Chase Cash Back - Passive Income Stream

This is probably the simplest passive income stream to create, it is also potentially the most dangerous. When playing with fire use an Insulating Mitt and have some Fire Extinguishers handy.

Most people have credit cards and they use them to charge normal expenses throughout the week and pay off the balance in full well before the due date. Dave would beat us to a pulp but if you don't spend anymore than normal and avoid all interest/fees they can be a very convenient tool.

If this is the case you may want to consider a card with a rewards program, or consider changing your rewards program to one you will actually use. Up until about a year ago we had been using Citi rewards cards and earning ThankYou Rewards points. We saved up enough points over the course of a few years or so to trade them for a $500 student loan rebate. Not bad at all and it will soon be reflected in the loan section of our net worth statements.

Chase had come out with a card/program offering 3% cash back on the top 3 categories of spending each month, with 1% on all other purchases. So if this month you spend more on gas, groceries, and utilities you get a little more back there. Next month if its gas, groceries, and pet supply stores and veterinary services, then so be it.

On average we can get about $50 back every other month by simply choosing this card when paying for normal required things. We have found that straight cash back is the most simple system for us. Points to redeem towards stuff or airline miles etc. just create more of a hassle then good (even though sometimes through certain programs you may be able to earn a little more through careful planning)

The goal for them is for you to reach for their card at every opportunity, and your goal is to not spend any money at all, but IF you must, you might as well get a little cash back after paying your balance in full each month.

We also received a $50 bonus after our first statement. Kind of nice.