Meeting a Minimum Spending Requirement in the Real World

You've just received your shiny new credit card in the mail and it's waiting for you to spend, spend, spend! You have to put purchases on it. You have to meet a minimum spending amount. You have to buy things. You have to make all of your dreams come true.

BEST DAY EVER.

But let's pretend that you live in the real world and you're constrained by things like a budget, bills that actually have to be paid, and an income that isn't limitless.

The most frequent question I get is probably, "How are you able to meet such high minimum spends?" Because, let's face it, if you were able to put whatever you wanted on a credit card, life would be easy and you'd be sitting on the raddest pile of stuff. The question isn't really how the money is spent (because we could do so in about five seconds) but rather what the money is spent on.

(Note: For us, a $3000 spend in 3 months is high. We did $5000 in 3 months once--by getting really creative--and the stress gave me an eye twitch. There are bloggers who can easily spend $10,000 on a credit card and they probably lead sad lives surrounded by their piles of gold.)

The number one rule when making a spending requirement is to not spend more than you have!

(Should I also underline, italicize, and capitalize that entire sentence? Because, seriously...)

When you get your new credit card, you are going to treat it like a debit card. You are going to have the money already budgeted, you know how you're going to spend it, what you're going to buy, and where every penny is going. When you make a purchase, you'll log onto your account and immediately pay it off, just as if it came directly from your checking account to begin with.

Because you're responsible and junk.

Now that the lecture is over, here are ten ways that you can get creative in making a minimum spending requirement.

1. Put everrrrrything on it

Are you buying groceries? Shampoo? Garden soil? A ladder? Vitamins? Toilet paper? Shoes? Movie tickets? Fireworks? A Big Mac and fries? Put it on your card. No matter where you go, put every little purchase on it. Put as much normal, everyday spending on it as possible. That will lessen the need for gimmicky spends and save you stress.

2. Learn which utilities can be paid via credit card

It's a sad moment when you realize that you can't pay your rent/mortgage, your student loans, or your car payment with your credit card. But there should be smaller utilities that you can. We can pay our internet, cell phone, water bill, car insurance, and Netflix on a card. The others all have to come out of a bank account. Some of these have an automatic withdrawal, which means that several times a year I have to call and change the card. It's kind of a pain, but we need every cent to count when meeting a minimum spend.

3. Open a card right before an unusual purchase

You should always know your financial situation before opening a card. This is especially helpful if you know that you are going to be making a purchase that isn't normally in your budget. For us, these items have included things like landscaping, car repairs, pieces of furniture, family photos, and medical bills.

4. Ask family members

Not sure if you can meet a minimum spend on your own? Ask family or friends if you can put one or two of their larger purchases on your card and then have them give you the money instead of the store. Obviously, this only works if they haven't yet discovered the joys of free travel!

5. School fees

There has to be some advantage to shelling out tons of cash for tuition (besides gaining an education and bettering yourself and all that jazz). And there is! Most universities will allow you to pay your fees with a credit card. In some instances, there may be a 3% fee. Usually, paying fee to use a credit card isn't recommended because you're normally earning a 1%-2% reward back. However, if it's to meet a minimum spend, we go for it.

6. Work expenses

If you are able to have a choice between a company card or being reimbursed for your work expenses, now is the time to choose reimbursement. This adds additional spending that isn't coming out of your own pocket. This does create another level of potential confusion, so you'll need to make sure that you're being reimbursed before your bill becomes due or that you have funds to cover it until your reimbursement is processed.

7. Pay bills in advance

This one only works if you're extremely organized, know where you'll spend money, and are aware of your billing cycles. If you're nearing the end of your spending window and need a little extra bump, you can purchase gift cards to cover next month's bills. For example, if you know you will spend $300 in food and gasoline at Costco, buy cash cards online to use as your spending money for the following month since you can't buy all of that food in advance. You'll still have spent the money, but often your bill won't be due until the next month and you'll have the funds to pay the bill since you're using the Costco cash cards at the store instead of actual cash. Make sense? Be careful and be aware of when and where you're spending. Additionally, some gift cards cannot be purchased in the store using a credit card. You have to use cash. But you can usually get around this by purchasing the gift card online.

Things not to do:

1. Buy and return

2. Become disorganized

3. Spend more than you have

(Do I even need to say it again?) No amount of points or miles is worth killing your credit.

#basics