I only use my credit cards on these TWO things…Can you guess what they are? 😉

Posted by Adam Wenig on Monday, November 27, 2017


Credit cards. These can either destroy you or these can liberate you. These can either totally chain you, or these can help you get where you want to go a lot faster.

I feel like in America, we hand these things out like it’s nothing. I don’t know if it works like this in other countries, but in America, these can be a huge blessing, but these can also really put you in a hole. Most people use these totally incorrectly, but I want to show you how you can use these to actually make you money.

Most people when they hear the word credit cards get all freaked out. We’ve been told credit cards are bad, but they’re actually not, and these can help you get places a lot faster, so let me explain.

There’s good debt, and there’s bad debt, right? Bad debt would be to take the money that’s extended to you and buy liabilities. Liabilities are things that take stuff out of your pocket, that’s not going put any money back into your pocket. For example, what a lot of people do, is they’ll take out credit cards and they’ll go buy vacations, or clothes that they otherwise couldn’t afford. They end up buying all these things that have no ROI.

What happens is you start racking up debt on these credit cards and you dig yourself into a hole, especially if you can’t pay them back. Not only does it ruin your credit, but it puts you in this state of total lack because you’re so focused on the debt you’re in.

I’ve been in debt before, so I know how it feels. It’s like a burden on you. It feels like weight on your shoulders, because you realize you have this obligation to the bank to pay these back, unless you go bankrupt of course. That’s bad debt and I don’t recommend you doing that.

There’s also another type of debt called good debt which is using your credit cards to make you money. It’s this concept of OPM, using other people’s money to make you money, which most people don’t think about.

If you use one of these credit cards to start a business, and this business is able to pay off the credit card in a relatively short amount of time, and you’re able to profit from it overall, then it’s a great thing. You didn’t have to pull any money out of your own pocket, but instead you got to leverage the bank’s money, or the credit card right, to go into business for yourself.

Another great example of good debt is to invest into yourself. The two best investments you could ever make is investing in yourself and your business. Personally, these are the two things I use my credit cards for all the time.

For example purposes, let’s say that it cost you $10,000 to start a business. So, you go and get a credit card with a $10,000 spending limit on it.

Normally with credit cards you pay 1-2% percent of the bank as the minimum payment, so all you’re pulling out of your pocket is $100-$200 per month to pay back as the minimum payment.

For most people taking $10,000 out of their pocket isn’t manageable, but paying a hundred or two hundred bucks a month is pretty easy. They key here is getting that business to a point where it’s paying you a hundred to two hundred dollars per month, so the business is now become self sustaining, there’s less pressure on you, and you can start scaling your business from there.

So, credit cards can be totally awful for you. It can be the worst thing that you do for your financial situation, but also can be the best thing that you do because it can help you get places faster without making you take money out of your own pocket.