"If You Use Your Credit Cards, You Do Not Want to be Rich. - Mark Cuban
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- Опубліковано 6 лис 2022
- "If You Use Your Credit Cards, You Do Not Want to be Rich. - Mark Cuban
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This advice is for people that don't pay off their card each month.
No you missed the point paying into your credit score essentially since if you spend 1000 you are going to pay let’s say 1200 that 200 that you put into “building credit” can be used to build more wealth not throw money into a magic number that will only help you finance a house why finance a house when you can pay cash you see
@seeks6272 not if you pay if off every month. I've had my cards for over 7 years now. I've paid like $20 in interest. And that was an accident. Set up auto pay for the statement balance and you'll never pay interest.
@@seeks6272truly showing how little you know lol. You don’t pay interest if you pay your balance every month😂😂 stop trying to justify your horrible credit score to yourself and fix it!
I maxed out all my credit cards and will never pay back. That got me rich
@seeks6272 dont carry a balance i get 2% on all the stuff i have to buy ie. Gas and food and buy dividend stock with the cashback ive never paid a cent in interest. Just clear the card its free money
If you carry a balance you don't want to be rich
Fixed
It’s all about subconscious spending 🤷🏼♂️ not fixed
@@TheDaumWorld you can subconsciously spend on a debit card too.
So fixed
Done
THANK YOU!!!! Using only cc and not carrying balance = free money in rewards
Until life hits then they got you.
My oldest credit card is 10 years old. I have never paid a single penny on interest. I have flown a couple times for free on points. Just this year I finally got a credit card with annual fee of $100, but I took the opportunity and got 6000 points ($600). That basically pays the annual fee for 6 years. Use credit cards, but use it wisely. Don’t spend money you don’t have
Well if I was a billionaire I would cut up my credit cards too. 😂
Literally just pay off the card before interest kicks in
Exactly 💯
I load my card to max. Pay it off immediately. Get the rewards.
That’s too hard for people
Sometimes life happens and you can't make the payment before interest kicks in.
@@JCPerez-jz5cvthen just don’t buy things that you don’t have money for
I always use a credit card.
Pay in full every month.
NEVER pay interest.
I got back over $400 from Costco.
Same here. Use it as a debit card, not overspend. You get 30 day 0 interest which is super important in an economy like Argentina with 200+% inflation where I'm from.
well you're not the group dave helps.
As long as you actively watch your checking account and truly don’t overspend
I do the same here in the UK. Buy things that I was going to buy anyway, like groceries and diesel, then pay it straight off. I don't get charged any interest, but I get the Avios points to use on flights. Dave has a bee in his bonnet about credit cards, because they pursued him when he owed them money. He gives good advice for broke people, but not for those who can control their spending.
You’re one of the few.
This is good advice for most people with no self control with money. Me personally, I use my credit cards for just about everything and get that cash back, then pay my cards off so I don't get charged interest. I also have my cards on autopay just in case shit happens. I save anywhere from 2-10% on just about everything I buy, sometimes more by doing that. It adds up.
Exactly, bro preaching to a broken crowd
"This is good advice for everyone except me. I'm the exception that will beat the system."
@@amyzonkers7568 Not at all. There are people that blow all their money as soon as they get paid and people that know how to live below their means. Mark's advice is more for that first group of people.
@@amyzonkers7568that’s not what that means at all. I do the same. The point is the average person with a CC has no self control.
@@disgustedluigi The average person thinks they're an above average exception. This includes you and the rest of the I-love-credit NPCs who think they're going to get wealthy with rewards points.
My husband and I use credit cards but pay them off every month. We write everything down in the checkbook then compare them to the statements and pay them off every month. We do this for the rewards. We are also debt free and in our 60’s. We’ve done this since we were first married. It’s a matter of discipline and not comparing what you have to others.
I knew a man who used his credit cards for ALL of his companies bills, he paid them all off every month.
As a result, Jeff used his accrued air mileage to fly from fargo to Miami 5 to 6 times a year, and NEVER paid a single penny in interest.
It's all how you use your money.
I knew a guy that traveled regularly for work. You would charge all travel expenses to his credit card and how the company reimbursing getting him status and miles. It's genius
Yea I use a credit card for everyday purchases and get two flights to England a year for free
Yes, absolutely - it's all about financial responsibility. There's a saying g "don't throw the baby out with the bath water". In this case, credit cards are fine in the hands of financially responsible people. I don't like to carry around cash in this day and age, credit cards are safer - as long as you pay them off every month, it's fine.
Yep
I pay everything on credit card. Ever gum. And pay it off every paycheck. And get freeee moneyyy!!!! It's the best thing ever lol now I only get like $50 max or so in rewards because i don't spend much anyways but ai use those $50 to pay off my balance lol
If you can't control yourself, this is sound advice, otherwise maintain a zero balance.
Are you rich? Just wondering lol 😂
@@josuesantiago4521 are you?
@@josuesantiago4521 ?
