In this episode of Profits + Prosecco Podcast, I’m going to be talking all about credit cards, how to use them, and how to stop spending interest on them and instead earn points. If you own a credit card or are looking into getting one, it's super important that you’re responsible and understand all the aspects.
But before we dive right in, welcome to the Profits + Prosecco Podcast! I’m your host, Katie Ferro, CPA, reformed rule follower, creator of Booked Out Bookkeeper, mom to 3 little ones, and Kajabi enthusiast.
This podcast is for entrepreneurs who desire to change their life through their profitable business, and for bookkeepers and accountants who want to escape the 9-5 and start a simple scalable bookkeeping business like I did.
Bookkeeping increases profits and profits change lives. So pop some bubbles and let me show you how!
In this episode, you'll learn everything you need to know about owning a credit card and how you can save money with one. For even more juicy details, listen to ALL of episode 27 of the Profits + Prosecco Podcast on your fave streaming platform.
This is actually pretty simple…
You earn points when you spend.
The biggest thing to make sure you're doing when you’re spending is paying it off and not paying interest.
When you pay in full with your credit card, you save money.
Let's say you're investing in something that’s $5,000. Guess what? Those points add up tremendously. This is the way you want to be thinking with all your purchases.
Instead of paying extra on payment plans or putting it all on a credit card you're paying interest on, you can find a credit card with 0% interest. This gives you an extended option to pay and save at the same time.
With 0% credit cards, a lot of the time they'll give you bonuses if you spend a certain amount in a certain time frame.
There are also other cards you can use that give you great rewards and points that will offset your spending.
So you may be wondering, why are credit cards good?
It builds your credit so that you are able to get better rates and take advantage of better deals. In order to be approved for a 0% credit card or a really good one with bonuses, you have to already have credit and use it appropriately.
Remember: Just using credit, builds credit.
STOP paying attention so much to the money in your checking account.
If you're paying interest on your credit card but let tons of money sit in your checking account, you're losing money!
Use that money to pay your credit card bills so that you're not paying tons and tons in interest.
If you have debt that you CAN pay off, what are you waiting for? Take the cash sitting in an account and pay it.
Spend the money that you would normally spend on your card, earn the points, and then pay it off with the money in your pocket to avoid paying interest.
If you have to purchase something for $5,000, DO NOT use your checking account. Why? Because you're getting zero points and not making any money back. If you put that $5,000 on your credit card, that's $50 that you'll end up with in your pocket.
My advice is to pay with a credit card when it's available to you. If it's a business purchase or a personal purchase, pay it with credit and they pay it off at the end of every month.
Keep in mind, this isn't for people who are way deep in debt. This is for people who have credit and want to spend wisely.
If you can, look for a credit card with no annual fee.
Those are going to be your FAVORITE.
Next, you should be looking at the rewards categories. You want to get a card that's going to give very good rewards for categories that you naturally spend the most on.
So if running ads is part of your business, there are credit cards that give you extra points for your ad spend.
How can you get rewards?
I prefer cash back but some cards give you double points if you redeem it for travel. It honestly all depends on how you naturally spend and how you want to receive money.
I personally am loving the Chase Ink Credit Cards. The one that I just received has a zero percent introductory offer meaning you pay 0% interest for the first 12 months. This is my plan with it…
There are two big investments that I want to make in my business but I don't want to pay in full. So, I’m going to pay for the service in full on my 0% credit card and pay it over the 12 months.
If you're making a big purchase, this is great to do because you'll have months to pay it off while still getting points.
Another thing I love about this Chase card is you can refer it to friends and you'll get points for doing that.
Here’s what you need to do:
Pull your statements from your checking and PayPal accounts and see if you're paying for things with a credit card when you can. If not, switch all your subscriptions and coaching programs over to your credit card so that you can start earning points.
Make sure you're paying your credit card every month so that these things don’t rack up!
Get aware of your spending and check your balance every couple of days to make sure you’re on top of things and you have more in your checking account than you do on your credit card.
If you have the cash to pay off a credit card balance, then DO IT.
I hope this episode has taught you the importance of using a credit card and how to make money when owning one. If you're aware and responsible, then spending and paying should be easy. If you can, leverage your credit so that you can play this money game a bit easier.
If you enjoyed the episode, please take a second to rate and review. Each review helps us reach and inspire more entrepreneurs and bookkeepers just like you.
Don’t forget to take a screenshot, share it in your Instagram stories, and tag me at @orderlyaccountingbykatie. Cheers to your inevitable success and I’ll see you in the next episode!
I'm a licensed CPA with 10 years of tax and accounting experience, fellow entrepreneur, & mama of three little ones.
I'm highly passionate about helping business owners increase their profits so they can live out their purpose long-term and make serious changes in their lives.
I do this by taking your bookkeeping off your plate, helping you plan for taxes, increase your profits, understand what's working in your business, and allowing you to get back to your true zone of genius.
BUT THAT LEADS TO...
💰Getting hit with hefty penalties and interest
⌛️Wasting your valuable time
🤯Stressing out over handling the mishap
🥴Lacking insight on how your business is doing and thus making poor business decisions.