Advertising
Advertising

How to Fly First Class for Free

How to Fly First Class for Free


    There’s a way for you to fly first class for free over and over again.

    The best part? It doesn’t require incredible negotiation skills or dumb luck. Anyone can do it.

    Let me tell you everything you need to know so you can decide if this powerful travel strategy is right for you.

    How to Fly for Free

    A few years back, I started searching for the best ways to travel for cheap. I wanted to get out and see the world … or at least the United States.

    Advertising

    What I ended up finding were a small group of people that were booking free flights over and over again with a strategy that was the complete opposite of what most people do.

    You see, most people know that you can book a free flight by using frequent flyer miles. And if you have enough frequent flyer miles, then you can even fly first class for free. Of course, the only problem is that it’s really hard to accumulate a lot of miles by flying.

    Luckily, there is a way to get hundreds of thousands of frequent flyer miles without flying at all.

    This travel strategy is a special process called “credit card churning” and here’s how it works…

    The credit card industry is extremely competitive. As a result, many credit card companies are willing to offer you huge frequent flyer mile bonuses if you sign up for their card.

    Advertising

    This strategy works so well for getting frequent flyer miles that a group of people called credit card “churners” have used it to earn more than 1 million frequent flyer miles in a year. They apply for card after card and churn through as many applications as possible. Then, they spend the minimum amount needed to get the bonus (for example, $1,000 in 3 months) and move on to the next card. Some people routinely have over 15 credit cards on rotation!

    The good news is that credit card bonuses work just as well for normal people like you and me. By simply getting 1 or 2 new cards, you can get enough frequent flyer miles for multiple round–trip flights.

    There is no need to go crazy and get 15+ new cards. Of course, if you did, then you could literally earn enough miles to fly around the world multiple times.

    Regardless of how many cards you’re comfortable with getting, these frequent flyer mile bonuses are the best way to fly for free because you can use frequent flyer miles to book flights anywhere and at anytime. For example, I used frequent flyer miles to book a free flight to Costa Rica last December, which is during the “high season” down there.

    Where to Get Started

    Many credit card churners get their information from a variety of blogs, forums, and websites. Thankfully, there are services that can do all of that research for you.

    Advertising

    A great one to start with is The Credit Card Fly. It’s a free email newsletter that sends you a short weekly update of the best credit card deals for earning frequent flyer miles, free hotel stays, and rewards points.

    Once you know the deals to apply for, the 3–step process looks like this:

    1. Apply for a new credit card that has a big frequent flyer mile bonus.
    2. If necessary, spend the minimum amount to get the bonus. Many cards have no spending requirement.
    3. Redeem your miles and fly anywhere.

    Does this Hurt Your Credit Score?

    Applying for new credit cards actually helps your score in one way and hurts it in another. Let me explain…

    When you apply for a new credit card there is an inquiry on your account. New credit inquiries usually drop your score by a few points, but new inquiries only make up 10% of your overall credit score so the drop is small.

    On the flip side, when you get a new credit card this also increases your overall credit limit and this will probably help your credit utilization ratio.

    Advertising

    For example, let’s say that before your new card you were spending $2,000 and your total credit limit was $10,000. In this case, your credit utilization ratio was 20% ($2,000/$10,000). Then you get a new card and let’s say your credit limit raises to $15,000. Remember, your spending habits should be about the same because you’re only spending the minimum needed to get your frequent flyer miles. So now your credit utilization ratio is only 13% ($2,000/$15,000).

    This is a good thing. A lower credit utilization ratio helps your credit score. For this reason, many credit card churners actually see their score increase over time. Many churners have 10 or more credit cards and still hold excellent credit scores in the 780 to 800 range.

    How to Know if This Will Work for You

    As a rule of thumb, your credit score should be 700 or above if you’re thinking about following this credit card travel rewards strategy.

    And if you’re planning on applying for a bunch of cards to get tons of frequent flyer miles, then you should probably have a credit score above 720.

    No matter what your score is, this strategy will only work if you pay your balance in full each month and carry no debt on your new cards. It doesn’t matter how good your history is, if you get a new credit card and start piling on debt, then your credit score will suffer and this travel strategy is useless.

    If you have the discipline to pay your balance in full each month, then you’re ready to hit the skies.

