Milan's Money Newsletter
Who says you can’t be money-conscious and treat yourself at the same time? In this week’s newsletter we break down exactly how you can do that. Say goodbye to “spaving” and start using those rewards to make the most of your shopping experience with all the tips and tools we’re bringing to you. Here’s to another week of supercharging your money!
- Milan
IN THE STOCKS
- S&P 500 5,303.27 (0.12%)
- NASDAQ 16,685.97 (-0.074%)
- Dow Jones 40,003.59 (0.34%)
*Stock data as of closing on May 17th.
THE MONEY BREAKDOWN
“Spaving”
Let's dive into a common financial pitfall: spaving, or spending more to save more. The temptation of "limited-time deals," "buy one, get one free" offers, and discounts for reaching certain thresholds can lead to excessive spending and high-interest credit card debt. Experts warn that similar to the concept of "girl math," spaving is all about rationalizing unnecessary purchases. Despite financial strains from inflation and high-interest rates, many still fall for these traps, ultimately spending more than they can afford and experiencing financial stress.
You can combat spaving in five practical steps:
- Identify and eliminate triggers for impulse purchases by deleting shopping apps and unsubscribing from store newsletters
- Use cash for big-ticket items to make spending more tangible
- Always do the math to see if deals are truly beneficial
- Avoid stores that tempt you with sales by opting for online shopping and curbside pickup
- Create shopping hurdles by deleting stored payment details online, and give yourself a 24-hour cooling-off period before making a purchase
And finally, curb your spending overall by budgeting your expenses to truly tackle your financial woes. These strategies can help you avoid the financial trap of spaving and make more mindful spending decisions.
MILAN’S TIP OF THE DAY
Use Apps and Cards to Earn Rewards on Your Purchases
Here's a smart money hack that can boost your savings effortlessly: using cash-back apps or credit cards to earn rewards on your everyday purchases. Imagine getting a little extra back every time you shop, whether it's groceries, gas, or online splurges. Here are my favorite credit cards for rewards:
- The Capital One Venture X Rewards Credit Card earns you 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening.
- The Chase Sapphire Preferred® Card has a limited time offer for 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $750 when you redeem through Chase Travelâ„ .
- The American Express® Gold Card gets you 60,000 Membership Rewards® Points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership, turning your regular expenses into opportunities for savings. It's like getting paid to shop! (terms apply)
But there's more to this than just earning rewards. By strategically using these tools, you can maximize your savings and even fund other financial goals. For instance, you can use the cash-back earned to pay down debt faster, contribute to your savings account, or invest. Just remember to pay off your credit card balance in full each month to avoid interest charges, which can negate your rewards. By integrating cash-back apps and credit cards into your financial routine, you're making every dollar work harder for you. So, start earning those rewards and watch your savings grow!
VIDEOS YOU MAY HAVE MISSED THIS WEEK
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Disclaimer: Milan Singh is part of an affiliate network that includes sites like Bankrate.com for coverage of financial products, including credit cards. Milan Singh and these partner sites may receive a commission from card issuers. All recommendations and opinions are the author's own and the content hasn't been reviewed or endorsed by any other entity within this post. This relationship may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers.