Learn how to make every dollar count with strategic credit card use.
Adulting. It’s one of those buzzwords millennials coined to describe the often mundane and complex responsibilities of growing up. While the term may feel overused, the struggles it captures—like managing finances—are undeniably real.
Navigating the financial landscape involves more than just earning a paycheck; it’s about learning how to save, invest, and spend wisely. Among these, mastering the art of cashback offers an easy way to optimize spending while saving money.
What is Cashback?
Cashback is essentially a rebate on your spending. When you use a cashback credit card, the bank returns a percentage of your expenses, effectively giving you discounts on your purchases. With the right strategy, this can save you hundreds of dollars annually.
Step 1: Set a Budget
The foundation of financial stability begins with a budget. Divide your income into categories:
50% for essentials (bills, groceries)
30% for discretionary spending (dining, entertainment)
20% for savings or investments
Apps can make tracking these categories effortless. For instance, setting automatic transfers to savings accounts ensures you don’t accidentally overspend.
Step 2: Choose the Right Credit Card
Credit cards aren’t just for convenience—they’re tools for financial optimization. For example, the UOB EVOL Credit Card offers 8% cashback on online and mobile transactions, provided you spend at least $600 monthly. With no annual fee (if you make three purchases monthly), it’s ideal for tech-savvy shoppers.
If you’re handling larger expenses like holiday bookings or insurance premiums, the UOB Absolute Credit Card might be better. Offering 1.7% unlimited cashback on all transactions without minimum spending requirements, it covers purchases other cards may exclude.
For everyday essentials, the UOB One Credit Card provides cashback on groceries, transport, and utilities, with special offers like up to 15% cashback for new users until Dec 31, 2023.
Step 3: Maximize Cashback Strategies
Adopting a multi-card strategy lets you optimize benefits based on spending categories. Use a high-percentage cashback card for smaller purchases and a card with unlimited cashback for larger expenses.
For example:
Use the UOB EVOL Credit Card for online shopping.
Switch to the UOB One Credit Card for groceries and public transport.
Reserve the UOB Absolute Credit Card for significant one-off costs.
With tools like the UOB TMRW app, you can easily track spending across multiple cards.
Step 4: Make Your Money Work for You
Some cards, like the UOB EVOL Credit Card, also unlock higher interest rates on linked savings accounts. By spending a minimum amount monthly, you can increase your savings’ interest rate—earning up to 7.8% p.a., depending on your balance.
Adulting Made Smarter
Growing up comes with challenges, but managing your finances doesn’t have to be overwhelming. Learning to leverage cashback credit cards can make a tangible difference in your financial journey. With the right tools and strategies, you can take control of your money while enjoying the freedom of spending it.
Because let’s face it—being an adult is hard enough. Saving while you spend? That’s just smart.