This should be top comment but unfortunately people don’t find out they’re that person until it’s too late
@@josuesantiago4521 Are you rich? Just wondering lol😂
There’s a caveat to this advice. If you have credit cards that give you rewards, like cash back on your purchases, then you should absolutely use them and pay them off every month. You’ll pay no interest, and still reap the cash back benefits. We swipe our cards for everything we normally buy, food, gas, anything we need for the house, etc. Most of the time I pay them off weekly. We’ve been doing this for around 10 years and have never paid a dime in interest.
If you are responsible, the credit card is one of the best inventions ever made.
For real I’m a college student with a 741 score, I use my card for everything and pay it off IMMEDIATELY no questions. Just got a good cash back match too
If you're responsible you dont need credit cards.
@@amyzonkers7568 idk about that.. I’m sure your bank doesn’t offer the same protections as a credit card. Why risk your money, when you can use someone else’s?
@@amyzonkers7568 many people dont use the card for the sake of holding debt, but rather for the cash back rewards and credit score
@@amyzonkers7568 there's so many benefits to using credit cards. I made over $1,000 in cash back from using credit cards last year alone. It boosts your credit score which will help you get loans for mortgages / cars.
I use my cc for everything and pay off the balance at the end of the month. I pay no interest but get 1.5%-5% cash back.
Same! The only downside is we may overspend by, lets just say, 10%, since it doesnt "hurt" as much as cash leaving ur hand.
@@ryebread447speak for yourself. Us financially responsible people don’t overspend
I have a card specifically for food getting me 3% every time I go to the grocery store and 4% at fast food and restaurants, I've got $450 back this year so far
It's just another hassle in life. Keep on running gerbil. 🏃♀️
Right. Paying cc interest defeats the purpose of getting rewards points.
I'm debt free with 7 credit Cards all with 0% balances. This is sound advice for people with no self control. I don't use debt to get leverage but having a nice credit score in my back pocket is a good feeling to me.
I float at like 10% utilization but the payments are automatically taken out. It just depends on when certain bills hit on how much utilization it shows
Same. And I also like to take advantage of cash back. I have funded trips with it, but I mostly cash and invest it. It's basically free money. I have never paid any interest or any kind of fee.
Likewise, I pay the balance in full every month (minus the cash-back applied) so the card pays me. Furthermore, if you follow this practice most cards will allow you to request a credit limit increase every six months, which increases your overall borrowing power, which can lead to a better credit score.
I use a credit card for points and convenience - monthly expenses paid with a single check and mailed out week received. If I can't afford to remit when due, it's a "want" not a "need". No debt and live within my means. Raised by CT Yankees 🇺🇲
@xMontorix 🎉 Congrats!! That’s a HUGE (and very difficult) accomplishment. Way to go! 🎉
I saw Mark at a casino in Vegas and he paid with an Amex card lol
Most Amex cards are charge cards, not credit cards. You earn rewards but cannot carry a balance.
@@kovu159 Not true anymore. Nice disinformation post though.
well he mentioned interest or wtv so he probably pays stuff off on time
@@kovu159 Amex from 20 years ago. Not today. I'm sitting on an Amex Blue Everyday card and you do not have to pay it off each month.
@@floridaman964 well Tell us how it works then
This idea actually hurt me when I started trying to purchase my first house. I had never borrowed any money, so I had no credit. It took me two years of using and paying off a credit card to be able to purchase my first home. I paid the full balance at the end of each month. Set me back two years. Young people need to get a credit card and be responsible with it.
There’s a massive difference between not being in debt and not using a credit card
Yeah this clip and message is a little misleading. It’s not as catchy to say, “Don’t hold debts at extremely high interest rates for example with credit cards”.
You dont get a credit card to not be in debt. That's what a credit card is. The bank buys it for you and you owe them money.
@@amyzonkers7568 people who effectively use credit cards are technically in debt, however it’s good debt, you get rewards and a great credit score.
For some reason, Dave cannot understand this.
@@amyzonkers7568for an Asian you are slow, using a credit card to spend what you would normally spend with a debit card is not accruing debt. Why is this so hard for people to understand.
I am 70 years old and use my credit card for all my transactions and never paid a penny interest in my life so far! You can do it just don't by stupid which is hard to do.
Well appreciate your honesty🙏🏾 but honestly I have a question, I’m 18 and have yet to start building my credit bc I want to learn first and make less mistakes as possible, after watching this video I am now unsure whether I should start building at all😅 what’s the actual pros to building credit besides financing things? Pls and thank you for your time.
@iriana_official162 In order to build credit, you need to show that you can borrow money and pay it back responsibly. You can do this by getting personal loans or auto loans, but those are costly and something you should only use when you actually need those things. On top of that, the benefit of those loans to your credit usually go away once you finish paying those loans off which will cause your score to drop along with that line of credit. Which is why credit cards are a much simpler way to build and maintain a good credit score.
