When an electricity bill for a three-bedroom home near Cincinnati, Ohio, jumped to $405.03 for the period between Aug. 15 and Sept. 15, the household faced a sharp increase from previous months when bills ranged between $200 and $300. High summer temperatures requiring air conditioning, the addition of an electric vehicle, and rising electricity costs all drove the increase, according to data from the U.S. Energy Information Administration showing Ohio residential electricity prices rose 57.9% between August 2020 and August 2026.
Using Credit Cards to Earn Rewards on Bills
To offset utility costs, the author utilized 2% cash-back credit cards to pay bills and direct earnings toward retirement or savings goals. The Fidelity Rewards Visa Signature Card offers unlimited 2% cash back when funds are deposited into an eligible Fidelity account with no annual fee.
Additionally, because upcoming household projects required higher spending, the household opened the Bilt Palladium Card to earn a welcome bonus. The card features a $495 annual fee, earns 2X points on everyday purchases, and offers up to 1.25X points on rent and mortgage payments. Paying bills with credit cards requires paying balances in full to avoid high interest rates, and consumers must check for utility company processing fees that could cancel out rewards.
Building a Cash Safety Net
To prepare for rising expenses, the household prioritized growing a cash safety net by depositing money into a high-yield savings account. The family uses Betterment’s Cash Reserve account, which features automated deposits, savings categories, and a 4.25% APY including a 0.75% boost, along with a $10 minimum deposit and FDIC insurance coverage up to $2 million.
To bulk up this fund, automatic weekly deposits of $25 were established, adding at least $100 a month to savings without straining the budget, supplemented by larger manual deposits when extra cash is available. While future plans include saving for energy-reducing installations like solar panels, these immediate steps help make higher utility bills more manageable.
