January marks the month of the year when our credit card companies cut us a check! Between his business card, my business card (both through Capital One), and our two personal credit cards (USAA and Quicken) the revenue line for our January budget will be a few hundred dollars higher.
Neither my husband nor I are big fans of using credit cards; as business owners we know the processing fees drive costs higher, but they do come in handy when cash is not an easy option. And we know that with each swipe we'll receive between 1 and 5 percent back, depending on the place of use and type of purchase (i.e. Quicken gives us more back for fuel purchases).
Passive income, money that comes to you without work, is a great thing to work into your frugal life. No need to drive the car or bus to a location where you spend your precious time earning money. Look for an asset or tool that you own, which then pays you money. Return on investments (stocks, mutual funds, CDs) are our preferred type of passive income, however, given our age range we opt to have any earnings reinvested in the asset. Compound interest is a very powerful thing.
So, if you are seeking frugal ways of living, look into credit cards that pay you. We prefer cash back, not points to redeem -- too many restrictions and hoops to jump through for our household. A check from them, to us, and then right into our checking account! Just make sure the credit card is: 1) paid off monthly; and 2) has no annual fee or other hidden fees.