Back to Basics: What's the Point?

I've been writing this blog for about 15 months (slacking lately but promise to pick it up) and I often get questions from friends and colleagues regarding "the best credit card" and "how does this whole thing work?"

I wrote a handful of introductory posts last year (getting started page) but figured I'd reprise the series a bit in the hopes that I can answer some of your questions (Doug - read this).

The whole concept of "travel hacking" is relatively new to me.  Maybe three years.  I've always been interested in travel, aviation, and loyalty programs.  But it takes a bit of research, experience, and trial and error to really put it all together.

At this point in my life, I want to see new places and experience new things.  And I don't really want to stay in a Holiday Inn Express.  I don't really want to sit in the back of the plane (but I will) and I've found that my travels/vacations are WAY better if I a) enjoy the journey and b) arrive rested and ready to go.  And I've found that by being strategic in managing my credit card spend, applying for new credit cards, learning the airline and hotel loyalty program award chart and redemption options that I can do exactly what I want.

I could put all of my spending on one 2% cash back credit card.  They are readily available.  But there's no "leverage" in that.  Even if I put $3,000 in spend on a card per month...that's only $720 in cash back PER YEAR.  That's really only going to pay for a couple of domestic flights.

So I take advantage of the sign-up bonuses that the card issues are offering.  Emily does the same thing.  We buy stuff online (that we need) through shopping portals.  We both use the "right" cards for the "right" purchases based on the bonus categories those cards offer (i.e. 2x points for travel and dining on Chase Sapphire Preferred).  Doing this, we easily rack up one million points and miles per year.

Now we could leverage those points and miles for domestic coach travel.  And that would totally be cool.  But we're still young and have (generally speaking) very little obligation and we want to see the rest of the world.  And let's be honest, sitting in the back of a metal tube next to a stranger for 15 hours isn't anyone's idea of fun.

This is much more fun:

Singapore Airlines A380 Suites "Double Bed"

With a little organization and knowledge (which hopefully you can gain from this blog) we're able to turn those points and miles into premium cabin flights and stay in hotels that we would never pay for with cash.  So I'll gladly give up 2% cash back on my everyday spend so that I can experience new places and things with my wife (and my brother this summer).  135,000 miles would get me 5+ domestic coach roundtrips on United or American.  That is a lot.  Or I could fly Cathay Pacific First Class roundtrip between the US and Asia.  Since it's not that hard to earn 135,000 miles, I prefer to see the other side of the world.  No judgement to anyone that just wants to leverage their points and miles to go home, see family, or some new part of our beautiful country.  If I can help you do that...awesome.

Before I got into this hobby, we traveled a fair amount but it was to New York, Vegas, LA, Phoenix, Mexico, etc... In the last three years, we've been to 14 countries on 3 Continents.  This year we'll go to at least 5 although several our repeats...we're going back to our favorite places to see more of them.  We're creating memories that will last forever.

The point is that you can do this (whatever "this" is) as well.  Part of figuring out how to make things work for you is to figure out what your goal is.  I'm going to dedicate an entire post to this but that's really the first step.  Do you want to see another part of the world in a premium cabin or do you want to fly home to see your childhood friends?  Do you want to stay a week in a super nice resort or do you want to stay a month in a perfectly acceptable but not luxurious hotel?

Here's to a great year of travel - whatever that means for you.