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The One Credit Card Trick That Can Save You Hundreds Each Month (with Mike Michalowicz)

Have you ever wondered if one simple change could free up hundreds of dollars in monthly cash flow without earning a single extra dime? My guest today, bestselling author Mike Michalowicz (Profit First, The Pumpkin Plan, All In), says it can. And it starts with a credit card.

Mike’s latest book, The Money Habit, digs into how our financial habits shape our wealth far more than our income. In our conversation, he revealed a brilliantly simple move that can save you hundreds sometimes even over a thousand dollars every single month.

The “Subscriptions” Credit Card Trick

Here’s how it works:

Get a new credit card and label it “SUBSCRIPTIONS” in big letters with a Sharpie. Then, move every subscription you have Netflix, business tools, apps, memberships, even your gym onto that single card.

Why? Because seeing all those recurring charges in one place creates painful awareness.

And that awareness drives clarity and change.

Mike discovered that when you gather every recurring charge on one card, you quickly realize how much is leaking out of your account each month. Many people he’s worked with save between $300 and $1,000 per month just by canceling forgotten or unnecessary subscriptions.

It’s not that subscriptions are bad. The real problem is how invisible they become when they’re scattered across multiple cards and accounts. Consolidation forces you to notice—and make decisions.

The Power of Awareness Over Willpower

Mike shared how his own team was spending hundreds of dollars each month on subscriptions they didn’t even use tools like ChatGPT that had multiplied across the team. Once they saw it all in one place, they trimmed the waste and instantly increased cash flow.

That single exercise captures the heart of Mike’s message: financial freedom doesn’t come from making more money it comes from being aware and in control of the money you already have.

From Rock Bottom to Profit First

If you’ve read Profit First, you know Mike’s story is both inspiring and raw. After building and selling two companies, his third venture failed spectacularly during the 2008 financial crisis. He lost everything.

He remembers the day he had to tell his family there was no money left his nine-year-old daughter even offered her piggy bank to help. That moment broke him, but it also sparked his mission: to figure out how entrepreneurs could become permanently profitable.

That’s where Profit First was born a cash flow system that flips the traditional business model. Instead of taking profit from what’s left after expenses, you take profit first and run your business on what remains. It’s simple, powerful, and it works.

The Money Habit: Applying Profit First to Personal Life

Mike’s new book, The Money Habit, brings that same principle to personal finance. He explains that humans are wired to hunt, preserve, and consume what he calls “Optimal

Foraging Theory.” The problem is, most of us skip the preservation step. We earn (hunt) and immediately spend (consume).

To build true financial freedom, you have to preserve first—set aside your profit, savings, or giving before spending anything else. That’s how you keep your money from “rotting,” as he puts it.

He also talks about Parkinson’s Law: expenses rise to meet whatever money is available. That’s why “earning more” rarely fixes your financial problems. The real fix is controlling what you already have.

Control Before More

Mike shared a fascinating study about lottery winners. Those who had a money management system before winning were happier and more stable afterward. Those who didn’t? They often ended up worse off.

The takeaway: more money doesn’t solve money problems more control does.

You don’t need to wait until you make more; you need to manage better.

My Own Journey with Profit First

When I read Profit First in 2014, I was deep in debt but determined to rebuild. Mike’s system changed everything for me. By applying it to my business and later my personal life I was finally able to create consistent profit, invest, and reach financial independence.

By 2016, I had enough passive income to become work optional. That shift started with the exact mindset Mike teaches: pay yourself first, and let the rest fall into place.

The Ripple Effect of Financial Clarity

As Mike and I wrapped up, he shared his mission: to eradicate entrepreneurial poverty. He’s fighting the false belief that success means hustle and grind. True success, he says, is building businesses that create jobs and freedom for you and for others.

That ripple effect is what drives both of us. When you get control of your money, you don’t just free yourself you free everyone your work touches.

Take Action Today

Here’s your challenge:

• Get a new credit card.

• Label it “Subscriptions.”

• Move every recurring charge there.

• Review it once a month and cancel what doesn’t serve you.

Then, go pre-order The Money Habit on Amazon or Bookshop.org. And if you haven’t yet implemented Profit First in your business, start now.

Financial freedom doesn’t start with earning it starts with awareness. And awareness starts with action.