AdamDivy's  Instablog

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Follower of mostly dividend stocks and long term investing but always on the lookout for a good trade. I would like to live off of dividends one day.
  • Make Money By Spending Money 4 comments
    Dec 20, 2013 6:38 PM | about stocks: 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
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Comments (4)
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  • AdamDivy
    , contributor
    Comments (413) | Send Message
    Author’s reply » I recently saw a new promotion for Capital One.


    Quicksilver Cash Rewards Credit Card


    1.5% cash back! And you can get $100 for spending $500 in the first 3 months.
    23 Dec 2013, 11:22 AM Reply Like
  • AdamDivy
    , contributor
    Comments (413) | Send Message
    Author’s reply » BofA has been advertising their card for 1% on all purchases, 2% on groceries, and 3% on gas but for groceries and gas it's only $1500 per quarter I think.
    2 Apr 2014, 11:29 AM Reply Like
  • SMurray85
    , contributor
    Comments (15) | Send Message
    Hey Adam - Congrats on your first Instablog post!


    I follow the same path - use my credit card for just about everything, and pay off the balance in full.


    I have the Amazon Visa Rewards card, which for me is great. I have a lot of recurring purchases with them for general household stuff with their 5% discount program, and I tend to buy just about everything I can from them. With the AR card, I get 3% back on all Amazon purchases, 2% at drug stores, gas stations, and restaurants, and 1% everywhere else.


    An added bonus is that if you sign up for the card, you can get a~$50 Amazon credit, which is great.


    You have the option to redeem the reward points on Amazon purchases, travel expenses, or take the rewards as cash or apply it to your balance. I always apply it to my balance since if you use it on something else you miss out on the points you would have earned by using your card!
    17 Jul 2014, 08:53 PM Reply Like
  • AdamDivy
    , contributor
    Comments (413) | Send Message
    Author’s reply » Hey SMurray, thanks!


    The Amazon card sounds pretty good. I appreciate the heads up.


    I recently got the Chase Sapphire Preferred for when I went to Europe. They gave me 40,000 points for spending $3k and I got another 5,000 points for adding my wife to the card.


    I'm back to using the CapOne Quicksilver for 1.5% on everything for general use.
    18 Jul 2014, 09:46 AM Reply Like
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