Just like many of you, I use streaming services for my television viewing.  And, like many of you, I don’t have them all.  While I don’t rotate them very much, I do rotate the ones I view on a monthly basis.  Why?  Because I pay for MOST of them annually.  I have one that only allows a monthly payment, no annual option.  

I found I get a discount on an annual payment instead of a monthly subscription.  Now you may say that rotating services is even less expensive, and it may be.  But annual payments work for me.  Why?  Because I basically get them for free!  How do I accomplish that?

I happen to have a credit card that gives me cash back when I use it.  I keep it consistently paid off by never charging more than I can pay so it’s always at a zero balance.  That’s one of the key’s to getting cash back.  Keep it paid off, never pay the interest, and get free money back.  I then save that cash back and use it to pay for my streaming services.  Thus, free money is paying for my entertainment!  Sweet!!!!

You may ask what I charge on my credit card.  I put any online purchases on it, a few monthly bills such as internet services, cell service, gasoline and other regular purchases.  If the card offers a higher cash back for certain items, I will certainly purchase those items using the card and pay them off immediately.  

If you’ve read my book, you know a zero balance on my card is important to me.  I never charge more than I have budgeted.  And remember, the things I’m using my credit card for are things I was going to purchase anyway,.  So, why not use the card to pay for it and get the cash back.

Now having said all of this, there are times I will simply pay for things and NOT use the card.  For example, if a business is charging 3% for using a credit card and the cash back is 1%, it doesn’t make sense to use the card.  However, sometimes the cash back option is 5% and the business is charging 3%.  I’m going to end up being 2% ahead by using the card.  It’s simple math.  So, be sure you’re using your card efficiently.

What is the moral of this week’s post?  

If you have a credit card that has a cash back option, save up your cash back for something you use regularly.  In this post, I save up my cash back to pay for annual subscriptions to streaming services.  However, if you don’t use streaming services, perhaps you could save it for other things.  Some ideas include annual insurance premiums, a large purchase that you really “need”, or something else.  

I actually end up with enough cash back to include my annual virus checker payment.  Just figure out what you need this money to go towards and use it.   After all, it’s FREE money which in my book makes whatever you use it for absolutely free!