I'm doing this with miles/points also. Just want to make sure I have enough for a great vaca! 
@Kevin86475391 wrote:
@Anonymous wrote:
@northface28 wrote:I would not be able to sleep knowing I had over $700 tied up in rewards with an issuer. I have an online savings account with Capital One and ALL my rewards are funneled to that account which is aptly named "credit card rewards" so all rewards, sign up bonuses, and saved money via points go here. By saved money I use the Sallie Mae card and if I redeem for 2500 points which is $25, i add that $25 to the credit cards reward account. At the end of every month, I then transfer the money to my Schwab brokerage account and then invest it into SWPPX (S&P index fund). I do not see the point in the letting the money just there idly, i like my money to work for me.
That would be a problem! I'm sure people have more than that tied up in unproductive assets. Even if you could earn 10% investing it, we are talking $70 a year (with a low risk of closure), so not really worth losing too much sleep over.
Compounding interest makes this much more significant long term though. If someone opened an investment account with a $700 balance, added $200 more per year (sounds like OP earns more than that in yearly rewards, but just a low rough estimate), and earned a 10% return, then over 30 years (a long time sure, but not that long for investments/long-term financial strategies) that figure would turn into $51,874.93. More realistically let's assume a more conservative 6% averaged return that's in line with historical data. That would turn into $21,041.43
And if the person is adding this money to a Roth IRA then those figures are tax free.
By contrast if someone starts with $700, adds $200 per year, and doesn't take advantage of investing or even deposit interest, then at the end of 30 years they have...$6,700
Anyway, personally I cash out all of my cash back rewards at literally the first opportunity, usually the very next time I log into my account after the rewards have been credited, unless I'm under a redemption threshold, then the first opportunity I get once reaching the threshold.
+1000 Kevin86475391 - Plus OP said they racked up over $700 in rewards in just 7 1/2 months, so for the OP the amount could be significantly more in 30 years
@dallasareaguy wrote:It's become a game in our house.
ME: "Hey wife, remember... Amex Blue for Groceries and gas!... everything else put on the QuickSilver"... she got frustrated with me this weekend when I said.. "Why did you use the Blue at Sam's?..."...she said... "because you said to use it on groceries!".... I said: "yes, but remember it's not valid at wholesale stores or walmart or target, etc.".... her final response " uggh, I'm trying to follow your requests..I give up."
We only got 1% using Blue in the case instead of 1.5% with QS... it all amounted to about $1.11 difference in rewards but hey!
Hmm, a net of 1.11 vs an annoyed wife. I seriously think you are flirting with fire my friend. I use to play that game as well. However, after explaining to wife use this card at restaurants, this card for gas/groceries and this card for miscellaneous; I gave up. My response now is "use whatever".
The only one she continually uses at the correct location is BCP for groceries, everything else is just randomness. That's OK with me because I found out, schooling her on the correct usage is not in my best interest.
@babson wrote:
@dallasareaguy wrote:It's become a game in our house.
ME: "Hey wife, remember... Amex Blue for Groceries and gas!... everything else put on the QuickSilver"... she got frustrated with me this weekend when I said.. "Why did you use the Blue at Sam's?..."...she said... "because you said to use it on groceries!".... I said: "yes, but remember it's not valid at wholesale stores or walmart or target, etc.".... her final response " uggh, I'm trying to follow your requests..I give up."
We only got 1% using Blue in the case instead of 1.5% with QS... it all amounted to about $1.11 difference in rewards but hey!
Hmm, a net of 1.11 vs an annoyed wife. I seriously think you are flirting with fire my friend. I use to play that game as well. However, after explaining to wife use this card at restaurants, this card for gas/groceries and this card for miscellaneous; I gave up. My response now is "use whatever".
The only one she continually uses at the correct location is BCP for groceries, everything else is just randomness. That's OK with me because I found out, schooling her on the correct usage is not in my best interest.
Lol! I find you have to pick your battles and $1.11 isn't one of them. Wives also have a good memory when it comes to torturing husbands.
I like the idea of pumpipng those rewards into an internet savings account. I have a DCU checking account that I am putting money into as savings. Would that be a good place? Also, how would I do that? Have Cap 1 send me a check and then send the check to DCU? I don't see an ACH or EFT option on Cap 1's site.
@babson wrote:
@dallasareaguy wrote:It's become a game in our house.
ME: "Hey wife, remember... Amex Blue for Groceries and gas!... everything else put on the QuickSilver"... she got frustrated with me this weekend when I said.. "Why did you use the Blue at Sam's?..."...she said... "because you said to use it on groceries!".... I said: "yes, but remember it's not valid at wholesale stores or walmart or target, etc.".... her final response " uggh, I'm trying to follow your requests..I give up."
We only got 1% using Blue in the case instead of 1.5% with QS... it all amounted to about $1.11 difference in rewards but hey!
Hmm, a net of 1.11 vs an annoyed wife. I seriously think you are flirting with fire my friend. I use to play that game as well. However, after explaining to wife use this card at restaurants, this card for gas/groceries and this card for miscellaneous; I gave up. My response now is "use whatever".
The only one she continually uses at the correct location is BCP for groceries, everything else is just randomness. That's OK with me because I found out, schooling her on the correct usage is not in my best interest.
My husband and I have always had our own cards with which we make our own decisions. I find that marital happiness is greatly increased when we each have the ability to make our own decisions about which card to use.
@dallasareaguy wrote:It's become a game in our house.
ME: "Hey wife, remember... Amex Blue for Groceries and gas!... everything else put on the QuickSilver"... she got frustrated with me this weekend when I said.. "Why did you use the Blue at Sam's?..."...she said... "because you said to use it on groceries!".... I said: "yes, but remember it's not valid at wholesale stores or walmart or target, etc.".... her final response " uggh, I'm trying to follow your requests..I give up."
We only got 1% using Blue in the case instead of 1.5% with QS... it all amounted to about $1.11 difference in rewards but hey!
Man, that is kinda like throwing darts at a nuclear warhead. Keep hounding her and she might end up using that “What happens if I die?” FAQ on the AMEX rewards section on their site. 