"Traveling on a budget? Don’t worry, you don’t need to be a millionaire to see the world. In fact, you can travel quite cheaply if you’re smart about it. The trick is to minimize your two biggest expenses: accommodation and flights. And how do you do that? By using points and miles.
I’ve talked about this before, but let me break it down for you. I earn about a million points a year without even traveling! And when I add in the points I get from actual travel, it’s well over a million. So grab a cup of coffee or tea, and let’s dive into the details.
First off, collecting airline miles and hotel and credit card points isn’t about spending a ton of money. It’s about playing the system to your advantage. You use rewards programs to rack up points and miles without spending a lot or traveling a lot. And this isn’t just for Americans. Canadians, UK residents, Australians, Kiwis, and Spaniards can all do this too.
Now, I don’t earn as many miles as some people I know, but that’s because I value my time. I don’t want to waste time earning miles I don’t need. Plus, miles lose value over time as airlines change their rules, so I’d rather not waste time on something that’s decreasing in value. I do this because I want to pay for as few flights and hotels as possible.
So how do I earn those points and miles? Here’s my step-by-step guide:
Step 1 – Get a Travel Credit Card
Credit cards are your ticket to earning points and miles. They’re like a points-and-miles printing press. You can earn points and miles without them, but it’s a lot harder and takes a lot longer. When used properly, credit cards can earn you hundreds of thousands of miles per year that enable you to travel for free. Just make sure not to spend more than you have and to pay off your bill each month.
Step 2 – Earn Points on Rent
I also earn points on my rent. If you’re a renter in the US, you should check out Bilt. It’s a credit card that earns you points on paying rent, without transaction fees or an annual fee. Even if your landlord doesn’t take credit cards, you can pay with Bilt.
Step 3 – Meet the Minimum Spending Requirements
Each card comes with a minimum spending requirement before you can earn that bonus. You don’t get it for nothing. So, I had to figure out ways to meet those spending requirements without incurring extra debt.
Step 4 – Be Smart with Spending
Always try to get more than one point for every dollar you spend. Certain cards have category bonuses, where you receive 2–5 points per dollar spent. Also, use airline shopping portals and dining rewards programs to earn extra points.
Step 5 – Buy Points/Miles….Sometimes
Sometimes, airlines and hotels offer really good deals for points/miles. If I know I’m going to use them soon, I’ll buy them at a discount.
Step 6 – Cancel Cards I Don’t Use
When the yearly fee comes due, I’ll cancel the cards I don’t use or that don’t have a benefit to me.
Step 7 — Get a Second Round of Cards
I get cards twice a year. So, when it’s time to get cards again, I get a bunch of new cards then repeat step 2 to meet any minimum spending requirements.
By using these steps, you can earn a ton of points and miles. It just depends on how much effort you want to put in. But no matter your effort level, you should do this. Even if you travel only once a year. After all, free travel is the best travel."
