Grocery Shopping Reward Points: A Savings and Investing Pro-Tip
A Perfect Time to Save More Money
Do you take advantage of reward points every time you shop for food at your grocery store? Since most of us these days have increased our grocery shopping budget and aren’t eating out as much, this is a perfect time to save even more money. If this Pandemic has taught us anything, savings and cash are KING.
Grocery Shopping Rewards
It takes about 5 minutes to sign up as a reward card member to most grocery stores and you could be saving $20-$35 every week you shop. (We go to the store every Friday). Not only can you save that on the total cost, you also build up points that can be used to discount fuel/gas or save an additional percentage off on your groceries after you reach a certain amount of points. For example, last week we saved $27 on our groceries, but had enough points saved where we also received an additional 5% off the total amount!
A Compounding Computation of Money Saved Using Reward Points
Here’s some math. You might recall a post to our stories I made about how much money spent a day can waste $10k a year. Roughly $27.35 a day. If you saved $27 every week you shopped at the grocery store that’s an annual savings of $1,404! (52 weeks x $27.00).
Compounding Interest in a Positive Way
Instead of spending that $1,404 on stuff and you decided to invest that cash into retirement with a 8% earning Index or Mutual Fund you would earn $112.32 in positive interest (if you don’t add any additional funds to it) and after 12 months you would have $1,516.32. If you didn’t ever add any more money to that and let it sit for 20 years, you would earn $ 5,139.98 in positive interest and have a total balance of $6,543.98!
Future Investment Amount
Here’s the mind-blowing piece…if you took that $1,404 you saved every year at the grocery store and invested that into the same account, after 20 years of contributing you’d have $805,418.68!!!
Take advantage of the savings from your grocery shopping and invest it!