Unlike loans, credit cards have a permanent line of credit that stays open as long as you use the card every once in a while. Just make sure to limit your use of them to stuff that you have to buy anyway like bills, transportation, and groceries. If you feel you are financially responsible enough for it, using it to buy all your other expenses is fine too.
Also of course, make sure you fully pay your credit card balance off every single month.
I use a credit card because I at the very least get 1% back in rewards and get 5% on my groceries which nowadays definitely helps. If you don’t use a credit card and pay in cash you’re only hurting yourself while helping out the company you are shopping at. Only time I pay cash is when buying from someone in person or from a mechanic or someone who gives a discount for paying in cash.
Look at my comment, it saves you money to use a credit card in most situations. Just don’t be dumb enough to not pay on time. Setup autopay and only spend what you have. I treat my card like I would cash. I don’t spend money I don’t have.
@@iriana_official162credit is a key to a good middle class life. Billionaires and multimillionaires aren’t even looking at there credit. It’s easy for them to say when they can go buy a 2024 lambo wit straight cash. But the average person needs good credit if he wants something luxurious or something he proably couldn’t buy in cash. Most middle class homes with those nice cars are all loans. America runs on the middle class and credit. That’s how the rich get rich
Using a credit card doesn’t put you in debt, using a credit card poorly puts you in debt 👍🏻👍🏻
Thank you!
Suddenly Kiyosaki will show up and say: living off credit is the best thing to do😅.
Thank you for showing this video
An old lady who was vary rich was talking with my mom and she said that if you can pay all your bills not be in debt and live within your means your rich person and don't let anyone say your poor.
I like that
Wise woman 😊
I agree but time is wealth
You're
Rich but doesn't know English
I paid my plane ticket to Europe with my credit card points last year. Also never paid a dime in interest. Pay it off at the end of each month.
Points. That's where we're headed - no cash, just Points . They want the data from your spending.
We've paid for 2 vacations to Jamaica with points from our card. Haven't ever paid interest on it.
@@Tommy.461But you do pay for the price adjustment each merchant makes to cover processing fees.
@@Miclorenonly 5.60 on SW rapid rewards card for domestic flights. So I could pay 300 for round trip per person or pay 5.60 per person. My card points win! I pay off any balance by end of month no debt at all❤
@@annemariesmith5459 You think debit cards dont also sell data?
I pay my southwest cc in full every month and put absolutely everything on it.
I haven’t paid for a flight since the day I opened it.
Yes, obviously get out of credit card debt. But having a credit card doesn’t mean you’ll immediately be in debt. Pay your balance in full, boost your credit score, Get the cashback or miles or whatever
Just pay off your cards before the interest kicks in, and load up on cash back
Exactly!
The people that say this are the same type of people that don’t pay them off on time….
@@Kamel-Elkadri i say this and am paying it off for 3 years till date.
I was stupid enough to underestimate my financial discipline.
Have 15 active credit cards at present.
Balance carried? Zero.
Have fully funded emergency fund with me.
You are getting, what, max 3% cash back? You know how much that is? On a $1000 spend, that's only $30. You do better than that with literally any type of investment
@@andrewbabbo123 it's with this 3-5% saving on your budgeted spends or utilities which will boost your income.
Especially if you invest that in mutual funds. It may seem small, but it still is fine than having none.
Well, I buy $50k+ a month for my store using AMEX and get 720k travel miles and hotel miles annually. I just pay bill monthly and hold nothing over
Good for you?
Same I pay off the balance bi monthly when I get paid so I never get interest charged. If you auto pay on the due date, yes your going to pay money. I budget and use my card within the budget.
There is a difference between a personal account and a business account. Using an AMEX for business expenses is not the same as having personal debt.
But you’re an unicorn. Everyone is not spending that much.
Just Ignore two insanely rich people. One of them happens to be a billionaire. Who cares what he thinks because someone making 40k says to use CCs.
I literally just watched a video that says don't spend your money use the credit. Find your own way is the answer
Yeah, this is for advice to people that don’t know how to manage credit cards. I’ve made more money off my credit cards than they have made off me. 6 years and not a single penny to interest. Everything goes on my credit cards and then they are paid off before the closing date. Auto pay all my bills on the card and then just pay that off every time. No interest charged and get my cash back.
Spending money you don’t NEED to spend will stop you being from comfortable or “rich”.
Lots of my boy Dave’s advice is good for people who are just that clueless. If you’re financially literate and responsible, then don’t ever listen to guys who say don’t use credit cards. I have a landscaping company. Get 5% back on sam’s club credit card for gas. What a fool I’d be to not take that return for literally just paying off me credit cards monthly.
True, but the problem is millions of Americans are in credit card debt became they think it's a good idea to have
Exactly.
Having available credit isn't the same as having the money. You know how much money you have coming in, so that's the money you're working with.
