5 hacks to make your spends earn for you

Zameer Kochar
Moneycontrol Contributor

“It’s not your salary that makes you rich, it’s your spending habits” – Charles A Jaffe” –  Former Chess Grand Master.

The notion of earning while spending may sound paradoxical but thankfully for customers, loyalty programmes have made earning and saving the norm when spending. So the more you spend, the more you earn, and the more you earn, the more you save.

Let’s look at five simple ways how this can possibly happen. Hopefully, at the end of it, you will get a fair estimate of the quantum of value – tangible as well as intangible that you can possibly save and earn.

1. Say yes to that co-brand card that best serves your need Make a list of the products and services that you spend on frequently, to find the ideal co-brand that best suits your spending habits. If most of your expenses are related to travel then a credit card associated with travel centric service providers like airlines, hotels and car rental partners will be most useful, as they will provide a whole spectrum of benefits and privileges like lounge access, excess baggage allowances, cabin upgrade, dedicated check-in counters and discount vouchers.  Likewise, if you are looking for a card that helps you earn maximum points, get maximum cash back or having a no annual fee, then your hunt for the perfect card would vary accordingly. Given the choice, choose a card that has a lower spend threshold for unlocking benefits and allows you to redeem your points, miles for rewards across multiple diverse categories like flight tickets, hotel stays and shopping categories.

2. Choose aggregators and online hypermarkets Some of the largest multi-product online shopping sites, also known as aggregators, run their own loyalty programmes. Some of them have expanded their services to include telecom and utility bill payment facilities. Your everyday spends can now get even more rewarding in the form of cashback or earning a reward currency that over a period will accumulate basis all your transactions and translate into upfront discounts and cashback into your linked e-wallet.

3. Avail exclusive offers and deals Basis your past transactions, browsing behaviour and engagement displayed, few leading organizations strongly believe in rewarding customer loyalty and go that extra mile to create curated offers and deals just for you. It therefore makes sense to be associated with a few leading loyalty programmes that over a period will understand you better and create exclusive offer and deal packages suiting your requirements. A great deal on your favourite brand or restaurant can get you a great deal with high savings and discounts. It also can result in softer benefits and privileges like the complimentary drinks at your next restaurant visit or access to special member exclusive sale discounts on specific days before the offer opens to the mass audiences.

4. Enhance your credit score This may sound somewhat offbeat but improving your credit score can help you save more. Firstly, make sure you pay all your bills on time without any default. Secondly, keep your credit utilisation ratio low, which means don’t make it a habit to hit the ceiling on your credit card limit.

5. Make the most of your frequent flyer programme What is different about some of the notable frequent flyer programmes is that you don’t have to necessarily fly in order to earn or redeem points. These programmes are holistically designed keeping in mind the varied likes, preferences, and passions of customers. They offer a multitude of options for spending and earning points and redeeming them for discounts and benefits. For example, if you spend at partner hotels, restaurants and other establishments, you could enjoy preferential discounts that can help you cut costs. Even when booking flight tickets, as a frequent flyer, you can avail discounts and a host of other benefits that can help you save more.

(Author is the Head of Marketing & Member Engagement, JetPrivilege)