You’ll notice that most credit card offers require a minimum spend to get the bonus point offers. A typical bonus is 50,000 points in exchange for a $3,000 spend in 3 months. For the purpose of simplicity, let's assume that each point is worth 1 penny... making this bonus worth $500. As mentioned in my Honeymoon on Points Post, big events like a wedding are a great way to meet these minimum spend requirements. There are many other ways of maximizing your expenses to meet these spend requirements, and I’ll outline how I typically reach these credit card minimums.
By organic expenses I mean groceries, dining, cellphone, cable, Netflix, gas, clothing, etc… My wife and I have monthly expenses over $1,000 and often times, we are working to get multiple bonuses because our combined expenses warrant that. I realize that some of you reading this might have monthly expenses less than that. Don't worry! In this article, l'll help you uncover additional opportunities for identifying and maximizing on some of your expenses.
Yes, nobody likes taxes, but sadly we all have to pay them. While there is a charge to use a credit card to pay taxes in can worth it. Let's say that you owe $3,000 in taxes and there is a 2% charge to pay with a credit card. That means that you'll end up paying an extra $60 in fees, but if this nets you around $500, then that's a trade I'd make all day!
This one may be rare for most of you, but our landlord offers this service. We can pay our rent with a credit card for a $52 fee. We pay for 2 months at a time to offset the fee. This allows us to easily meet 6 minimum spends per year for just $312. Around 300,000 points can take you to some wonderful places!
Large Expected Expenses
We’ve highlighted this before, but if you have a planned large expense, it could make sense to line up a credit card sign up for this expense. A couple of ideas could be car insurance or a planned trip.
Some banks allow you to fund an account using a credit card. Typically the funding will range from $500-$1,000. Make sure to call your credit card company to set your cash advance amount to as close to zero as possible as some banks may classify the charge as a cash advance and that can result in some costly fees. Pro-tip: Banks often sign up bonuses for checking and savings accounts. These are typically around $100. If the stars align, you’ll get some help on reaching a minimum spend and cash from the bank account bonus.
I don't dabble much in this realm, but please share your experiences if you do!
Again, these are only 4 of my favorite ways to maximize your monthly expenses. If you get creative, I’m sure you’ll find even more ways! If you liked this post or have some suggestions of your own, leave a shout out in the comments below!
Good Cents Guy