A 3-Credit Card Cash Back Strategy Worth $500,000+

In this video I update my credit card rewards strategy, including our current balance we've accumulated just from credit cards. I also walk through a simple 3-card strategy you can use to generate on average 3% or more in cash back.

We'll also look at how one can build wealth with credit card rewards or improve spending outcomes in retirement.
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#cashback #creditcard #robberger

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.

[LK_EBM]

I recently got approved for the Bilt credit card! They gave me a $22k credit limit! And I get to earn easy points by paying rent!

[mrwelch]

Here's my lineup: Citi double cash, capital one savor (3 percent on restaurants, entertainment and groceries, Amazon prime (5 percent on whole foods and all Amazon purchases) discover rotating 5 percent, Venmo (top tier category pays 3 percent)

[OfficialChadsMoneyMinutes]

I am a staunch advocate of spend optimization and this was a great breakdown for newbies to the world of points and miles. I literally hold every single card you mentioned in this video save the Citi Custom Cash. Keep putting the word out the savings and hedge against inflation are super valuabe!

[BryanColliver]

i use the fidelity card 2% back in to my account every month

[rob]

I use a similar setup for rewards, but this is my setup:
Fidelity Rewards - 2% on everything, and can deposit right into a Fidelity investing account - no annual fee
Amex Blue Cash - 3% on groceries - no annual fee
Sam's Mastercard - 5% on Gas, 3% Restaurants, 3% at Sam's Club - no annual Fee (Do need to be a Sam's club member)

[OroborusFMA]

I combine bank signup bonuses with credit card cash rewards to feed a Fidelity account where I purchase dividend stocks. The goal is to create an additional income stream in retirement.

[mattchew]

Wells Fargo is simple. 3k in monthly bills = 60 bucks monthly. 720 a year in redemption give or take. Well worth it if used correctly

[kevinmcnally]

My wife and I use 4 credit cards, but pay them off each and every month. Costco VISA (cash back from Costco and Citi Visa), Fidelity (cash back directly into our investment account), Amazon Prime (5% on Prime products), and Delta (miles and airline status).

[MrsFeatherbottom]

Great video, Rob! Here's another setup that might be even simpler and avoids any annual fees (which can be difficult break even on if someone's only spending $40K/year): the Wells Fargo Active Cash + Wells Fargo Autograph. Autograph gets 3% on restaurants, travel, gas, transit, streaming, and cell phone plans, while the Active Cash gets 2% on everything else. Just two cards with a single bank and no annual fee. Only cumbersome thing with the Autograph is I think you have to redeem your points to offset card purchases instead of as a direct statement credit.

[louiswelrod]

Great video. The Fidelity Rewards Card offers 2% on everything and rewards can be automatically deposited into your Fidelity account. For dining (you can choose a category, but it stays until you change it) I use a BOA Mastercard which gives 3% back on up to $2400 per quarter. I use the Chase Amazon card for Amazon purchases and Whole Foods (5% back). Finally, I use a CapitalOne Visa with 1.5% back for non-Amazon online purchases as it has "virtual cards" that provide more protection online. All my rewards are deposited into grandkids' college accounts. Up to 18 years growth can add up to a lot.

[OnCashFlow]

I love cc churning for massive $$$ But there is a realistic limit per year for how many cards you can do per year. One of my "permanent" cards is the Walmart cash back card because it's 5% back for online orders at Walmart. I use Walmart+ for delivering all my groceries so it works out great for me.

[vevenaneathna]

100$/month is a lot of cash back.... meaning youre spending too much in my opinion (thats 5k/month on credit cards at 2% = 100$/mo). I know its assuming you have a small business, but most do not.

really to get this kind of savings/cash back normally, you need to really play the game and sign up for about 3 cards per year, pocket the signup bonus' and build out the best possible 5% cash back setup.
most people will not do this.... it takes a lot of time and tanks your credit score the first few years because ur average age of account and credit inquiries goes up.
most people will find it much more easy to spend an extra 100$ per month since they have to meet the signup bonus spend requirements.
imo, get 1-3 cc's, then once you can audit your monthly expenses for atleast 6 months, and see every single transaction you make, categorize it. then you can responsibly get more credit cards, select the most beneficial ones, and have the ability to track your life style creep over that period of time. if you dont have the self control to audit 6 months of your own finances, it is almost guaranteed you're of the impulsive majority and the game will play you.

current setup is
WF active cash, chase freedom, discover it, citi custom cash, abound cu plat., US bank cash+, chase freedom unlimited. (all no annual fee)
5% back on gas, grocery, restaurants, utilities, eBay, amazon, and gym/phone/internet/sporting goods ALL YEAR. 3% at pharmacy, 2% all else.
I average about 2.5k per year, half from cash back, other half from signup bonus', and only spend about 2k/mo

[MarkUnique]

For the Bilt card, the "cash redemption" option is 0.55% (not 1%), in the form of future rent payments (no cash-out to bank option). Plus it requires 5 monthly transactions, so if you already have credit cards doing better than 3% dining (e.g. US Bank Altitude Go, Citi Custom Cash), there will be some amount of lost cash back there. Just something to keep in mind when considering the card.

[mannymac]

I agree that normal Amex cash out rate for points is terrible. But that is one of the reasons I am getting the Amex Charles Schwab Platinum card. That $0.011 cash out rate is very good.

[mere_cat]

Rob is great! He even answers emails if you have questions! Thanks you! So glad I found this channel!

[nickdoyle-achievefinancial]

Sapphire reserve makes the freedom unlimited 2.25% on every purchase (if you redeem for travel or pay yourself back). Also makes restaurants 4.5% and freedom flex 7.5%. Even better you can redeem the ink ultimate rewards bonuses for 50% more. This is the primary setup I run.

[jtdockendorf]

FYI - if you have an E Trade or Morgan Stanley account you can apply for a cobranded Blue Cash Preferred. Has a few more perks than standard BCP. I have both due to high grocery spend. Great Video!

[TheMuljo]

Instead of the Unlimited, I'd go with the Freedom Flex since you get an additional 5% in rotating categories. IMO that's better than the 1.5% flat rate with the Unlimited which you wouldn't be using since you have a 2% card.

[ccrider]

Great video Rob, I guess I tend look at things in reverse because your video shows me how much the little nonessential purchases cost consumers over the long run. Credit cards do encourage us to buy things we probably would not take cash out of our pockets to purchase. One of the worst examples I can think of is the over-priced cup of coffee many have to have daily. Take that amount and calculate the amount generated if invested over 40 years. Yes, I do not drink coffee nor suffer any other addictions with the possible exception of being too frugal which I can live with.

It seems many businesses are starting to charge extra for credit card transactions. I am sure the major cards raising their fees has had a lot to do with this and I suppose one could argue these extra charges nullify the advantage of paying by CC.

[richardcarlin]

Credit card for rent is cool. The only issue is my landlord won't allow credit cards. When I bought a car, I put $3000 on the card (the maximum amount) and got $30 cash back.