I also like having the extra available credit in case something expensive comes up and a lot of credit cards offer extra protections, so you can save money with the cash back with extra coverages
Same with mortgage debt. I know multi-millionaires who could easily pay off their houses but are smart and keep their 4% fixed loan that's cheap and tax deductible. Rather than pay off the house, they have that money earning 10% to 15% in higher return investments
I have exactly 1 credit card with a low limit, that I use exclusively for online purchasing and sketchy gas stations and pay off every month. I live in small rural and can't get 40% of what I need locally. This way if my identity gets stolen (thanks, Amazon), I never risk being out very much and my bank insures fraudulent usage.
Dave teaches people to become fiscally responsible. Some people then can move onto learning new financial concepts that teach you about good debt, and others just keep on down the road with Dave’s advice. He’s totally giving great advice for the person that’s financially illiterate, which is roughly 80% of Americans.
Nothing wrong with credit cards, if you use them like a debit card and never go into debt
Very few do, that’s the problem
@@anotherdoseytI’m totally fine with reaping the benefits of others paying interest
Yeah i dont spend money i dont have, simple
@abramsrob so you don’t use a credit card. Good
@@abramsrob exactly. Leverage is one thing. Debt is just bad.
When you’re debt free you can literally control how much money you need to make, you’ll never need a single job or have to stay in a unpleasant situation
People tend to spend more with cc, even if they dont carry a balance. So not bad advice for the average person.
I have 3 more payments until my debt free scream! 👍
Well done 🙌
And then you'll scream and sit down and everything will be the same. Depressing, boring and mundane. Enjoy. 😂
@@PeterNorthCumshotLegendwomp womp. Looks like we have a downer among us. 😢 Wish all the best to ya buddy. Hope you find peace in ur life instead of being negative.
Congrats!!!
Congrats!
Or just use them for the money back, and pay them off every month like a financially responsible person.
Yes exactly, Ramsey has SOME good advice but on this he is totally wrong unless you have no self control and then of course you have other deeper issues.
@@MP-ef6mc lol that’s exactly the kind of people who seek help from ramsey maybe
@ConRon The people that say “just pay them off every month” are the same type of people that don’t pay them off on time….
The majority of the people he’s talking to aren’t in a spot to be using credit cards like that and might never be since they usually put themselves in a hole and kept digging. So it’s probably irresponsible of him to suggest to use a credit card to them in his position.
I agree with you ConRon. Ramsey does not.
I know so many people bogged down by credit card debt. It only gets more and more difficult to pay down as well. Car loans are also abysmal.
Credit cards certainly aren't a means to wealth, but they're also not a barrier to wealth if in the hands of a responsible, disciplined person.
Most people are not disciplined though so are you saying credit cards are made just for rich people??
@@justlkbjhow did you get that from the comment?
@@raymondhansen4482 because I know the history of credit and finance and I know most people are not disciplined which is why I said for rich people because of why they were originally made and because usually poor people have terrible discipline but giving them the benefit of the doubt you shouldn't have to be that disciplined like a dam robot just for credit cards where ax rich people are disciplined like a dam robot you get me
@@justlkbj No. I'm saying that credit cards are fine to use if the balance is paid in full each month, and people don't spend beyond their means. Plenty of low-income people have discipline.
@@josiahb.2117 my brother in Christ if they had the discipline your talking about they would be wayyy well off and truth fully they are not. Credit should be removed the avg person is better off without credit you don't earn enough anyway to get the full benefits and perks and lifestyle of a credit card not enough cash flow
Revolving credit is a great way to boost your crefit score.
I have one card with a modest limit. I stay in 1-9% utilization. I spend ~$30 a month and pay it off, no interest. >750 credit score. You NEED a credit card for flights and hotels. You NEED a good credit. If I book a $500 flight, I pay off $470 immediately from my checking and leave $30 to be reported for utilization. Do not use credit cards for money you don't have. If you do not have the funds to pay it off immediately from your checking, that means you can't afford it. No credit card debt EVER.
Id love to see the rich dad poor dad guy argue with these guys
Robert has a video with jaspreet talkin about Dave Ramsey on debt
Cuban and Ramsey’s advice here is more geared towards everyday normal people who just want to maybe make a million or two before they retire. Good advice It’s a good goal to strive for as it’s a little more realistic and usually has little risk involved.
Rich dad poor dad gives advice for people who want to become multi millionaires by owning assets in the form of real estate and businesses. Through debt and assets you can avoid lots of taxes given the current tax codes. This method is a little more difficult and has greater risk involved. But that’s life isn’t it - high risk high reward.
Either way - they both give good, sound advice. You just have to first find out what it is YOU want out of life, then structure your financial plan accordingly.
@@cemora thank you sir. I hope you are rich and happy
personal debt vs business debt
Robert would destroy them. Ramsey & Cuban likely wouldn’t even consider the debate
For anyone deciding to get a credit card, please use it as a debit card, I cannot stress this enough. Do not make purchases you couldn’t pay off in full or if u don’t have the money for them.
Please do not use a debit card. If someone steals your debit card, they can literally deplete your bank account and you have no ability to get it back. Credit cards have built in theft protection.
