Random Thoughts

I am at work and running a macro on my system right now, so it seems like the perfect opportunity to write a blog entry. Yay!

I originally planned to write about my experiences with my Discover Card. I got the Discover Card in December for a balance transfer at 15 months no interest. I really had no intention of using the card for actual purchases, but then I started looking into their 5% cash back bonus rewards and thought I would try it out for the month of May. From April through June, the card pays 5% cash back on restaurants and movies, and for the month of May, there was an additional cash back bonus of 5% for grocery store purchases. Additionally, they have a promotion through 2012 where you get 2% cash back on telecommunications purchases (phone, internet, cable, satellite radio) that you have automatically paid with your Discover Card.

Now, I know I'm supposed to be watching our spending, but we go out to eat. We usually go out at least once on the weekend, and I go out sometimes during the week - usually on Friday's, but sometimes more often than that. It just depends on what my coworkers do for lunch. Knowing I'd be getting 5% back on each purchase that I made, and knowing that I was going to be making the purchases anyway, made me question why I wasn't taking advantage of this rewards program. I was already using my credit union card for their 1% cash back on most purchases, and it's actually worked out pretty well for me, except that I can't stop spending money.

What I decided to do in May was use my Discover Card for purchases at restaurants and grocery stores (we don't go to the movies), and my credit union card for other purchases. I was guaranteed 5% back on the Discover purchases, and 1% back on the credit union card. The 5% can be redeemed in multiple ways, and the 1% is paid out yearly into a high interest savings account (greater than 10%).

Throughout my first billing cycle (first 27 days of May), I earned more than $15 in rewards, but I'd only made about $60 in purchases at a grocery store.

Now, I should have put more thought into this, but I was trying to act quickly since the transaction had to clear by the end of the month and it was the 28th by time I saw my May statement. I went to my local grocery store with a gas station and bought their gift cards to use for gas and groceries to get the 5% cash back. If I had done more research, I would have realized that the gift cards did not earn me any fuel rewards, however if I had bought cards that earned me fuel rewards, I would not have likely paid more in activation fees than I got back, so it was a toss up. As it is, I earned $10 in cash back and will be able to pay for my gas and groceries with the gift cards. The maximum you can earn this year from the 5% cash back bonus is $315, based on current promtions, plus whatever you earn from regular purchases. My plan is to cash out the cash back rewards at the end of the year to apply towards Christmas. If I redeem my rewards for their partner gift cards, I can increase my rewards and save myself a little more.

Anyway, I planned to write more but it's time to go home. Later.