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This episode is brought to you by Progressive Insurance. Do you ever think about switching insurance companies to see if you could save some cash? Progressive makes it easy to see if you could save when you bundle your home and auto policies. Try it@progressive.com Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states. Welcome to the Candy Valentino show, the podcast for founders, investors and entrepreneurs where we have honest conversations about what it takes to grow your business, build more wealth, and create financial freedom.
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Now I'm going to give you a disclaimer. So this episode is only for you. If you have already developed the discipline and have adopted the behaviors to build your wealth habits. If you're not going out and spending frivolous money on credit cards, if you have the discipline to monitor and manage your spending, then this is something free. You and if not, still listen to it so that you can grab the value. But I'm going to talk a little bit about the differences of the credit card system versus the debit card system, what it means to you, and why certain people recommend different things. Now, before we get into it, I just want to share a study from Dun and Bradsheet, and this has been done year after year. It's a legit study that say people on average spend 12 to 18% more when they use a credit card versus cash or debit. So when you hear people talking about this credit card system and why it doesn't make sense and you need to be using a debit card, they're speaking to those people who can't manage their money and need to be using something else to help them. Now, if you're continuing to listen, I hope that you've already adopted these habits and you know that you shouldn't just be going out and spending it on a credit card just because you have the limit on there. Right? But there are some benefits to having a credit card. And so we're going to break down a few of these right now. Number one, it doesn't build your credit score. And I know people say, oh, you don't need credit. Well, if you don't have millions in the bank or even hundreds of thousands of dollars and you want to go buy a house, well, guess what? You're going to need credit to do. So if you want to make improvements to your home, even if your home's paid off and you want to go get a HELOC or a line of credit on your home, you're going to need credit to do so. Even if you start a business, they are going to monitor your personal credit score for your business credit. So it's very important to have this. Unless, of course, you're already independently wealthy and you don't need it. Number two, debit cards don't offer the same protection for fraud. Now, they may offer some protection, and I hear people say all the time, oh my gosh, it's the same, but it's not. That is your money. If you have a debit card and someone starts to take money from you, from your account, you actually have to wait for the bank, bank to give you that money back. And I know from talking to many bankers and loan officers that it can take 7, 10, 14, 21 days to get that money back. And sometimes they hold it if they don't think that there was fraud. Now, as opposed to a credit card, if you have a fraudulent charge or even question that something was fraudulent, you're going to get that money taken off of your account and it's not going to come out of your pocket. So all in all, having a credit card is just as simple, simpler process when you are dealing with fraud as opposed to it coming right out of your checking or savings account. Number three is the rewards. I mean, every single time you go into a store or a merchant and you're purchasing something, that merchant is paying for you to use your credit or your debit card. And as a merchant, somebody that accepts credit cards, we pay a smaller percentage on people who use a debit card as opposed to a credit card. Which is why your rewards on a debit card are not as great as those on a credit card. Anywhere from 2.9 to 3.5% on different cards and different reward programs. The merchant actually pays for those when you're paying for a service. So when you have a debit card, you may be able to get 1% back or not even anything at all, depending on your bank. When you have a credit card, you're able to use those rewards, whether it's airline miles or hotels or Disney or Sephora and shopping, whatever it is for you if you're disciplined. And you can go on the credit card system and use that for your business or your life and be disciplined enough to set up an auto payment so that every single month, at the end of the month, you completely fully pay that off so that you're not paying additional fees, interest or late fees. You also have the ability to earn these awesome rewards and even have some benefits for status as far as American Airlines or Delta or any of these things. Right. When you have their credit card. You then get status or other types of benefits from being in their rewards program. So they start to stack. So there are benefits. But again, if you're not disciplined to be diligent and not overspend, then these aren't actually worth it. Because even if you're getting 3% back or being able to buy a new big screen TV for your house, if you're paying 15, 20, 25% on interest, accruing all of that interest and taking on all of that debt, like loan advances for your paychecks, like any of that, you're never going to be able to out invest that sort of interest rate. That's why I talk about in the book the Rule of seven, because it's really important to know what you're paying, what your debt is on and what interest that you're paying and what it actually stacks up against in the industry average of investments so that you know where to focus your efforts. And that brings us to the last one. A debit card also holds your money. Have you ever used a debit card at a hotel or at a gas station or even at a restaurant? They don't know until that statement actually batches, it's actually called a batch when you have a business. So until that terminal batches at the end of the night, which sometimes it's 10pm or midnight, they actually hold more of your funds in case you add a tip or have incidentals at a hotel. So they are holding more of your money which gives you less access with a credit card. It's their money that they're holding against your credit, against your total limit on your credit card. So it gives you the ability to use your money where you need to. What makes a leader? It's a tough question, but one thing's for sure, a true leader leads by example. And a true leader takes risks too. They plunge into life with determination. For those who lead by example and who approach life with a palpable passion, there's the Range Rover Sport. Each Range Rover Sport model offers a dynamic sophisticated take on sporting luxury. 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Episode is brought to you by Progressive Insurance. Do you ever think about switching insurance companies to see if you could save some cash? Progressive makes it easy to see if you could save when you bundle your home and auto policies. Try it@progressive.com Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states. Ryan Reynolds here from Mint Mobile. With the price of just about everything going up during inflation, we thought we'd bring our prices down. So to help us, we brought in a reverse auctioneer, which is apparently a.
