Skip to content
Andrew Tobias
Andrew Tobias

Money and Other Subjects

  • Home
  • Books
  • Videos
  • Bio
  • Archives
  • Links
  • Me-Mail
Andrew Tobias
Andrew Tobias

Money and Other Subjects

Which to Choose: The Money or the Miles?

September 3, 1997February 3, 2017

From Kim Ness: “You have written in the past (via a printed medium) about frequent flyer programs where you can earn extra miles by using a certain credit card or long distance carrier. But I cannot recall the logic you used to explain when, if ever, it makes sense to use a credit card that charges an annual fee, instead of using a non-fee card that provides no flyer miles. Could you write about that? I am constantly getting offers that entice me… but so far I haven’t succumbed.”

The miles are worth about 2 cents each to most people, though it varies greatly based on how you travel.

  • If you sometimes have to buy full fare tickets for last-minute trips, or wish you could, they’re worth a nickel. Likewise if you fly business class to Europe — now you can buy a super-cheap economy ticket and use 40,000 miles (typically) to upgrade, saving $2,000 — a nickel a mile.
  • If you cash them in foolishly, they’re worth just a penny.
  • And if it takes you five years to accumulate enough points to cash them in, you need to remember that 2 cents five years from now isn’t worth as much as 2 cents today.

So . . . if you figure you charge $2,000 a year, for which you get 2,000 miles, that’s $40 worth of miles, versus a $50 fee (or whatever) — forget it. But if you charge $20,000 a year, say, then it’s a no-brainer. You want the miles.

 

Post navigation

← Fat-Free, Sugar-Free Cheesecake
Singing the Annuity Blues →

Quote of the Day

"Banking establishments are more dangerous than standing armies."

Thomas Jefferson

Subscribe

 Advice

The Only Investment Guide You'll Ever Need

"So full of tips and angles that only a booby or a billionaire could not benefit." -- The New York Times

Help

MYM Emergency?

Too Much Junk?

Tax Questions?

Ask Less

Recent Posts

  • Our Record-High Stock Market

    June 30, 2025
  • Stuffing The Goose

    June 30, 2025
  • Yes! (Plus A Bonus)

    June 29, 2025
  • How Does THAT Make You Feel . . .

    June 27, 2025
  • Randi, David, Ken, and HYMC

    June 26, 2025
  • Six Links For Your Consideration

    June 25, 2025
  • Weekend Reading

    June 20, 2025
  • Oh, My

    June 18, 2025
  • 3 Quick Clips

    June 17, 2025
  • A Quick Poem

    June 15, 2025
Andrew Tobias Books
  • Facebook
  • Twitter
©2025 Andrew Tobias - All Rights Reserved | Website: Whirled Pixels | Author Photo: Tony Adams