How I Earned $500 in Cashback

I had heard about cashback programs before, but it wasn’t until I saw a friend earn back hundreds of dollars that I decided to give it a try myself. The idea of getting rewarded for purchases I was already making seemed too good to pass up, and after a year of consistent effort, I managed to earn $500 in cashback. Here’s exactly how I did it, and how you can too

Step 1: Researching the Right Cashback Programs

To start, I spent some time researching the most popular cashback platforms. The key is to find platforms that align with your spending habits. Here are the three platforms I ended up using the most:

1. Rakuten: Rakuten is one of the most well-known cashback platforms, offering cashback on purchases from thousands of online stores. The best part? It’s free to sign up. I installed the browser extension, which made it easy to see which sites offered cashback while I was shopping.
2. Honey Gold: Honey is another useful browser extension that automatically applies coupon codes at checkout. While Honey itself doesn’t always offer cashback, its rewards program, Honey Gold, gives you points that can be redeemed for gift cards. It’s not direct cashback, but it’s an easy way to save.
3. Credit Card Rewards: I also used a cashback credit card that offered 1.5% on all purchases and up to 5% on certain categories throughout the year, like groceries and gas.

By using a combination of these platforms, I was able to maximize my savings.

Step 2: Making the Most of Everyday Purchases

To really make cashback work, it’s important to focus on everyday purchases. Big-ticket items like electronics are great, but small, consistent purchases can add up over time. Here’s how I approached my spending:

• Groceries and Household Items: Since these are things I have to buy anyway, I made sure to always check whether the grocery store offered cashback through Rakuten or a similar platform. Many grocery delivery services also offer cashback deals, so I switched to using them more frequently.
• Online Shopping: I did most of my shopping online, where cashback platforms are much more prevalent. Anytime I needed to buy clothes, gifts, or even tech gadgets, I always checked if the store was partnered with Rakuten or if Honey Gold could be applied.
• Recurring Bills: I realized that some of my recurring payments, like phone bills or even my internet service, offered small cashback percentages through my credit card. Even though the percentages were low, these payments added up over time.

Step 3: Timing Purchases During Promotions

Another key part of my strategy was taking advantage of seasonal promotions. Around Black Friday, Cyber Monday, and other major sale events, cashback platforms like Rakuten often increase their cashback rates temporarily. During these periods, I saved big on higher-cost items like electronics and household appliances. I planned some of my larger purchases around these times to maximize the cashback percentage.

Additionally, I always made sure to use the browser extensions from these platforms while shopping online. Sometimes I’d find a surprise deal or extra cashback rate just by having them installed.

Step 4: Redeeming Cashback at the Right Time

I didn’t just redeem my cashback earnings as soon as they were available. Instead, I waited until the end of each quarter to cash out. Rakuten, for example, pays out quarterly, so I received my earnings every three months. This allowed me to see the accumulated cashback in a larger lump sum, which felt more satisfying and made a noticeable difference in my budget.

In the case of Honey Gold, I chose to redeem my points for Amazon gift cards, which I used to buy household essentials, saving even more money out-of-pocket.

Step 5: Staying Consistent

Earning $500 in cashback over the course of a year didn’t happen overnight. It required consistency. I made it a habit to always check for cashback opportunities before making purchases. By setting up automatic payments with my cashback credit card and using browser extensions like Rakuten and Honey, I didn’t even have to think about it most of the time. These small steps became part of my regular routine.

The Breakdown: How the $500 Added Up

Here’s how the numbers broke down over the year:

• Groceries and Household Items: $200 (using a combination of cashback from Rakuten and my credit card)
• Online Shopping: $150 (from purchases like clothes, electronics, and gifts)
• Seasonal Promotions: $100 (mostly from big holiday sales where cashback rates increased)
• Recurring Bills: $50 (from utilities and subscription services using my cashback credit card)

By sticking to this plan, I was able to earn around $500 in total cashback. I didn’t have to change my shopping habits drastically, just made sure I was using the right tools at the right time.

How You Can Do It Too

If you want to replicate my success, here’s a simple action plan:

1. Sign up for cashback platforms like Rakuten, Honey, and use a cashback rewards credit card.
2. Install browser extensions to remind you when cashback is available.
3. Make sure you use the platforms for all of your purchases, especially for groceries, online shopping, and recurring bills.
4. Be strategic with your spending—look for increased cashback rates during sales and promotions.
5. Stay consistent and track your cashback earnings over time.

By following this approach, you can easily start earning extra money on purchases you’re already making. Remember, cashback isn’t a get-rich-quick scheme, but it’s a smart way to save more on the things you buy every day. With the right strategy and consistency, you can make a noticeable difference in your finances, just like I did.