Save Sponsor Credit Card with airSlate SignNow

Save sponsor credit card

today I'm going to teach you how to turn a liability into an asset that pays you passive income every single month [Music] [Applause] [Music] [Music] today we're talking about creating passive income with credit cards many of you guys see credit cards as a huge liability and oftentimes they truly are a major liability in your life they've actually ruined numbers of people's lives in the past and that's tragic so today I want to tell you how to reverse the strategy and actually create passive income with your credit card so let's dive into this let's talk about how does this actually work so credit cards out there most of them offer rewards bonuses now I choose to go with the cash rewards bonuses this is how we're gonna create a passive income through it however there are also travel rewards bonuses and other cards that you can use in other ways so if you're big into traveling you might want to do this for the travel rewards card instead of a cash rewards card but for today's purposes and creating passive income I'm going to teach you how to do it with a cash rewards card so let's dive in so I'm gonna use my current card for example I have multiple cards but one of my favorites is the Bank of America cash reward card and I use this card for a number of reasons but the main reason is I actually bank with Bank of America and do my investments with Bank America through Merrill Lynch and it's all linked up and actually get bonuses because of the amount of money I hold on my accounts so that's one reason I use it and it actually amplifies those rewards by quite a bit but other companies offer these same exact programs and you can utilize them too so let's dive into it this card I'm going to be using for example is the Bank of America cash rewards card and I'm going to dive into how it works so on your purchases if you go to gas stations things like that home depot home improvement stores grocery stores things like that you're actually going to be able to get a rewards bonus and now these rewards bonuses vary from you know place to place but I'm gonna give you a couple of examples of how it could work for you so with the 3% amount you're actually going to be able to do that with gas stations dining areas like restaurants travel drug stores food shopping home improvements so you can pick with character category you want that 3% rewards bonus to actually be allocated in now you only get one of those so pick the one that you use the most in my particular situation I'm a real estate agent I do a ton of driving and I'm actually gonna pick the gas category because I know I spend a lot of money every single month on gasoline okay so I choose gasoline with the 30% category but that might not be your situation maybe you don't drive much so you can slide something else in there that you actually do utilize more to amp up that that 3 percent bonus 2% grocery stores wholesale clubs so basically food shopping you're gonna get 2% back on this particular card when you go do those things and now these are things you're doing every single month you know I know I have to fill my gas tank every single month if I want to work right almost every week I fill my gas tank up same thing with food you know we all need to eat and we're doing these things anyway so might as well get some cash back on these things and create a passive income through your credit card by doing them now lastly you get 1% on all other things and these two and three percent categories maxed out at $2,500 so your $2,500 spend most people don't spend that for a month but if you do it will fall after that prey after that amount spent into the 1% category okay so another good perk is with this particular card most cards out there will have this perk if you spend $1,000 in the first 90 days you actually get a 200 dollar bonus here's the key don't spend $1,000 that you're not gonna spend anyway and end up paying interest on that because if you can't pay it back and that money wasn't coming out of your account to begin with this isn't passive income anymore this is a liability and you're actually gonna pay more money and interest than you'll ever make with these rewards so I just want to be clear about that now here's how I earn with this program and here's some examples of how much I actually earn and I'm not including my business because I run a lot of business expense through these cards as well and I still get 1% and they're pretty substantial every month now if you don't have a business your numbers look probably pretty close to this I just put some you know general you know common expenses on there I put my own expenses maybe they're a little bit higher than yours but you'll still be able to get an idea of how much you can make every single month using this strategy so check it out here's how much I heard every month I spent about six hundred dollars on fuel and I know that sounds like a ton of money but I'm a real estate agent I'm driving all over the state selling property going to meetings meeting with clients meeting with partners doing all those things so my expenses in the fuel department it's gonna be a little higher than yours probably but if you are a real estate agent or you have a job that you know you do a ton of driving definitely use that 3% category and slide your fuel right into there because I'm gonna show you how I make quite a bit of money every month just from things that I was already doing so fuel that's $600 a month food I'm a single guy I try to eat pretty healthy so I'm probably spending about $400 a month at the grocery store no buy a steak grill chicken salad meat vegetables you know a couple you know cheat meals here and there but I do you know tend to spend about 400 dollars or more every single month at the food store so that's $400 now we have our last four category which I threw in there which was utilities so my personal utilities are between you know 300 to 350 a month I just put 300 using a more conservative number just to show you what you can actually make by using this strategy so check this out phone cable and electric 300 dollars a month now I'm gonna slide you over here into this category and this is gonna show you what it actually equates to how much are you actually gonna earn by doing this so fuel remember we get in three percent on fuel now so that actually equals eighteen dollars every single month if I'm spending $600 a month anyway on fuel food all right well here's the cool thing you can 2% on food remember I'm only spending $400 a month but that money was coming onto my account either way $8 a month and then my utilities I can get 1% on that and that's gonna equate to about $3 every month now what we want to do is we want to total this up and this equals 29 dollars every single month that's coming in through rewards and I'm also getting a bonus on that but we're gonna exclude that for now because you might not have a large investment account or savings account and you might not get that bonus especially if you're using an outside card that's not tied to any bank accounts let's just use it you know bone stock without any add-on bonuses so let's check this out even a my $29 a month if we look at how much I'm gonna actually make per year that's three hundred and forty eight dollars in passive income that I'm making every single year just by doing the normal expenses that I would be doing either way either way I'm gonna go and spend that money either way it's coming out of my accounts so why not put it on this cash rewards card and generate passive income for purchases that I'm already making right and you can do the same thing you can utilize this strategy to create passive income in your life every single day and every single month that ultimately equates to a nice big sum of money that you would have you know just put out there for making these purchases anyway you're getting some money back and passive income now through your credit card so here's what not to do and this is the problem that most people have with credit cards they don't use their credit card as a passive income stream they actually use their credit card as an ATM for money that they don't even have so don't go out there and buy things that you don't need okay if you don't need it don't don't buy it please don't do that don't go out there it's a lot easier to spend money on a credit card than actually going out there and paying cash or something it's just you know psychologically easier to do emotionally it's a lot easier to hand someone a card because you don't equate that to real money and our brains work that way so that's why a lot of people get in trouble using credit cards and I don't want to see you do that if you can't trust yourself don't use this strategy and don't try to create passive income through credit cards because you're going to get in more trouble by doing that then you know 2 or 3 or 1 percent is worth it's not worth it because they're gonna whack you with 12 up to even 1819 percent interest at times don't do it not worth it however if you can be strict and you can use the strategy and trust yourself you can actually do well with it now the second thing that you don't want to do and this will wipe out all of your passive income you can't leave remaining balances on the cards because that's when they're gonna hit you with interest if you pay your balances off month after month they can't charge you interest on those amounts that you're actually spending and that's where that you know 1 2 & 3 % passive income comes in now if you're not paying the balances off your actually defeating the whole purpose you're not creating passive income you're actually creating a liability that you're paying into every month let's just use a quick example say your credit card is fairly low percentage say it's 12% right you are making an average blended of 2% return we're just going to use the higher numbers 2% with passive income on this so you don't pay the card alone well guess what you're actually losing 10% every month you're going negative cash flow because you know you're gonna get your 2% rewards bonus but the problem with that is is that you're not you're actually paying money out you know to that credit card company in the form of interest so it completely defeats the purpose of the passive income stream so don't do that avoid these key mistakes and actually go out there and create passive income for yourself today thanks so much if you like this video definitely subscribe and smash like button I'll talk to you soon thanks so much [Music]