Lifetime Earnings on Cash Back Credit Cards?

[digitek]

Nice paynter, that is some motivation =D

And thanks for the numbers ABCD, I hadn't crunched them yet.  I just looked at my Mint data over the last year and I actually spend roughly $2500 on CC's a month.  I get 2% cash back at minimum so I'd say average cash back is closer to 3% for me personally.  If I run those numbers of $75(3%) a month, compounded at 7% annually (long term S&P return), for 40 years, and include increasing deposits with the rise of inflation at 3% it says I end up with:

$273,435.15

If you look at the same exact thing but for only 20 years it is:

$48,175.94

I used this calculator http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php#compoundinterval

[Anonymous]

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@digitek wrote:

Nice paynter, that is some motivation =D

And thanks for the numbers ABCD, I hadn't crunched them yet.  I just looked at my Mint data over the last year and I actually spend roughly $2500 on CC's a month.  I get 2% cash back at minimum so I'd say average cash back is closer to 3% for me personally.  If I run those numbers of $75(3%) a month, compounded at 7% annually (long term S&P return), for 40 years, and include increasing deposits with the rise of inflation at 3% it says I end up with:

$273,435.15

If you look at the same exact thing but for only 20 years it is:

$48,175.94

I used this calculator http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php#compoundinterval

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Yep, I have my own website and calculator I use in my mentorship programs and that calculator is very close to what I'd project.

Building wealth (and becoming wealthy as a secondary option) happens penny by penny, not lottery win by lottery win.

Little pennies saved every waking hour turn into huge numbers in a short period of time.

[galahad15]

If counting both cashback and bonuses over the past year, I have received around approximately $2,000 - $2,200 in annual cash earnings on my credit cards.  Not sure about lifetime figures though if only bc up until about 2015, I was carrying balances frequently, in some cases large balances, both of which I do much less of now, again ever since about 2015...

[Anonymous]

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@Anonymous wrote:

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Building wealth (and becoming wealthy as a secondary option) happens penny by penny, not lottery win by lottery win.

Little pennies saved every waking hour turn into huge numbers in a short period of time.

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Exactly this.  And I think of this every time I hear that guy whose name sounds sort of like Rave Damsey saying "I've never heard a millionaire tell me that he made his fortune by earning credit card points."  Of course you haven't.  I've never considered that I could rich merely by getting 2% or 5% off purchases.  But the point is that along the way, as I'm earning that first million, those pennies that I'm earning on cashback cards amount to a discount on what I'd be spending anyway.  And less net spending means more money to save and invest toward that million (or the one after that).  As it turns out, I'm earning about an extra gross paycheck, tax free, every year, just by playing my cards right.

Chris.

[Anonymous]

ABCD2199 great layout now you can loose weight by dropping those darn donuts and the cops will quit following you around

[Anonymous]

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@Anonymous wrote:
My cashback in my 3.5 years of having a card is probably about $450. My signup bonuses in the last 6 months are about $1300. Churn baby churn.

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That is what I have said before.  A few sign up bonuses will earn you a lot more than playing card roulette to get the biggest cash back rate.  I have probably achieved around 7k in sign up bonuses in the past 8 months. 

[simplynoir]

Shame some don't want to play the game for whatever reasons. If done smartly it can be profitable to vacation in luxury.

[Anonymous]

Total SUB's, including Disco Cashback Match, have been about $650. Total cashback has been much less... Disco's good student bonus has earned a lot of my cashback from them!