ATM's are the Enemy. Get Free Stuff Just for Paying.

It amazes me sometimes when I stand in line at the cashier and someone in front of me pulls out a wad of cash to pay for their purchase. Sometimes the total on the register is $400-500 or even more like the last time I was in Home Depot. The guy in front of me had a big fat wallet with a bunch of credit cards, but instead, he hands over five $100 bills to pay for the Weber Grill.

If he manages his cashflow like this, he must be paying for tons of stuff in cold cash. That's a big no-no!

If you have the cash flow, you should really get a credit card that gives you point and also gives you a float for 30 days till payment is due. What's more, if you choose your credit cards wisely, you'll get extra benefits like breakage & theft protection, warranties will be extended -- sometimes even doubled in length, all for free.

One of my favorite cards in my wallet is the Starwood American Express. It gives you tons of points which turns out to be more than 4-5% value if you use them right. And just off the bat, if you cash in 20,000 points, you can convert it into a free 25,000 point airline ticket on any major airline -- that's 5,000 points free. There's other bonus type scenarios in the Starwood program that really makes it worthwhile. Not to mention the standard array of American Express benefits like rental car insurance coverage, accidental breakage protection (great if you have kids!), and more.

You also have the ability to get extra cards on your account so you can separate out different categories of spending or by person. The end-of-year statement which is broken down in different ways on paper is great for taxes -- just hand it over to the accountant and they have details of your tax-deductible items.

For me, it's definitely a card worth carrying in the wallet. I bet that guy at home depot in line in front of me could get this card, not change his current spending habits at all other than paying with his American Express card and get at least week's worth of free hotels every year after year. And he wouldn't be hitting that ATM machine all the time as he must be doing. You certainly don't want the ATM to be your friend.