What happens after the signup bonus? That's a valid question. As I wrote it my review of the Chase Sapphire Preferred, the 50,000 point signup bonus can be worth up to $800. So what about after it comes and goes and you don't have any points left? Is it time to keep opening as many cards as you can and just accumulating signup bonuses?
Short answer is no. While it is definitely one way to go about it, it is not effective when you think long term. One of my favorite things to cook in a crockpot is pulled pork carnitas. It takes 8 hours to break down the toughness of the pork shoulder into something that tastes amazing. But enough food talk. Same concept applies here. Don't rush it.
Follow these 3 basic principles to move past the honeymoon phase of the signup bonus and buckle down to maximize your points earning.
1. Get Lean and Focused
What's wrong with this picture? Too much stuff and too much variety. Same thing with credit cards. Be aware of which cards carry an annual fee and the value they provide you. If there is any doubt that you will benefit from holding on to the card, downgrade or cancel. It doesn't make sense to pay annual fees for no reason. Also, stick to a points program and go with it. If you want Chase Ultimate Rewards points, don't waste time earning Citi ThankYou points. (Don't get me wrong though, I love In-N-Out!)
2. No Cash When Possible
Ok I get it. Cash is a great way to limit how much you spend. I'm not a financial advisor in any way but I know there are a lot of other tools out there that can help you track your spending. Whatever you decide, bottom line is that cash is not going to earn you any points for groceries, bills, and yes, even ice cream at the Brooklyn Ice Cream Factory. (Note: The hot pink nails belong to my lovely wife.)
3. Swipe Smart
Ok what do I mean by that? It's simple. Use the right card for the right purchase. If you're dining out, like at Amsterdam Falafel in DC, use the card that gives you a bonus for dining purchases. If you're buying groceries, use the card that gives you a bonus at grocery stores. Look to how you can earn the most points for everyday purchases you already make. (Fun Fact: For the longest time I thought falafel was meat.)
Ok that makes sense. How many points am I going to earn this way?
Time for some simple math. Let's assume that you put $1,000 of everyday monthly spend onto your credit cards at an average earning rate of 1.5 points per dollar.
$1,000 X 1.5 = 1500 points per month
1500 points per month X 12 months = 18,000 points
Yes, by sitting around and swiping smart on money that you have to spend already, you earned yourself 18,000 points. You probably could redeem that for $180 cash or if you're able to transfer that to a travel partner, you could redeem it for a non-stop roundtrip flight from DC to Nashville.
As you can see, sticking to these 3 basic principles will set you up for success to use your everyday spend to fuel your travel!
Feel free to comment below or connect with me on Facebook! Follow me there to get the latest updates!
***
Do you feel like your career is stuck in a rut? Check these guys out and they'll help you with Your Next Jump!
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Short answer is no. While it is definitely one way to go about it, it is not effective when you think long term. One of my favorite things to cook in a crockpot is pulled pork carnitas. It takes 8 hours to break down the toughness of the pork shoulder into something that tastes amazing. But enough food talk. Same concept applies here. Don't rush it.
Follow these 3 basic principles to move past the honeymoon phase of the signup bonus and buckle down to maximize your points earning.
1. Get Lean and Focused
What's wrong with this picture? Too much stuff and too much variety. Same thing with credit cards. Be aware of which cards carry an annual fee and the value they provide you. If there is any doubt that you will benefit from holding on to the card, downgrade or cancel. It doesn't make sense to pay annual fees for no reason. Also, stick to a points program and go with it. If you want Chase Ultimate Rewards points, don't waste time earning Citi ThankYou points. (Don't get me wrong though, I love In-N-Out!)
2. No Cash When Possible
Ok I get it. Cash is a great way to limit how much you spend. I'm not a financial advisor in any way but I know there are a lot of other tools out there that can help you track your spending. Whatever you decide, bottom line is that cash is not going to earn you any points for groceries, bills, and yes, even ice cream at the Brooklyn Ice Cream Factory. (Note: The hot pink nails belong to my lovely wife.)
3. Swipe Smart
Ok what do I mean by that? It's simple. Use the right card for the right purchase. If you're dining out, like at Amsterdam Falafel in DC, use the card that gives you a bonus for dining purchases. If you're buying groceries, use the card that gives you a bonus at grocery stores. Look to how you can earn the most points for everyday purchases you already make. (Fun Fact: For the longest time I thought falafel was meat.)
Ok that makes sense. How many points am I going to earn this way?
Time for some simple math. Let's assume that you put $1,000 of everyday monthly spend onto your credit cards at an average earning rate of 1.5 points per dollar.
$1,000 X 1.5 = 1500 points per month
1500 points per month X 12 months = 18,000 points
Yes, by sitting around and swiping smart on money that you have to spend already, you earned yourself 18,000 points. You probably could redeem that for $180 cash or if you're able to transfer that to a travel partner, you could redeem it for a non-stop roundtrip flight from DC to Nashville.
As you can see, sticking to these 3 basic principles will set you up for success to use your everyday spend to fuel your travel!
Feel free to comment below or connect with me on Facebook! Follow me there to get the latest updates!
***
Do you feel like your career is stuck in a rut? Check these guys out and they'll help you with Your Next Jump!
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