Evolution is pervasive and never-ending. There were times when vendors only had to bother about the right item in the right quantity to be able to sell profitably.
With the changing times, sales became more and more challenging due to increasing competition in terms of quantity as well as the quality of sellers.
Vendors have been providing added discounts and services to attract new customers as well as retain existing customers. Banks and credit card companies came up with reward points with a target to achieve the same goal.
There are various other ways in which you can save on your card spends. Below are four points on how to cut your grocery costs by purchasing them on your card, instead of paying cash for them.
- Reward points
Depending on the card you own, you earn reward points for the amount you spend on your card. These points can be used to buy vouchers or items from the card issuer/network outlet.
Buying the grocery items, you need, with these points, might not always be possible but even if you spend them on other items you need, it is a saving for you as you do not have to pay any money for such purchases.
- Interest earning
Generally, all cards have 50-day interest free period. If you spend on the first day of the billing cycle and repay it on the due day, which is generally the 20th day from the last day of the billing cycle, you will not be charged any interest.
These interest earnings may either be used for another purchase. Alternatively, if you leave this money in your savings account, you will still earn some interest, which may be spent for meeting other expenses.
- Network discount
Often the network outlets or vendor partners of your cards issue special discounts only for cardholders of specific companies or banks. If you are able to time your purchases with such schemes, then you can save an additional amount in the form of discounts available.
You must also be smart about choosing the store to purchase your groceries. Some vendors offer higher discounts. When you combine the right store and credit cards, you may be able to enjoy significant savings.
- Financial discipline
Spending on the card towards the end of the billing cycle thus reduces the interest-free period earnings. Moreover, not paying the entire bill amount attracts heavy finance charges. In order to avoid these two scenarios, you must inculcate financial discipline. It is recommended you time your purchases to enjoy longer interest earning periods and save more.
Several companies and banks offer grocery cards. It is important you research about all these various cards. You must choose a card that offers higher rewards for grocery purchase.
Be smart and reduce your grocery bills today.