A 3-Credit Card Cash Back Strategy Worth $500,000+
Video Overview & Insights
Best 2% Cash Back Credit Cards: https://bit.ly/3DeaqEM
Here's the problem I have with the Amex Blue Cash Preferred card: "Cash Back is provided in the form of Reward Dollars that can be redeemed as a statement credit". So it's not going to be automatically dumped into a bank account. You would have to manually take the amount of savings out of some money pot (equal to the statement credit) and stick it in the savings account. Plus it's capped out at $6k spend on Supermarkets and has a $95 annual fee (after year 1). The AAA Advantage credit card will deposit cash back directly into a bank account, has a 5% cash back with a $10k cap on spending (so max $500 cash back per year), has $0 annual fee. And it's a Visa, so it can be used more places. Plus it has 3% on gas, wholesale clubs, and a few other categories. Although if you are willing to put some effort in to extracting value from credit cards, you could make $1000s a year getting signup bonuses and converting them to cash. US Bank and Bank of America have some excellent cards with 5% or more cash-back multipliers for many categories as well, with $0 annual fee.
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.
Time for a 2025 update
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Credit Cards Mentioned in this Video
THE PROBLEM with the AMEX card is that they DO NOT INCLUDE food club stores like Walmart, Sam's, Costco etc in their 5% discount
1% with BILT isn't even worth my time, it's a joke
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Citi Double Cash: https://bit.ly/3SDoOwe
Thanks I think 🤔 figured out how to pay my big bills with credit and I get the rewards from it again thank u not easy trying to save 40 grand I need 30 more 😂😂😂😂😂😱😱😱😱
Chase Freedom Unlimited: https://bit.ly/3f7nDHs
Amex Blue Cash Preferred: https://bit.ly/3gLDnk3
My 3 main cards: Fidelity 2% back on any purchase into my Roth IRA to bump up my annual contribution, Discover for whatever the current 5% category is, Amex Blue Everyday for whatever fits the 3% back, saving the Amex and Discover rewards for a rainy day fund
Wells Fargo Bilt Card: https://creditcards.wellsfargo.com/bilt-rewards-credit-card/
Chase Business Ink Premier: https://bit.ly/3gyY56r
How often do you cash out the credit card rewards to invest?
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Would you throw any capital one savor cards in there?
Investing Tools
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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!
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9% yield is super difficult to get. Maybe 5% average.
New Retirement (Retirement Planner): https://robberger.com/go/new-retirement/yt-
Stock Rover: https://robberger.com/go/stock-rover/yt-
Thanks! Never heard of Bilt! I've been paying my landlord using Zelle. It's too bad Bilt isn't integrated with Zelle. Hoping the property manager will let me use Bilt, Paypal (which Bilt can integrate with), or checks (which Bilt can issue to the landlord).
M1 Finance $30 Bonus (IRA & Taxable Accounts): https://robberger.com/go/m1finance-bonus/yt-
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Look at Capital One Spark business cards.
Credit Cards & Banks
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It's a shame that credit cards made it so that merchants need to charge ~3% more for everything. People who get credit card rewards don't mind but people who don't qualify for credit cards are made to pay more. It's messed up.
My Favorite Credit Cards: https://www.allcards.com/best-credit-card-offers/?utm_source=YouTube&utm_medium=Video+Links&utm_campaign=Boilerplate
My Favorite Online Banks: https://www.allcards.com/best-online-banks/?utm_source=YouTube&utm_medium=Video+Links&utm_campaign=Boilerplate
Rob is great! He even answers emails if you have questions! Thanks you! So glad I found this channel!
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Thanks for confirming my choices of Citi Double Cash and Amex Blue Preferred. Had them both for many years. Also have had a Discover card for 30+ years, 5% on rolling categories every 3 months. Lastly, for those that frequent Target, their Red Card gives you a 5% discount at checkout, no waiting for cash back. Also gets you free shipping.
