Earn Cash Back on Your Purchases

Earn cash on your groceries, gas, recurring bills and every day purchases.

Welcome to a nifty way to earn money by spending money. I personally own the Scotia Momentum Visa Infinite card, and I am here to highlight its benefits and help you determine how much you could potentially earn from using this card.

Have you budgeted your variable expenses and organized your fixed expenses? If not I highly recommend doing this, details on my personal method can be found here:

https://www.bogitsblog.com/post/become-the-ceo-of-your-bank-account

If you are running into debt every month or currently owning on existing credit, I would get a handle on this before applying for a cash back credit card. But I am not a financial adviser and the contents of my blog are based on my opinion and personal experience. Please consult with your financial adviser before making any financial decisions :)

Here is a what the Scotia Momentum Visa Infinite Card has to offer;

On every dollar you earn;

• 4% cash back on groceries and recurring payments

• 2% cash back on gas and daily transit

• 1% cash back on everything else

At the time of this writing, they currently have a 10% cash back on all purchases for 3 months (up to $2000.00), and no annual fee (including the supplementary card) for the first year.

Here are some other details:

• $120 annual fee

• $50 annual fee

• 20.99% interest rate on paid balance

• 22.99% interest rate on cash advances

*the above information was taken from the Scotiabank website found here: https://www.scotiabank.com

So the interest rates are high, which is how they offer such great rewards. But if you are financially present, you may benefit from a cash back card. Another simple way to earn passive income.

How Much Can You Earn?

Ok, It's not going to make you rich, but let's see how much I could potentially gain from using the Scotia Momentum Visa Infinite Card.

I asked at the beginning of this post, if you completed my step by step plan to budget and manage your variable and fixed expenses. Here's where that process also comes in handy.

For the grocery category, how much do I budget for the month? In my example I had $990.00.

If I use my Scotia Momentum Infinite Visa Card I can potentially earn $990.00 x 0.04 = $39.6 per month, that's $475.20 a year.

Recurring payments are also covered under the 4% cash back reward. Not all of your fixed expenses will approve payment from a credit card, but for me, our insurance, internet service, security system and cell phone providers will.

If you pay for your own Netflix account, this also counts as a recurring payment :)

Based on my example again, $450.00 x 0.04 = $18 per month. That is $216.00 per year.

Now let's look at the gas/transit cost I have estimated for the month. In my example I estimated $270.00 x 0.02 = $5.4 per month which comes to $64.80 a year.

Lastly, there's the 1% cash back on all other purchases. For this I use my miscellaneous and take-out costs. Together they equal $484 x 0.01 = $4.84 per month and $58.08/year.

If we sum up all potential cash back earnings, $475.00 + $216.00 + $64.80 + $58.06 = $813.88 every year.

If we now subtract the yearly fee of $120 (one card only), I could potentially earn $693.88 per year, just by using the Scotia Momentum Visa Infinite Card on purchases I already budgeted for.

You may have thought the reward to be a small amount at first until I added the cash back up yearly. If I never took a deep dive into my finances, I potentially would not see the benefits of the cash back card, or felt comfortable enough getting one with those high interest rates.

And what could I do with this passive income? Well, I could add this amount into a passive investment portfolio!

Details on how I started a passive portfolio to come.

"Be financially present. The more you know, the more you grow!"