Did you know that there are much smarter ways to use the cash back rewards from your credit cards? Instead of taking that money to spend on something else, you can have your cash back working for you. One of those ways is by investing it. Overtime, if you invest the money you receive from your cash back incentives you can grow it into a nice sized nest egg.

If you wonder how it works, it’s simple. Let’s say you earn $200 in cash back every year. If you use that money to invest in an account that earns you interest, your money will grow.

Some credit cards even allow you to link your credit card to investment accounts. This is a great way to have your money working for you. Your best bet is to look for credit cards with no restrictions on categories. If you get a card with restrictions, you may not be able to cash in the money to invest or you may not be able to transfer to another account.