For real. It is not a magical card that gives you an infinite money glitch. Also that is a good way to put it: "use your credit card as a debit card"
One question though I am new to credit cards and don't you have to get a credit card that has interest or fees on it when you first get one because you have a very small chance of getting accepted for a "good" credit card (no extra money if you pay on time and in full) since you have zero credit? Is this true?
@@karltiedemann7222 I have a discover card as my first credit card and I didn’t get any interest or fees for the first 18 months which expires now in August. Interest is only added onto your total when you don’t finish paying off your debt and fees are only added on if you miss a payment. If you’re interested in getting a discover which I think was good starter because I’m at a 759 right now, I can help you get the card and if u sign up using my share thing u and I both get $100 bonus on our cards.
@@karltiedemann7222 No. Plenty of starter CCs or even Chase Freedom they give to broke college students.
So just any CC that will give you one, but then treat it like your own virtual ATM Machine on a card. As in use it like you're withdrawing cash and you're simply creating an IOU to finally pay the accumulated IOUs when the Statement Balance comes in. Never underpay a statement balance where interest starts to get tacked on.
Within a couple of months new CC opportunities will start to open to you. But only to make your total credit limit be higher and in turn the utilization amount can be larger and you can spend more.
To be clear never spending more than you can pay per month, but you can carry a larger balance within the month without getting dinged for going over Utilization percentage.
It is simple. Be financially disciplined. Get a credit card, or two, or three. The more lines of credit open the better. Do your research and learn about credit utilization and credit history. Ideally keep your credit utilization as low as possible, at least under 15-20 percent. Use these card only for small purchases and pay off balances early or minimum on time. Within a few years if you don’t have previous bad credit then you should be on your way to 700+ if not close to 800 credit score depending on your credit utilization and history
Also, duration of your credit history is a significant part of your credit score. if you do, choose not to use a visa, especially if it has a long history just chop it up. Don’t cancel it.
I lived by this motto until I flew to another city and couldn’t rent a car.
Which only goes to show how the system is rigged to encourage debt.
you just didnt try and look hard enough
I’ve witnessed a car rental company flat out refuse to take cash or debit card. Sitting in an airport you don’t have time or means to shop a deal that will take an alternative form of payment.
@@harthart7529 then sue them they are not allowed to not accept cash. or just walk away there the ones that want your dollar so go give your money to another business that will accept cash. its there loss there the business trying to make money
You have to have your car delivered to that fort before you arrive 😉
There’s an old Asian man who literally just told me debt is a good thing like a few scrolls ago. That’s wild
Rob Kiyosaki moment
lol
😂😂😂😂😂
There’s good debt and bad debt.
Yea that was Robert. Debt is good if you take on debt to buy an asset.
Not in every circumstance.
I use it for my business and pay it off in full every month on time. I enjoy the rewards.
I’ve never had a credit card, at 21 I feel as tho I’m one of the few out of the people I know who doesn’t have one. It seems pointless other than to help raise your credit score. I’ve been blessed to never have been in debt and never want to put myself in a position to be in debt. I love comfortably off of what I make with no real reason to get a credit card
the only reason for a credit card at that point is just credit score. although many credit cards offer cash back on every purchase, usually shown as reward points. those can be used to help pay off the balance you have on the card with the cash back youve earned through the card or redeemed into some checkings acc. basically free money if you know youre good on paying the balance. autopay would make it more convenient
To be fair building credit isn’t bad just don’t be dumb
Lol 21! You don't know how life changes on a dime! Keep that spirit up..... you'll need it soon. Life come at you fast! Lmao this was hilarious! 21!
I am 67, and my dad taught me a very long time ago….if you can’t pay for something you don’t need it! My parents never had a credit card, and that is how I lived my life. I retired at 62, waited until I reached my FRA to take social security, and my goal is to NOT touch either of my 401k’s or my ESOP until 72. My house had been paid off for years, I drive a 2017 paid for vehicle, and live very comfortably.
We also live quite comfortably, spending less than we could. There's a lot to say about the freedom that good money management brings.
You have to live life it’s not just about saving until you DIE! Then what was the point if you don’t get a chance to spend it🤔
Some people can't afford food, I agree... they don't need it 👍
So you paid for your house in full? This is extremely misleading
@@ptfambam There's a difference in borrowing with collateral and getting in debt with nothing to back it up. The purpose is different, the interest rates are way lower, and it is a controlled method of managing money. So, we careful folks will borrow for a car or a house, and really nothing else. If we have credit cards, we pay them off every month. It keeps us out of the misery of debt.
Being in debt is terrible for a person's nervous system, and it is a great killer of marriages.
Not going to lie, but we are actually really proud to have an employee like you as part of the team. The job is done so gracefully and neatly. Very well done, dear MYSTICFLIP . First of all. Thank you for making the work environment so friendly and taking your responsibility seriously and completing the work gracefully! You deserve so much.
Revolutionary advice: You build wealth by saving money. Thanks Rich people!