    (Photo credit: Passenger Windows on Plane via Shutterstock)

    More by this author

    7 Reasons You Haven’t Found Your Passion Yet 7 Ways To Get Over Fear and Make Big Life Changes Fast Growth Is Overrated — Here’s Why Famous Biologist Louis Agassiz On The Usefulness Of Learning Through Observation How to Fall in Love With Boredom and Unlock Your Mental Toughness

    Trending in Money

    1 How to Invest for Retirement (The Smart and Stress-Free Way) 2 How to Nix Your Credit Card Debt in Less Than 3 Years 3 Top 5 Spending Tracker Apps to Manage Your Budget Smart in 2019 4 How to Use Credit Cards While Staying Out of Debt 5 How to Use Debt Snowball to Get out from a Financial Avalanche

    Read Next

    Advertising
    Advertising
    Advertising

    Published on May 7, 2019

    How to Invest for Retirement (The Smart and Stress-Free Way)

    How to Invest for Retirement (The Smart and Stress-Free Way)

    When it comes to stocks, I bet you feel like you have no idea what you’re doing.

    Everyone who’s not a financial expert has been there. I’ve been there. But, time is passing and you need to be crystal clear with how you’re investing for your retirement.

    Otherwise, it’s back to work until you can afford not to. So, how can you invest for retirement when you’re not a financial expert?

    You take the time to learn the fundamentals well. If you do, you can grow your wealth and retire happy. The best part is that you don’t need to be a financial expert to make smart investment decisions.

    Here’s how to invest for retirement the smart and stress-free way:

    1. Know Clearly Why You Invest

    Odds are you already know why should invest for retirement.

    But, maybe you know the wrong reasons. It’s time you get clear on why you’d like to retire. Here are some questions to help you get started:

    • Will you spend more time with your family?
    • What does retirement mean to you?
    • Are you looking to launch that business you’ve been holding off for years?

    Everyone wants to retire but not for the same reasons. Once you’re clear for why retirement is important for you, you’ll focus on making it happen.

    Investing in the stock market allows you to take advantage of compound interest.[1] All this means is that your money earns money on top of its interest. A reason why investment in the stock market is one of the best ways to plan for retirement.

    2. Figure out When to Invest

    “The best time to plant a tree was 20 years ago. The second best time is now.”– Chinese Proverb

    It’s true if you’d had started investing when you were 10 years old, you’d have a lot more money than you do today.

    The reality is that most people don’t start investing until it’s too late. So, if you’re currently waiting for the perfect time to start an investment, it would be today. Open your calendar and block out 2 to 3 hours to choose how you’ll invest for retirement.

    Advertising

    A quick way to get a snapshot of where you stand is to use Personal Capital. Input all your personal information and spend some time setting your retirement goals. Once completed, you’ll know where you stand with your retirement.

    Having a savings account for retirement isn’t planning for retirement. Why? Your money loses value when you factor in US inflation.[2]

    3. Evaluate Your Risk Tolerance to Create the Perfect Portfolio

    Investing your money well depends on your emotions.

    Why?

    Because when the market drops most people panic and withdraw their money. On average, the US stock market yields an annual 6% to 7% ROI (return on your investment.) But, this won’t happen if you’re worried about short-term loses.

    Before you invest your next dollar, know your risk tolerance.[3] Your risk tolerance determines the number of risky and safe investments you’d have.

    Regardless of your investing style, you need to view investing for retirement as a long term game. Know that some years you’ll lose money but recoup this in the long-term.

    Avoid watching market-related new. Also, create a double authentication to log in your investment account. This way you’re less likely to withdraw your money.

    4. Open a Reliable Retirement Account

    Depending on your circumstance, you may need to open a new brokerage account. This is the account is where you’ll invest your money.

    If you’re currently working for a company, odds are that they offer a 410K investing account. If so, here’s where you’ll invest most of your money. The only problem with this is that you’re limited to the stock options that are available.

    You do have the option to open a separate IRA (individual retirement account.) Here are some of the best brokers:

    1. Vanguard
    2. TD Ameritrade
    3. Charles Schwab

    5. Challenge Yourself to Invest Consistently

    Committing to invest for retirement is hard, but continuing to do so is harder.

    Advertising

    Once you’ve started investment for your retirement, you run at risk from stopping. Often you’ll want to contribute less, so you’d have more money in your pocket.

    That’s why it’s important that you create a budget that allows you to invest each month. If you’re working for a company, you can set a percentage for the amount you’d like to contribute each month. Most people by default contribute 1% but aim to contribute 10% to 15%.

    Be the judge for how much you can afford to contribute after covering important expenses. To stay motivated, use Personal Capital to view your net worth.

