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, they use them to charge normal expenses throughout the week, and pay off the balance in full well before the due date. Dave Ramsey 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 has recently come out with a card and rewards program offering 3% cash back on the top three 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 hotel stays in Las Vegas, then so be it.

On average we receive 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 credit card company's goal 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.

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Our current list of goals as we discover what it means to be wealthy, abandon the deferred life plan, and work to design a fulfilling and sustainable life.

  • Emergency fund of 6-9 months living expenses. Accomplished: June '08

  • Save for a down payment on a house. Accomplished! May '09 Holy moley, we bought a house!
  • When we started this blog we set a goal to have a party on the date we crossed over to zero net worth. We made it! January 6th, 2010!
  • 100% debt free.
    We know the normal thinking about low interest student loan and mortgage debt, but just think how weird would it be to be debt free. How many unique things could we do with little or no major financial obligations and no payments. Gets the mind working, huh?
  • PhotobucketThanks to your support we have been able to provide over $553 in microloans and charitable donations helping to share some of the many opportunities we have with others who may just need a little boost.

    Help spread opportunity today: We suggest visiting Kiva.org, Serve.gov or Points of Light to find a local volunteer organization.

    current sponsored entrepreneurs at Kiva:

    Here is a map of where they are.