Credit card cash back programs.

[John105]

I no longer travel for work, but I did use my Costco card as a first choice when I did, as we do not have corporate issued cards (I have heard of people refusing to travel and use their own cards, because they have a balance—ie why corp cards come into play). There would be years where I had over $10k spent.

Some really sweet deals were where Amex would say spend $250 at Hampton Inn, and get a $50 reward. I would not just stay at a Hampton to get the $50. But when it was work related I felt like that was a $50 bonus and I was going to be reimbursed for the stay anyway…

 

[4WD]

Again-it doesn't matter how much I spent-because I was spending it anyways. I really don't see the leap in your logic. It's not like I said to myself-"I'm going to go out and spend xxxx amount of dollars to get xxxxx back", I was spending it anyways. (I have now repeated that statement to you three times). This where you and "that guy on the radio" logic is flawed.
I have zero reason to be embarrassed I got back $1,300.00 from Costco because of mostly travel booking rebates and pay ALL MY CREDIT CARDS off each and every month.
It takes brains BTW-to have that much money to spend.

If you can get xxxxx back from spending xxxx - that’s a great deal !

 

[billt460]

When I lived in the Phoenix area we were Costco members for a while. But then let it go. It never made sense to me to have to pay to shop somewhere. YMMV.

 

[billt460]

If you can get x back from spending xxxxxxxxxxxxxxxxxxxxx- that’s a great deal !

FIFY.

 

[CKN]

So show all of us how smart you are....... For the third time, how much is, "that much"?

Someone already did the calculations-it falls within that range.

 

[John105]

When I lived in the Phoenix area we were Costco members for a while. But then let it go. It never made sense to me to have to pay to shop somewhere. YMMV.

Believe me I know where you’re coming from. I owned Amazon stock, yet refused to pay for Prime. I knew it was a self fulfilled prophecy. Once we joined Prime, have had it ever since.

I almost consider these annual fees throw away. Discretionary. I’m human. I let a $120/yr fee go, but wonder should I pay $1.60 more for a gal of milk.

I look at Costco as a pleasant buying experience. Yes I’m a fanboy. But they had to do something to make it such. I also own their stock. I believe the gas savings and other savings as well as decent treatment and prices justify the membership.

Just thought of this. $2.99 6 pack of filament led chandelier bulbs. That’s ridiculous. $25 on amazon. I personally feel buying from Costco means the quality and price are already vetted….

 

[4WD]

Believe me I know where you’re coming from. I owned Amazon stock, yet refused to pay for Prime. I knew it was a self fulfilled prophecy. Once we joined Prime, have had it ever since.

I almost consider these annual fees throw away. Discretionary. I’m human. I let a $120/yr fee go, but wonder should I pay $1.60 more for a gal of milk.

I look at Costco as a pleasant buying experience. Yes I’m a fanboy. But they had to do something to make it such. I also own their stock. I believe the gas savings and other savings as well as decent treatment and prices justify the membership.

Just thought of this. $2.99 6 pack of filament led chandelier bulbs. That’s ridiculous. $25 on amazon. I personally feel buying from Costco means the quality and price are already vetted….

I also enjoy not knowing what creep owns most of the stock …

 

[dishdude]

When I lived in the Phoenix area we were Costco members for a while. But then let it go. It never made sense to me to have to pay to shop somewhere. YMMV.

Costco pays me to shop there.

 

[John105]

Costco pays me to shop there.

I want to be employed by them one day. Either full time job like today, or when retired. Bucket list

 

[Nick1994]

When I lived in the Phoenix area we were Costco members for a while. But then let it go. It never made sense to me to have to pay to shop somewhere. YMMV.

Man, you are just stubborn as heck.

I not only pay $60 for a Costco membership, I pay $120 for the Executive membership which gives me 2% back for every purchase online and in store.

Just the gas savings alone, I drive about 18,000 miles per year. At 20 mpg that’s 900 gallons of gas. $0.20 per gallon saved is $180 per year.

And 900 gallons of gas at $3.50 per gallon is $3,150. 4% cash back on that is $126.

Or I can do all of these same expenses and just use a debit card.

 

[k1xv]

The Costco business model of a membership fee and charges for items actually purchased gives them financial stability through seasons and recessions. This gives them lower business risk and can result in better prices for consumers.

In contrast, look at a toy store business. They have to look to the Christmas season for the lion's share of their revenues. Get a recession at Christmas, or stock up on the wrong kind of toys, and you are in real financial trouble.

Which is part of the reason why Toys R Us is out of business. While Costco stays in business, profitably, year after year.

 

[billt460]

Man, you are just stubborn as heck.

I not only pay $60 for a Costco membership, I pay $120 for the Executive membership which gives me 2% back for every purchase online and in store.

Just the gas savings alone, I drive about 18,000 miles per year. At 20 mpg that’s 900 gallons of gas. $0.20 per gallon saved is $180 per year.

And 900 gallons of gas at $3.50 per gallon is $3,150. 4% cash back on that is $126.

Or I can do all of these same expenses and just use a debit card.

Everytime I would go by the Costco, the gas lines are ridiculous. I go early to my local ARCO and there isn't a sole there except the gal on duty. And they're the cheapest place in town. Besides, I haven't driven 18,000 miles since we moved here.

