Saving Money By...SPENDING?

You buy a $150 box of wine online.

Later on, you log into your credit card account.

An offer pops up. It’s a $35 cash-back offer if you spend $120 - at the wine store you just purchased from.

Credit card companies are savvy.

They know where you shop, when and how much you spend.

While this may seem unsettling, it’s obvious. Their card is always in your wallet, ready to spend.

But this isn’t a bad thing.

As in the example above, you could’ve spent less had you searched your card first for available merchant offers.

You need to know what card offers what reward...and sometimes, that’s not so easy.

Diligence Pays

American Express has the most user-friendly way to find an offer. Plus, they tailor the offers to you.

Buy wine online? You’ll find offers for alcohol.

Buy athletic wear? You’ll find offers for all kinds of workout gear.

The hard part? Being diligent enough to check the offers every week to see if you find something applicable to your spending habits.

For example, I noticed offers when I was shopping for new shoes. An offer for Allbirds appeared. I love the brand - their shoes are incredibly comfortable on my feet. I read the terms, linked the offer, and clicked through.

I spent the required amount, and a couple of days later, I saw the refund hit my account.

Similar example: I’ve been looking at Ooni pizza ovens. They are expensive, $400+. I waited a few weeks to examine all the relevant details, such as what model I wanted, applicable deals, etc. I had time. Lo and behold AMEX published an offer for $80 off when spending $400 or more. That’s 20% off instantly.

I searched for any other offers and then finally, pulled the trigger.

Now my total spend came to $647, so my $80 off is more like 12% off, but still, I see it as saving $80 on a large purchase.

Points Aren’t Trash

Sometimes it’s not even cash, but points. I am planning a Royal Carribean cruise for my family next year.

AMEX published an offer: spend $1,000+ on a Royal Caribbean cruise and receive 20,000 AMEX points.

That’s great and all, but what’s the value? Well, AMEX points are about (Amex point value) 1.7 cents each. So, 20,000 x 0.017 = $340 in value. That means I spent $1,000 (money I would’ve spent anyway) and for that transaction, received 20,000 points, which equates to about $340 to use toward something in the future, like travel.

Chase has a similar program. While I don’t find their offers as graphically friendly as AMEX, they still work much the same way.

The main difference is the savings. AMEX offers money and points on big-ticket items, such as lavish vacations, electronics and items more than $250.

In my experience, Chase offers smaller refunds, say 5% cash back on adding $10 to your Dunkin’ Rewards account. Most offers are 5-10% cash back, with a maximum around $20-$30. That’s the highest I’ve ever encountered.

Not exactly earth-shaking, but hey, money is money, and if it makes a dent for you to save a few bucks, then by all means, reap the rewards!

Citi follows Chase in its program design. Savings are 5-10% cash back on numerous offers, everything from travel to clothing to gas and dining.

So, Just Add Everything?

Well, you need to read through the terms and conditions of the offers. Each one may have specific language about what will trigger it.

A recent Citi/Exxon gas offer will give you 5% cash back, but you must purchase the premium-grade fuel.

Some offers use a particular link that acts as a portal. If you don’t utilize that link, you’re out of luck.

All offers are only for the primary card holder, as the authorized user will not trigger the offer. I learned this the hard way.

So, don’t simply add all the offers. Log into your account, click on your card, read through the offers that make sense for you. Trust me, it’s worth it. I’ve saved over $1500 - year-to-date.

Otherwise, you may realize those fancy shoes you just bought didn’t trigger the offer because you opted for a different model.

The saying is true: READ THE FINE PRINT.

Save On,

Chris