How We Turn Monthly Spending Into Free Retirement Dollars
I like a lot of credit cards out there. Many offer great perks, travel benefits, or big sign-up bonuses if you play the game right. But (and I swear this is not an advertisement!) the Fidelity Rewards Visa Signature card has quietly become my family’s favorite. Why? Because it does one thing really well: it turns our everyday spending into long-term investing, and gives us significant FREE MONEY.
Note: I am a fiduciary and share only tools and strategies that I personally find useful. I receive no commission, payment, or benefit from Fidelity, Elan Financial Services, or anyone else for mentioning this card. This post reflects my personal experience and is not financial advice. Investing incurs risk and results are not guaranteed.
How I Use It
My family puts nearly everything on this credit card (paying the balance off 100% every month): groceries, gas, utilities, insurance, online shopping, the random Wawa run. On average, we charge $5900/month on the card and that results in about $118 a month in rewards. Instead of cashing those rewards out for miles, statement credits, or gift cards, I’ve set them to sweep directly into my Fidelity IRA retirement account.
Why That Matters
At first glance, $118 a month might not seem like much, but money compounds when you give it time. I plugged the numbers into an investment calculator to see what would happen if I simply let those rewards grow at an average 7% annual return over the next 10 years.
Hypothetical growth of investing $118/mo over 10 years, invested in a low-fee index fund yielding an average of 7% YOY. Investing incurs risk and results are not guaranteed.
The potential result after 10 years? It could grow to more than $20,000.
Why This Card Works for My Family
Simplicity: It’s a flat 2% back on every purchase as long as I apply the rewards to an eligible Fidelity investing account (Traditional IRA, Roth IRA, Rollover IRA, SEP IRA, Fidelity Charitable Giving Account, Fidelity HSA). No rotating categories or complicated rules.
Direct to Investing: The real magic is that it deposits right into my Fidelity account, so I don’t have to think about it.
Steady Growth: I love that it feels like invisible saving. Every grocery trip, Target run, and utility payment grows into something bigger for future-me.
FREE MONEY: Seriously, it’s free money because I would be making these purchases anyway.
This card isn’t about luxury travel perks, squeezing every last point out of the credit card game, or giant sign-up bonuses. It’s plain and practical, which is exactly why it works for us. Other cards may be better if you’re chasing miles or short-term rewards. For us, the return on this one pays off in the long run. If you’d like to check it out to see if it’s for you, here’s a direct link to the Fidelity Rewards Visa Card page.
Note: I am a fiduciary and share only tools and strategies that I personally find useful. I am not an affiliate, just a fan. I receive no commission, payment, or benefit from Fidelity, Elan Financial Services, or anyone else for mentioning this card. This post reflects my personal experience and is not financial advice. Investing incurs risk and results are not guaranteed.
