Making A Rewards Card Work

As homesteaders and preppers we doing everything we can to stay out of debt and avoid credit cards.  However, living where we live sometimes means that we need to order our prepping supplies online, and unless you feel comfortable using a debit card on the Internet (and I don't!), this requires a credit card.

 

There are literally thousands of rewards cards, offering cash back to airline miles to grocery bucks.  We use the Kroger Rewards card and earn back grocery dollars.

 

If you are only using a credit card occasionally, a rewards card does you no good.  However, with a little planning and some discipline, you can utilize your card with little to no impact to your pocket book.

 

So here's what you need to do:

1. Make a budget.  Plan out exactly what you will spend on gas, food, groceries, clothing, etc. 
2. Be disciplined!  You HAVE to stick to your budget and not deviate.
3. Pay off your bill EVERY month. 
4. USE YOUR CARD FOR EVERYTHING!  All those things in your budget that aren't true bills like the house payment, electricity, etc, should go on the card.  This earns you points on all the things you would buy anyway, like gas and groceries.

Doing this, on a card like the Kroger Rewards card you'll earn somewhere between $10-$40 per quarter back towards groceries, though it depends entirely on your monthly expenditures.  For us, it works out to about $120 per year - that's a lot of flour, sugar, and other staples! 

 

I know what you are probably thinking, why have a credit card just to earn such a small amount back in grocery checks?  In my thinking, why not earn rewards for things I'm going to buy anyways?  Regardless of whether we were paying in cash, by bank card or by credit card, the budget has stayed the same.  As long as you exercise the same discipline that you would normally use, this is a great system for making a little extra. 

 

Unlike the other cards out there, we like that we earn double or even triple points when we shop at Kroger, which is wonderful because that's where we go for our groceries anyway.  There are cash back programs on cards like Discover, but when I crunched the numbers I found that the Kroger card earned us the most bang for our buck.

 

If you have a problem with self control, by all means, stay away from credit cards!  But, if you can handle yourself and your monthly budget, you just might find that you can earn a little something extra with one of these cards.