008 - 10:13:25, 20.23

John Diaz: [00:00:00] Ever dream of going to Japan, not just once, but every year. Me too. I'm John. And that dream became my mission, which is why I started rewarding routes. A podcast about making Japan travel possible. Year after year, I learned how to leverage credit cards to earn points and miles turning everyday spending into flights and hotel stays across Japan.

Each episode I'll share what I've learned from booking award travel to building meaningful itineraries and deep diving into regions, traditions, and experiences that make this country so special. Let's build your rewarding route one trip at a time. If you ever looked at a credit card bonus and thought, ah, there's no way I could spend that much in three months, you're, you're not alone.

Because I remember feeling that way when I was first getting into this hobby of, uh, points and miles. , The truth is, , you probably already spend [00:01:00] enough each month. You just need to know how to use those everyday expenses strategically. So in this episode, I'll break down 10 simple and realistic purchases that can help you hit that minimum spend without overspending or getting into debt.

So let's get into it. is. Minimum spend. So what minimum spend is, , it's the required amount you have to spend within a specific period. Usually it's three months or so to earn a new credit card. Welcome bonus, , you'll have a variety of different welcome bonuses. So let's take the Capital One. Venture X as an example. Right now they're offering 75,000 miles. But you have to spend 4,000 within the first three months from the account opening. So you see the 4,000, and I know for some people it's like, whoa, that's a decent chunk [00:02:00] right there. But when you break it down, it's only $1,333 a month.

And right there you can break it down every time you see a signup bonus and a spend on it, break it down by the months to. Make it easier to visualize. Uh, so we'll go into the next step here, and that is to track it, keep it simple with a budget sheet or any kind of tracker that works for you. For me personally, I have a.

Budget sheet within Google Sheets, and it helps me monitor my entire , progress, and stay organized. I have all of my expenses, everything is lined up by month, so I can visually see how my spend is going to be forecasted for that month. I would say this is a very crucial step. , This helps avoid any overspending, any unnecessary spending.

And you know exactly where you stand with these purchases that you're [00:03:00] making. Let's go ahead and get into the number one everyday purchase that you can make or help make towards that minimum spend. And that's move your subscriptions and auto pays over to that card if you have a lot of subscriptions and autopay is already set up.

I know this can seem like a bit of a tedious, , task, but it, if you have a lot, maybe it takes 20 minutes, but it's definitely not that hard. I do it all the time. And just log into all your accounts, like your Netflix, your Spotify's, your, your streaming services like, uh, Hulu, and HBO Max Disney plus.

, If you have any cloud storages, um, gym memberships, , any kind of membership, any kind of subscription that you can think of, , go ahead, put your new card on those subscriptions so that they can start bringing in those payments that you're already making. You're already making these payments.

You don't have to add a bunch of [00:04:00] subscriptions. Just do what you're comfortable with right now and stick with those. Subscriptions and memberships that you have right now since you're already paying those and just put it on your new card.

These consistent monthly payments will add up faster than you think. So definitely go ahead and move those subscriptions and auto pays over to that new card. Number two, we have. Any household expenses. This could be groceries, it could be gas, it could be shopping, , like essential shopping at, , whatever store you like.

I like Costco. Whatever kind of shopping you do. , This could be for our cats. , Any cat food. I also have my E pass. That's hooked up to this, , maybe some Amazon purchases that you make. So any kind of household expenses that you have. And this is a very big category 'cause groceries for us, it's one of those categories that's always in the top three, , whenever we look at our budget sheet.

So that's another good reason [00:05:00] to, , have a budget sheet, have something to reference back to. And when you're starting off, it's hard to forecast how much you're spending in these categories, but as time goes on, you'll see how your spend is. And if you need to make any adjustments, and I know I've made adjustments in the past, uh, four years of doing, or five years of doing budgeting.

You can see your spend and , how you should probably focus on maybe other categories or not. Or reduce other categories. So it's really good to see visually, to understand your spend and to focus on categories that matter to you, , and to maximize your income. Because sometimes we don't notice that we're spending in areas that maybe, , we don't notice.

But when you visually see it and you see how much you spend, , maybe going out to eat or any other categories, , you can quickly see a change is needed. So yeah, it, it's really good to [00:06:00] visually see your, your budget sheet or any way of tracking that you prefer.

All right. Number three will be utility bills. , You can put your electric bill. You could put water, your internet, your phone bill. I noticed sometimes these utility bills won't allow you to use a credit card. I, I believed I had this problem with my electric bill where they only took my bank information and no credit card was, um.

Accepted. So just see whatever you can put on the credit card. 'cause these are things you're paying for anyways, so if you can just switch those over. If not, it's not a big deal. But you can see within the first three things that we've talked about that starts to all add up really quickly and especially within a three month period, you'll probably hit those.

