Using an appropriate cash back credit card, you can save on each of these expenses, as shown in table 2 below:

                                         Table 2

# The above figures are hypothetical expense estimates.

From the table above we find that travel by air and railways both constitute major expenses. The air travel expenses are as much as 51% of the total monthly expenses. On basis of this, one should analyse the monthly and recurrently expenses and choose a card that offers maximum value (in form of cash rewards) on your spendings.

It is important to note that cash rewards are not the same as cash. When a card company entitles you to cash rewards, it is not extending liquid cash in hand or in you bank account. The cash rewards are credited in the ‘card account' and can be adjusted against the future payments on the card.