Retail price is for suckers
The consumer experience was once a simple matter; you would see an item on an ad, go to the retailer, check the price and cash out at the counter. However, as online shopping became more prevalent in our everyday lives, money saving applications and rebate initiatives began to appear, incentivizing consumers to shopping more frequently. But fear not, these programs are not always money grabbers and can be used to your advantage. In a competitive retail market, paying full price for almost anything seems foolish.
Here are some things that I have compiled which will come in handy whenever you’re making a purchase that can save you a bunch!
1. Use a Credit Card (As if it was your debit card)
This may come as a surprise to most, but a credit card does not have to equate to spending money you don’t have. Making purchases on a credit card whenever possible allows for you to collect valuable points, frequent flyer miles or cash back from every transaction. For those who never use their credit cards, this will also help with your credit score, given the bills are regularly paid on time.
2. Check for Rebate Sites and Loyalty Program Partner Portals
Rebate sites often have a cash back system in which users will receive a certain percentage back upon accessing the retailers website through their links. During special rebate events, you may often see cashback exceeding 10% for many different retailers. Loyalty portals work in a similar fashion, but instead of cash, they will compensate you in frequent flyer miles.
For example, during an Air Miles shopping event, I had made a ~$5,000 purchase for my friend who builds gaming computers through an Air Miles partner that had a 17x multiplier going on at the time. As the base earn rate is 1 Air Mile per $20 in spending, my net return on the portal alone would be 4,250 Air Miles, or the equivalent of $450 when used as Cash Miles.
Here are some portals that I use on the regular:
3. Taking advantage of bonus categories on your card
Are you buying groceries? Gas? For certain categories, it makes much more sense to use certain cards than others. It may sound like a hassle, but understanding the bonus categories of your credit cards can be the difference of earning 1 point or 5 points per dollar spent on everyday purchases. Credit cards like the American Express Cobalt reward category spending (Food, drinks, etc) much more generously than non-category spending.
“Hacking” credit card spending categories using gift cards can be done as well. Have a new $1,000 laptop you need to get at Best Buy? Go to the supermarket and and pick up a few Best Buy gift cards using the Cobalt. Now you’ve effectively earned 5,000 MR (~$50) back compared to making the purchase directly with your card!
4. Applying for a new credit card for the purchase
Do you have a large upcoming purchase? Chances are, you can earn/save several hundred dollars with a simple credit card application. Most credit cards that go on promotion can offer anywhere from $200–$300+ in value with $1,000-$1,500 in spending and offer annual fee waivers for the year. For those who don’t regularly spend a lot of money, timing your large purchases with a new credit card can yield a lot of value.
5. Look for discount codes / Use a discount code aggregator
Discount codes can save you quite a bit of money! From things like electronics or groceries, having the best code for the purpose can mean anywhere from several dollars to several hundred dollars discounted from your bill. For those who may be too lazy to browse for them, having applications like Honey or Ebates on your browser will cover your bases when you shop online.
At the end of the day…
Sure, you could save the extra legwork and buy the items you desire outright, but with a little extra time, you will be putting hundreds of dollars back in your pocket for that next vacation.
Whether you are making a purchase for yourself or somebody else, having a money saving mindset will give maximum value to every dollar you earn!
Points Smart 