I find that people often struggle greatly with the concept of miles. How are they different to cash? The simplest answer is that miles are worth more or less than cash depending on how you use them but that they can be worth MUCH MORE than cash when used correctly.
I recently was looking at booking my honeymoon. For most of us, including me expenses are a challenge for this kind of trip. A lot of people understand the concept of cash back and for many it may seem like a great answer when trying to offset expenses on a trip. I logged onto my Chase Sapphire Preferred card from which I earned a 45,000 point bonus after signing up and an additional 6,216 points from spending. Chase points can either be redeemed for cash or transferred to an airline or hotel. If you don't understand transferring points to an airline or hotel it would seem like an obvious answer to take the cash. DONT!!!!
Say I just wanted cash, the points are worth: $512.60. (51,260 X .01)
$512.60 back for spending is pretty generous but it is a TERRIBLE use of your points. Guess what those same 50,000 Chase points could get you if you transferred them to British Airway for example? How about a round trip economy ticket from the US to Europe or South America? Round trip US first class? A one way business class ticket to most of the world? You with me? These tickets I am talking about are worth at least $1,000 making it a minimum of double the cash value offered by Chase if used correctly. The first ticket I mentioned, a one way from New York to Rio De Janeiro prices out to well over $3,000 dollars by itself making it SIX times more valuable than the cash. Boom! Vacation!
British Airways points though? Absolutely! British Airways is a partner of American, US Airways and many others meaning you can use British Airways points to book awards on those airlines often for less than those airlines would cost in their own point currency. Nice!
An added excitement I get from points is the sense that they allow you to do things that you otherwise might not be able to afford or may not even consider doing. I will find 512.60 fairly regularly in my life but I may never be able to swing the style or comfort that $3,000 dollar and above tickets to South America or Europe go for. Use your points and miles to take you to the places of your dreams. For free.
So the question is simple...what do you want $512.60 or $3,062.00 back?
Interested in this card or planning a trip? Email me and I will be happy to help!