Why I Disagree With Dave Ramsey

How we use a credit card and earn money!

I disagree with Dave Ramsey about something….and I need to get it off my chest.  Honestly, I love Dave Ramsey and follow his advice and teachings religiously.  Except for one thing….there is just one reason why I disagree with Dave Ramsey.

I am a member of online affiliate programs.  I will receive compensation from clicks on my links.  All opinions are my own.  I guarantee to never share anything I haven’t already been using for years.

Ok….here goes…

I have a credit card and use it regularly.

There, I admitted it!

Dave Ramsey advises against using any sort of credit card…..but honestly using our credit card EARNS us money!  I feel like I would be missing out on free money if I didn’t use this credit card.

Dave Ramsey recommends to always use cash envelopes.  And I love cash envelopes, I really do!

As a matter of fact I use cash for about 50% of our purchases.  Usually the cash is for things like clothing, decorations, restaurants,  etc.  The items that I tend to overspend on, I spend with cash.

Our credit card is for everything else.  Items such as utilities, groceries, fuel, etc. always go right on our Discover Card.

I understand the reason why Dave Ramsey advises against using the credit card.  I truly do.  Credit cards can be incredibly tempting.  It’s far to easy to swipe and assume you can worry about paying it off later.  There have been many people who have gotten into debt due to the temptation of the credit card.

• Related:  Debt Snowball Or Debt Avalanche

Fortunately, this has never been a problem for my husband and I.  We are very diligent at paying the card off each month and mainly use it for our fixed expenses.  We keep track of our budget daily and always know exactly how much money we have in our account and owe on the credit card.

What we love about the Credit Card

When it comes to choosing a credit card, you will found plenty of great options.  We shopped around for a while until we found the one that worked best for us.

When researching credit cards we decided to open up a Discover Card.  This decision really came down to the rewards.  We wanted cashback rewards so that we can choose how to spent the cash in the way that works for us.

Our cashback is saved throughout the year to use for Christmas presents.  It doesn’t cover the entire Christmas, but it gives us enough to help lesson the burden!

• Related:  7 Easy Ways to Save For Christmas

Discover offers a 1% cashback bonus on ALL purchases and a 5% cashback bonus for a variety of purchases.  This bonus 5% cashback rotates between different categories.

Some months we will receive this extra cashback from grocery purchases, other months it will be for fuel.  The category changes enough that we feel we are always being rewarded.

On top of all of that, Discover Card has what’s called a rewards center.  The rewards center gives you the option to shop at many popular online stores, (Old Navy, Gap, Target just to name a few) through the Discover link and you will earn 5% cashback on these purchases.  So easy!!

Before I buy ANYTHING online, I always go to the Discover website and check to see if they have a cashback option for that store.

We make about $300-$400 a year just by using our credit card.  (YAY for free money!!)  Think of all the possibilities you could use this extra money for!  You could pay extra towards debt, use it to build your emergency fund, add it to a sinking fund, or buy something you’ve been saving for.  The options are endless!

A Word of Caution

I disagree with Dave Ramsey about credit cards for me personally, but for others this might not be the best option.

If having a credit card will tempt you to spend more money than you normally would then DO NOT sign up for one.  It is NOT worth the temptation.

If this is your situation the cashback Rakuten offers would be a great alternative for you.

However, IF and ONLY IF you are able to use a credit card responsibly and pay it off monthly, I HIGHLY recommend signing up for one that offers a cashback option.

In the 10 years we have been using our card we have earned around $4,000!   Just by shopping like we normally would!  It’s the easiest $4,000 I’ve ever made!!

And every thing else Dave Ramsey teaches….I totally agree with!  Except for the $1,000 emergency fund thing……but that’s a different topic for a different day!

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This is why I disagree with Dave Ramsey….this one time.