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So give it a try@mintmobile.com Switch $45 upfront payment equivalent to 15 per month.
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New customers on first three month plan only. Taxes and fees extra speed slower above 40 gigabytes. You detail again. If you're new to investing, you're new to building wealth. You do have some bad debt. You don't quite have the discipline built in order to not use your credit cards and overextend yourself. Then debit cards are free. Typically with your bank, they're super easy to get because it just relies on your money. And on average you'll spend less on every transaction because you're using your money. So there are some very valid positive points about them. But if you're disciplined and you're building those wealth habits, using a credit card can have many more advantages than debit. You know, and it's funny because we're talking about a credit card and this is actually something when I was 15, I got my first credit card. And so I obviously this is a really important thing to me now. Way back in the day, I don't know that there were debit cards. I don't even know when the debit card came around. But I don't feel like they were there. In the mid-90s, like we were still using checks, like writing paper checks, right? There was no online banking. There was no online. But for me, I actually it was like 3am I was watching an infomercial. I was, I grew up in a trailer in a really small town and I was on the couch in that like big front room in the trailer and was flipping through channels. And back in the 90s, that's kind of when the infomercial came out. And so I saw this infomercial. It was the first time I was exposed to personal development. So although that's not what this episode is about. That's what the infomercial was about. And it was actually Tony Robbins on that infomercial. And he was sitting at this resort, which you didn't really know was a resort at the time. It actually looked like it could have been his house. And it was one of the most amazing scenes that I had ever seen in my life at a 15 year old. Right? I mean, I'm 15 years old, small town, teenage parents, my dad a mechanic, my mom cleaned houses. And so my view of the world was pretty small. I never really traveled. We didn't have money to go on vacation often or anything like that. So to see this beautiful place with this sparkling blue pool and all of these palm trees surrounding it, can you kind of visualize what I'm talking about? And this guy talking about that you can create your own life and that you're not a product of your circumstances and that you can change your life in an instant if you just decide. I remember at 15 years old, although I'd never heard concepts like that, I remember thinking that, like, wow, like, he's right. There was something in my soul, like my gut that just resonated with that, even though I had never heard it prior to that moment. And so he was selling a set of cassette tapes, you know, like, is anyone old enough to remember the cassette tapes? And he was selling this set of them. It was like 600 bucks. And at that time, I had been babysitting. I had a golf ball business. I was helping my dad on the weekends. I mowed gr. There was all kinds of things I was doing. I was a hustler way, way back. And so I had money. But you needed a credit card to call in and order. Like, there wasn't even online. You had to dial an 800 number and actually call. And if you're watching this visually and not just listening to it on the podcast. Did you see what I just did? We actually had to like dial a rotary because we. We didn't have the push button phones yet. So we had to dial the 800 number. I feel like I just aged myself there with that little movement. But I remember dialing the number and not having the credit card. And so I said to my dad, I was like, dad, look, I have the 600 bucks. Like, I've been working. I've got babysitting money. I've got this golf ball. I was like, but I need a credit card. And I love my dad to pieces. But this is what his. What he said to me, right? Because we are only a product of our Circumstance we only know from our experience. And oftentimes, even the people closest to us in our life, like, they want to protect us from things, which then sometimes limits what we think our ability is or what this next thing could be. Anybody have those people in your family that maybe they're not trying to be evil or derail you from what you want to do, but they're being cautious because of their own experience, and they're actually trying to protect you. So what my dad said to me was from that lens, he said, look, all you're going to do is give that guy your money. He's going to be a millionaire, and you're going to be exactly where you are. And thankfully, I had the type of personality even as a kid that I was like, oh, yeah, watch me. And it was almost like the little challenge that I needed to really move forward and do it. So I was at Sears way back in the day with him. This was probably two days after he needed to get some tools. And he always liked to go to Sears to get craftman tools because they had a