How far to optimize rewards? And how does Cash+ code for utilities?

[northface28]

I disagree, that’s $180/yr. Then again, I’m pretty cheap.

[Anonymous]

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@kevinindy wrote:

The electric bill can be paid by credit card for a $1.50 fee, but I have to do it manually each month no autopay.

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When there's a flat "convenience" fee like this instead of a percentage, I always pre-pay the next few months. So instead of spending $1.50 on a $100 payment, I spend $1.50 on a $500 payment. The $6.00 I save in fees over that extra four months (in this example) is more than I would make in interest on that $400 over the same four month period.

This wouldn't make sense if you were carrying a balance on a credit card (which would likely cost you more that $6.00 interest on $400 for that time period). It might be about a push on a mortgage (depending on your rate). So then you'd be better off just paying down your principles with that extra $400. But if you have the money and you're not carrying any debt, and if you're using a credit card to get the rewards, this makes sense.

It's not enough of a savings that I would do this if it complicated things. But it actually simplifies my life (slightly). I only have to make one manual credit card payment instead of several. And I come out (slightly) ahead for doing it this way.

[Anonymous]

I don't do this (because I want to keep things simple), but if you really wanted to optimize your spending, you would use your debit card for gas (except when you can get 5% rewards). The discount for cash (which includes debit cards) is usually between 3% and 4%, which, of course, is better than the 2% I actually get.

I tried this for awhile a few years ago when I was really trying to optimize everything. After a while, I realize it just wasn't worth what (at least for me) amounted to probably a difference of $50/year. And if I'm being honest with myself, there's something really gratifying about seeing the rewards account go up, moreso than having that extra money just stay in my checking account (that doesn't make any objective sense, but it's still true).

[jdbkiang]

I think if the goal is to maximize returns, going for SUB’s every now and then will probably be the best way.

[budugu]

I am moving towards k-i-s-s principle now. Usually i do swing back and forth based on how crazy my life is. Arent simplicity and minimalism the in thing now? 

[wasCB14]

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@budugu wrote:

I am moving towards k-i-s-s principle now. Usually i do swing back and forth based on how crazy my life is. Arent simplicity and minimalism the in thing now? 

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That's why I generally start each new account with a nice big bonus.

If the card gets nerfed, or my spend changes and the card no longer is worthwhile, I'm still comfortably ahead.