The game of points and miles can be super exciting!
The fact that you can earn points to pay for travel just by using the right credit card on your everyday spending is something I have to pinch myself about all the time.
And the quickest way to get a huge points boost is an amazing new credit card welcome bonus.
Just one welcome bonus could get you an almost free business-class flight to Europe, that’s amazing!
As you probably know, the biggest challenge with welcome bonuses is the minimum spending requirement. These can range anywhere from $1-$30,000 and usually must be met within 3-6 months.
But meeting a minimum spending requirement doesn’t have to be that hard. I bet you don’t even realize how much you and your family spend every month!
In this post, I’ll show you how easy it can be to hit that minimum spending requirement so that you can earn that welcome bonus and get a jumpstart to planning your next almost-free vacation!
Some of the links contained in this post are affiliate links, meaning that at no cost to you, I will earn a small commission if you click through and make a purchase. As an Amazon Associate, I earn from qualifying purchases.
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Everyday Expenses, Utilities and Bills
How much do you spend on everyday expenses in a month? Do you even know?
- Gas
- Groceries
- Streaming Services
- Cable/Internet
- Cellphone
- Shopping
- Restaurants
- Entertainment
For some reason, people seem to use their debit cards for many of their everyday purchases.
But why?
When you get a new credit card, you should be using it for all of your everyday spending. It doesn’t matter which credit cards you have that earn on bonus categories.
Your priority is to snag that welcome bonus. The faster you hit the welcome bonus the faster you’ll get your bonus!
Take a few minutes and take a look at your expenses.
Many of us, (myself included) don’t really know what we’re spending every month. We know that we pay the bills, put money away for savings, and retirement investments, and then the rest is just for whatever we feel like it.
But taking time to really understand our spending habits has been a game changer for us.
We’ve decided that saving money for travel was our priority. Once we figure out how much we actually spend, we can make informed decisions about whether we can meet a minimum spending requirement with our everyday expenses alone.
Timing Big Purchases
We don’t like applying for new credit cards all the time. I love travel rewards credit cards, but I’ve found that I’m much happier when I’m using only a handful of credit cards for my everyday expenses and maximizing bonus categories.
But when we have a big purchase coming up, we always take that opportunity to earn a welcome bonus because it makes meeting a minimum spend quick and easy.
Examples of big purchases:
- Home Repairs
- New Appliances
- Furniture
- TVs, laptops, other electronics
The key to playing the long game of points and miles is to be strategic. You’re already going to spend the money, doesn’t it make sense to get as much back in return as possible?
You should make every single purchase count. Let’s work smarter, not harder friends!
Medical Expenses
Medical expenses are a necessary part of life, but that doesn’t mean you can’t try to make the most of that money spent.
HSA and FSA are a great way to take advantage of pre-tax benefits, but it may be a better idea not to swipe them for those medical expenses:
- Dental Services – like braces or retainers
- Eye Surgery – like Lasik or Lasek
- Contact Lenses or Glasses
- Blood Work
- Any eligible expenses – prescriptions, over-the-counter medications, medical equipment (like a CPAP).
If you have an HSA or an FSA you should be able to get reimbursed as long as the expense qualifies. So why not pay with a credit card to earn points or meet a minimum spend?
Once reimbursed you’ll have pre-tax money to pay off your credit card in addition to enough points for an almost free vacation.
What could be better?
Hot Tip! Check the website for your HSA or FSA for a list of eligible expenses. You’d be surprised by what qualifies as an eligible expense!
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Pick up the tab
I get roasted so hard for this, but I honestly don’t care LOL.
Anytime we go out to eat with friends or family and I see that they want to pay with a debit card or a credit card that earns very little rewards, I insist on putting it on my credit card so they can pay me back.
I mean, someone should benefit from the money spent so why can’t it be me?
Of course, you want to make sure that you’re doing this with people who will definitely pay you back. But with Venmo or Zelle it’s easier and faster than ever to get reimbursed.
Trust me, once you’re flying in business class or sipping drinks at a resort paid for by points it won’t matter what kind of faces they made when you insisted on paying the tab with your credit card.
Car Insurance
There’s a really good chance that you’re paying for car insurance. It’s one of those things that you pay for, but hope to never need.
If you can swing it, ask your insurance company or broker whether you can pay your car insurance in full. You’ll likely get a pretty good discount for paying in full, plus it can help you meet that minimum spending requirement!
