Keep the Change

When it comes to credit card rewards, earning miles can seem like a no-brainer for frequent travelers and spenders. Who doesn’t love the idea of free flights, fancy hotel stays, and those elusive upgrades? But let’s be real, miles credit cards aren’t a one-size-fits-all solution. Depending on your spending habits and financial goals, you might find that earning miles isn’t your best bet.

Below, we tackle some common concerns and share practical workarounds to help you get the most out of your miles strategy.

1. You don’t spend much, until you do

Let’s be honest – not everyone has regular big expenses, and that’s okay! You might be spending only $500 on the regular on things like groceries, dining out, and the occasional shopping spree.

Now, let’s do some quick math. If you spend around $500 a month, that totals $6,000 a year. With a card that gives you 4 miles per dollar spent, you’d rack up 24,000 miles in a year. That’s enough to redeem a one-way business saver flight to Bangkok on SQ (worth $943.10)!

Workaround: When those larger expenses do come up, make them count. Whether it’s paying for an upcoming family holiday or offering to pay first for a big dinner with friends and have them transfer you after, seize these opportunities to rake in miles by using the right credit card.

2. You can’t be bothered with keeping track of multiple cards, until it’s made simple

Managing multiple credit cards, keeping track of spending limits, and knowing which card to use when can be overwhelming. I used to rely on Google Sheets and Notion to manually track my expenses, but this workflow takes time to set up and requires daily discipline.

Workaround: If you prefer a simpler approach, consider using easy-to-use third-party apps like SGFinDex, Dobin, or heymax. These apps can streamline your tracking process, though you’ll need to agree to share some of your data with them. Make sure to read their privacy policies and decide if you’re comfortable with this trade-off!

3. You worry about interest charges and late fees, until automated payments exist

The fear of accruing interest charges and late fees is a valid concern, especially with credit cards carrying high APRs. However, as long as you pay your bills on time and in full, this shouldn’t deter you from using credit cards to earn miles.

Workaround: Most banks offer options to set up automatic credit card bill payments monthly from your bank account. This ensures you never miss a payment and avoid those scary late fees. Additionally, always spend within your means and pay off your full balance each month to steer clear of interest charges altogether.

4. You don’t travel often or only fly budget, until your dream holiday comes along

Even if you’re not a frequent traveler or usually opt for budget airlines, you can still begin accumulating miles now so you can redeem that occasional long-haul flight to Europe on a full-service carrier. In general, the greater the flight distance and the higher the flight class, the more value you get when redeeming your miles. Did you know you can also take advantage of spontaneous getaways with last-minute flight redemptions?

Workaround: Some budget airlines also offer loyalty programs where you can earn and transfer miles to partner carriers, enhancing your opportunities to save. So, start earning those miles now, and when your dream holiday comes around, you’ll be ready to travel in style.

Find what works for you

Remember, it’s all about finding what works best for your lifestyle and financial situation. If you can navigate the hurdles and make the most of your spending, starting a miles strategy can open up a world of travel opportunities. So equip yourself with these tips, and you might find that earning miles is more rewarding than you initially thought.

Follow us on @keepthechange.ktc as we post more tips on our wedding, travels and renovation journey! Feel free to DM us if you have any questions and we are always happy to share!

Keep the Change

Tine & Hao