Those targets within maybe two months. All right, let's move on to number four. And number four is prepay insurance. So [00:07:00] for me personally, we pay our car insurance every six months. and then this way it allows us to have a kind of larger payment at the six month mark. , Of course we put away money every month on the side as if we were paying it monthly.

But say we get a credit card and, , that payment's coming up, well, it's perfect because it's usually a nice little chunk that can go towards that minimum spend. So that's something , to ask about if your car insurance that you pay six months or 12 months in advance. I definitely look into that option because it ends up being a big chunk.

Just put that money on the side so that when that period comes, you can go ahead and pay that off. So it's definitely a nice way to, , spend several hundred dollars towards a minimum spend. All right, number five, medical expenses. Now this can be a very big chunk, , of your minimum spend. So [00:08:00] paying any upcoming doctor's visits, uh, your prescriptions, uh, maybe have dental work that you need.

This could be a really good opportunity to use your credit card to pay. It's a very good time to use that credit card to pay for a doctor's visit or some dental work that you might need. This is something I will be taking advantage of the beginning of next year as my wife and I are having our , very first baby.

So I know we will have some medical expenses before our deductible. So. This will probably be a good way to earn a signup bonus. That way we can get some value back from paying off these medical expenses before we hit our deductible. Number six will be estimated taxes or any business expenses. Now, I know this one's not gonna be for everyone.

I'm just speaking from some of our experience and something that I plan on doing. , My wife and I do have an Etsy [00:09:00] shop. So that is considered self-employed and we can pay estimated taxes or quarterly taxes. And I know with a credit card, sometimes they charge between 1.75 and 1.85%, um, for using a credit card as a fee.

But if it's a higher sign up bonus, maybe it's uh, 8,000 or 10,000 or whatever. , This is a good strategy and this is something, , we're gonna be leveraging. I didn't know about this, , until recently, so this is something we'll be taking more advantage of. But if you're self-employed, uh, know that this is an option that you could pay your taxes with a credit card.

No, it's gonna be a, , small percentage fee because you're using your credit card, but it's a great way to earn a sign a bonus. So it's definitely something to consider even paying off like some of your, like, business expenses, like, maybe subscriptions you have or tools that you [00:10:00] need.

, You can put on that new card as well. And there's business cards that are also really great for this. So just thought I'd mention that for anyone that's self-employed or is thinking about being self-employed, you can use this option to get sign up bonuses. So number seven, , this one's opening cards strategically.

What I mean from this is if you know you have a, an expense coming up, a, a good expense, maybe wait until you get that new card so that you can put that expense that you saved up to hit the signup bonus. So one example I have is back in April, I had, , waited to apply for the AA Advantage business card.

That's an American Airlines business card and I plan on using that card plus, , some other points from American to book a Japan Airlines flight. If you haven't listened to my last episode, we talk all about flights to Japan. [00:11:00] That's going to be our next way of booking flights through American Airlines since they're one world partner, and so is Japan Airlines.

And I get more deep into that in that, um, previous episode. But yeah, I waited to apply for that AA advantage card because I knew I had saved up to get an e-bike and the e-bike was going to be a big chunk of that signup bonus. So I waited until I was approved and I got the card and then I went ahead and made my purchase on that expense.

And that was a known expense that I knew was coming up. So if you have anything that you're saving up for. Yeah, definitely you can consider getting a new card. Once you get that card and you get approved and you have it in hand, go ahead and make that expense that you saved up for. 'cause then this just helps knock a chunk off of that minimum spend, plus everything else we've talked about.

So , you'd hit that sign of bonus probably in no time. Another example I can give you is [00:12:00] moving expenses. Currently we're working on getting a home and we're really excited about this new chapter for us and with the baby on the way. It's just really exciting. But, um, just know with us being able to get this home, we're gonna have to put some money into it.

Get some paint, maybe get some blinds. Uh, some furniture. So these are expenses that we know are coming up so we can plan to look at what cards fit our goals right now, apply for it, and then go ahead and get whatever we need for our new home. Just know the AA Advantage business card was actually my last.

Card that we've opened between us because we knew by the summer we wanted to get a home. And when you're buying a home, you don't want to show that you've applied for too many cards recently. So just a [00:13:00] tip to anyone who's looking to buy a home, avoid opening up credit cards or any, , lines of credit.

Because they do look at that when you're going through the home buying process. So just thought I'd give you a little tip because I know we get really excited about travel, , using points of miles with travel cards and leveraging credit cards. But know when you're buying a home, um, sit tight and, , don't apply for any.