    A benefit to contributing money to your retirement account is not taxed. For example, if you earn $100 and invest 10%, you’d contribute $10, then get taxed on the remaining $90. As of 2019, the most you’re able to contribute towards your 401K is 19K but this can change.

    6. Consider Where to Invest Your Money

    The most common way to invest your money is in stocks, but it’s not the only way. Here are other ways to invest:

    Robo Advisors

    Robo-advisors[4] are fancy algorithms that’ll choose the best investments for you. Sites like Wealthfront make it easy for first-time investors to invest their money. You’d input information about yourself and set your risk tolerance.

    Then, set your monthly contribution amount and your robo-advisor would do the rest. Robo-advisors charge a fee to manage your money, but less than regular advisors.

    Bonds

    Think of bonds as “IOUs” to whomever you buy them from.

    Essentially, you’re lending money and charging interest. Like stocks, not all bonds are equal. Some will be riskier than others depending on their rating.

    Here are the different types of bond categories:[5]

    1. Treasury bonds
    2. Government bonds
    3. Corporate bonds
    4. Foreign bonds
    5. Mortgage-backed bonds
    6. Municipal bonds

    Mutual Funds

    Picture a group of people dumping all their money in a jar that’s managed by a professional. This is how mutual funds work. The fund manager manages the money looking to earn capital gains (interest.)

    One of the best types of mutual funds is index funds. Since these funds don’t try to beat the market and instead follow it, they need less research. Because of this they often charge the lowest fees and yield the best long-term results.

    Advertising

    Real Estate

    Yes, buying a home is an investment when done correctly.

    Imagine buying a home and using it as a rental property. After repairing it, you receive a monthly surplus check of $100 to $200.

    This may not sound like a lot, but repeat this process enough times and you’d earn a large amount of passive income. That’s why real estate is one of the best investments to not only retire but become wealthy.

    But, it requires a lot of money to start and you should expect losing money along the way as you learn the process.

    Savings Accounts

    Your money can still grow in a savings account. Nowadays most online banks offer a 2% annual return. Although the average inflation is higher your money will be available when you need it.

    7. Master Disincline to Dodge Short Success

    Investing for retirement is a long-term strategy. That’s why you need to master delayed gratification. All this means is delaying short-term pleasure for something bigger in the future. Research shows that those who have delayed gratification are more successful.[6]

    So how can you master delayed gratification?

    By building your discipline.

    Think back to what retirement means to you. A clear purpose will help you avoid withdrawing your money during a market downturn. It’ll help you contribute more towards retirement when you’d want to waste it instead.

    Your journey towards retirement will be long, so reward yourself along the way. Choose a reward that’s relevant and meaningful, so that you reinforce positive behavior. For example, after contributing more towards retirement, treat yourself to dinner.

    8. Aggressively Invest on This One Investment

    I’ve mentioned several types of investments but haven’t covered the most important one.

    It sounds cliche but here’s why you’re your best investment towards retirement. The more you know, the more money you’ll be able to make. The more good habits you adopt, the more secure your retirement will be.

    Advertising

    More importantly, investing in yourself is an investment that no one can take away. There’s no market downturn nor tragic circumstance that’ll wipe your knowledge and experience.

    But, how can you invest yourself?

    Reading books, blogs, and anything that’ll help you learn new topics daily. Listen to podcasts and audiobooks on your commute to/from work.

    Save money to buy courses and hire coaches. I used to believe hiring coaches was a waste of money when I could learn the subject alone.

    But, coaches see your blind spots and hold you accountable. Hiring the right coach will help you achieve your goals faster than you would’ve alone.

    Retire Happy with Excess Money

    The key to a secure financial future doesn’t only belong to financial experts.

    It’s possible for you and I. What if you were able to retire earlier than most people and weren’t a financial planner? What if you were able to focus on what you enjoy doing the most while your money was working hard for you?

    I know this sounds impossible now, but the truth is you’re capable of taking charge of your retirement. I’m not a financial expert but I’ve learned how to invest my money by reading books and learning from others.

    Investing your money is scary. So start small and invest a small amount of your money with a robo-advisor. Feel your money drop and rise for a month or two. Then, invest more and keep this up until you’re aggressively saving for retirement.

    One day, you’ll wake up with a net worth you’re proud of – confident about your retirement. You now know a few strategies you can use to invest in your retirement. Will you take action to retire happy?

    More Articles About Making Wise Investment

    Featured photo credit: Matthew Bennett via unsplash.com

    Reference

    Read Next