I came across a nice quote today.
“Tax savings are exciting, but the most exciting part of tax savings is using that money to increase your wealth.”
And it reminded me of how using credit cards wisely and getting more out of my spending is just as exciting. So I’m going to edit the above quote a bit to link it up to credit card related and the rebates.
Credit card rebates are exciting, but the most exciting part of credit card rebates is using that money to increase your wealth.
Personally I’m more inclined towards spending on cards that gives rebates because it means I get cash back instead of points that I have to incur more spending on.
And what do I do with the rebates? I’ll accumulate them. How? I’ll setup up a jar and manually put money inside this jar an amount that is equivalent of the rebates I’ve gotten in my statement.
For example, I spent $1000 on something I really need.
This $1000 will be reflected on my statement and assuming a rebate of 0.5% = $5. My statement will show a sum of $1000-$5=$995 payable.
I’ll still prepare $1000 for payment (because that is how much the item would cost me if I were to pay using cash). But out of my $1000, $995 will go towards paying off the credit card bill and the remaining $5 (rebates or extra or savings whichever way you like to call it), I’ll put it into this separate jar.
And the process repeats with each statement.
Over time, the money accumulated in the jar will grow. And you should be able to use this money to invest. If you are wondering what you can invest in, you can buy a share of a company or what I did recently was to make a small gold purchase.
There, now you have learnt something – how to translate your rebates from your credit card to increase your wealth, which in turn will support your future spending.