lifetime warranty. So he would go get his tools. And as I was standing there, I saw on the counter these physical papers. Cause back then, you didn't go online to fill out. You actually had to fill out a handwritten paper and mail it in to get a credit card. So I grabbed one of these, took it home, I filled it out fraudulently. I don't recommend anybody doing this. This was a totally different time way back then. But I put my information, my Social Security number, my information. But I lied about what I did because I was only 15, and I lied about how much I made. I sent it in. My parents literally saw the credit card application and talked about. I didn't even know this until, like, probably 10, 20 years later, they mentioned, oh, yeah, I remember seeing that credit card. We laugh, thinking that you're never going to get it. Lo and behold, just weeks later, they laughingly walked down the hall. My mom threw it on my dresser and was like, here. Can't believe you got that credit card. And so I immediately dialed up that number and got those tapes. So I had a credit card from the time I was 15 years old. I paid that off every single month. I had to send in a check with my handwritten signature on it to pay that card off. And I had a checking account. The bank locally had these things called moolah, Moolah accounts. And it was, like, for little kids. And you had these little deposit books where you would go in and they would manually write, you're, I'm really freaking aging myself in this episode. But you would manually write that. Your deposits and your deductions out of it. And so anyone that has kids, my gosh, please take this for another little mini lesson inside of this that empowering your kids to make decisions, to make their own money, to deposit their own money, to understand what money is all about, and making sure that they pay off that credit card or use a debit card and really understand that will pay dividends in their life. Now, just to finish the loop on the story, because I know how I am when I hear stories, I did get those tapes. I listened to them every single day in my bedroom. I wrote my first set of goals when I was 15 years old in my high school cafeteria. And I put down things that I wanted to achieve by the time I was 30. Because, you know, when you're 15, 30 sounds really old. I achieved all of them by the time I was 23. The reason I'm sharing that with you is most people want to demonize credit cards, but when they are leveraged well and you can use them to your advantage. I was able to build credit from the time I was 15. So when I was 18 years old, 19 years old, and I got, I started my first business, I had already had a credit score, a good credit score that when I walked into the SBA office to get a small business loan to start my business and build a building and hire seven people, I had seven people the first day that we opened and I had a six week run rate on an SBA loan. I don't know that I would have been able to get that without having a decent credit score at that time. Because I'd already established personal credit, which made it very easy to then get business credit. It also made it very easy to then get a commercial line of credit and be able to have net terms on all of my vendors. And for buying inventory and being able to do 30, 60, 90 days, like all of that stacks from this one concept of having credit but making credit work for you instead of it using you, there is a huge difference. And so if you're the person that you want to leverage your money and you want to have a great credit score so that you can buy more investment properties, then doing that on the credit system is for you. If you're not disciplined, ignore every single thing I said and stay on the debit system until you can develop those wealth habits. All right, guys, that's it for today. If you love this episode, I would be honored if you would leave us a five star review on Apple Podcasts or wherever you listen to this. And hey guys, thanks for tuning in to this episode and if there was something that you loved or you had a specific takeaway, share it and tag me at Candy Valentino. And if you haven't already, grab a copy of my latest book, the 9% Edge Life Changing Secrets to create more revenue for your business and more freedom for yourself. You can pick it up anywhere books are sold, Amazon, Barnes and Noble or your local independent store. And once you do, head over to 9% edge.com and claim $1,500 in pre order bonuses, including a chance to join me on this very show. Thanks so much for tuning in and spending this time with me today guys. We'll see you next time.
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Former Navy SEAL Sean Ryan shares real stories from real people from all walks of life on the Sean Ryan Show. Former U. S. Navy Admiral Tim Gallaudet. How did you get involved in this whole UFO thing? One day I get this email on the Navy Secret Network. If any of you know what these are, tell me ASAP. F18 pilots captured video of this UAP Zorchin over the water. Just a little round sphere. And so I knew right there that was something not ours. The Sean ryan Show on YouTube or wherever you listen.