. Sometimes even though you are rich and have tons of money you will have credit card balance and pay interest.
Financial advice from Seinfeld episodes 😝
My wife and I are 31 and we have been doing this since we turned 18. We both have never paid a penny in credit card interest. Just on my card i will have enough points to buy a PS5 once they are available....just by stuff i would need to buy anyways.
Agreed. Use the credit card the right way.
Appreciate your comment, write here for more gaining ideas
+1 9 5 1 4 6 8 5 0 2 8
I'm all for credit cards but cashback seems like a bad motive and almost scammy
I hate atm fees 🤦🏽♂️
Jaspreet, tips and tricks to get that free guac at the airport. 🥑🥰
Or go to Qdoba, where guac is no extra charge.
Yea there a a lot of people out there who don't have that kind of control, think Ramsey is targeting those people.
Exactly
Love the Seinfeld references! I remember that episode. The average joe doesn't have self control or financial knowledge so Dave is reaching for them. But as you mentioned, his ZERO credit card plan doesn't account for #4 which is very important also ...