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How to Get the Biggest Bang For Your Airline-Miles Buck

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How to Get the Biggest Bang For Your Airline-Miles Buck

Everyone dreams of racking up great airline mileage points to see the world, but some find the process more difficult than expected. Need help navigating the fine-print confusion to get the most use out of your airline miles? Here are some tips to turn you into a travel master.

Use Miles on Flights with the Best ROI

Get the most return on investment (ROI) out of your miles by critically looking at the best purchase options. The general rule is this: if the ticket costs more than $500, you will usually get a better deal using your miles. If the ticket is less than this, it’s often better to simply pay for it. Blowing 50,000 airline points on a $200 ticket just doesn’t make sense, unless that’s the only flight you can use your miles for before they expire. Using the 50,000 points on a $2,000 flight is a much better spend. If you have more expensive tickets in the future, save your miles for these trips instead.

Points on Upgrades are Smart Buys

Another way to use miles to obtain a higher cost per point value is with upgrades. These give you a much greater dollar value for your points vs than the 1.2 – 1.4 cents per mile average. It is certainly worth utilizing this option on longer flights where the extra leg room and pampering will be more thoroughly enjoyed. Of course, it doesn’t hurt that you also bank additional miles from the trip. Just be sure to ask about any surcharges or restrictions on the revenue ticket you plan to upgrade.

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Book Very Early, or At the Last Minute

Remember, the best possible prices either go to those who book extremely early (330 days in advance on some airlines) or those who snap up empty seats at the last moment. So, if you are neither a long-term planner or a spontaneous person, you will need to adjust accordingly in either direction if you want to snatch up the best ticket deals. As you accumulate your airline miles on purchased flights, it just makes sense to find the best value per ticket.

Book Through an Agent

Airlines have trained us well to book online. This lowers the amount of employee time spent on customer calls and automates the system so it’s easier for the airline. That said, calling an agent and booking over the phone can be advantageous when trying to redeem miles. Airline representatives have access to information and authority over options that you do not, so it just makes sense to use this to your advantage. Agents can often create options that aren’t available through an online site, and can also exercise their authority to bypass restrictions that limit award availability. Yes, you may pay a surcharge—typically $20—but it’s worth it if you save several hundred dollars on a better ticket or option that you didn’t know was available.

Keep Accounts Active

Hoarding your miles for the most amazing trip to paradise won’t happen if you sit on them so long they expire. Many programs allow you to keep your account active other ways. You can gain miles and add activity to your account with purchases not even related to flying. You can often go to restaurants participating in an airline dining for miles program. You can also earn miles shopping. Over 400 online merchants—Wal-Mart, PETCO, Nike, etc.—participate in airline shopping mall programs. You can get anywhere from 1 to 12 bonus miles for each dollar spent. Also, always give car rental agencies and hotels your frequent flyer number to boost points. You can even grow you mileage account through FTD for sending flowers, or stack up additional mileage bonuses booking cruises or vacations through carrier sites. Are you already an investor with Fidelity Investment or TDAmeritrade? You can earn miles investing through these companies with some airlines. Or, if you are more comfortable investing in real estate, you can earn airline miles through certain banks when you take out a mortgage. If buying a house seems like an extreme way to gain miles, you can tone things down and simply sign up for Netflix to accrue additional points over some nightly movie entertainment. New opportunities to build up miles are out there if you’re willing to invest the research necessary to find them.

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Use Sites to Manage Your Miles

If the thought of shifting through all the fine print to discover which deals work gives you a headache, you can utilize certain sites to explore the options for you. These sites take a deep dive into your frequent flier account to help you understand the best options of your miles. GoMiles.com and AwardWallet.com will warn you if your miles are about to expire and alert you to new deals and promotions. However, don’t expect all airlines to embrace the third-party intrusion, as they feel it threatens the security of your information.

Use the Right Airlines

When it comes to redeeming points, not every airline is equal. It pays to choose airlines that are more friendly to point-redemption opportunities. The Wall Street Journal did a survey of all major carriers and found that the toughest airline to utilize your mileage points was US Airways, followed by Delta. With these companies, you have a 36% chance of actually using your miles the way you intend. Southwest was the clear winner of the survey, with a 95% chance of redeeming points, followed by JetBlue at 89%.

If You Can’t Use Miles:

1) Donate Miles

If your miles are expiring before you use them, consider donating them to others instead of losing them. For example, families have pooled airline points together to send newlyweds on their honeymoon, or parents on an anniversary vacation. The gift of travel is a great present! Who knows—they may return the favor when you need some additional miles in the future.

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If you don’t have a friend or family member to share your miles, you can also donate them to charity. For example, the Fisher House Foundation’s “Hero Miles” program has given more than 40,000 tickets to injured service members and their families, and Mercy Medical Airlift has provided almost 10,000 free flights to patients. The Make-A-Wish Foundation also needs miles to send kids on their desired adventures. These charities, as well as many others, will greatly benefit from your unused mileage points, and you can feel good giving to a worthy cause.

2) Trade Miles

While the exchange rate is fairly high, you can exchange miles for gift cards to companies such as Amazon or Starbucks. You can also trade your miles from one airline for points with a different carrier.

3) Use Miles for Hotels and Car Rentals

While the frequent, elite traveler will see much better deals than the average flier, you can spend your expiring miles for hotels and car rentals, as well as other travel needs. Again, it pays to research your best options for redeeming these miles.

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The possibilities of utilizing airlines miles are numerous and differ greatly depending on the program and carrier. However, taking a bit of time to do a deep dive into the opportunities and savings offered will help you become quite the travel-savvy flyer. After all, saving money while flying first class to your dream vacation is a great reward for a bit of extra airline mileage research and points management.

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Sarah Hansen

A corporate-sales professional turned entrepreneur

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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