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5 Tips To Churn Your Way To Free Travel

5 Tips To Churn Your Way To Free Travel

Churning is the credit card strategy the banks don’t want you to know about. In fact, it’s so effective, banks have been setting up new rules year after to year to prevent gamers from exploiting the opportunity. The good news is, travel hackers are still ahead of the banks, and we’ll share their secrets.

Churning is simply the strategy whereby you open a credit card, collect welcome bonus miles, use them for a free flight and either close or stop using the credit card. You then do the same thing over and over again. That’s right, you get multiple free flights every year just by signing-up for new credit cards.

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Some people needlessly spend dollar after dollar, day after day, year after year, trying to earn enough points from their credit cards for a free flight. That strategy is needlessly long and inefficient. Why spend $50,000 to get 50,000 miles, when you can get them just by signing-up for a new credit card?

Getting new credit cards is the fastest and cheapest way to exploit credit card incentive offers. While many other industries have high switching costs (mobile you may have a contract, insurance you may have a 1 year term, mortgage you may have a pre-payment penalty), getting a new credit card is easy. In fact, you don’t even have to get rid of your old one. Some people carry over 40 active credit cards! Here’s how to churn your way to free flights.

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1. Find a Credit Card With A Free Flight Welcome Bonus

There are a ton of credit cards that offer sign-up bonuses offering free flights. However, not all bonuses are created equal. For example, some bonuses are large enough for return airfare to anywhere in North America, others are only good for a short-haul flight. Do a little research in advance to figure out the best opportunities.

2. Watch Out For Minimum Spending Requirements

Credit card issuers got wise to churning years ago. As a result, many require that you spend a minimum amount on your credit card within the first 3 months to become eligible for the welcome bonus. Make sure you find out what threshold you have to meet, if any, to become eligible to receive the bonus.

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If the minimum spend requirement exceeds your budget, you may want to consider manufacturing your spend by pulling some of your future expenses forward by purchasing gift cards for gas or groceries. For example, if you’re $400 short of meeting your $1,500 spend requirement, buy $400 of gas and grocery gift cards you know you’ll use the following month.

3. Focus on First Year Free (FYF) Offers

To make churning really profitable, focus on credit cards that waive the first year annual fee—that way the flight is truly free. Before the end of the first year, simply cancel your card to avoid the annual fee.

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That said, there are some cards that never waive their annual fee and are still worth churning. Why? So long as the welcome bonus is worth more than the annual fee, then it’s profitable to churn. That said, with so many first year free offers in the marketplace, you’re best off focusing on those first.

4. Time It Right

Credit card issuers provide different sized welcome bonuses throughout the year. Familiarize yourself with their offers so that when that too good to be true bonus becomes available, you’re ready to pounce. The same issuer can double the size of a welcome bonus from one month to the next, so it pays to keep yourself informed of the best credit card deals in the marketplace.

5. Rinse, Wash, Repeat

After you’ve done it once, do it over and over again. You don’t want to apply for too many cards at the same time, as your credit score will suffer. However, if your credit score is strong to begin with, applying for a new credit card 3-4 times a year is very doable. You can also monitor your credit score throughout the year to ensure you’re not being overly aggressive.

Featured photo credit: ThePixelman/Pixabay via pixabay.com

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Marc Felgar

Marc Felgar is an aging, health & senior care expert focused on improving the lives of mature adults.

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Last Updated on September 28, 2020

The Pros and Cons of Working from Home

The Pros and Cons of Working from Home

At the start of the year, if you had asked anyone if they could do their work from home, many would have said no. They would have cited the need for team meetings, a place to be able to sit down and get on with their work, the camaraderie of the office, and being able to meet customers and clients face to face.

Almost ten months later, most of us have learned that we can do our work from home and in many ways, we have discovered working from home is a lot better than doing our work in a busy, bustling office environment where we are inundated with distractions and noise.

One of the things the 2020 pandemic has reminded us is we humans are incredibly adaptable. It is one of the strengths of our kind. Yet we have been unknowingly practicing this for years. When we move house we go through enormous upheaval.

When we change jobs, we not only change our work environment but we also change the surrounding people. Humans are adaptable and this adaptability gives us strength.

So, what are the pros and cons of working from home? Below I will share some things I have discovered since I made the change to being predominantly a person who works from home.

Pro #1: A More Relaxed Start to the Day

This one I love. When I had to be at a place of work in the past, I would always set my alarm to give me just enough time to make coffee, take a shower, and change. Mornings always felt like a rush.

Now, I can wake up a little later, make coffee and instead of rushing to get out of the door at a specific time, I can spend ten minutes writing in my journal, reviewing my plan for the day, and start the day in a more relaxed frame of mind.

