Earn While You Spend

Discloser: The following post reviews a financial product I love and use every day. I have not been contacted or asked to review this product. I genuinely feel it's a great product, and more people should know about it. I am not a financial planner, nor am I writing about a way to get rich. This product has made it easier for me to handle my finances during a difficult time. Please remember to always do your research before signing up for anything. Included at the end is a referral code you can use to sign up. Enjoy!

Credit card companies offer rewards like cashback to incentivize consumers to use their products. The money earned from cash back can add up quickly. However, it may not be worth it if you're like most people who buy with a credit card with the mentality of "I'll pay it back later."

Don't get me wrong. I think that credit cards are excellent when used correctly. Assuming you use your credit card to buy things you can already afford to pay for, it's a phenomenal way to grow your credit score. But unfortunately, most people use credit cards to pay for things they can't afford at that moment. That's how these companies want it because they make the bulk of their revenue from the interest we build on our purchases. Often, we pay more interest payments than what we earn back from the rewards programs. Thus, making the cashback rewards useless.

Credit card debt is the reason I decided to make a change in my spending behaviours. Two years ago, just after my car accident, I could no longer work because of my injuries. As a result, I had to adjust my budget to keep afloat. Insurance income benefits barely covered bills and food on the table.

That's when I found KOHO. KOHO is a fintech company in Toronto that offers financial services that are open, intuitive and designed to help their customers get a handle on their finances. They've developed a system that allows you to spend, save, track, and earn from one account. It's the ultimate prepaid credit card. The best part is that there are no hidden fees, no catches, and it's easy to use!

The Ultimate Way to Spend and Save.

As I mentioned above, your KOHO account has many uses. It's a chequing account, a savings account, and a prepaid Mastercard. How is that? Like a visa debit, you can make purchases online using your KOHO card and set up automatic bill payments like any other credit card. In addition, every purchase earns cashback which you put towards a savings goal or just put back into your spendable balance. I have earned over $600 in cashback rewards on everyday spending. Plus, I am not paying interest on these purchases because I only spend what I have.

In addition to the cashback rewards, KOHO earns you 0.5% to 2% interest on your daily balance, depending on your subscription plan. Keep in mind this is a yearly interest rate, so it's not very much, but it's still calculated on your balance. You can set money aside for specific goals without moving money to a different account. You can even set up an emergency fund using the vault feature. KOHO locks the money you've set aside without removing it from your account, allowing you to access it anytime.

Like many chequing accounts, they have the round-up feature to help you save. You can round up to the nearest $1, $2, $5, or $10 on every purchase. That money is then available to put towards a saving goal, or you can put it back into your spendable balance. To date, I've earned over $800 rounding up. Saving is easy when it's all in one place.

Build Your Credit

If the pandemic has taught us anything about the economy, it's that the economy is fragile. The cost of living has increased significantly and has impacted millions of people financially. If you're anything like me, chances are you didn't have enough set aside to make up for inflation today. According to Borrowell, the average credit score in Canada is 761. If you don't know your credit score, I recommend creating a Borrowell account here. It's free and gives you weekly updates on your credit score and recommendations to help you maintain and grow your credit score.

KOHO has a credit builder feature that allows you to build your credit for $10 monthly over six months. It's an easy and affordable way to increase your credit score.

I love using my KOHO card and recommend it regularly. There are so many other benefits to using a KOHO account. There are three subscription plans ranging from $0 to $9 per month. You can review them here for further details.

They even have a referral program. For every person you refer, you and this person receive $20 when they make their first $5 purchase using their card within 30 days of activation. Click HERE to get started and to receive $20 after you spend your first $5 within 30 days. I hope you love KOHO as much as I do. Let's get our finances under control in 2023!