Sneaky budget: Tip #2

Talk about being sneaky...tip #2 takes what you are already doing and makes it budget positive: switch your credit card use* to a cash back rewards card**.  When the cash rebate comes in the mail, stick it in the bank!  This is as "set it and forget it" as it gets for household financial management ideas.

*Caveats always apply, right?  Credit cards can be a good thing when used to simplify and expedite purchasing, consolidating records, getting buyer protection / warranties, etc.  Credit cards are not a good thing when you carry a balance and start paying interest.


**Not all cash back reward cards are created equally.  In my own use, the Costco member American Express has been great - no limits on reward accrual, "bonus" accrual rates on things like gas, travel, and groceries, and generally a base rate of 1% back on everything else.  I also prefer cash back to "points" for a variety of reasons, but primarily because points encourage further consumption and cash can easily apply to savings.

Did you miss tip #1?  Find it here.