Photo by CardMapr.nl on Unsplash

Why I Love My AMEX Platinum

Plus, A Much Needed Life Hack for Saving Money in the 2023 Recession

Disclosure: This post may contain affiliate links.

It’s needless to say that I love my AMEX Platinum Card — I mean, it is the title of this article.

I’ve had the card for just about 2 years now, and I couldn’t be happier.

But even more than the feeling of prestige that one may or may not get from this shiny hunk of metal sitting in their wallet, you do have the potential to get some serious savings.

And — truthfully — I can’t think of a better time to take advantage of this.

The benefits here are hard to compete with.

Recession Savings

Budgeting is even more important now than it ever was. With a looming recession and record-high inflation, I need to pay extra close attention to what I’m spending my money on.

I can make that task easier by pre-planning what services I’ll be using for the entire year.

I’ll also be spending a lot less money overall when I take advantage of the retail and entertainment credits that American Express offers users of their Platinum Card.

Some of my favorites are:

$155 Walmart+ Credit

This credit covers the full cost of a Walmart membership each month during the year.

$240 Digital Entertainment Credit

This credit gives $20 back each month and can be used for subscriptions to Audible, Disney+, Hulu, ESPN+, Peacock, SiriusXM, and The New York Times.

(I like to mix and match up to that limit.)

$200 Uber Cash

This credit gives you $15 dollars each month to go towards Uber and/or Uber Eats. You’ll also get an additional $5 in December — giving you a total of $20 in credits that month.

$100 Saks Credit

This credit lets you treat yourself a little by giving you a $50 credit twice per year to go towards a purchase at Saks Fith Avenue.

Overall Value

These credits that I mentioned total $695 dollars alone. That’s the equivalent of the entire annual fee for the AMEX Platinum card — but the savings don’t stop there!

There are many more benefits, including a $200 hotel credit, and a $200 Airline Fee Credit. (For more info and the full list of benefits & credits, visit https://www.americanexpress.com)

My Savings Trick

Okay, okay. I don’t think this is really a trick, but not enough people do it — that’s for sure.

Credits certainly are helpful, but I also need to save money while I’m shopping.

That’s why I use my AMEX points.

With the AMEX Platinum Card, users earn points with every purchase:

5X POINTS (On flights booked directly with airlines or through the American Express Travel website.)
5X POINTS (On prepaid hotels booked on AmexTravel.com)
1X POINTS (On all other Purchases.)

Every time I need to buy something, I use my AMEX card. Yes, some vendors don’t accept AMEX — in which case I use my Visa— but most do.

Every purchase I make earns me points. I can then use those points to directly pay down charges I’ve made on my card, or I can redeem them for gift cards. Though, I exclusively choose gift cards — every time.

Gift Cards

Since the AMEX Platinum is a charge card (not a credit card), I don’t carry a balance.

That means that I use my Platinum card kind of like a debit card instead. When I make a charge, I pay it off as soon as possible — with the cash I’d already budgeted for.

This fact by itself renders the ability to credit my points to charges on my card, kinda useless.

But not only that, when you redeem points that way, they are actually valued at a lower dollar amount then if you redeemed them for store gift cards.

Even the AMEX “gift card” that they offer is more expensive in that sense compared to their partner store gift cards.

Groceries

Time after time I find that the card that offers the best redeemable value is the Walmart gift card.

(Though, at the time of writing this there are other options such as Target — just make sure to do your math!)

So, that’s what I do. I charge all of my expenditures and bills to my Platinum card, then I redeem the points for a Walmart gift card.

Then, I spend it all on groceries.

Now, that may sound boring to you but my grocery bill increased over $60 year-over-year courtesy of record-high inflation!

Seriously, my bill this week would have been just under $100 last year. Instead, it was $157.

I redeemed my points for a $100 gift card and paid only $57 in cash.

It was like getting a hundred dollars for doing what I’m already doing. What could be more exciting than that!?

Moreover, those savings add up and I can use that money somewhere else — maybe in a Roth IRA, 529 Plan, index fund, or high yield savings account.

Summing It Up

It’s hard out there right now. The economy is struggling right now and everyone is feeling it, that’s for sure.

But I still love my AMEX Platinum card. It was and still is an amazing tool that I can use to better my personal finances.

The key is — as always — to plan and prepare.

This article was originally published on OhHeyItsRay.com