How to Use Credit Cards to Boost Net Worth

Most "finance professionals" say that credit cards are a bad thing. They have high interest rates. They lead many people to get in serious, unrecoverable debt.

This definitely can be true, but it doesn't have to be. Credit cards can actually be one of the most important financial tools out there. It's true that a lot of people can't handle a credit card, but I believe that credit cards are a skill one can learn. Here's how I have used credit cards to increase my net worth.

1. Never pay the interest. I use my credit card like most use a debit card. I pay the credit card off every week, and I have never paid a dime of interest in my life. I even have it set up where it'll automatically pay itself off every month before interest starts just in case I forget to pay it. I don't buy something if I don't have the money to pay for it in my bank account.

2. I use the cash back from my credit card to invest. My credit card has 2% cash back. I use that 2% to invest into an S&P 500 Index Fund. Now, my 2% is going to compound over the next several decades.

Because I don't pay any interest, I basically get a 2% discount on everything that I buy that I can use to build my financial future.

Follow us on all social platforms @financebycwt

Check out Acorns. They're an investing app that invests your money for you. Everyone knows that they need to be investing, but not many know what to actually invest in. That's why I like Acorns because they manage your money for you. Download them through my link and get $5 - Redeem your $5 investment! (acorns.com)

Become a member of Finance by CWT at www.patreon.com/financebycwt