Milking Your Credit Card

Hey there Money Saver! Welcome back to another week of How to Save A Buck, where we explore ways of saving money in personal finance, credit cards, and investing! Check out my archive here!

So, American Express just decided to raise the annual fee on their Gold Card from $250 to $325. I know - no one likes to see their favorite card get more expensive. But before you cut up your card, let’s examine what you’re getting for that extra $75 a year.

Hint: know how to milk the card for all it’s worth.

The basics - the Amex Gold Card comes packed with benefits that can easily offset the new $325 annual fee. Here’s how it breaks down:

1. $100 Resy Credit: If you love dining out (who doesn’t?), the $100 annual credit through Resy makes it easier to justify treating yourself. This credit applies to restaurants that partner with Resy, and it's easy to use. It’s a nice little discount on your favorite meals.

You don’t even need to use Resy for the credit - it’s triggered when you use your card to pay at restaurants in the Resy network.

2. $84 Dunkin' Donuts Credit: That’s $7 a month to keep your coffee game strong! Whether you're a daily Dunkin' devotee or just someone who enjoys the occasional treat, this credit is a sweet deal. Over the year, that’s a hefty chunk of your caffeine/donut budget covered.

3. $120 Dining Credit: Split into $10 monthly credits, this perk covers dining at select restaurants, including Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar, and select Shake Shack locations. It’s a built-in excuse to enjoy a night out or order in.

3. $120 Uber Cash: Split into $10 monthly credits, this perk covers Uber expenses or via Uber Eats. I use it to order pick-up lunch at my favorite local place, securing $10 free bucks each month.

When you add these up, that’s $424 in credits alone. Subtract that from the $325 annual fee, and AMEX is paying you $99 to keep the card. Yes, you read that right—you are getting paid to keep the card (provided you use all these benefits).

The Points Game

Now, let’s talk points. The Amex Gold Card is a powerhouse when it comes to earning rewards:

- 4x Points on Restaurants: This includes takeout and delivery, so you’re earning big even when you dine at home.

- 4x Points at U.S. Supermarkets: Up to $25,000 per year (then 1x). Stocking up on groceries? You’re earning a reward for feeding yourself and your family.

- 3x Points on Flights: Book directly with airlines or through Amex Travel, and watch those points pile up. (Hint: I use other cards for booking airfare as they offer better benefits.)

- 1x Points on Everything Else: For all your other purchases, you're still earning something back.

Here’s the kicker—Amex Membership Rewards points are incredibly valuable. Depending on how you redeem them, you could easily get 1.5 to 2 cents per point, or more if you transfer them to airline partners for business class flights or other high-end travel experiences.

For example, if you spend $12,000 a year on dining and groceries (not hard to do if you eat and shop regularly), you’ll rack up 48,000 points just from those categories alone. At a conservative 1.5 cents per point, that’s $720 in value.

If you maximize your rewards, transfer points to travel partners, or snag deals through Amex’s frequent point multipliers, you can easily exceed that value. The points alone could cover the annual fee multiple times over.

So, is the Amex Gold Card worth its new $325 annual fee? Absolutely - if you can take full advantage of the credits, points, and perks. The key is to be intentional about using the benefits—don’t leave any value on the table.

The extra $75 might seem steep at first glance, but when you break it down, the Gold Card still shines as a top contender for anyone looking to maximize rewards. Plus, there’s something to be said about the satisfaction of getting more out of your card than you’re paying for it.

So, keep that Gold Card in your wallet. With a little bit of planning, it’s still one of the best tools out there for savvy spenders.

Now, milk the card for all you can and enjoy that free coffee and dinner on Amex!

Save On,

Chris

Disclaimer: I am an American Express Gold card holder. Remember to pay your card off each month or the benefits mentioned above become due to interest incurred.