Using credit cards responsibly can yield a variety of perks, from store discounts to airline miles. However, while some people spend considerable time strategizing to maximize their rewards points, self-made millionaire Ramit Sethi opts out of the “credit card points game.”
βThereβs a point where itβs diminishing returns,β Sethi tells CNBC Make It. βThe goal of my life is not to squeeze out the absolute maximum amount of credit card rewards. The goal is to live a rich life.β
Sethi, host of the βI Will Teach You To Be Richβ podcast, advocates for the same personal finance advice he shares with the many couples he interviews: simplicity.
βOne of my core values is fighting for simplicity,β he says. βI have a very small number of credit cards so that I donβt have to look at my wallet and remember which card to use for groceries or which one to use for gas or other purchases.β
For his personal expenses, Sethi primarily uses two credit cards: one that offers travel rewards and one that provides cash back. After analyzing his spending habits, he determined that these cards were sufficient. He didn’t want to complicate his finances by managing multiple credit cards.
Moreover, Sethi emphasizes that he only uses his cards for expenses he can pay off in full each month.
Avoid Credit Card Debt for Points
No matter the potential rewards, going into credit card debt to earn points is not advisable, says Ted Rossman, Bankrateβs senior industry analyst.
βCredit card rewards only benefit you if you can pay in full and avoid interest,β he tells CNBC Make It. βIf you carry a balance, you could end up paying much more in interest over time.β
Credit card interest rates have reached record highs this year, with the average rate for new credit card offers at 22.89% as of the first quarter of 2024, according to WalletHubβs Credit Card Landscape report.
Before accepting a new credit card offer with enticing rewards, Rossman advises evaluating whether you can clear your balance each month to avoid expensive interest charges.
The Opportunity Cost of Chasing Credit Card Rewards
Consider how much time youβre willing to invest in maximizing your rewards.
βIt feels great to get a free trip to Hawaii or a hotel upgrade,β Sethi says. βBut if you spend hours and hours focusing on credit card rewards, youβre focusing on $3 questions instead of $30,000 ones.β
Rather than depending on points for your next vacation, Sethi suggests creating a βconscious spending plan.β This strategy involves allocating your money into four categories:
- Fixed costs, such as mortgage, rent, or student loan payments
- Savings, including an emergency fund and money for future vacations or large purchases
- Investments, such as contributions to your 401(k) or Roth IRA
- βGuilt-free spending,β such as dining out or shopping
This method ensures that you prioritize your main financial responsibilities while also setting aside money for personal enjoyment, Sethi says.
βThe best points game is being able to pay for whatever you want, however you want, whenever you want,β he concludes.
Matt Pinner is a dedicated journalist for WVPrepBB.com, specializing in USA and crime news. With a keen eye for detail and a passion for uncovering the truth, Matt brings timely and insightful reporting to his readers. His work on WVPrepBB.com keeps the community informed and engaged with the latest developments in national news and criminal justice.
![Have you ever walked outside your California home and spotted something unsettling β a misplaced package, an unfamiliar car parked across the street, or an object hidden in the bushes? These seemingly insignificant details can sometimes be signs of potential threats. California, unfortunately, has its share of crime. According to [insert source for California crime statistics], the state experiences a significant number of property crimes each year. While these statistics may seem daunting, vigilance and awareness can be powerful deterrents. Knowing what to look for and taking proactive steps to secure your home can significantly improve your safety and peace of mind. California, with its diverse population and vast geographical area, faces unique challenges when it comes to crime. According to the FBI's Uniform Crime Reporting (UCR) program, California had a total of 1,152,005 reported index crimes in 2020, including violent crimes such as murder, rape, robbery, and aggravated assault, as well as property crimes like burglary, larceny-theft, and motor vehicle theft. This article will explore some potential threats Californians might encounter around their homes, how to recognize signs of criminal activity, and essential home security tips. By following these guidelines, you can create a safer environment for yourself and your family. The Most Dangerous Cities in California: Oakland Rank: 1 Crime Rate: 16.85 Facts and Stats: Oakland has consistently ranked as one of the most dangerous cities in California, with high rates of violent crime, particularly in certain neighborhoods. Stockton Rank: 2 Crime Rate: 14.67 Facts and Stats: Stockton has struggled with high crime rates for years, including a