If you’re new to the term cashback, you may wonder what it is and if it’s relevant to you, which is more than fair. While promises of cash should always be approached with caution, cashback generally refers to earning money back on purchases you make through reputable organizations (like credit card companies). It’s a way to make your regular spending work better for you, making it a relevant topic for most people.

There are many ways to earn cashback and to make the most of these earnings. In this article, we’ll explore a few important things to consider when looking for a cashback program, how you can make the most of cashback programs, and what to do with your cashback earnings, starting with a significant component: analyzing your spending.

Analyze Your Spending

Cashback programs offer you an opportunity to take advantage of your current spending habits because you’ll get a certain percentage or amount back. Before you can figure out if a cashback program will work for you, you should analyze your current spending. By doing this, you’ll better understand your spending habits and will be able to explore the different cashback options to find the one that best suits your current spending habits.

Take the time to set up or review your budget. As you go through it, note where and how much you typically spend to help guide you through the next step.

Look for Cashback Opportunities

With so many different credit cards and retailer programs, knowing if reward programs are worth the effort can be challenging. When you’re equipped with your spending habits, however, it can make it much easier to assess whether a program suits your spending.

Typically, you can earn cashback in three ways: with a credit or debit card, a website or app, and through a specific store.

Cashback Credit Cards & Bank Cards

With credit cards, cashback programs are often more generalized and allow you to earn a small amount back for spending in a wide range of categories. Some cards will offer cashback for any expenditure at a grocery store or gas station, for making recurring payments (like phone bills or subscription services), for traveling, and some for spending at certain restaurants or retailers.

This is where analyzing your current spending habits comes in handy; you can compare the credit card fees and cashback rates to how much you’d earn from your typical spending and see if the retailers that card company is partnered with are places you already shop at (or could easily shop at if you don’t already).

If what you’d earn from the cashback rate outweighs the card’s fees, then applying for that card may be worth your effort. But before you apply, shop around, as there are many different credit card companies with competitive rates, fees, and welcome bonuses. Shopping around allows you to get the best card deal for your spending.

While both credit card and debit cards with cashback programs exist, credit cards with cashback options are much more common. And while they’re often called ‘cashback’ cards, you may not always get cash from the company. Instead, the cashback amount you’ve earned from your spending will offset what you owe on your card.

Cashback Apps & Websites

Cashback apps and websites are also great options to help you earn cash on your regular spending. Popular choices include Ibotta, Rakuten, and Dosh, and they’re all free to sign up for.

These cashback platforms are partnered with many popular stores and companies, from clothing and beauty brands to streaming services and travel booking sites. By making a purchase on cashback platforms, you’ll get a set percentage in return. While many of these offer real cash when making purchases, some offer gift cards instead, so be sure you fully understand how the program works before making a purchase.

If you’re not keen on these websites or apps, there are also unexpected cashback options like a cashback casino or cashback survey, such as the one you’d find on a receipt, that you can explore.

Retailer Programs

While analyzing your spending, if you notice that you frequent certain stores, it’s worth looking to see if they have any cashback or loyalty programs. Not all retailers will have free options, but depending on how much you spend, buying into the program may save you cash in the long run. Simply asking the next time you’re at the store or checking the website will give you all the necessary details.

Pay Your Bills & Recurring Payments

Once you’ve received your cashback card, make sure to set up your regular bill payments or recurring payments. This helps you begin earning cashback on the payments that align with the cashback program.

Combine Reward Programs

One of the fun things about cashback programs is that you can easily combine them. For instance, you can use your cashback credit card when using a cashback website or app, earning cash from both companies by making a single purchase.

Keep an Eye Out for Deals

Whether you opted for a cashback credit card, app, or rewards program, cashback providers frequently offer additional deals to their members or users, which could mean even more savings or cash for you. Before you go shopping, take a look through your cashback programs to see if there’s an extra deal for what you’re planning to purchase.

Invest Your Cashback

As you start consistently earning cashback, developing a saving or investing plan is a great way to make the most of your earnings. To do this, you’ll need to consider your financial needs or goals. High-yield savings accounts are a great way to start earning interest on your cashback and are ideal for an emergency savings fund or a goal in the near future. Investing your cashback is an excellent option for your longer-term goals, such as retirement.

Let Your Money Work Better for You

When all is said and done, getting cashback is a way to get more bang for your buck on purchases you’d already be making. By assessing your spending habits, exploring different cashback opportunities, making the most of cashback incentives, and saving your earnings for a future goal, you’ll be leveraging cashback to your advantage — letting your money work better for you.

Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.