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1️⃣ How to Create a 3-Fund Portfolio: https://www.youtube.com/watch?v=kmw8OpGp2rM
Not sure if it’s every card, but Bank of America has a 3% on gas charges.
2️⃣ How I Manage 28 Accounts in One App: https://www.youtube.com/watch?v=cQk6EQk3iGg
3️⃣ 7-Step Financial Checkup: https://www.youtube.com/watch?v=mNWGWxKzKTY
How do you get 9 apy ?
#cashback #creditcard #robberger
ABOUT ME
Quick question how do you get the apy to 9 percent ? In the beginning of the video
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.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)
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LET'S CONNECT
Youtube: https://www.youtube.com/channel/UC9C17-OMxa-7oRSaCtztObw?sub_confirmation=1
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.
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Rob the $30k that you mentioned at the end of the video, is this from the rewards accumulated over time, how long it took you?
DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.
Just found the channel and emailed Rob my strategy. This is a fantastic personal finance channel not based on theories but real-world practicality.
More User Perspectives
EXACTLY!!! Great stuff right here.
@gracechristianschoolcypres3189100$/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
The wife & I use the Citi Custom Cash card x2 (one card each), and rotate the categories against the 5% back categories for the Discover It & Chase Freedom. This pretty much makes almost every category we spend money on 5% back. For example, this quarter:
Discover It - 5% on Digital Wallet purchases (Android/Apple Pay)
Chase Freedom - 5% on Paypal/WalMart purchases
My Custom Cash - 5% on gas
Her Custom Cash - 5% on groceries
We try to use Apple/Android/Paypal this quarter whenever we go shopping for anything else... The Custom Cash cards are like a filler for the other cards and what they're 5% back aren't hitting.
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.
@OnCashFlowRob never mentioned Costco visa cash back. $60 annual with Costco gold 2 membership.
@HB-yq8gySorry if I missed it,Rob, but how often do you recommend redeeming your points? Monthly? Yearly? Great stuff!
@markmusto2527VISA cars:PenFed 5% for gas, bp 3% for groceries and restaurants, us bank 5% for utilities, and capital one 2% for all else. Pay all in full on auto pay. Challenge is to communicate which card for what to wife.
@mooring10Money is fungible - it makes no sense to separate out cash back from credit cards as a category separate from money saved (or earned) in other ways
@jomo4976I 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.
@OroborusFMAMy 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).
@kevinmcnally3811Put the money in an M1 finance account.
@juanserrano3297Rob, I definitely would go with the M1 card. The rewards are a minimum of 2%, but sometimes more. But the BEST part is that the rewards go straight to my taxable 4-Fund Portfolio. Easy.
@Orc-VI 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.
@mannymac82I all ready took this strategy. We think the same way, lol. I just did the other preferred blue without the fee. Great video, makes me feel like my choices that am making are the right ones.
@zoamball2022credit cards rewards programs are designed to get you to spend more. The argument that well you might as well earn cash back or points for things you are going to buy anyways, is a false argument, since you are going to spend more that will negate any strategy. Wonder why the credit card companies specify points don't have any value in the fine print.
@hanwagu9967How do i create an account on Cashback
@frankekpu1270I never thought about using these cash back cards as an investment vehicle to add the cash back to your portfolio. Very interesting concept. Your gonna spend that money anyway, and if your investing window is long enough, I can see where this could be big in the long run. Thanks Rob!
@larryb131Great 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.
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.
@louiswelrodI 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!
@JebebthdouwbfnfI would add a 5% rotating category card line Discover IT and chase freedom flex.
@avstarsFYI - 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!
@jtdockendorfWalmart has a 5% back for Walmart buys
@-mr3puttz-310i use the fidelity card 2% back in to my account every month
@BryanColliverThe Charles Schwab amex trifecta is the best way to cash out amex points. You get a higher rate cashing out to the brokerage account than just using points to pay off your credit balance
@stevedice5963I use the chase trifecta but I use the points for known travel expenses.
@aaront936you got my attention
@joevelasquez2757I 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)
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)
@mrwelch2004