Published on: 2021-06-30
They are everywhere. Points, dollars, stars, loyalty benefits, etc. Many names for the same thing: they want you back and they want you to spend more.
For-profit corporations well know the customer's behaviour. The endless wants associated with their consumerism mentality. And they will be back in their business, loyal to spend even more.
As I stayed in a hotel for many months last year and in March, points have accumulated quickly with promotions and high level status at the same hotel chain. I had enough for around $400 to spend on luxury items.
As you might know me, I'm no luxury. It would have been possible to get an Apple Watch Series 3 and a few other electronic gizmos. But for what exactly? Why would I waste the collected points in ephemeral objects that I don't even want in the first place? Without those points, I had no intention to buy any of the stuff, so why now?
To counter this meaningless act of consumerism, I wrapped my head about what to do with the $400. Buying gift cards was the only possible solution. Thus, I got $350 of gas station card, $25 for Apple and a mere $5 at a coffee shop.
The same can apply for your plastic friend in your wallet. I tend to use cash back cards only because they don't tie you to luxuries like flights or goods that you don't really need.
My current wallet contains 2 credit cards: one MasterCard and one Amex.
The real issue with credit cards is to invent money in your head and it leads to useless expenses. I'm no better than anybody else, I can spend on stupid stuff too, but I tend to focus on my percentage of savings/investments, then the reductions on spendings are a side effects that compounds with time.
Try not to get fool by luxury, use rewards as a way to reduce your expenses. Then, you won'tt get trapped in more hedonic treadmill.