Canadian Finance Blog

Get Rewarded for Money you are Spending Already

Posted: 26 Sep 2011 02:00 AM PDT

We all have to spend money on groceries, though we try to reduce our grocery budget where we can. Most of us drive a car, and there are only a few ways to save money on gas. While I try not to go very often, we'll also all end up in a restaurant occasionally. But by using a cash-back rewards card, you can get some of that money back. That's extra savings on top of all the other steps you have taken to cut your bill on these day-to-day expenses.

As I mentioned in a previous post, I agreed to test drive the TrueEarnings Card from Costco and American Express and let Canadian Finance Blog readers know what I think of it. This time I want to look deeper into the cash-back rewards and how you can benefit by earning money on some regular purchases you're already making every week.

2% Cash Back on Gas

While most purchases with the card will give up to 1% cash back at the end of the year, gas purchases at eligible stores will have you earning up to 2%. I normally get gas at the Costco gas station since the prices are a little lower, but this 2% reward isn't limited to just Costco. If you have a gas station you prefer, you'll also earn up to 2% on your gas purchases there and collect their points at the same time!

3% Cash Back on Restaurants

The upsized cash-back rewards are not only for gas either. You can get 3% cash back at restaurants. So you could use a coupon like many of the Buy One Get One offers in the Entertainment Book or SUTP and then pay with this card to get an additional 3% cash-back coming to you in January, when rebates are issued.

How to Double Dip on Grocery Savings

You can save a lot by shopping in bulk at Costco, but that's just the start. Not only are there very good regular prices, but I try to take advantage of their weekly coupons to get an even better deal. If you shop there regularly, get the Costco Executive Membership, which gives you 2% back once a year. While the Executive Membership does cost more up front, I use my annual cash back cheque to pay for the membership in full and still have some remaining to put towards that week's purchase. Linking an Executive Membership to your TrueEarnings American Express can mean a 3% combined reward on your Costco purchases.

We also shop at other grocery stores too. Whether it's Club Sobeys points, Air Miles or whichever loyalty program your favourite grocery store offers, I can use the TrueEarnings Card and the points card to get the best of both at the till.

You should make the most of your money when you can. By combining some money saving tips with a cash-back rewards card, you'll spend as little overall as possible on everyday purchases!

Get Rewarded for Money you are Spending Already originally appeared on Canadian Finance Blog on September 26, 2011.