which is healthier for you?

It’s no secret that I used to be on Crew Cashback all through my 20s. Again then, as a single feminine who was spending lower than $800 every month, cashback playing cards made essentially the most sense for me as a result of even when I clocked 4 miles for each single greenback, I might solely have sufficient for a 1-way enterprise class flight to Philippines (3 hours) at most after a whole yr. Naturally, getting 1 month again in bills was way more engaging to me!

Now, when you have an analogous life profile and like to have chilly, onerous money again in your pocket so that you can spend on different stuff, then cashback playing cards should still make sense for you.

TLDR: If you happen to spend lower than $1,000 a month, then cashback playing cards could attraction to you. Sometimes, this may be the recent grads, or people of their 20s / 30s who aren’t but married with youngsters and maintain their spending to a minimal.

Quick ahead to at present (a decade later) the place I’m now a mom of two and CFO of my family. That additionally signifies that I pay (upfront) for the majority of our household’s bills, which provides as much as a cool $7,000+ each month. For the primary 2 years, I attempted to proceed my cashback playing cards sport technique…however failed miserably because the cashback limits stored slapping me throughout the face.

Ultimately, I spotted it was time I converted to Crew Airmiles.

Which was why 2 years in the past, I made peace with my former on-line nemesis The Milelion once I advised him I lastly gave up on cashback playing cards and was now accumulating miles. And at present, we’re combining forces in SingSaver’s Final Showdown between cashback and miles.

What my typical family bills seem like

Limits of cashback playing cards

particularly for those who run a family

Let’s discuss how cashback playing cards reallllly maintain you again when your bills are simply 4 to five digits a month.

As an example, the Maybank Household & Buddies card can provide 8% cashback on your groceries, meals, transport, telco invoice, Netflix and even live performance tickets (amongst others) – these usually cowl nearly all of my spending classes. The one drawback? That is capped at S$25 cashback every for five classes (S$312 spending), and you may get not more than S$125 in whole per calendar month even for those who cross the $800 month-to-month minimal spend. However hey, take a look at how a lot my bills are in these classes:

For my on-line buying, I used to depend on my UOB One card to get 10% cashback, however then realised I couldn’t persistently hit the $500 minimal spending a month required to be eligible if I used to be pairing it with my above Maybank card. In any other case, I may additionally use the UOB EVOL card for 8%, however with the cashback capped at $20 per class and requiring $600 minimal spend on the cardboard monthly, that meant $250 for on-line buying and me to spend no less than $350 elsewhere each, single month.

I couldn’t hit that.

What’s extra, I couldn’t discover a option to get first rate cashback on my earnings taxes, household insurance coverage premiums and youngsters’s training charges ever since most of the banks nerfed the cashback advantages on CardUp, leaving simply Financial institution of China Household and Maybank Platinum Visa because the final remaining contenders (however capped at $2,400 spend month-to-month i.e. $28.8k a yr). And guess what? Final yr alone, these 3 classes already added as much as a cool $75,000 for us.

Regardless of how I labored inside my arsenal of cashback playing cards, the capped class cashback limits ($250 – $300) monthly made it nearly inconceivable for me to match each greenback to no less than some type of acceptable cashback yield.

So after attempting for a yr, I gave up and switched to miles bank cards as a substitute.

Instantly, my monetary life turned a lot much less hectic! I used to be free of the foolish class spending caps which might be a mainstay in most cashback playing cards, and solely wanted to observe:
(i) which classes,+
(ii) the utmost spend
that I placed on every miles card each month.

No kidding, check out how these the classes and max month-to-month spend appears like on these 4 mpd playing cards:

Is it any surprise why I switched?! In actual fact, I ought to have performed it sooner – from as early as 2018 as soon as I turned a dad or mum.

Earn as much as 34,000 bonus miles plus items whenever you apply for miles playing cards this month

If you happen to’ve been considering of making use of for any bank card to up your miles sport, I counsel you do it from now between 8 Could to 4 June 2024 through SingSaver. That’s as a result of not solely do you get extremely beneficiant sign-up rewards, you additionally get to vote (together with your card functions) to find out whether or not Crew Miles or Crew Cashback will win!

A lot of you ask which playing cards I personally use and would advocate, so I might counsel that you simply first get these 3 playing cards to start out incomes 4 miles for each greenback throughout the next classes:

However in fact, if you wish to actually earn most miles by placing even your youngsters’ training charges, household insurance coverage premiums and earnings taxes in your bank card, then I might advocate that you simply learn my article right here to see the whole miles bank card stack to get.

Within the meantime, right here’s a fast overview of what I personally use for the beneath classes because the family CFO each month:

The very best half is that not like cashback playing cards, miles playing cards don’t require you to hit a minimal month-to-month spend earlier than you’re eligible to start out incomes rewards. That permits you to begin incomes miles out of your very first greenback.

My pricey nemesis-turned-ally Milelion insisted that I wanted to publicly clarify why I had switched sides, so I hope this publish lets you perceive why.

TLDR: Funds Babe grew up, had youngsters and therefore spends 4-digits each month for her family and dependents…so cashback playing cards now not match her spending wants.

On the finish of the day, the selection between miles vs. cashback playing cards actually comes right down to a person’s way of life profile and preferences. I stated this identical line earlier than in 2017 so nothing has modified…aside from my life stage spending habits.

It was good to have been capable of maintain my bank card payments beneath $1,000 a month once I was a younger, single feminine with no youngsters to be financially liable for…however alas, life occurs 🙂

In fact, for those who’re younger and frugal (like I used to be!), miles playing cards could not essentially serve you effectively as a result of it’ll take eternally earlier than you earn your first free flight; however for those who’re a dad or mum paying for greater than 1 individual’s monetary dues (i.e. your youngsters or the aged), then cashback playing cards will solely maintain you again.

Your selection between a far and cashback bank card ought to align together with your spending habits and way of life. Nothing has modified.

Apply for the very best miles (or cashback) playing cards for you right here + vote together with your card functions on SingSaver at present!

You’ll additionally get as much as 34,000 bonus miles plus items like Apple iPad, Dyson, Samsonite luggages, amongst different items and fortunate attracts (which could simply see you win a free return Enterprise Class journey to Switzerland)!

Singapore, let’s see whether or not it’ll be Crew Airmiles or Crew Cashback to emerge champion in June.

With love,
Funds Babe