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When you start the day in a relaxed state, you begin more positively. You find you have more clarity and more focus and you are not wasting energy worrying about whether you will be late.

Pro #2: More Quiet, Focused Time = Increased Productivity

One of the biggest difficulties of working in an office is the noise and distractions. If a colleague or boss can see you sat at your desk, you are more approachable. It is easier for them to ask you questions or engage you in meaningless conversations.

Working from home allows you to shut the door and get on with an hour or two of quiet focused work. If you close down your Slack and Email, you avoid the risk of being disturbed and it is amazing how much work you can get done.

An experiment conducted in 2012 found that working from home increased a person’s productivity by 13%, and more recent studies also find significant increases in productivity.[1]

When our productivity increases, the amount of time we need to perform our work decreases, and this means we can spend more time on activities that can bring us closer to our family and friends as well as improve our mental health.

Pro #3: More Control Over Your Day

Without bosses and colleagues watching over us all day, we have a lot more control over what we do. While some work will inevitably be more urgent than others, we still get a lot more choice about what we work on.

We also get more control over where we work. I remember when working in an office, we were given a fixed workstation. Some of these workstations were pleasant with a lot of natural sunlight, but other areas were less pleasant. It was often the luck of the draw whether we find ourselves in a good place to work or not.

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By working from home we can choose what work to work on and whether we want to face a window or not. We can get up and move to another place, and we can move from room to room. And if you have a garden, on nice days you could spend a few hours working outside.

Pro #4: You Get to Choose Your Office Environment

While many companies will provide you with a laptop or other equipment to do your work, others will give you an allowance to purchase your equipment. But with furniture such as your chair and desk, you have a lot of freedom.

I have seen a lot of amazing home working spaces with wonderful sets up—better chairs, laptop stands that make working from a laptop much more ergonomic and therefore, better for your neck.

You can also choose your wall art and the little nick-nacks on your desk or table. With all this freedom, you can create a very personal and excellent working environment that is a pleasure to work in. When you are happy doing your work, you will inevitably do better work.

Con #1: We Move a Lot Less

When we commute to a place of work, there is movement involved. Many people commute using public transport, which means walking to the bus stop or train station. Then, there is the movement at lunchtime when we go out to buy our lunch. Working in a place of work requires us to move more.

Unfortunately, working from home naturally causes us to move less and this means we are not burning as many calories as we need to.

Moving is essential to our health and if you are working from home you need to become much more aware of your movement. To ensure you are moving enough, make sure you take your lunch breaks. Get up from your desk and move. Go outside, if you can, and take a walk. And, of course, refrain from regular trips to the refrigerator.

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Con #2: Less Human Interaction

One of the nicest things about bringing a group of people together to work is the camaraderie and relationships that are built over time. Working from home takes us away from that human interaction and for many, this can cause a feeling of loss.

Humans are a social species—we need to be with other people. Without that connection, we start to feel lonely and that can lead to mental health issues.

Zoom and Microsoft Teams meeting cannot replace that interaction. Often, the interactions we get at our workplaces are spontaneous. But with video calls, there is nothing spontaneous—most of these calls are prearranged and that’s not spontaneous.

This lack of spontaneous interaction can also reduce a team’s ability to develop creative solutions—there’s just something about a group of incredibly creative people coming together in a room to thrash out ideas together that lends itself to creativity.

While video calls can be useful, they don’t match the connection between a group of people working on a solution together.

Con #3: The Cost of Buying Home Office Equipment

Not all companies are going to provide you with a nice allowance to buy expensive home office equipment. 100% remote companies such as Doist (the creators of Todoist and Twist) provide a $2,000 allowance to all their staff every two years to buy office equipment. Others are not so generous.

This can prove to be expensive for many people to create their ideal work-from-home workspace. Many people must make do with what they already have, and that could mean unsuitable chairs that damage backs and necks.

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For a future that will likely involve more flexible working arrangements, companies will need to support their staff in ways that will add additional costs to an already reduced bottom line.

Con #4: Unique Distractions

Not all people have the benefit of being able to afford childcare for young children, and this means they need to balance working and taking care of their kids.

For many parents, being able to go to a workplace gives them time away from the noise and demands of a young family, so they could get on with their work. Working from home removes this and can make doing video calls almost impossible.

To overcome this, where possible, you need to set some boundaries. I know this is not always possible, but it is something you need to try. You should do whatever you can to make sure you have some boundaries between your work life and home life.

Final Thoughts

Working from home can be hugely beneficial for many people, but it can also bring serious challenges to others.

We are moving towards a new way of working. Therefore, companies need to look at both the pros and cons of working from home and be prepared to support their staff in making this transition. It will not be impossible, but a lot of thought will need to go into it.

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Featured photo credit: Standsome Worklifestyle via unsplash.com

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