To maximize your savings, it’s essential first to set goals. One way to do this is using a budgeting tool. It is recommended to use the 50/30/20 budgeting model, which allocates 50% of income to needs, 30% to wants, and 20% to savings and debt payoff.
Sign up for a loyalty program
Many consumers join loyalty programs to earn discounts and free products. These rewards can be simple, such as a coupon for the next purchase, or they can be more upscale, like an extra hour of wakeboarding gear rental or a new game to play. Consumers should use their smartphones to track eligible offers to maximize savings.
The key to successful loyalty programs is making them easy to understand. If a program is complex, customers will likely avoid it in favor of another option. Retailers should make their program clear and concise in all communication channels, from emails to mobile apps to brochures.
A great tool to help users track their reward options allows users to view a single interface that displays their balances for all programs they’re eligible to join, including credit card points, store loyalty cards, and other credits on their card (like dining or travel). By using this app, consumers can optimize the value of their rewards while minimizing the time spent tracking them.
Get a rewards credit card
Credit card rewards can boost your savings, from free hotel nights to first-class airline tickets. But it’s essential to be mindful of how you use these perks to avoid getting into debt. That’s because credit cards’ high-interest rates can wipe out any rewards you earn. That’s why it’s important to only spend on a rewards credit card you can afford to pay off in full each month.
To maximize your savings, look for a credit card with a high cash-back rate in the categories where you spend most. For example, if you spend a lot of money on groceries, consider getting a card that offers 5% back in those categories each quarter. Or, if you’re looking to travel more often, consider getting a card that rewards miles for flights and hotels.
Generally, top credit cards with the best app rewards program are only available to those with good credit scores (620 or higher). But even if you don’t have an excellent score, there are other ways to get a great value from credit card rewards programs.
Sign up for a rewards credit card
Enrolling in a rewards credit card program allows you to take advantage of substantial discounts, particularly when making large purchases such as reserving vacations or purchasing furniture. Often, you can redeem reward points for cash or merchandise. Moreover, some cards offer a one-time bonus lump sum after meeting a minimum spending requirement. If planning a major purchase, consider applying for a rewards credit card several months in advance. Ensure you pay your balance in full to avoid interest charges.
Evaluate where you spend the most, such as grocery stores, restaurants, or gas stations, and look for a credit card with bonus point categories that align with your purchasing habits. Some cards come with annual fees, so make sure they are worth the cost compared to the amount you expect to earn each year.
Other apps include shopping rebate apps, which offer cash back for scanning barcodes or photographing receipts, and coupon apps.
Get a rewards credit card with a cash-back program
Cashback programs can help you save money on everyday expenses. They can also make it easier to reach financial goals. Remember that credit card rewards encourage you to spend more, so it’s essential to be cautious and not overspend beyond your means. To increase your savings, consider using a credit card that offers cash back on your regular purchases. Depending on the issuer, you can redeem your rewards through a statement credit, check, or bank transfer. Read the fine print and understand how the rewards program works before you choose a card.
Many rewards cards come with annual fees, which can eat your earned cash back. Using the card judiciously and clearing your balance in full each month can help you reap benefits beyond the fees you pay. In addition, a few innovative strategies can help you unlock the full potential of cash-back programs, such as using a savings app and combining programs.
Open a rewards credit card with no annual fee
Whether you’re looking for a rewards credit card that offers top-notch benefits like access to airport lounges or generous cash-back rates, there’s a wide variety of options on the market. When it comes to credit cards, those with an annual fee may require more effort to make them worthwhile, whereas cards without a fee can be easier to take advantage of and reap maximum benefits.
A sound rewards credit card with a cash-back program can help you save on groceries, shopping, streaming services, and travel and offer perks like an excellent signup bonus and a generous 0% APR period. However, be careful with those that have high annual fees, as interest charges can quickly eat into any cash back you earn.