Getting Paid to Shop

When I think of saving money, I usually think of either decreasing my consumption, using coupons, or shopping deals.  However, the reality is that there is a limit to how much we can reduce our consumption.  We have to spend money sometimes.  Therefore, we've found ways to get paid while we shop.

We have a Discover card and a Costco American Express card.  Both give between 1-3% cash back for purchases.  Discover often runs 5% back deals on certain categories as well.  Once we got the Costco card, we thought that we'd make so much more in rewards because it offers greater than 1% more frequently than Discover.  We've been sorely disappointed.  I checked in last week to see how much we'd earned after about ten months of nearly exclusive American Express purchases only to find that we'd gotten only about $115 dollars back.  Our membership at Costco costs $100 a year, so we've only gained about $15 in actual cash back.  We've had better luck with Discover.  I'd guess that we've gotten about $200 in cash back, without any annual fees.  

As you think about credit cards, it's important to think of them as useful tools.  We never carry a balance: we solely use them for convenience and for the cash back.  You also should pay attention to the fine print to figure out how much you're actually going to get back.  I believe Discover doesn't pay a full 1% back until you've exceeded a certain annual threshold of a few thousand dollars.

Another way to get paid to shop is to use online websites that give you a rebate based on the amount you've purchased.  My favorite is Ebates.com.  You sign in, search for a retailer, then click Ebate's link to that retailer's website.  You computer keeps a "cookie" that reports back what you've purchased, but the retailer's website is otherwise unchanged.  That means that you can also use coupons on the retailer's shop.  Here's an example:

I read Gordon's post about car repair.  I needed to replace my car battery.  

• I searched for coupons at brick-and-mortar car parts stores, and found that Advance Auto Parts had a 15% off coupon for purchases over $100, plus a $50 off coupon for your next purchase of $100 or more. 
• I went to Ebates, found that if I linked to Advance Auto Parts from Ebates site then I would get 6% cash back from Ebates.
• I then linked to Advance Auto Parts, selected my battery, and inserted Advance's coupon code
• I finally paid with my Discover card

If my math is right, that means that I got 22% off the price, plus a $50 off coupon for my next purchase.

Every quarter, Ebates cuts you a check for however much cash back you've earned.  I think you need to have earned at least $20.  They also give a signing bonus, so after your first $20 purchase, you get a $10 gift card.  They have other, unusual deals, too.  For instance, when I got internet access at our new house, by linking through Ebates I got a flat $20 payment.  Not bad!

So if you're going to spend money, get paid for it.  And when I want to rationalize, I feel like if I spend lots and lots of money, I'll be rich with cash back!