This article is brought to you by American Express.
One thing you learn as an adult is that every day there’s something to spend $40 on. You could be on track for a no spend day when that random bill or a birthday dinner will pop up, derailing your efforts.
Yep, we all have to buy things but is there a way to make your daily spending go further?
While it’s a financial responsibility, using a credit card may help your money work harder for you, through the ability to earn rewards on your spending. For example, American Express has created the American Express Essential® Rewards Credit Card.
And a reminder, this information is general in nature and does not constitute financial product advice. You should obtain independent financial advice before making any financial decisions.
What is points hacking?
Despite the name, points hacking isn’t about having anything taken. Rather, it’s all about maximising the benefits of your credit card points to get things like flights, upgrades, hotels and household goods.
Many credit cards have sign up offers that may offer benefits like additional reward points. For example, if you choose to sign up to the American Express Essential® Rewards Credit Card, you could receive 40k bonus Membership Rewards Points***** when you spend $3,000 on eligible purchases in your first 3 months*****.
For context, that could be converted to 20k Velocity Frequent Flyer Points and may give you a return Economy Reward Seat between Sydney and Melbourne or Melbourne and Byron, (plus taxes, fees and carrier charges****).
How could I earn points on my regular spending?
Outside of sign up bonuses, credit cards often provide customers with rewards and incentives. This includes points for things you have to spend money on most days like food, drinks and shopping.
Recently recognised by Finder as Australia’s most rewarding credit card for Eats and Drinks, American Express is providing five Membership Rewards Points for every $1 spent on eligible restaurants, cafés and selected food delivery such as UberEats and Menulog****** with the American Express Essential® Rewards Credit Card.
Think about the points earned on your everyday coffee, a few meals out for date night and fast-food lunches in the office. By the end of the year, you could points hack your way to a domestic flight.
If you also love to binge watch the latest shows, with the American Express Essential Rewards Credit Card, you can earn three Points per dollar spent on selected streaming services, including Netflix, Stan, Spotify, Kayo, Binge and Amazon Prime.
What about points on big ticket items?
If you’re anything like me, a large portion of your yearly budget is allocated to experiences like concerts and festivals.
Credit cards such as the American Express Essential Rewards Credit Card membership also include pre-sale ticket access to the artists travelling the globe (legit the only reason I got Taylor Swift tickets last year was because of my friend’s Amex pre-sale), and VIP access to Entertainment Lounges.
As the designated ticket buyer in the group chat – who sees a big chunk of money leave your debit account before your mates pay you back – a product like a credit card may mean you earn rewards on that expense. Just make sure your friends have sent you cash before the monthly bill hits (and you factor in any interest you may have to pay on the credit card purchase).
Through its research*** Amex also found that young Aussies are actively seeking ways to enjoy life while pursuing financial freedom. Big mood.
Amex found that 47 per cent of young Aussies purchase a new piece of clothing weekly as a ‘little treat’. As a result, some Amex Card Members can earn two Points for every dollar at major stores including Myer, Kmart, The Iconic, Amazon, Uniqlo, JB HI FI, Harvey Norman and Bunnings****** (for those of you partial to a home reno and sausage sizzle).
It goes without saying that signing up to a credit card is an important financial decision. However, if you are spending money on little treats and daily expenses anyway, you could be accruing points if you purchase these with a credit card.
The American Express Essential Rewards Credit Card fee is $9 a month. The card also includes Smartphone Screen Cover as well as purchase and fraud protection. You can learn more about it here.
The important stuff
American Express Australia Limited (ABN 92 108 952 085). American Express Consumer Credit Cards are offered, issued and administered under Australian Credit Licence No 291313
**Earn 40,000 Membership Rewards Points when you apply online by 28 January 2025, are approved, and spend $3,000 on eligible purchases on your new American Express Essential® Rewards Credit Card within the first 3 months. T&Cs apply. Available to new American Express Card Members only.
***The research involved a quantitative online survey of 1,500 employed young Australian adults aged 24 to 35 (Gen-Z and Millennials). The sample was selected to reflect the latest ABS Census data on age, gender, and location. Fieldwork was conducted from June 7th to June 21st, 2024, in partnership with Pureprofile, an independent global data and insights organization listed on the Australian Securities Exchange (ASX).
****Terms and conditions apply when booking economy rewards seats with Virgin.
20,000 VFF points – enough for a return Economy Reward Seat between Melbourne and Byron with Virgin Australia, plus taxes, fees and carrier charges.
- A return Economy Reward Seat between Sydney and Byron is 11,800 Velocity Points plus $66.72 in taxes, fees and carrier charges. A return Economy Reward Seat between Melbourne and Byron is 17,800 Velocity Points plus $137.58 in taxes, fees and carrier charges. The quoted redemption fares, taxes, fees & carrier charges are correct as at 25 November 2024 and are subject to change. Fares are subject to availability. Points value for Sydney to Byron is based on a domestic return Economy Reward Seat fare with Virgin Australia and must be booked through the Velocity website. Points value for Melbourne to Byron is based on a domestic return Economy Reward Seat fare with Virgin Australia and must be booked through the Velocity website. Taxes, fees and carrier charges are payable in addition to Velocity Points redeemed. Virgin Australia Airlines carrier charges are payable per sector, per person. Reward Seats and associated charges are not eligible for Points earn. Seats are limited and may not be available at peak times or on all flights. Price may vary until ticketed. Payment surcharge may apply. You can change or get a refund for your booking by paying a fee and any fare difference, at least 24 hours before scheduled departure. You may also request a refund for other reasons, including under the Australian Consumer Law. View the Velocity Rewards Seat fare rules for more information. Some flights may be operated by a partner airline. Full terms and conditions at velocityfrequentflyer.com.
******Membership Rewards® Program for The American Express Essential Rewards Card.
Subject to the Terms and Conditions of the Membership Rewards® program available at americanexpress.com/en-au/rewards/membership-rewards/terms.
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