No. 4: Paying with cash is best
Paying in cash or by debit card is always a good strategy, right? After all, if you pay in cash, you can't spend more than you have.
True, but you may be missing out on goodies offered by credit card companies.
"You can rack up some serious rewards points using a credit card," says Koos, who once cashed in points to take his family on a Disney vacation at no cost.
The key to this strategy is to pay off your credit card balance each month.
"If you stay disciplined, the interest earned (on low-interest-paying checking or debit accounts) is easily surpassed by the points earned on a good credit card," Koos says.