Chasing Credit Card Points? Here’s a Better Alternative.
You’re not gonna get rich on credit card points. It’s a game set up by the credit card companies to get you to spend more. Spending $100 to get $2 is never a good deal.
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You’re not gonna get rich on credit card points. It’s a game set up by the credit card companies to get you to spend more. Spending $100 to get $2 is never a good deal.
To build wealth, you have to earn more and spend less. A really crappy investor putting away $1,000/month will trounce an optimal investor saving only $100/month.
Choose your monthly contribution and the number of years you’ll invest to see how rich you will be.
Looking at the rates of return over the last 40 years we can see the MASSIVE difference between buying something that depreciates (like a car) vs merely keeping pace with inflation (like a house) vs actually building wealth (index funds).
The lesson here isn’t to never spend money or never enjoy yourself, but be conscious of the distinction between assets and liabilities.
Sarah was different from her friends. She didn’t try to time market peaks or valleys. She didn’t watch stock prices or listen to doomsday predictions. In fact, she only did one thing.