This is advice for people who carry credit card debt. I use my credit card for all purchases and pay the amount owed for that period. I carry over the rest using the grace period of no interest. It means I can send that money to the line of credit that I use to invest, reducing the overall interest paid on the line of credit. Plus, it's a dividend card, so I get cash back. Visa pays me to use thier product.
Used to only use my debit card. 20 years ago, started using a cash back card instead. Have not paid a penny of interest or fees and probably made 5 G’s in cash back.
And what did you do with that 5k, invest it?
@@OTBkid If that were your concern, he'd have mentioned it.
5000 over 20 years isn't a great rate of return
@@michaelsorensen7567 Better than 0
Can’t disagree more. If you use a debit card your loosing out on cash back. Just pay off your card before the interest starts building.
I love getting cash back or points
Exactly!
Totally agree! I get several hundred dollars a year back by using my credit card to pay things I was going to pay anyway. Just pay balance off at the end of the month.
"I disagree with these millionaires on how to build wealth." -Person who is not a millionaire and has no wealth.
My parents were super keen on me not being in debt at all. Not student loans. Not car. Maybe a house but even then they insist that I live with them until I get a good chunk for the down payment. I know that I am fortunate and I’m going to do the best I can to be a good steward of this jump start I got
Thank you. This is what my mom taught me and this is what my family lives by. I’ve heard so many people online claiming credit cards will make you rich, but it is the opposite isn’t it. I’ll never loan money to invest them. That is like sitting on a bomb right?
Or just never carry a balance and take advantage of the rewards
Only heard people who were upper middle class or wealth say this. Yeah du you have the ability for that to be a no brainer.
I put my monthly bills on CC, and pay it off each paycheck lol
Waste of your paycheck. Think what you could have used that money for.
@@Musicienne-DAB1995 Are you joking? Paying your water bill is a waste of money? You bathing in a dirty river to save 30$?
@@blunderhappy8962 Pay your water bill with your debit card.
@@Musicienne-DAB1995 You're paying the same money either way. The only difference is not getting the cash back with the debit card. 🤦
@@Musicienne-DAB1995what an incredibly stupid thing to say 😂
Friends on what you define as rich
I soooo agree with them. I used my cards and rang them up. I will be completely credit card free in 2 months. I will be paying "cash" for things for now on.
The best way to get out of danger is not to put yourself in it
I have 2 credit cards that automatically pay the balance each month while giving me 1-5% cash back. I pay everything I can with them. I have gotten thousands in cash back and never paid a dime in interest.
@@BigWill3855 You paid by spending more if you didnt have the card. You know this by the fact that you view rewards points as financial progress.
if you dont have self control over your own credit cards then dont use them but for those that can manage the balance monthly CC are your best tool. i am soon to be 100% debt free. i use my CC for things i would normally buy. if i need to buy gas for my car i know i have $45 set aside for gas i will put it on the CC wait for it to clear in 24 hours then immediately pay it off. you use your CC for things you where already going to spend money on, like gas, groceries, that date night. if you have the money in your checking account you use that as your. if you have $300 until next pay check then you can only use $300 of your CC.
Have an open line of credit and pay off balance before the month to avoid interest rates. It help break up high bill into 2 payments vs one.
I pay it every month get 3% off every purchase. The 3% goes in to my checking then I invest it into a high risk mutual fund. I go high risk cause I’m in my 20’s and it’s money I wouldn’t have had if I didn’t use the credit card. Which this year I’ve made about 11% on my money.
Which mutual fund ? I’m interested in giving my cash back a new home
This man spends hundreds of thousands of time just to help us. He helps those in need while also helping us. He always puts a smile on our faces and we should appreciate it. Hats off to Him! I love you dude. Crazy I've never payed attention to the Mysticflip on the internet movement when I say ancestral your a gift to our people
I pay 100% of mine before the due date. No interest, no annual fees. I treat it like a debit card, if I don’t have the funds to cover however much I spend, I don’t use it
I’m about to do clinical trials to finish off anything regarding interest in my name, just paid in full 1 card and half of another since I got a pay raise! It feels so good, my buddy was saying he doesn’t understand why I’m paying off principal because he doesn’t like seeing his money “disappear” from his bank account lmao…
Bro’s gots 6k in interest from a 5k prince on a shite car and I’m telling his ass to pay that immediately so the interest doesn’t come over into the new car.
Some people really don’t consider how total debt works and I genuinely hope he just gets rid of it so he can trade in for a car that will do what it’s supposed to
I make thousands a year from CC rewards, and have never paid a cent of interest. I have half a million hotel rewards points that haven't been used, easily 5-6 weeks of free stays @$200/n. Combine that with free flights from CC signup bonuses, I probably have about $10k worth of rewards still waiting to be used. I think I'll stick with my current system, thanks...
Why are you waiting to use them?
