<p>These days the hot topic in personal finance on social media seems to be on credit card points optimisation. This has led to many queries on how one can get free trips from credit card reward points. Of course it feels nice to get free flights or get discounts by redeeming credit card points, but this often leads to people losing sight of the much bigger picture, long-term financial stability.</p><p>Most of these hacks get people to believe they are financially savvy. But saving a few hundred rupees here and there rarely moves the needle when it comes to the overall financial life. Focusing too much on micro-wins can mean higher spending as it is only when one has high spends that one can get high reward points. People end up spending Rs 60,000-70,000 per month in order to get a complimentary hotel stay. The focus also shifts from real financial goals like retirement, home purchase, etc to these short term benefits, giving the feeling that one is financially active. However, these activities are good to have but do not really mean much from a wealth building perspective.</p>.Top banks offering best fixed deposit rates in October 2025: Check list.<p>Monitoring multiple credit cards, tracking offers, and managing reward expirations is also very time consuming. Financial freedom comes from planning and preparation. And preparation doesn’t come from cashback apps. It comes from consistent saving, thoughtful investing, and goal-based planning. Also, the small amounts saved through cashbacks get spent over being invested. The same amount, invested regularly, compounds into something meaningful over time.</p><p>Another area of small wins remains intraday trading and IPOs. Both these options can make people feel they can make good returns in a short period, but the fact is that these are small wins. As per data from SEBI, over 70 per cent of intraday traders in the equity cash segment incurred losses in FY 2022-23. Most IPOs these days come with lofty valuations and leave very little on the table for investors. Worse, most IPOs provide exit to existing investors and do not use the funds to grow the company. Moreover, with the level of oversubscription in these IPOs, the number of shares allotted are minimal and even if they list at a huge premium, the absolute profits remain inconsequential.</p><p>All these small, adrenaline fueled wins are speculative in nature and will not make one financially secure. Individuals need to reflect if these wins, which make them feel good for the moment, really help them build wealth. With the changing economic environment, the need of the hour is to prioritise financial security.</p> <p>(The writer is Financial Educator & Founder, Finsafe India Pvt Ltd)</p>
<p>These days the hot topic in personal finance on social media seems to be on credit card points optimisation. This has led to many queries on how one can get free trips from credit card reward points. Of course it feels nice to get free flights or get discounts by redeeming credit card points, but this often leads to people losing sight of the much bigger picture, long-term financial stability.</p><p>Most of these hacks get people to believe they are financially savvy. But saving a few hundred rupees here and there rarely moves the needle when it comes to the overall financial life. Focusing too much on micro-wins can mean higher spending as it is only when one has high spends that one can get high reward points. People end up spending Rs 60,000-70,000 per month in order to get a complimentary hotel stay. The focus also shifts from real financial goals like retirement, home purchase, etc to these short term benefits, giving the feeling that one is financially active. However, these activities are good to have but do not really mean much from a wealth building perspective.</p>.Top banks offering best fixed deposit rates in October 2025: Check list.<p>Monitoring multiple credit cards, tracking offers, and managing reward expirations is also very time consuming. Financial freedom comes from planning and preparation. And preparation doesn’t come from cashback apps. It comes from consistent saving, thoughtful investing, and goal-based planning. Also, the small amounts saved through cashbacks get spent over being invested. The same amount, invested regularly, compounds into something meaningful over time.</p><p>Another area of small wins remains intraday trading and IPOs. Both these options can make people feel they can make good returns in a short period, but the fact is that these are small wins. As per data from SEBI, over 70 per cent of intraday traders in the equity cash segment incurred losses in FY 2022-23. Most IPOs these days come with lofty valuations and leave very little on the table for investors. Worse, most IPOs provide exit to existing investors and do not use the funds to grow the company. Moreover, with the level of oversubscription in these IPOs, the number of shares allotted are minimal and even if they list at a huge premium, the absolute profits remain inconsequential.</p><p>All these small, adrenaline fueled wins are speculative in nature and will not make one financially secure. Individuals need to reflect if these wins, which make them feel good for the moment, really help them build wealth. With the changing economic environment, the need of the hour is to prioritise financial security.</p> <p>(The writer is Financial Educator & Founder, Finsafe India Pvt Ltd)</p>