My Very Own End-Of-Year Bonus

Financial Tip: Common Sense Cash Back

How would it feel to have $500 - 1000 dollars deposited in your bank account at the end of each year without paying a cent for it?

I just requested my statement credit of over $700 - yep totally paid for me.  Oh, how I love the cashback option on my credit card.  Simply put - I get paid to pay my bills and spend money on groceries, gas, and eating out.  You have probably tried using a cashback credit card and gave up when the return was only a few cents. Well, when you have a strategy, it works!  All you need is a little discipline. ​

Here is how to maximize your cashback bonus and make it work for you.
When I say DISCIPLINE, I mean you have to stick with these strategies:

• Only use your cashback credit card for everything you usually pay with cash monthly that does not charge a fee.  I use it for gas, groceries, shopping, online purchases, cable bill, cell bill, and eating out.  I do not use it for my electric bill or car registration because they charge a credit card processing fee. Train your spouse and kids to use the card instead of cash.  Don't carry cash so there is no temptation to pay by cash.
• It is critical to pay off your credit card each month.  Never carry a balance over, because the interest rate on your card is always much greater than your cashback reward!  Don't charge more than you  can pay. You must have an  emergency fund for emergencies!  If you don't have one, then do not start this plan until you have saved for those unexpected things that could cause you to use a credit card and not be able to pay it off. Or designate another card(with the lowest interest rate) as the emergency card. Never carry a balance on your cashback card.
• Pick your yearly bonus date! Do not cash in the reward every month. Some months you may only earn $20, but others you may earn $50.  My yearly cash-in day is 12/31. All those little amounts add up.  In 2017, I earned over $1000 - again with very little effort!
• Remember this is your reward. You can do what you want with it. It should never be part of your budget.  You do not know how much it will be, so don't count on it for paying off your Christmas shopping debt (although it may just do that!)  It is free money for you! You can buy a CD or put it in your retirement or savings account.  You can go on a cruise or buy a new wardrobe. Start a  business with it. Do what you like! You can even give it away or use it as a statement credit.   

Try this strategy and let me know how much your bonus is  this year! Click here to see more blogs about financial topics.

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