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Make Money By Spending Money

|Includes:JPMorgan Chase & Co. (JPM)

This is officially my first Instablog. Thank you for checking it out.

I wanted to talk about something that many most likely already know but some may not.

Did you know that you can make money by spending money you would normally already spend?

Well, you sure can! There are many credit cards these days that pay you a percentage back for the amount you spend using their card. Yes, there are tons of cards out there that collect miles and points of different kinds but we want to find the ones that pay you cash money in either a form of check or credit to your account.

My favorite credit card company is Chase (NYSE:JPM). I have been a customer of theirs for over 10 years and have had a few different cards. My favorites have been the Sapphire and Freedom cards. There are no annual fees for either of them.

I use the Freedom card mostly these days since it allows you to use your points to apply a cash credit to your account. Every dollar you spend equals 1 point. 1 point equals $0.01 which is small but every penny counts these days. You can apply any amount of points over a minimum of 2000 ($20). You are earning 1% for spending money you already need to spend every month. That's more than a savings account.

They also have bonus categories that you can earn 5% on up to $1500 per quarter. Every quarter they change it up and you have to remember to activate it quarterly. Coming up in 2014, the first quarter you can earn 5% when you spend money at any gas station, movie theater, or Starbucks. You can find the others on their website.

I suggest maximizing your gains and try to pay for everything you can on your credit card. I mean everything as you normally would purchase. ALWAYS pay off your credit card monthly. The idea is to use credit cards to earn interest, not pay interest. You also get to defer payment and do something with that money for a few weeks before it's actually due. I set my cards to pay the day before the due date.

You should especially be paying all of your monthly recurring items for other reasons such as ease of paying and not ever having to worry about a late payment. Utilities, cable, internet, cell phone, health insurance, car insurance and many other things that you can save some time and a stamp not having to mail a check in. You can set it and forget it and check your statement weekly or monthly to see the charges.

And to make things even better, if you don't have this card already, there is a current limited time promotion that you can earn $200 just for spending $500 within 3 months of opening your account. That is a deal! Free money! Who doesn't like free money? I know I sure do!! I already have the card and unfortunately cannot get in on the promotion.

Do you know of a credit card out there that can earn more cash? If so, I'm sure many would love to hear about it.

I look forward to your comments.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: JPM