@@Musicienne-DAB1995 Coivd -> Having Twins
Yea sounds like you're doing much better than mark cuban
@@JT-hs3pe lol 😂
Cap
This man spends hundreds of thousands of time just to help us. He helps those in need while also helping us. He always puts a smile on our faces and we should appreciate it. Hats off to Him! I love you dude. Crazy I've never payed attention to the MYSTICFLIP on the internet movement when I say ancestral your a gift to our people
Never paid a penny in interest. Also never had to pay for a plane ticket to visit family. Always have enough points to go every year or two
I have zero debt. Payed it off this last year. This is my first year with zero debt. I have a brand new business started last July. We are on schedule for a great year. I have all my equipment paid off. I don't owe anything to any one and I never will.
I pay my credit card off immediately, it never gets a chance to collect debt, I just use it for the 2% return on all purchases
If you spend too much money, don’t budget and can’t pay off your credit card every month, then yeah this is great advice.
I think the CC companies are banking on those who lack discipline/ ability to maintain $0 balance than those who posses those traits. Advice of any kind is fluid. Humbly listen, then use it or don’t.
Here’s to a financially strong New Year.
of course! They rack up a lot too!
I wouldn’t say ditch credit cards entirely. Just use responsibly. Stop putting so much in credit cards/spending. This advice applies to those who can’t cut back on spending.
Some places use your credit score (apartments) to check for good renters. Including mortgage lenders.
Also, some credit cards have cash back programs like Discover. And others help build points towards status. Like for example, I travel a lot for work and have a credit card to build up points for companion pass with Southwest. Which allows a companion to fly for free. And I’m very close to having it spending employers money that was planned already to be spent.
No!!!!! You use credit cards to help build your credit score. Get 3 cards, 1 from the 3 majors, visa, Amex and MC. Then use 1 for utilities, 1 for groceries and gas, and 1 for everything else. You pay each off 5 days before payment is due every month. And it helps me track my spending and see where waste can be avoided. Just my opinion though.
“Best way to not be broke is to have money, broke-y”
~ Sun Tzu, The Art of War (probably)
😂
All I got to do is get out of debt?? Why didn’t I think of that.
I was trying to get rich by blowing all my money. Huh
But if you are in debt you can't afford, you did blow all your money.
Simple math - I don’t use more credit than I can pay off each month. If you can use a credit card responsibility, there’s no reason you shouldn’t use them. I personally enjoy the points and benefits I get from my cards because I pay the balance on time, every time.
All the comments saying pay it off end of month. I agree. But there’s something about overspending because it’s so easy.
I used my credit card to finish a renovation on a rental..... I paid it back in 2 months and that rental has made me more money than the interest I paid.
Had I waited till I had the money for both the down payment and renovation cost, I would have lost out on that deal
That’s what’s called good debt. Ramseys all about getting people out of debt, as that’s who he sells to. You’re never going to hear Dave teaching about what good debt is, because that’s not what he is selling, and if he did that, there are way too many people that are black and white and would harass Dave for being a hypocrite. Dave gets what you are saying, but that’s not his product, so he’s never going to promote that.
"I gambled at the casino and won. Dont tell me gambling isn't good financial advice!"
Due to the 0% liability and the fact that I pay it off in full each month, I enjoy using my credit card.
I've had my credit card skimmed multiple times, if that was a debit card I'd be out thousands.
Yeah and you can have a virtual card in minutes and replacement card in 2 days.
@@chrisknoblockthat’s a common myth but you’re still not on the hook for debit card fraud. The reason the myth came about is it is however much more of a pain in the ass to get back to status quo. With a credit card you just notify and the difference is deducted from your bill that month so you never notice. With a debit card you have no access to that money for the duration of the process and only once everything is approved is the money refunded and accessible.
Why wait till the end of the month?
"I enjoy using my credit card and I love my rewards!" -Not rich people
That last line about income as a wealth building tool… “income” is not just getting paid for a salary job. It can be much more. But if there is bad debt, any type of income doesn’t really matter
That’s a lot of water
The wealthy: buy, borrow, die.
This guy: if you ask wealthy people they say stay out of debt!
Exactly
They borrow ONCE they’re rich not when they’re poor lol
@@Mrbusy498they borrow alot, especially G.C
Borrow, never think about paying back, leave an inheritance to your kids
Wealthy people do not borrow to get their wealth. That's the way they LOSE their wealth. You get wealth through your income and smart investments.
When you're worth millions and in Marc's case, billions. Cash back and reward points don't matter.
Nobody is trying to get rich buy having sky miles and rewards points. It's just a plus for being responsible.
Well, that's the thing isn't it: if you're rich, cash back and reward points don't matter. So the way to get rich is to ignore cash back and rewards.
Very true💯
@@Musicienne-DAB1995 How so?
@@Musicienne-DAB1995 If you mean don't make a purchase because of the rewards, I would agree. But if you're going to buy something anyway, there's no reason not to get the extra rewards.
@@Musicienne-DAB1995 You have to get rich before you are rich, and that means every dollar matters, because down the line they will multiply tenfold when invested.
Outright ignoring free money simply for being responsible is not how you GET rich, it's how you shoot yourself in the foot for no reason at all.