 

[dishdude]

Everytime I would go by the Costco, the gas lines are ridiculous. I go early to my local ARCO and there isn't a sole there except the gal on duty. And they're the cheapest place in town. Besides, I haven't driven 18,000 miles since we moved here.

There was an undersized gas station at the closest Costco, they bought the old closed down Sears auto service center in front of the warehouse and built a huge new station and now there is rarely a wait.

You keep applying your situation to everyone else's, not realizing people with other habits, interests and routines can gain benefit from these services.

 

[CKN]

Everytime I would go by the Costco, the gas lines are ridiculous. I go early to my local ARCO and there isn't a sole there except the gal on duty. And they're the cheapest place in town. Besides, I haven't driven 18,000 miles since we moved here.

You have to factor in the price at the pump at Costo is 4% less than what you see for Costco members. So-it's going to be the same or less than Arco.

 

[Jdeere562]

Use my card as much as possible and pay the full balance every month.
Not a big spender here, but it adds up after a couple years.

Bought a new vehicle a few years ago. Cashed it out and got about $850. Helped pay taxes at the courthouse.

 

[alarmguy]

I pay my CC bills. I save. I've paid most of my $250K school debt and the only reason it's not entirely gone is because it's at 0.62%. As CKN said what does this have to do with me? People who don't pay their bills or save or can't pay their school loans aren't MY problem. Why is anyone suggesting how I choose to live my life is wrong because other people can't be responsible when I can?

My point again is if I called Dave right now and told him my situation he'd shame me for being dumb. I'm not dumb, I'm just not his clueless twit of a listener. He SELLS absolutism to make himself sound authoritative and people gobble it up. I'm convinced between belief in the almighty and our apparent love of authoritative figures most of society suffers from daddy issues and really just wants to believe someone or somethings is looking out for them because the world is such a scary place. I don't need my handheld...I'm not asking for my hand to be held.

So you think Daves advice is valid for just you and your circumstances? Of course not
It's ok, the economy will keep humming along because people will keep saddling themselves with debt, just look at how much longer can loans run now. You can bet not for people who follow him.
Im actually surprised you discount the thousands of people grateful for the finance education they received from this network. DO you think they re all crazy? I don't think you do personally.

Just friendly conversation. I do think if you trash someone you should present someone who can and will help these poor debt ridden souls with a similar format. Dave didn't invent the wheel, it's simple stuff, he just explains it.

Source https://www.nerdwallet.com/article/loans/auto-loans/average-car-loan-length

 

[PandaBear]

I don't know anyone who is wealthy who uses credit in that manner. Paying 100% of the balance off as soon as you get the statement, yes. But in the long run all of these "cash back" offers accomplish nothing but encouraging you to spend more.

Which is precisely what the banks want in the first place. They make their money off of debt. The more you spend, the more they make.

Much like Amazon's shipping...... "Add another $38.00 to your cart, and receive "Free Shipping!" Bezos has to pay for that $300 million dollar yacht somehow. And he's smart enough not to do it with his money.

It depends on your own discipline. I never spend more just because I use a card to pay, and I sign up for 0% card and put the extra savings into investing (to make it safe I usually put in T bill and currently yield is 5.3-5.4% with no state tax).

About Amazon shipping. I buy more for free shipping and may return some of the stuff if they are not needed. Also you can price match Amazon in Target store too.

 

[PandaBear]

Free money? Now how can that possibly be legal. Credit, pay in full and earn cash rewards? Now explain this to me like I’m a six year old….

It is free money to you, not to the merchant, they will usually pay 3% or so and even if banks are paying you back 2% they are still making money.

 

[PandaBear]

Another part of the equation is, although there is a cost to accepting credit cards to the merchant, it’s probably cheaper in the long run than accepting cash. Cash is labor intensive and there is always shrinkage.

Employee stealing, robbery, customer complains, no way to automate with kiosk or QR code for ordering, etc.

Cash will go away eventually for restaurants and most retails, if they don't want the 3% CC rate they will find some other ways to pay and eventually settle for something less, like, 1% or some no frill payment (Paypal? Venmo? Zelle? transit card? Square?).

But regardless, we really should get rid of the pennies and those XX.99 prices.

 

[PandaBear]

There are FB groups and forums with people who make my "gaming the system" look like child's play. So I fully understand I'm an exception, but we exist, and that fine, except Dave leaves no room for any exceptions in any of his "products", and that's my point. Dave is a millionaire because he sells a product that he needs to be a consistent message for fear that if he acknowledges the exceptions, fewer people would buy what he's selling. That's also fine, except he's so insistent about it and so his acolytes are so insistent about it, that they obnoxiously come into every conversation believing they and Dave are the smartest people in the room, and anyone who thinks differently is an idiot, that includes comments in this thread.

That is what I'm railing against here...not that CC companies make money or that people act irresponsibly, but that you're somehow an idiot if you know how to play the game. Plus, I can't stand his preachy crap and the fact that he uses his platform to proselytize as a hook to make money, but that's a different issue for me.

Dave is for beginners.

Most of us have been using CC responsibly and I think I have saved about $15k in the last 20 years in rebates and cashbacks. I probably could make more back but I don't have the time to look for the last pennies on every card, it is a good compromise.

One friend of mine has a small business and he literally put all his bills on new CC all the time, and his record so far is about 600k back in the last 10 years after subtracting his annual fees).