Homeowners Insurance and Property Taxes
We used to have an escrow account with our mortgage company so that they could pay our homeowners insurance and property taxes on our behalf.
Although it was convenient, we realized how much we were missing out on travel rewards and interest.
If you keep an escrow account you’re not earning any interest on that money. Instead, we closed our escrow account and started sending what we would normally be putting into escrow into a high-yield savings account.
When it’s time to pay the homeowner’s insurance and property taxes we’ll use a credit card that we’re working towards a minimum spend on to earn the points and then pay it off with the money in the HYSA.
So not only are we earning a lucrative welcome bonus, but we’re also pocketing the interest earned.
Hot Tip! There’s usually a fee to use your credit card to pay property taxes (usually between 2-5%) so make sure you’re earning more than that on the purchase which with a welcome bonus you likely will.
Otherwise, you may negate the benefit of using a credit card and lose on the purchase.
Charitable Donations
Making a charitable donation to an organization that you believe is not only a good thing to do as a human being, but it’s almost a tax write-off!
I have a few organizations that I like to contribute to every year and when I’m meeting a minimum spend every little bit counts!
Education Expenses
My husband and I are always looking for ways to keep educated and up to date on the subjects that we’re most interested in. Fortunately, my husband’s company has an education program that will reimburse him for eligible coursework.
So not only is he working to better his skills, but he’s earning us free travel at the same time.
Holiday Shopping
Black Friday, Cyber Monday, Travel Tuesday, etc. are all great ways to meet a minimum spend. Calculate how much you plan to spend and then apply for a credit card offering a welcome bonus with a minimum spend that you could easily hit.
Major Events
Are you planning a wedding, honeymoon, baby shower, anniversary party etc.? Your special day is the perfect way to meet a minimum spend and maybe take the sting away from spending all of that money.
I convinced my brother to get the Capital One Venture Rewards Credit Card to use for his wedding expenses. They earned enough points to get a few nights free for their honeymoon.
Travel Expenses
When you’re not burning, you should be earning!
Sometimes it doesn’t make sense to use your points for all different types of travel, and that’s totally ok.
Only you can decide when its worth to you to use points instead of cash. But for many people things like cruises, activities, tours and other experiences are better for them to earn points.
Because, let’s be honest most of us can’t use points to pay for every aspect of our trip. Getting a cheap flight is just as satisfying as using points!
Myths about Meeting a Minimum Spend
People who are hesitant about credit cards and meeting a minimum spend usually don’t understand how it works or don’t have all the information.
When the terms are “spend $4,000 within 3 months of account opening” this doesn’t mean that you have to spend $4,000/month for 3 months. It means that within 3 months you’ll need to spend a total of $4,000.
That’s about $1,400/month.
Some families spend that much on gas and groceries alone each month!
Here are some more myths:
You Need to Spend Extra Money: Remember, this is about being strategic and not about going into debt. Always use the credit card for purchases you would be making anyway. We always pay off our credit card statements in full and on time every single month.
It’s Only for Large Purchases: While having a large purchase is a huge help, it’s not the only way. Many minimum spending requirements can be met with regular, smaller transactions like groceries, utility bills, and gas. It all adds up!
All Spending Is Eligible for Bonuses: Some people try to cheat the system, but transactions like balance transfers, and cash advances won’t help you meet a minimum spend.
Let’s get that welcome bonus!
Meeting a minimum spending requirement is one of the most intimidating things about credit card travel rewards, but it doesn’t have to be.
Remember, the whole point is to make every single purchase count and maximize your earnings on every single dollar that you spend. It’s not supposed to make your life harder, it’s supposed to make you richer in more ways than you can imagine.
That’s why I love my Lazy Budget Travel Tips community. We’re not about making things complicated, we want to earn as many points as possible with as little effort as possible.
In this post, we’ve given you many ways to earn a welcome bonus, so you’re ready to get those points!
Here are some travel rewards credit cards that have great welcome bonus offers!
- Chase Sapphire Preferred® Card
- Ink Business Preferred® Credit Card
- Ink Business Cash® Credit Card
- Ink Business Unlimited® Credit Card
- Capital One Venture Rewards Credit Card
- Capital One Venture X Rewards Credit Card
Advertiser Disclosure:
All information about the Chase Sapphire Preferred® Card, Ink Business Unlimited® Credit Card, Ink Business Cash® Credit Card and Ink Business Preferred® Credit Card has been collected independently by Traveling Franklins.
You may also want to check out CardMatch™ to find the best offers available to you.
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