Only once you ARE rich do the perks stop having the same effect, because at that point your money has grown to the point it is far outpacing the little rewards.
That’s the best advice I heard and you right you don’t wanna be rich
Use them to buy what you can afford to pay off right away. A good credit score will be great down the road. This is mainly advice for people with a spending problem.
I purchase broken houses with cash and fix them up using credit cards. The rental income from the house and my W2 income pay the cards off within a year. I’ve done it several times and now have a portfolio that can support me without a W2 job. Credit isn’t the problem. Abusing credit is the problem.
Yeah use credit cards with a good purpose
If you actually were as successful making money as you claim you wouldn't be needing credit cards. You use credit cards to spend money you don't have.
Capital vs cash flow. Cash flow takes time before it turns into capital. Credit speeds up the process. Create debt to purchase assets which cash flow enough to pay off the debt. If you’re good at it your new asset will increase free cash flow while it’s also paying the debt. As a bonus your free cash flow increases on the back end when the debt is paid off.
@@clarkewegener9197 The vast majority of people who use credit to flip real estate fail. Dave Ramsey has many videos on this. The risk is too great. You might as well be advocating for getting money from a casino.
Normal people have to worry about credit scores. Get a credit card, spend 10% of the limit a month on stuff you need, never miss a payment because it’s $30, you are good. Great for credit
Dunning-Krueger effect in action.
Pay your balances off every month, now you have good credit history so that you can mortgage a house or finance vehicles at the lowest interest rate, plus you get points and end up saving a decent amount of money over time. These people are saying this because the average person doesn’t know how to use debt. Don’t spend more than you have, don’t buy depreciating assets, preferably invest in assets that bring you greater returns that the debt payments you make (or at least break even). And congrats, you have used debt in a positive manner
The only way to use them is minimally (say one trip to the gas station or one dinner out), pay it off, ask for a credit increase, and repeat. Your score will skyrocket.
If you use them for direct purchasing power rather than as a means to indirectly create purchasing power, you're screwed.
I use my card to buy everything during the month and have autopay set up to pay it off in full each month. No interest, only cash back. But ok please tell us about how that extra money doesn’t matter. Us “normals” who aren’t billionaires don’t have the luxury of passing up free money.
Also, do these guys not realize that if you “cut up your cards” and never use them the companies will just close them and your FICO score will tank?
You actually spend more on those CC’s.
@@andrewg3666 please explain how
Exactly. We’ve done this for over thirty years; autopay balance each month for zero interest. Haven’t paid a penny in interest during that time. Technically, I was charged interest twice due to computer glitches on their part which was promptly refunded after some phone calls. I’ve got two back up cards, that are active, that I keep in case the others are compromised. Has happened on trips (cards being compromised).
Aside from not having to carry a bunch of cash, you get better conversion rates when traveling overseas (which we are now doing at least three times a year) and charging using the local currency. Plus, you don’t have to guess at how much to convert into the local currency.
Have an emergency cash outflow? Use the card, then take the time to select the proper account to pull the funds from to cover the expected cc bill.
Oh, and the points earned go towards paying off the cc bill, automatically.
@@andrewg3666 - only if you have little/no self control.
You don’t need a fico score if you don’t use debt.
I just pay mine off on time and earn cash back on bills that need to be paid anyways 😂😂
The actual useful advice is "don't accrue credit card debt". Unless you plan to buy every piece of property you ever own in cash, building credit is essential. The easiest, lowest consequence way for most people to do this is to use a credit card and pay it off every month. As long as you're not spending money you don't have, there is no downside to this, and if you have a card with decent rewards there can be a pretty significant upside on top of building credit.
That's too easy. Can't do it....
Easy to say as a multimillionaire or billionaire.
I’m 100% debt free. Every pay check goes very far. I’m able to save $ every month. Biggest reason is try to never have a car note. This way I save and then every 15+ years I buy a vehicle with a large down payment. Car notes are crippling people.
A lot of people confuse "income" with "how many payments I can afford"
I had to make up for lost time to build credit, so I took on some loans and refinanced them when my credit got up there, so now I"ve got low interest rates and history building up.
Going forward, my credit cards should show enough to keep my score high.
I stare at credit reports for a living. As long as u keep your total usage under 30%, the cards will not hurt your score. Some people think that just paying bills on time improves credit. But credit cards don’t work that way. A card with over 50% usage, even if paid perfectly, will bring ur score down.
Best of luck to u building that score.
You don't need more than 2K limit on your credit card. For sales and such. You get another card, a debit card, and autofill it from your salary as soon as it comes. Now you have a card with pocket money. Use that
Fantastic example of two people who are not smart, but are still able to be rich
Credit is life , exploit the game and live a easy life .
YOU ALREADY KNOW.
If you are not in debt you are not in business
Not if you just use them like your debit. Only spend what you know have. Pay in full. And take advantage of the grace period. Build credit. And stretch your money out. Open a high yield savings. Also not everyone get loans from their rich family or friends. We have to rely on credit sometimes.