Use the points, Luke...

In a follow up to my menu planning post from last week, I wanted to address a subject that is near and dear to my heart: supermarket credit card reward points!!

I'm sure everyone has encountered/or has a credit card that has points to be used for free groceries/merchandise at your local supermarket (which of course no longer just includes food, but electronics, home items, cosmetics, and sometimes clothes). I have one of these cards, and although I am trying to decrease my debt, I often funnel my grocery purchases onto this card and then transfer the money when I get home. (I can manage this for groceries, but no other purchases in my life - go figure)

So what is the best way to maximize the use said points? Through conversation with the flesh and blood people in my life, I have come up with the following methods:

More Santa, Less Scrooge: This concept is to save up your points all year and use them at Christmas time. You can use them to eliminate the extra cost of holiday baking, appetizers, and other food costs, as well as actually buy gifts (video games, DVD's, boxes of chocolates, etc.)

Use them or Lose them: Not the most strategic method, but many people simply use their points for groceries as soon as they get to a redemption point providing several little budget boosters throughout the year. I ask the question though, does the $10 savings actually get recognized somewhere else, or does it get lost in the shuffle?

Budget Overdraft: This is the method I use personally. I budget $250 bi-weekly for groceries, but sometimes this is just not enough. We have all had those weeks where you run out of shampoo, toilet paper, toothpaste, and detergent at the same time, or you were so diligent with incorporating the food in your freezer to your meal plan that you have to buy more meat- which can be costly. For the times that I go under budget I simply charge the groceries (and pay when I get home), for the day I go over budget I redeem points to bring me down to the my budgeted level of $250. This helps me from ever going over budget on groceries.

Whatever you choose, if you are paying for rewards on a credit card make sure you use them, and use them wisely!!