Wednesday, May 17, 2017

May Check in (1 lb of FREE silver!) and my Savings account got a RAISE!

May check in:

Free $20 now, Free pound of silver later!

I’m in debt, I shouldn’t be buying silver right? For most intents and purposes yes, BUT
1: I bought the silver intending to give it away at Christmas/birthdays/to extraordinary people.
2: It was FREE. Didn’t cost me a dime because of all the cash back and interest I have earned from the Workthepig system. 99% of it is purely cash back this year, I didn’t set up my Netspend suite until the last few months so $0.14 is interest from Netspend  it will be $250 this time next year because I have five cards loaded with $1000 each in their respective savings accounts.

I have scheduled ACH deposits from my free Discover Bank Account to each Netspend card to waive the “inactivity fee” associated with each card. I do $25 per month so I know when the account says there is $75 on the Netspend card, interest has posted! It’s not much, and you can withdraw $75 every 3 months back to your discover savings account so you don’t have to keep messing with the money. Set it and watch it grow for you. You could transfer all of the interest out once per year and get $50 per year per account, $250 in my case. So next year I could buy ½ pound MORE SILVER because of the interest from the Netspend accounts. Assuming silver stays the same price, which it won’t.

So let’s take a look at the heavy hitters this year. According to Credit Karma, I have had my Capital One Journey Card for 1 year now I got it with a 486 credit score as a “rebuilder” that gets me 1.25% cash back! (NOTE: 1.25% doesn't seem like much, but thats an extra $250 for every $1000 in cash back compared to a 1% card.)

Here is a review of my cash back this last year:
April 2016 I had a 486 credit score. I had failed to pay my student loans to the tune of $14,000 and because I didn’t pay them, the interest compounded until I owed $20,000. Double Whammy. AVOID AT ALL COSTS, This applies for CREDIT CARDS TOO: you end up PAYING INTEREST ON your INTEREST. It’s the worst.

So I was determined to get back on track:
I had a $1500 limit on my Capital one Journey card so I spent less than $150 each month and paid off my balance. By staying/utilizing under 10% of my credit limit (Called “Credit Utilization”) I got the BIGGEST CREDIT SCORE BOOST that you can get. Under 30% is ok for your credit, under 20% is better and under 10% is best.

After paying my bill on time for 4 months with low utilization I applied for my next two cards on the same day. Literally back to back.

I did this because it will only show up as 1 hard pull on your credit score (lots of hard pulls are bad, applying two cards at a time saves you HALF [50%] of the hard pulls on your credit.)

Those cards were the American Express Blue Cash Everyday card that gets me 3% cash back at grocery stores and the Citi Double Cash card that gets me 2% back anywhere. My Citi card is a Mastercard, but I am not sure if they are all mastercards.
All three of these cards have $0 annual fee AND get cash back, meaning I can sock drawer them if I end up not needing them anymore and use them once a year. This is different from a card with a $75 annual fee. Because you have to pay to own it every year, and if you stop paying, your average credit age will go down, which is bad.

So total cash back for April 2016-April 2017
Capital One Journey card: $63.08
Citi Double Cash card: $158.06
American Express Blue Cash Everyday Card: $142.43
Plenti: $53
Ibotta: $54.75
Netspend Interest: $0.14* (One day’s interest on one account before the quarter closed)

Total FEES: $0.00
Total Interest PAID on the Credit Cards $0.00
Total FREE MONEY: $471.46

You know what all that free money can buy?

But you don’t have to buy silver, you can buy whatever you want.  Rent? Diamonds? A fine suit? Groceries? Pay off debt?  It’s your money. YOU DECIDE.

You work hard to fill your piggy bank’s belly, it should work just as hard for you. Growing Money Farmers since 2017!

Stop paying full price for life! You work hard to fill your piggy bank's belly, it should work just as hard for you.

!!!!!UPDATE!!!!! Since posting this I have elected to pay for the silver in cash and use the cash back combined with the interest from my high interest savings accounts towards a 5 day trip to Puerto Rico! It was the most amazing experience that I have ever had, HANDS DOWN!

It's not like I returned the silver and bought it again with cash. The cash back is in my account, so if I have accrued $500 in cash back then something worth $500 would be free to me. It doesn't mater what was free, it's that you got $500+ in value back from the spending and saving you are already doing anyways.