I have been doing the 2% cash back for years now but always just re-applied it to the statement balance, never thought about putting it towards investments, great idea!
Thanks Rick! You were already doing the hard part, earning the cash back. Redirect it and it stops being a discount and starts being a position. Glad it landed!
This advice is too good and certainly a no brainer. Just set it and forget it! When the rainy day comes you'll have an extra cushion if needed. I do appreciate you calling out the important notes of getting your finances in order first, don't overspend for this, and for goodness sake pay the balance on the card every month!
Thanks, Aliesha, The caveats are really important. Compound interest doesn't care whose side it's on: invested, it works for you and on a carried card balance, it works against you at 20-plus percent. The lesson: stay on the right side of the math.
I have been doing the 2% cash back for years now but always just re-applied it to the statement balance, never thought about putting it towards investments, great idea!
Thanks Rick! You were already doing the hard part, earning the cash back. Redirect it and it stops being a discount and starts being a position. Glad it landed!
This advice is too good and certainly a no brainer. Just set it and forget it! When the rainy day comes you'll have an extra cushion if needed. I do appreciate you calling out the important notes of getting your finances in order first, don't overspend for this, and for goodness sake pay the balance on the card every month!
Thanks, Aliesha, The caveats are really important. Compound interest doesn't care whose side it's on: invested, it works for you and on a carried card balance, it works against you at 20-plus percent. The lesson: stay on the right side of the math.