Credit Card – It’s better than cash!

You must be shitting me….HOW CAN CREDIT CARD BE BETTER??

These are the Two best credit cards to consider for  an average Singaporean (who does a lot of grocery shopping, petrol pumping and dinning outside)

HSBC Visa Platinum Card 

All you need is a $30k annual salary

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So let’s do the math together…. My family grocery (before the rebates and discount) will sum up to $400/Monthly, Petrol $320/Monthly, cable & bill payment would be at $150/monthly and dinning $200/monthly this means my family pay up to $870/Monthly. This means my family fulfils the second criteria!!

So lets count how much we do save from all the Rebates & Discounts

Groccery – 5% of $400/Monthly = $20 

Petrol –  21% of $320/Monthly = $67.20

Cable & Bill payment – 5% of $150 = $7.50

Dinning – 2% of $200 = $4

Reward Points( The most interesting part) into dollars – $5.82 (Scroll to the image below to see how I have derived to this amount)

  • Grocery –  400 (Rebates are not discounts) 
  • Petrol – 268.8 (0.84% of 320 – Due to instant discount)
  • Cable & Bill payment – 150 reward points
  • Dinning – 200 reward points

TOTAL = $104.52

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Just for reference (You can look at more rewards in this link)

 

In order to calculate the AVERAGE worth of one reward point, I have pick a random voucher to use as reference. In this reward $1 = 175 points, In other instances you may find your points worth more or less than a dollar….Nonetheless its all free money

CITI CASHBACK 

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Under the same scenario:

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Compute your Cash back (I have gotten lazy)

 * I personally think the Citi reward card is lousier than the cash back card*

 

As you can clearly see this card caters more towards RETAIL spending.

In a “card” shell, you have to first identify your spending behaviour (Where does your money go in a month) followed by how can you reduced your spending and if you can’t, what are the best outcome you can derive from spending that $xxx amount.

p.s you can’t get such a good rebate/discount using cash or debit cards

Disclaimer; As repressible individuals, we have to understand our own spending ability and behaviours to choose the best financial product that fits us.

 “+ 1 Knowledge point on my continuous Journey to Financial Independence “

Disclaimer; As repressible individuals, we have to understand our own spending ability and behaviours to choose the best financial product that fits us.

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