How Much Is Your Strategy Worth?

[Vash1]

Most here have either a cashback or travel rewards strategy. Whats the value of your strategy worth each month to you (or quarter or year) relative to your spend? Also explain your strategy (rotating categories, how many cards used to achieve it, etc)

Currently I have a cash back strategy mainly because I'm new to utilizing rewards in a strategic way, and I can get about 1.8% a month max value   but only because I don't have the cards I want/need yet to match our spend. My goal is to switch to a travel reawards strategy. In a few months I'm looking to get Chase Sapphire Reserve/Prefered and Marriot Bonvoy Boundless to accomplish this.

[longtimelurker]

From previous discussions of this type of question, a better metric rather than "how much" is percent (so rewards value/total spend).   Otherwise I can apparently do well with a 1% card providing I spend a lot.

Once travel is added in, the question then is how to value travel rewards.  The simplest way is to compare to the cash price, but there are big concerns about that ("Yes, the cash price for that is $20K, but would you have paid $20K?" type stuff)

[Kforce]

Money amount of rewards is meaningless with out spend.

Answers should be as a percentage.

A low spender might make $10/mo and others $1000/mo

Second point is many add up all rewards (Gross Rewards $)

but never subtract value of time managing each card (Net $)

Real value of card's <> gross rewards. 

Travel is even worse, real value of moving to 1st class, a lounge, a bag you would not have packed!

I put all spend on two cards for just over 3% cashback

with very little time loss.

Edit

Sorry @longtimelurker was faster

[Vash1]

Thank you @longtimelurker  and @Kforce . I've edited the original post to reflect a more correct phrasing of the question asked.

[longtimelurker]

---

@Kforce wrote:

Money amount of rewards is meaningless with out spend.

Answers should be as a percentage.

A low spender might make $10/mo and others $1000/mo

Second point is many add up all rewards (Gross Rewards $)

but never subtract value of time managing each card (Net $)

Real value of card's <> gross rewards. 

Travel is even worse, real value of moving to 1st class, a lounge, a bag you would not have packed!

I put all spend on two cards for just over 3% cashback

with very little time loss.

Edit

Sorry @longtimelurker was faster

---

Good point about time cost.

Also, and I know this applies to ABOSULUTELY NO MyFico person ever:   for some people, credit card rewards lead to increased (presumably unnecessary) spending, reducing the "real" value of the rewards.   Yes, everyone here puts on their credit card only spend that they would be making anyway blah blah blah (and this has no correlation to the posts "I have $X in credit card debt how do I l..." where the debt is non-medical)

[redpat]

Well for those that have business spend it is better to gather points/miles than CB, points/miles are not taxable.

Worth, none....Free travel, yes, since about 80% of the points come from business spend.  

As for time spent, very little only using two cards.

[CorpCrMgr1]

My cards are for cash back. I generally travel via car and have the ability to stay in the guest room when visiting family.

I use my Chase Prime a lot and always on USB Kroger, BJ's, Home Depot (the 10% coupon), and to a small extent with Discover.

[Vash1]

@redpatthat point for travel being most beneficial for business cards is one I haven't considered and is a really cool point.

And it's really a double advantage as business travel spend is a write off while simultaneously earning the points for a free trip. 

It's just fascinating to me the cool ways to take advantage of perks offered from rewards.

[ptatohed]

We spend about $2500/mo using our 3% AOD Visa Sig.  Then maybe another $1500 - 2000/mo at 5% (rotators, citi CC, Amazon, Walmart, Target, etc.).  Then there are the plethora of SWY spending offers.  Last month spend $1000 online, get $250 (in points) so that's ~25% right there.  This (and next 2) months, spend $60 five times, get $50/mo statement credit so that's approximately 16% extra (and I'll be making those purchases in gas so make that ~21%).  There's been 10% extra on top of the 5/3% for gas/groc/dine so that's ~13-15%.  5% for $500 utility spend so ~6% back with the usual 1%.  Etc., etc.  Let's see..... my citi R+ gives up to an extra $100/yr on my citi CC (making it a 5.55% card up to the extra $100).  My upgrade just gave me $25 for $500 spend making the net CB 7.2%.  I use my citi R+ for small purchases a lot, making it up to, say, 10% for those two Jack in the Box 99c tacos.    I use shopping apps like SYW, Rakuten, Capital One, T-Mobile dining, even my acorns links to get additional CB (the other day I double dipped SYW and upgrade shopping links to get 5% extra from each at Submarina, plus the usual 2.2% = 12.2%).  The Chase offers are far between but some are pretty good for extra CB.  I'm sure I am missing some other greater than 5% strategies.    

So, essentially, never less than 3% and sometimes up to 25%!    

I really do need to do the math and calc the overall % back on a year's spend.    

As for buying things I wouldn't otherwise, I'm sure I am guilty of it but I do like to think I am pretty diligent about that.

As for my time... it's a fun hobby so it's a pleasure, not an expense.    

[Kforce]

Real cash back cards, avaliable to most with little/no strings

Most can get ~3 % with 3-7 cards.

 ~4 % takes (7-12 cards).

~ 4.5 % (12-24 cards).

**

Some exceptions with lots of money in play

BofA and a couple of others.

~4% to 4.25% with 4-6 cards.