Amidst growing financial challenges for households, where the need to meet expenses and purchase essentials persists, it becomes opportune to explore ways of earning money while managing expenditures. One effective approach involves leveraging cashback rewards. The key lies in understanding how to maximize these rewards.
Unlocking the potential of cashback bonuses/ rewards follows a systematic formula. To optimize cashback on your credit rewards cards, it's crucial to be aware of your percentage cashback, stay informed about ongoing promotions, and strategically use your card when the financial calculations align favorably. Although it may sound straightforward, once you grasp the underlying formula, it becomes a manageable and rewarding strategy.
Consider the upcoming bills you could handle using your credit card. Also, think about those spontaneous store trips for just "one thing." Ever notice the price difference between cash and credit at the gas station? Here's a quick question: if gas is $3 per gallon, and it's 10 cents cheaper with cash, and you get two percent cashback, do you use your credit card? Now, imagine there's a "double cashback promotion." Crunch the numbers, and you will realize that with the regular two percent, you are earning six cents per gallon. But with the double cashback, you are getting at least 12 cents, making it a two-cent discount compared to paying with cash. It might seem small, like picking up two pennies, but these savings add up, especially when you are filling up 10 to 20 gallons at a time, and you don't even have to bend down to grab them.
Procedure
to Start Earning Money Through Cashback
Different credit cards give varying amounts of cashback bonuses based on what you buy.
Take Affinity's cashback program, for example. It lets you get cashback in different ways when you buy things. The Affinity Cash Rewards Visa Signature® Credit Card has these benefits:
- 5%
cashback on Amazon and at bookstores
- 2%
cashback at supermarkets, restaurants, gas stations, and for services like
watching, listening, and riding
- 1% cashback on everything else you buy
Also, this card gives you $200 cashback if you spend $3,000 in the first 90 days of getting the card. Plus, you get 20,000 bonus points that turn into cashback when you spend $20,000 within 12 months of getting the card. It might seem like a lot to spend, but if you use your card for bills and important stuff instead of non-essential things (as long as you can definitely pay your bill every month), you can reach these goals faster than you might think.
If you worry about putting too
much on a credit card and maybe having to pay interest, Affinity has a
solution. They just launched the Cashback Debit Card. With this card, you get
1% cashback on the things you buy with your debit card.
Some
Unwanted Risks
Now, let's talk about risks. A
crucial tip to get the most out of your cashback is to keep buying the same
things; just switch up how you pay. If you start buying stuff you don't really
need just to get extra top
cashback rewards, you might end up in debt and lose any advantage you
are gaining. When you use cashback rewards, make sure you are careful about
paying off your credit card completely every month. That way, you avoid paying
extra money in interest.
Cashback
is a Discount, Not a Free Money
Instead of seeing cashback as "free money," consider it like a discount. When people get unexpected cash, they tend to spend it without thinking. But with a discount, you're not as eager to splurge because that money should have stayed in your pocket in the first place.
It's totally fine to enjoy a little treat when you get some extra cash back, but putting it toward your savings and bills can make a bigger difference. Plus, it might even lead to more cashback in the future.
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