Step 1: figuring out where you want to go

The 1st tip I always give out before even thinking about earning credit card/hotel/airline miles or points is to first figure out where you want to go and when you want to go. This really should be your first step because without a goal in mind, you could end up with certificates/miles expiring in front of your eyes and you’ll be left scrambling for last minute plans. I’ve been there and I don’t want you to end up there too.

So what I mean by figuring out where and when you want to go is, I don’t mean just by “oh, I want to go to Italy.” I mean, you should have a specific goal in mind:

• Exactly what town/city do you want to visit? How long are the flights typically? How far of a drive is it to your final destination? How much does it cost to vacation there? Is it worth it?
• How long you want to visit for: how much vacation time will you have by x date? If you don’t know, get a calendar and start doing some math.  Depending on the industry you work in, do you know if is it possible to take leave that time of year even if you have leave? What is the time difference, are you going for long enough that it is worth the jet lag?
• What time of the year you want to go: which day, week, month, etc. Are you going to have enough points/miles by then? What is the weather during that time of the year? Are hotels/restaurants closed during off season (ex. Greece)? If you’re doing it for the ‘gram, will the scenery be what you want to capture? How heavy are the crowds?
• How much cash vs. points/miles will it cost to get there and stay there? If you want to use airline miles, which airline do you want to fly? What class? Economy, Business or First Class? What is the availability? Yes I know this is a LOADED question. I will do a post more on this later.
• The best question: do you have a specific hotel in mind? Or does it not matter? This is a very important question if you are super picky on the hotel because some boutique hotels are part of a chain like Hilton/Marriott/Hyatt/IHG/Wyndham/Choice, but some are not.

The reason why I think it is important to have specific goals in mind is because without a goal, you could start accumulating points/miles in places that you won’t be able to use. This can end up in disappointment and you spending more money than you wanted. Also, it is great to have a goal in mind because then you can experience the whole “I went on vacation for free minus food”. I loved that, especially when I was in college and didn’t money.

Okay but what if I don’t have any specific plans, I just like the option of having points/miles for plans?

I gotchu babe. This is when you get a regular travel rewards credit card. By that I mean something that is not airline or hotel specific. Examples are Chase Sapphire Preferred, American Express Platinum, Citi Premier, etc. These cards allow you to accumulate points that may be used for flights, hotels, car rentals, gift cards or even credit card statement credit (that means cash). If you don’t have a specific goal in mind and you don’t travel often or you don’t want to do the research ahead of time, I don’t recommend an airline or hotel specific credit card unless your main airport is a hub for a specific airline you like. Why? Because it will just sit there and when you have points/miles sitting there, you lose value by the month. Think of it as inflation. Airlines and hotels are notorious for devaluing their points/miles systems with little or no notice, it happens to every single airline and hotel. I’ve watched it happen for years. It is much smarter to accumulate points with a bank specific card since the value typically does not decrease overtime and do not expire ex. Chase Ultimate Rewards, Amex Membership Rewards, Citi Thank You Points.