The Best Ways To Save Money By Spending Money

The financial crisis brought us much misery in the form of unemployment, high-interest rates and inflated prices. But on the bright side, it did also make us more savvy and enterprising when it comes to saving money.

One of the few positives to result from the economic downturn is the cashback revolution. For those who have been living under a rock, the cashback movement involves monetary incentives for customers when they transact with a business. The business benefits from the sale and the customer benefits from what is effectively a considerable discount on their purchase.

If you are looking for ways to save money, cash back opportunities are one of the best ways to do that. Read on for the best ways to save money by spending money.

3

Flickr.com

Cashback websites

How it works:

There are a number of different cashback websites out there, but they generally operate in the same manner. They are essentially a middleman between the business and the customer. They advertise a list of all the products and retailers, separated into sections, for example, electrical goods, finance, travel, etc. The customer clicks through to the retailer’s website from the cashback site and purchase goods or services. The retailer then pays the cashback site a fee for generating your business. The cashback site then pays some, or all, of that fee to the customer. One of the main advantages of cashback websites is that is all done online meaning you can earn money from the comfort of your sofa.

How to do it:

Want to cash in yourself? Next time you need to make an online purchase, whether it’s a TV, holiday or printing service, have a look at see whether you can make it via a cashback website. You will need to set up an account with the cashback site in order to receive your reward. This is so the website can track your movements. Each cashback website has different deals so it is a good idea to sign up with more than one.

Things to be aware of:

  • The amount you get back will depend on the site but can range between 5 % and 12 % of the price of your purchase.
  • It can take a few months before you receive money back so do factor this into your financial planning.
  • Most sites are trustworthy. However, if you are new to cashback websites, it is important to be wary of rogue operations. If you are unsure, do a search on the name of the website and if you return a number of bad reviews then stay clear.
  • If you the site charges a membership fee, it is most likely a scam.

Shopping experience surveys

How it works:

Retail businesses offer incentives to customers in return for providing their evaluation of a recent shopping experience. This benefits the business because they show themselves to be customer-driven and therefore are more likely to retain customers. Additionally, they receive valuable feedback that can be used to improve the business. The customers benefit from getting the opportunity to give their feedback to the retailer, and from receiving a reward for doing so, of course.

How to do it:

Not all retailers use shopping experience surveys. It does tend to be the larger retail chains that have such opportunities for customers. Next time you are shopping at a large store, have a look to see if they are advertising customer surveys. If you can’t see any signs for this, enquire with the customer service staff. Alternatively, search for feedback forms online. For example, you can give feedback to Target at www.informtarget.com. A typical survey will ask you to rate the customer service you received when shopping at the store and will give you the opportunity to suggest areas for improvement.

Things to be aware of:

  • The typical reward for a shopping experience survey is being entered into a competition to win money. The potential winnings are usually very generous and could not only pay you back the money you have spent at the store, but give you a decent profit.
  • Some surveys can be long, so make sure you set aside a decent amount of time to complete it.
  • If you haven’t actually visited the store before, you can’t pretend you have in order to fill out the survey and enter the sweepstakes. You will usually require an ID and password to access the survey that will be given to you on receipt of purchase at the store.

4

Flickr.com

Cashback credit cards

How it works:

With a cashback credit card, every time you make a purchase using the card, the card issuer will pay you give you a small percentage back. For example, if your card gives you 1% cash back on every purchase you make, you will receive £1 for spending £100. It benefits the credit card company because it encourages people to use the card more often. And for the card holder, it is a way to save money on your regular spending. When you get a cashback credit card, you will usually be given a higher rate of cashback as an introductory offer. After this offer has expired, you will receive the standard rate of cashback.

How to do it:

Shop around for a cashback credit card that would suit you spending habits. If you know that you are going to be spending lots in the near future, for example, during Christmas or decorating your home, look for a card that offers a high introductory rate. Some companies pay cashback annually, and some monthly, so work out what option would suit your financial situation.

Things to be aware of:

  • With a cashback credit card, you should always be prepared to pay your off your balance at the end of the month. Otherwise, the money you have earned on cashback will be cancelled out by fees or interest owed.
  • Don’t use your cashback credit card as an excuse to spend more money that you usually would in order to earn cashback.
  • You may have to pay an annual fee for the card, so make sure you factor this into your decision whether this kind of card is right for you.

LEAVE A REPLY

Please enter your comment!
Please enter your name here