I’m going to show you how you can save money while shopping and get some free money to help grow your business.
Alright so the first thing you are going to want to save money is watch my video on Bank Churning where I’ll show you how you can get over $2,000 dollars, basically for free. What Bank churning is… is signing up for checking or saving accounts for that sweet, sweet, delectable sign-on bonus by just having direct deposit or a minimum balance. And then doing the same thing… over and over again with different banks. And just like your normal direct deposits, you can use that money however you please. Be sure to watch the follow up video… on how you can manage and maximize your bank churning, year after year… or at least however long Bank bonuses lasts. If you’re like most of us, you probably only started looking for ways to get a little extra cash for the holidays and that’s ok, because one way or another you’ll get the bonus but you aren’t going to get anything if you don’t
Start. So Start now!
Sign up with Rakuten
The next thing you want to do is sign up for Rakuten. Rakuten is a free service that lets you get cash back for everything you buy either online or in-store and if you’re an Apple IOS user you can also get a 5% cash back on dining. Once again… I got a video on that as well that guides you through the process.
Save Money by Bank Churning
So Let’s say you started bank churning a few months ago and you managed to receive $3,000 worth of bank bonuses. That’s a nice chunk of change that you could use to pay off some debt or to offset your holiday spending. It’s even a good down payment for a car during the year end clearance sale.
Combine money saving methods
But Let’s take a look at some examples at what this combination does for you.
So Obviously the biggest benefit is the $3,000 dollars in your pocket from bank churning. And just that alone is a huge lifesaver during your holiday spending but let’s see how you can take it even further with Rakuten and some site discounts like Groupon. To make this easy, I’m going to break it down into 3 sections of expenses but only up to the $3,000 that you gained from bank churning.
Suppose you spend $500 dollars on Dining, $1,000 on purchases and $1,500 on travel. And we’ll start with the $1000 dollars on purchases, so you know you plan on purchasing some gifts for the holidays and you know you’re most likely going to speed around $1000.
So you did your homework and you landed on Groupon.com and you found a nice laptop deal and Groupon gives you 10% off by using promo code holiday10… that’s not a real code… I just randomly made that up so don’t use that but I’m sure you can find a similar code on Groupon… but on top of that Rakuten is also giving you 4% cashback! But wait there’s more!!!! Let’s say the credit card you used to make purchases has another 4% cashback on electronics during the holidays! So let’s breakdown the numbers so you can see what the discount looks like.
If you look at the picture you’ll see that you get 10% off from Groupon then you get an additional 4% cash from Rakuten and another 4% cashback from your credit card rewards.
So you saved $100 off from Groupon right off the bat because of a promo code
$36 bucks cashback from Rakuten and another
$36 bucks cashback from your credit card
For a Total savings of $172 dollars. Would you rather pay $1000 or $828 for the same item? So you might be asking, “wait a minute, if I add up the discount percentages that are 18% off so wouldn’t it be a discount of $180 instead of $172?“. You would think that but it’s because of how discounts and cashbacks are calculated, meaning discounts are taking the percentage off right away whereas cashback is like a rebate in that it’s calculated after the purchase of the actual payment price minus the tax. It’s a little bit confusing but Frankly, you could just say it’s 18% off and it’ll be close enough to the actually discounted price anyway but I just want to give you the math on it and let you make the decision on how you want to do it.
Let’s apply the same method to your Dining and Travel but to make it seem a bit more realistic we’ll adjust the discount percentage on the categories. The numbers are calculated without including taxes because taxes vary between locations so I’m not taking that into account.
So based on the calculations this is what we saved for each category. You saved 119 on Dining, 172 on purchases, and 230 dollars on travel expenses. Which gives you a grand total of 521 dollars in discounts and cashback.
Granted you had to spend around $3000 dollars to get a savings of around $521 but if you have been bank churning and you already got that free $3,000 dollars worth of Bank bonuses, all your purchases are essentially FREE and you ended up making or saving any extra $500 bucks on top of that and you still have some money left over from your bank churning. How sweet is that?
Remember that this was only an example. You could just apply this method to just one item or multiple different categories.It’s entirely up to you but I just wanted to break down the spending so you could see the possibilities.
How you can save even more money during your spending
But hold your horses. DO NOT PROCEED any further if:
- You have poor credit
- You have a lot of debt
- If you have a lot of debt then you really shouldn’t be spending too much anyway
- You should be using the money from bank churning to pay off the debt
- If you plan on making a large purchase in the near future that requires your credit as a medium like purchasing home then you shouldn’t proceed to the next step
I have a video/article on how you can repair your credit if you want to take advantage of this. I’ll provide a links you’ll need below.
If none of these apply to you then let’s proceed.
Alright so if you already have plans on spending money on the holidays and you can afford a small drop on your credit then it might be beneficial to take advantage of opening a new credit card for your holiday needs instead of using one you already have. So Since credit card offers change from day to day, I’m not going to recommend a specific card to you but we can at least set the bar for this example but depending on your situation you can adjust the criteria that works best for you.
These are the criteria for the credit card:
- $500 cash sign on bonus
- Has the annual fee waived or better yet, no annual fee
- In order to get the bonus you have to spend $3,000 or less within 3 months
- Has rewards but most credit cards these days have some sort of points or cashback
- OPTIONAL but preferred 0% interest rate
Essentially what we are doing is instead of using a card you already have we are going to sign up for a new credit card and get a Free Sign up bonus and then use the new card to make your purchase.
Using our previous example… I’m going to truncate that example to make this easier to see.
- Holiday Spending = 3000
- Bank Churning = 3000
- Discount = 325
- Cashback = 206
- New Credit Card Bonus = 500
You are spending money through a 3rd party company like Groupon and Rakuten and reaping discounts on products and services. Then you use your newly created credit card to pay for the items for the cash back bonuses… then you pay off that new credit credit card from the free money you got from Bank churning and because you paid off your card, you don’t have to worry about the interest accruing… AND you get that sweet sign on Bonus for paying it off with your free money. At the end of the day you are getting over $4,000 dollars of products and services for free! Not to mention if your new credit card has any rewards program for purchases, you’ll get those too along with your sign up bonus.
Summary & Conclusion
You can also use your receipts to get cashback too by scanning your receipt into apps like Receipt Hog, Receipt Pal, or even Ibotta. You probably won’t gain much out of it but it is an option if you want to make the most of your purchases.
Remember even if you only just started your bank churning and you haven’t received your bonus yet, you can always use the bonus later to pay off expenses on your credit card since the method with the most savings is done using a credit card. But regardless of the situation you should always pay off your credit card as soon as possible, especially if you pick up a credit card offer that doesn’t have a 0% Interest Promotion so don’t wait for the bonus to pay it off.
You certainly don’t have to use all of the methods, you can use certain parts and still get a nice discount. Here’s a breakdown of If you only chose to use one or all of these combinations.
Also I want to mention that this is not financial advice and if you want more information I suggest you contact an expert on the subject matter.