Vivek considered himself a financially intelligent person. He never missed a discount, collected reward points religiously and knew every cashback offer available on his credit cards.
One Friday evening, he received a notification.
“Shop for ₹12,000 and get ₹1,000 cashback!”
Vivek immediately called his friend Nitin.
“Bro, I’m going to save ₹1,000 today!”
Nitin asked, “What are you buying?”
“Nothing important. But the cashback is excellent!”
Vivek opened the shopping app and started browsing. Within twenty minutes, he had ordered wireless headphones, a smartwatch, a backpack and a fancy coffee machine.
Total: ₹12,450.
He proudly showed Nitin the order confirmation.
“See? Almost ₹1,000 cashback!”
Nitin looked confused.
“Wait. You spent ₹12,450 to receive ₹1,000?”
“Exactly!”
“But you didn’t need any of those things.”
Vivek smiled.
“That’s why it’s called an offer. You have to take advantage of it.”
For the next few days, Vivek enjoyed his purchases. The headphones sounded wonderful, the smartwatch counted his steps and the coffee machine made excellent coffee.
Unfortunately, he had forgotten one small detail.
His credit card bill was approaching.
When the statement arrived, Vivek opened it confidently.
Outstanding amount: ₹12,450.
He checked his cashback balance.
₹1,000.
He smiled briefly, then noticed the payment due date.
He called Nitin.
“Bro, there’s a problem.”
“What happened?”
“The bank wants ₹12,450.”
“Yes, that’s what you spent.”
“But I received ₹1,000 cashback!”
“Then your effective spending is lower. Pay the bill in full.”
Vivek suddenly became defensive.
“Why should I pay so quickly? I can pay the minimum amount and keep the remaining money in my savings account.”
Nitin sighed.
“Do you know how much credit card interest costs?”
Vivek went silent.
That evening, he finally paid the full statement balance and decided to review his shopping habits.
He even deleted a few shopping apps.
Three days later, another notification appeared.
“BIGGEST SALE OF THE YEAR! EXTRA ₹2,000 CASHBACK!”
Vivek stared at the screen.
His finger slowly moved towards the notification.
Then he remembered Nitin’s warning.
He immediately called his friend.
“Nitin, I need your help. The bank is trying to make me financially irresponsible again.”
Nitin replied, “Ignore the notification.”
Vivek sighed.
“Can you temporarily block my internet?”
Paisa LOL takeaway: Cashback is a reward, not a reason to spend. Buying unnecessary products to earn rewards can cost far more than the cashback received. Always evaluate the actual need and pay credit card statements in full by the due date whenever possible.
