I get it.  The world of points and miles can be overwhelming.  Sure, you sign up for an amazing credit card offer because the thought of a free trip is exciting.  But then how do you figure out how to actually redeem the points?  And then what do you do once you’ve taken a vacation with those said points?  How do you continue to travel on points and miles, and stay on top of your credit and finances?  Strategy and financial discipline will be your guides when it comes to securing award travel redemptions.

How we got started in points & miles

I always find it interesting to note how we got started in award travel redemptions (traveling on points and miles).  A few years ago, my husband switched jobs.  He shifted gears slightly to consulting – on the plus side, he would be able to work remotely, on the downside he would travel occasionally.  One of our first cards was the Southwest Rapid Rewards® Priority Credit Card.  He would book flights on Southwest Airlines, on his Southwest Credit Card, as well book hotels through the site when he could.  

After every trip, when the points would kick in, I would start researching where we could fly.  We also had the Southwest Companion Pass thanks to his strategy on booking work travels, so I could fly free every time he flew the airline.  I started thinking to myself – there has to be a way where we could do this more often – where we didn’t need him to travel for work to accumulate points and miles.  My research led me to the world of award travel redemptions, credit card offers, and points and miles – and that’s how for the last 5+ years we’ve saved thousands of dollars each year on travel.

First things first

I will say that this requires financial discipline.  We’ve always been in the habit of paying our credit card bills on time, each and every month.  So fortunately for us, we don’t worry about carrying over balances and accumulating interest – frankly speaking, while it’s always a work in progress as far as managing expenses – we aren’t interested in maintaining a lifestyle we can’t afford.  Here are some housekeeping to-do’s that you should take care of first from my general experience throughout the years:

1 – Make sure you have no debt (mortgage aside).  If you feel you can manage, let’s say – with a college loan, for example – then go for it.  Managing points and miles earned from multiple credit cards requires strategy and discipline, so my advice – the less you have to worry about, the better.

2 – Make sure you are in the habit of paying all your monthly expenses on time, each and every month – without carrying over any residual balances.  This is key.  If you want to save money on travel and/or cut down travel expenses, then all credit card balances need to be taken care of on time.  The point is to limit travel expenses, not incur more debt so you can travel – otherwise those trips on points and miles aren’t “free” (taxes and fees aside).

3 – Make sure if you have a partner, spouse, or loved one – or a Player 2 as we say in the points and miles world –  he/she is on board.  When you have two people in the game, you can accumulate more points by referring one another, as well as get more cards for travel together.  

4 – Stay organized – I use the TravelFreely app to keep track of all our credit cards.  You can sign up for free.  The best thing about TravelFreely?  It recommends the best credit card offers, even if they don’t earn a commission.  It keeps track of all our cards, notes when annual fees are due, shows minimum spend due dates for all cards, and even recommends when it’s time for each of us to apply for another card.  We all have enough things to keep track of in life – and TravelFreely makes keeping track of credit card offers streamlined.

Wash, Rinse & Repeat

The bulk of your points will come from credit card sign up bonus offers.  After that, points earned from regular monthly bills and expenses will add to that bulk.  Once you meet a minimum spend on an offer, you’ll naturally look to see how you can use those said points and miles earned.  You may wait to accumulate more points and miles, or you may even have enough for a flight, hotel stay, and/or maybe both.  This will depend on how many you have in your travel party, where you are going, and when.

The point is that, in order to replenish your points and miles balances, you’ll need to continue to apply for more cards.  I can understand how continuously applying for credit cards, and/or having multiple cards can feel intimidating.  The key is to develop a strategy that works for you – what cards are keepers, what cards to downgrade, and what (ideally, increased) offer to jump on next.  (I’m not a financial advisor by any means, but it’s generally not great for your credit if you close out an account.)

For our family, for example, we both don’t always go for every increased credit card offer.  I’m personally wary of applying for hotel or airline branded credit cards without a tentative plan. (Southwest aside, because that’s a simple one).  For example, my husband and I both have Chase cards, he has had the Chase Sapphire Reserve® for the last couple years, and I have the Chase Sapphire Preferred® Card  Now the Chase Sapphire Reserve comes with a hefty annual fee of $550, but it’s a card where we can reap and find value in the benefits offered, year after year.  We generally apply for cards that offer us flexible rewards currency:  so offers from Chase, Capital One, and/or Citi are top on our list.

Conclusion

This is a very broad and general overview of award travel strategy.  It’s important to remember that it starts with your mindset and how you look at your ongoing expenses and monthly bills.  The right card(s) used – to pay bills – can be life-changing.  If creating and collecting experiences, while minimizing travel costs, with your family and loved ones is your goal – you’re in the right place!  We are just getting started, so follow along and come holiday with us as we take on one bucket-list place at a time, all thanks to points and miles!