yfan wrote:Vattené wrote:It's actually sad to see how penny wise and pound foolish it gets. There are people that don't consider the larger financial picture, yet use rewards rates to convince themselves that they're being very logical and financially savvy. It's easy to dine out and earn 3%, and it makes for a convenient excuse to do something that you already want to do. It takes an ounce of discipline, but you're much better off cutting back even a little on the spending in the first place.
Oh it's insane. It's justifying a $100 spend to earn a $3 reward. Well, ya still spent 97 bucks! Cook at home for a day or heck, just forego ordering the diet coke. You have all the saving right there and more.
And see that is the worst part. When you break it down, it's $3 for every $100. I don't know about you, but I consider $100 a lot of money. Not necessarily in terms of a bonus (where $100 doesn't feel like much), but in terms of spending especially on eating out. So even if you spend that or more every week, $3-5 a week in rewards is just...not a lot of money. You can find many ways to recoup $3-5 a week without running up credit card charges.
To each their own. There's just a point where you have to step back and really analyze how much you are getting out of it. The answer is sometimes "not as much as it seems!". I've found it's better to concentrate the majority of my spending on one or two cards. Yes, sometimes I may miss out on an extra 1% here or there, but if you spread your spend too much, you never get anything useful anyway.