Miles of Our Lives
I guess you can say I had something to prove with this book. There is still this stereotype concerning stay-at-home moms, which I absolutely loathe. You know: a lazy simpleton, obsessed with baby stuff, watching soap operas all day.
Most stay-at-home moms I know are the opposite of those things I described. They are intelligent, capable and creative. I would like to think I fall into that category somewhat.
My biggest fear is readers will find this book, sign up for a bunch of cards, and will get into a financial mess as a result. It would be completely devastating to me. So please, if you have a problem with paying bills in full each month, don't apply for any new credit cards!
My hope is that I help equip each reader with the tools to optimize their limited credit card spending potential, so they can afford travel and save money in general. This book is not just about credit card bonuses, but long-term financial strategies. Keep in mind, I am not a financial planner, so the information here is my opinion only and may not work for you.
When I moved here from the former Soviet Union, I had no clue about credit, period. I had to learn quickly. In the beginning, my husband was in charge of finances. In the first 4 months of our marriage, he was late on credit card payments twice. So it was decided (by me) that I would take over. It was just as well, because a) I am a control freak and b) I am a control freak.
I remember wanting to go to Hawaii, but it was completely out of our reach financially. My husband and I each had 25,000 miles from flying to see my family in Europe. However, the flight to Hawaii required 35,000 miles per award ticket. One day, I saw an offer online to sign up for a credit card that would give us just enough for that redemption. Could it really be that easy?
That is how my miles and points addiction started. My very first credit card sign-up bonus was through US Bank Northwest Airlines Visa, before the Delta takeover. The card gave 10,000 miles after our 1st purchase and had a $99 annual fee, not waived. I would never sign up for something paltry like that now, but that was the best offer available at the time. And, as a result, it got us to Maui in 2004. My very first miles redemption! That trip confirmed two things for me:
1) Experiences matter more than things. We drive our cars until the wheels fall off, and I buy some of my clothes at Goodwill. Though I'll be honest, I hate the smell inside that place! Yet, we go on fabulous cruises and vacation in Europe.
2) You don't have to spend a lot to have amazing travel memories. Our Hawaii trip cost us only $1,000 for everything (lodging, car rental and food) for a whole week for 2 people, since we only paid $5 in taxes and that $99 annual fee on each of the cards. We enjoyed the same sights as the folks vacationing in fancy resorts.
Something else I learned on that trip is when it comes to miles and points, it doesn't have to be all or nothing. Sometimes it makes sense to pay cash vs. spending your miles and points. Our cottage rental in Maui was only $70 per night and was very nice. I much preferred it to a cookie-cutter hotel room I would have booked with points.
Many times one hears how Hawaii is one of the best places to make a Hyatt program redemption. That’s because you can get a $400 room for "only" 22,000 Gold passport points, though some of the properties now have gone up to 25,000 points. And you hear the word "free" used a lot. But is it really? If you get those points by transferring from Chase Ultimate Rewards through your Chase Sapphire Preferred card sign-up bonus, you just paid $220 per night. You could have redeemed those points for that amount in statement credit.
Or worse yet, you have just foregone a $275 room at another hotel. That is because you can redeem Ultimate Rewards and get a 20 percent discount on travel. Doesn't seem so free now, does it? Instead, you can get a condo rental for much less on www.vrbo.com, which makes more sense for a family anyway.
Of course, if you really want to stay in that Hyatt, there is nothing wrong with that either. Go for it! That's what miles and points are for. They are YOUR miles and points, do what YOU want with them. There is a certain appeal in getting something you normally would not be able to afford.
My advice is: Don't get so hung up on getting everything for "free" when you travel. Most of it isn't anyway. You have an opportunity cost involved. According to Wikipedia, “Opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources.” The goal is to get the most out of every credit card sign-up bonus, even if you have to pay for some of your travel expenses out-of-pocket.