And that way you can kind of go through the process of getting the home. And then once you get the home. Then you can continue and go from there. But that's just from my experience, and yeah, it's gonna be really exciting. So that's a expense we have coming up. Number eight, holiday and gift shopping.

So right now when I'm recording this, it's October 13th, the holiday season's right here. So during October, it's actually a really good time to apply for a new card with Black Friday in [00:14:00] November. Everyone's gonna be spending on, , buying gifts for others. So it really is a perfect time to capitalize on that spending you'll be making during the holiday season.

And honestly, you might just hit your sign on bonus during the holiday season alone, maybe within one month, depending on how crazy you get, but along with all your other purchases. And then you add that with the holiday season. You'll, you'll hit a sign, a bonus in no time. Just make sure you save for it and you have the money.

The goal is not to get into debt or to overspend, to stay within your comfortable means and just spend what's necessary and gifts giving's. Great. So enjoy spending for the holidays and might as well get some value back. In number nine, it can kind of piggyback off the holiday season because I know a lot of people are gonna be traveling.

So travel expenses are a great way to meet minimum spend, depending on where you go. [00:15:00] Just make sure if it's international, the credit card you're applying for has no foreign transaction fees. But if you're staying within domestically, you'll be good.

In April, when I talked about opening up my, , American business card, I was going to Japan, , later, that month in April. So that card has no foreign transaction fees.

So not only did I get my e-bike or in early April, but I was able to use that card throughout Japan to book , my train tickets and, , eat out when they took cards and I hit my signup bonus in no time. So if you know you have a trip coming up, , it's a good time to get a new card and then put those expenses from the trip, like eating out or whatever activities you have planned on that new card.

Travel expenses really add up during your trip, so this is a fantastic way to put your spend on a new credit card to hit that minimum spend.

And number 10, shared [00:16:00] payments, group dinners. So this is something I've been able to do several times whenever I got a new card and we went to a family dinner or went out with some friends, and what you can do is offer to pay the bill on your card.

You can explain to them, Hey, I got a new card. I'm trying to hit a signup bonus. And you're paying for that bill, but you're having everyone pay you back hopefully, right? No, but um, from my experience, everybody pays me back right there at the table. I just kind of calculate the bill for everyone. But this can be a great way because, you know, normally those dinners or any kinda group shared payments, um, , is a good chunk.

So this could be a very good opportunity to take those moments when you're out celebrating something or, , just having a good experience with others that you love and you can offer to pay the bill and just have them pay you back for [00:17:00] their portion. Recently when we went on a trip to Seattle, , it was really cool to see, 'cause I know a few of my friends have been getting their own cards and hitting sign up bonuses and, and this is something they did, , a few times throughout that trip.

, It was cool. , I really hope that I can just share my experience with others and, , give them an opportunity to experience what I've experienced, , leveraging these spends and taking these amazing trips and, and traveling more frequently, and traveling more affordably.

This is what it's all about. So I love seeing that. And, , I, of course I paid them back right there at the table and yeah, it's a really good way to just rack up some spend, um, that everybody pays you back on. So definitely a good opportunity. So those were the 10, those aren't the only, , expenses that you can pay, but I just wanted to make sure that I explained that I know everybody's [00:18:00] financial situations are different.

Everybody's comfortable with spending different amounts. , Don't worry about maybe seeing others spend 15,000 on a credit card. Or those, uh, higher end cards. Don't worry about it. Just stick with whatever you're comfortable with. And this is about just staying within your means. Stay within your budget.

Don't overspend, don't get into that for this, that's not worth it. It's, um, it's about being intentional with your spend, tracking your purchases, staying with your budget. And when it's time that you have a big expense, maybe think about getting a new card and then you can leverage that spend that you're gonna spend money on anyways and put it on the card and that way you get a sign, a bonus 'cause you hit the minimum spend and you get value back from maybe something that wasn't super exciting, something that just came up like maybe your car.

You had to pay something for your [00:19:00] car. And I recently had to pay for some brake pads and, , rotor and, uh, for the AC to get fixed. So those are expenses that aren't super exciting, but if you use a credit card and it helps you gain points and hit minimum spends, why not get that value back from it?

So I hope this episode was super informative and I hope you are able to get some value from it.

And I have some really exciting, , things coming up for this podcast and. I'm really excited. I'll probably be announcing those more towards the end of October, beginning of November. , I have a lot going on right now as we're trying to close on a home, and we also have our first, our first little baby coming in January and things have been pretty crazy.

, Just trying to find pockets of time to record and to. Prepare for what's to come for the podcast 'cause I have some more [00:20:00] plans and exciting plans to, to expand in. So I'll leave it at that and I'll see you guys on the next episode. Take care now.