While paying off the credit card bill this month I noticed the one column that mentioned how much cashback rewards that I will currently be getting at the end of the year and it seems pretty decent at over $200. Budget wise I could literally buy a few months worth of groceries if I was really frugal. But it makes me wonder how others usually spend these kinds of funds? My mentality is the same as I try and use it as an extra investment to place towards a side project to hopefully generate more income.
I think it is a bad habit to ever use these kinds of funds as a way to justify say purchases that you can’t really afford at the moment. It’s nicer I think where you are just surprised to get this extra money at the end of the year for simply doing what you are doing. Great example too I thought how I know some financial experts often tell people to tear up the credit card and never use it to avoid debt. But if you actually learn to use it responsibly this is a light example on how you can make some extra money by doing so.
For me it’s just a tool of convenience and it does feel like they are paying me to use it in many ways. I’m sure they recoup the funds through merchant transactions fees and those who actually pay crazy interest rates. Manage it properly though and you can give yourself a Christmas present.