How to Earn Travel Rewards on a Budget—Even If You Follow Dave Ramsey
You don’t need to open a dozen credit cards a year to enjoy luxury travel with points. By strategically using just one or two cards that align with your spending habits, you can unlock tremendous travel value—without compromising your budget.
If you’re new to this hobby and want to start slow, my top two picks are the Chase Sapphire Preferred and the American Express Gold Card. But if you’re only going to get one card, I recommend the Amex Gold. It carries a $325 annual fee but includes valuable monthly statement credits and rebate offers. Most importantly, it earns 4x Amex Membership Rewards points at grocery stores.
Why does that matter? Because grocery stores sell more than just food—they sell gift cards. By using the Amex Gold to buy gift cards for places you already shop (think Home Depot, Lowe’s, Amazon, etc.), you can turn routine purchases into major rewards. Every $1 spent earns 4 points—worth at least 8% back in travel when redeemed strategically.
How to Follow the Dave Ramsey Method and Earn Credit Card Points
Dave Ramsey advocates strict budgeting and avoiding credit cards altogether—but if you’re financially disciplined, you can combine his cash envelope method with strategic credit card usage to earn travel rewards on a budget, without going into debt.
Step 1: Choose One Strategic Card
Stick with just one rewards card. The Amex Gold is ideal because:
- 4x points at supermarkets (up to $25,000/year)
- 4x points at restaurants (up to $50,000/year)
- 3x points on flights booked directly with airlines
- Monthly dining credits (Uber, Dunkin, and more)
These bonuses align well with everyday spending categories—especially groceries.
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Step 2: Use the Grocery Store Gift Card Strategy
Groceries are a big part of any family budget. The Amex Gold lets you earn 4x points on those purchases, and many grocery stores also offer fuel point bonuses on gift card purchases.
For example, Kroger often runs promotions where you can earn 4x fuel points when buying gift cards. That means you’re double dipping:
- 4x Amex points on your credit card
- 4x fuel points for discounted gas
This trick helps you stretch your grocery budget while earning rewards for future travel.
Step 3: Replace Cash Envelopes with Targeted Gift Cards
If you follow the envelope method, don’t carry cash. Instead:
- Deposit the amount of cash for your purchase from your envelope into your bank account.
- 2. Head to the grocery store and use your Amex Gold Card to purchase a gift card for the retailer where you plan to shop. Be careful not to buy more than you intend to spend—gift cards are non-refundable, so unused balances can go to waste. For larger purchases, consider a $500 Visa gift card.
This way, you stick to your budget AND earn 4x points on your everyday spending.
Note: Visa or Mastercard gift cards should only be used for large purchases (like car insurance, major repairs, or one-time payments of $350+), because they come with a $4.95–$6.95 activation fee. On a $500 gift card, that’s about 1.3%—still worth it when you earn 2,000 points (worth ~$40 in travel).
Step 4: Pay Off Your Card Immediately
After each gift card purchase, pay off your card right away using the money you deposited earlier. This keeps your balance at zero and aligns perfectly with Dave Ramsey’s debt-free philosophy.
Step 5: Track Your Budget
Gift cards make tracking your budget simple. Just like envelopes, once the balance hits zero, you stop spending in that category. This adds a layer of discipline that mirrors Ramsey’s method while still allowing you to earn valuable rewards.
Why the Amex Gold is the Best One-Card Strategy
Your top expenses are likely housing, groceries, and transportation. While you can’t pay a mortgage with a credit card, and insurance is rarely a bonus category, but groceries are—and that’s where the Amex Gold shines.
Key Benefits:
- 4x Points at Restaurants (up to $50k/year)
- 4x Points at Supermarkets (up to $25k/year)
- 3x Points on Flights booked directly with airlines
- Monthly Dining Credits
- High Points Value (~2¢ per point through transfer partners)
Use Rakuten to Earn Even More Points
Another reason to hold the Amex Gold? It unlocks Amex points via Rakuten, a cashback site that lets you earn Membership Rewards instead of cash. I’ve earned over 120,000 points in two years by clicking through Rakuten before making online purchases. Learn more about shopping portals here.
How Many Points Can I Earn?
Let’s say you spend $800/month on groceries and $200/month on gift cards. That’s $12,000 per year at 4x = 48,000 points.
Add a sign-up bonus (often 75,000+ points), and you’re looking at around 125,000 points in year one—worth $1250+ in travel.
What Can You Do With 125,000 Amex Points?
Here are just a few real award redemptions as of April 2025:
- Dallas → Denver: 4,500 points
- Dallas → San Diego: 7,500 points
- Dallas → Costa Rica: 12,500 points
- Dallas → Hawaii: 17,500 points
By transferring your Amex points to Hawaiian Airlines, and from there to Alaska Airlines, you can unlock incredible deals.
Final Thoughts
My “Travel Rewards on a Budget Strategy” combines Dave Ramsey’s discipline and budget control with the power of travel rewards.
- Stick to one card (Amex Gold)
- Use gift cards purchased with your credit cardÂ
- Pay off your balance immediately
- Use Rakuten to boost earnings
Stay disciplined, spend only what you’ve budgeted, and enjoy the travel perks you’ve earned. Whether you’re traveling to Costa Rica, Hawaii, or Denver, the points you accumulate from everyday spending can get you there for a great value—without ever going into debt. Dave Ramsey credit card strategy equates to debt is dumb, pay it off the same day. The envelope method with credit cards is possible, and you can earn credit card points without debt.
