Pay with points
Posted on November 16, 2007
Filed Under Advice, perks | Comments Off
Planners — those who book their travel months in advance — will get the most out of their points and frequent-flier miles. These days the restrictions on rewards redemption are plentiful. (Check out mouseprint.org to see how the fine print might affect your travel and InsideFlyer.com for the most recent news about rewards travel.) A good rule of thumb is to pay cash for tickets that cost $250 or less instead of wasting points (unless they are due to expire). You may save more by using your points to pay for a hotel room. And if you’re just short of qualifying for a freebie, check out Points.com to see whether you can swap or augment your rewards kitty.
Have plastic, will travel
The cost of travel makes it worthy of its own budget line item. So treat it like one by formalizing your savings goal. For example, if you plan to go away in August, start socking away $456.75 a month (to reach the $1,827 total mentioned above).
Unless you want your credit card statement holding a place of prominence in your photo album, the best way to pay for R&R is to plan ahead and pay cash. However, that’s not the M.O. for most travelers.
A survey a few years ago found that about 40% of vacationers financed their travel plans with plastic — and more than half didn’t pay off the tab right away. We don’t want you to stay at home and mope, but if you can’t afford to pay cash for that cruise/camping trip/Civil War re-enactment outing, ask yourself if you’re willing to pay double for it. Because that’s what it’ll cost if you pay just the minimum amount due on your credit card.
Don’t forget to include the cost of activities and extras like doodads to placate the kids and chocolates for your pals back at the office. Travel pros recommend padding your budget by 10% to 15% to avoid sticker shock.