high rate of property crime. San Bernardino Rank: 3 Crime Rate: 14.37 Facts and Stats: San Bernardino has a high rate of violent crime, including homicides and aggravated assaults. Vallejo Rank: 4 Crime Rate: 11.12 Facts and Stats: Vallejo has seen a significant increase in violent crime in recent years, making it one of the most dangerous cities in California. Richmond Rank: 5 Crime Rate: 10.67 Facts and Stats: Richmond has a high rate of violent crime, including homicides, aggravated assaults, and robberies. Potential Threats Around Your California Home Living in California means enjoying sunshine and beautiful landscapes, but it also means being aware of potential security risks. Here are a few things to keep an eye on: Hidden Cameras: These tiny devices can be placed almost anywhere β disguised as everyday objects or tucked into bushes near doorways and windows. Criminals may use them to spy on your routines, plan future break-ins, or gather information for identity theft. Los Angeles and San Francisco, for example, have seen a rise in hidden camera discoveries in recent years. Be extra vigilant around common hiding spots and if you notice anything suspicious, don't hesitate to report it to the authorities. Unidentified Packages: Porch piracy, the theft of delivered packages, is a growing problem in California. However, a seemingly harmless package could be more than meets the eye. In rare instances, criminals might use disguised packages to booby-trap a property. If you receive a package you weren't expecting, do not touch it. Contact your local police department immediately. Tampering with Utilities: Tampering with gas lines, electrical meters, or water connections can pose serious safety hazards. If you notice unusual activity around utility boxes on your property, or suspect someone might have tampered with your utilities, report it to the authorities right away and contact your utility company to ensure everything is functioning safely. Recognizing Criminal Activity and Taking Action Sometimes, our gut feeling can be the best indicator of danger. Here's what to watch out for: Signs of Forced Entry: Broken windows, pried doors, or damaged locks are all signs that someone may have tried to enter your home illegally. It's crucial to establish a baseline for any existing damage before leaving your house. If you discover signs of a break-in upon returning home, do not enter. Secure the area by closing any open doors or windows and call 911 immediately. Suspicious Activity: Loitering individuals, unmarked vehicles parked for extended periods, or unusual noises at night can all be red flags. Trust your instincts. If something feels off, it probably is. While stranger danger might seem like a childhood concept, the importance of general caution, especially when alone, shouldn't be underestimated. Taking Action: If you witness suspicious activity, document it if possible. Take photos or videos with your phone and make detailed notes about what you observed, including descriptions of people or vehicles involved. For emergencies, call 911. For non-emergency situations, contact your local police department's non-emergency line. When reporting suspicious activity, remain calm and provide the dispatcher with clear and concise information. Home Security Tips for Californians Taking proactive measures can significantly enhance your home security. Here are some tips to consider: Outdoor Security Measures: Well-lit entryways with motion sensor lights can deter potential intruders. Security cameras with motion detection capabilities offer an extra layer of protection. Keeping bushes trimmed and maintaining good visibility around your property also discourages criminals who prefer to operate under cover of darkness. Consider installing a security system with yard signs to further deter potential threats. Indoor Security Measures: Reinforce your doors and windows with strong locks and deadbolts. Interior motion sensor lights can be an effective deterrent, and keeping valuables in a safe provides additional security. Getting to know your neighbors and establishing a neighborhood watch program fosters a sense of community and can be a powerful tool in crime prevention. General Safety Habits: Always lock your doors and windows, even when you're home. Consider installing peepholes in your doors and using caution when answering the door to strangers. Be mindful of your social media usage, and avoid sharing detailed information about upcoming vacations or times when you'll be away from home. Conclusion Living in California shouldn't mean living in fear. By following these tips and remaining vigilant, you can significantly reduce your risk of encountering threats around your home. Remember, a community that looks out for each other is a safer community. Report any suspicious activity to the authorities and encourage your neighbors to do the same. Taking these precautions empowers you and your neighbors to create a safer environment for everyone.](https://www.wvprepbb.com/wp-content/uploads/2024/06/Call-the-Police-if-You-See-One-of-These-Outside-Your-House-in-California-150x150.jpeg)
