One of the most common overspending traps that we fall into is the idea that we deserve that (expensive) purse, that (overpriced) gadget, or that trip to Hawaii. While that is a slippery slope to getting off track financially, we should still seek to have balance in our lives. Budgeting can quickly become a chore if we find ourselves giving it all up without receiving anything in return. That’s why it’s important to treat ourselves. But what is the best way to do it?
In our case, we make it a point to maximize our loyalty rewards program. We find a service provider we are happy with in a couple of categories and study their rewards program to see how we could best benefit. In our case, we have the trifecta of travel. My husband is an avid traveler. Personally, I’m not a fan of airplanes so my fear of flying often overrides my curiosity to see the world. However, we find the balance between satisfying his wanderlust and my desire for firm ground. Even with moderation, travel still remains our most expensive hobby. As a result, we have found creative ways to manage costs.
Flights: We stick with one airline as much as possible. That allows us to rack up miles and a certain number of trips in order to gain a certain status with the airlines. We also have the option of buying tickets with our miles or transferring them to partner loyalty programs. We have racked up thousands of miles with JetBlue and are saving them towards a future trip.
Lodging: Although we spend very little time there, a hotel is one of the most important part of any trip. Not only is it the most expensive, but it is a matter of comfort. We are fans of everything Marriott. They aren’t always the cheapest but as Gold members two years running, we enjoy having high speed internet at no additional charge, early check in, late checkout, bonus points towards future stays, complementary breakfast, welcome snack, discounted rates etc. We also like the general consistency that the brand provides all over the world. Sure, we have gone to Marriott brands or properties where the rooms have been smaller, but the service has always been impeccable and there have been no concerns about the cleanliness. And since both my husband and I travel for work, we make sure that we earn points with every business trip by staying at Marriott properties; points we use to subsidize our pleasure trips.
Credit Card: As American Express members who use the Premier Gold Rewards card, we benefit from no foreign fees on overseas purchases and can take advantage of statement credits ($75) for certain hotel spending and in-flight purchases and checked baggage ($100) that all but wipe away the $195 annual fee. That is in addition to bonus points in certain spending category. Using our AmEx for every purchase allows us to earn points an accelerated pace that we can later redeem for statement credits to offset our spending or AmEx gift cards.
This combination of loyalty programs, including our willingness to actively bargain hut, has been our ticket to cheap travel.
Have you thought about how you can treat yourself for less?