Key Takeaways:
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Choose the right miles credit card to earn sign-up bonuses and rewards, helping you accumulate points for travel faster.
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Be flexible with travel dates and use transfer partners to get the best value when redeeming travel points and airline miles.
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Continue earning miles while traveling by using your miles credit card for additional expenses, setting up your next trip even as you enjoy the current one.
Traveling is one of life’s greatest joys, but it can also drain your bank account faster than you can say “bon voyage.”
However, with the right strategies, you can explore the world without emptying your savings by using points and miles.
If you’re wondering how to travel on a budget in 2024, this guide is here to show you how to leverage miles credit cards, accumulate airline miles, and make the most of your travel points.
Step 1: Set Your Travel Goals and Budget (The Dream Phase)
Before diving into the world of miles and points, start by setting clear travel goals. Do you dream of exploring the cobblestone streets of Paris, lounging on a tropical beach in the Maldives, or embarking on a cross-country road trip in the U.S.?
Knowing where you want to go helps you determine how many miles and points you’ll need.
Once you’ve picked your destination, it’s time to set a budget. Consider all potential expenses: flights, accommodations, meals, activities, and ground transportation.
Even though you’re using points and miles, you’ll likely still have some out-of-pocket costs. Your travel budget should account for both points and cash.
Pro Tip: Research the average cost in miles and dollars for your desired destination. This will give you a realistic idea of how many points you need to accumulate and how much you might have to spend.
Step 2: Choose the Right Miles Credit Card (The Collecting Phase)
The foundation of traveling on points starts with the right miles credit card. These cards are your gateway to earning travel points, airline miles, and other rewards that can offset your travel costs.
Key Factors to Consider:
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Sign-Up Bonuses
Many miles credit cards offer generous sign-up bonuses that can give you a head start on accumulating airline miles.
For example, cards like the Chase Sapphire Preferred® Card or the American Express® Gold Card offer substantial bonuses when you meet a minimum spending requirement within the first few months.
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Rewards Rate
Look for cards that offer high rewards rates on the types of purchases you make most frequently.
For instance, if you’re a foodie, a card such as Chase Freedom Unlimited® card or Capital One SavorOne Cash Rewards Credit Card with no annual fee that offers 3X points on dining and might be ideal.
If you’re a frequent traveler, one that offers extra points on travel-related expenses could be more beneficial.
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Transfer Partners
Some credit cards such as Capital One Venture Rewards Credit Card card allow you to transfer your points to a variety of airline or hotel loyalty programs.
This flexibility can be incredibly valuable when planning your trip, as it gives you more options for redeeming your points.
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Annual Fees
While some of the best miles credit cards come with annual fees, the benefits often outweigh the costs if you’re a frequent traveler.
However, if you prefer a no-annual-fee card, options like the Capital One VentureOne Rewards Credit Card or Delta SkyMiles® Blue American Express Card can still help you accumulate miles points without the added cost.
Pro Tip: Diversify your portfolio. Having a mix of cards that earn transferable points and those that earn specific airline miles can give you more flexibility when it’s time to book your trip.
Step 3: How to Accumulate Airline Miles (The Earning Phase)
Accumulating airline miles isn’t just about swiping your miles credit card on every purchase (although that helps). There are several strategies to boost your miles balance quickly.
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Everyday Spending
Use your miles credit card for everyday purchases like groceries, gas, and dining.
If your card offers bonus points in specific categories, be sure to maximize those opportunities.
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Welcome Bonuses
As mentioned earlier, taking advantage of sign-up bonuses is one of the quickest ways to accumulate a large number of miles and points.
Just ensure you can meet the spending requirement without straining your budget.
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Shopping Portals
Many airlines and credit card issuers have shopping portals that allow you to earn extra miles for purchases made through their partner retailers.
Before you make an online purchase, check if you can earn additional miles by shopping through these portals.
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Special Promotions
Keep an eye out for special promotions that offer bonus miles.
Airlines and credit card companies frequently run limited-time offers where you can earn extra points for specific activities like booking a hotel through their platform or dining at partner restaurants.
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Dining Programs
Some airlines have dining programs where you can earn miles just by eating at participating restaurants.
Link your miles credit card to these programs and earn extra miles for meals you’d be paying for anyway.
Pro Tip: Stack your rewards by using a miles credit card that offers bonus points on dining, linked to an airline dining program, and make the reservation through a shopping portal. It’s like earning miles on miles on miles!
Step 4: Travel on Points (The Booking Phase)
Now that you’ve accumulated a healthy balance of miles and points, it’s time for the fun part: booking your trip!
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Flexible Dates
One of the most effective ways to maximize your travel points is by being flexible with your travel dates.
Flights and hotel stays booked with points often have limited availability, but being flexible can help you find those hidden gems.
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Use Transfer Partners
If you’ve been accumulating miles points with a transferable currency (like Chase Ultimate Rewards or American Express Membership Rewards), explore your transfer partner options.
Sometimes transferring points to an airline or hotel program can get you a better deal than booking directly through your credit card’s travel portal.
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Book in Advance
Some airlines and hotels release award availability far in advance, which means planning your trip early can give you the best options for redeeming your miles and points.
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Off-Peak Travel
Traveling during off-peak times can also save you a significant number of points and miles. For example, a flight to Europe in the winter might require fewer miles than a summer flight.
The same goes for hotel stays—off-peak times can offer lower rates in points.
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Calculate Value
Always calculate the value you’re getting from your points. While it’s tempting to use points for convenience, some redemptions offer more value than others.
As a rule of thumb, aim for at least 1.5 cents per point when redeeming for travel.
Pro Tip: Don’t forget to factor in taxes and fees. Even when booking with miles, some airlines charge fees that can add up, especially on international flights.
Step 5: Enjoy the Journey (The Experience Phase)
Once your trip is booked, the hard part is over! Now, all that’s left is to pack your bags, set your out-of-office email, and enjoy the journey.
Knowing that you’ve figured out how to travel on a budget using points and miles will make every sunset, every bite of local cuisine, and every adventure feel even more rewarding.
Pro Tip: Continue earning miles even while traveling. Use your miles credit card for any additional expenses like meals, tours, or souvenirs. This way, you’ll start accumulating miles and points for your next adventure before you’ve even finished the current one!
Best credit cards ideal for building a travel budget using points and miles:
| Credit Card | Annual Fee | Welcome Bonus | Rewards Rate | Key Benefits |
|---|---|---|---|---|
annual_fees |
bonus_miles_full |
2x points on travel & dining, 1x on all else |
25% more value on travel redemption, No foreign transaction fees |
|
annual_fees |
bonus_miles_full |
4x points on dining & supermarkets, 3x on flights |
$120 dining credit, 1:1 point transfer to airline partners, No foreign fees |
|
annual_fees |
bonus_miles_full |
3x points on air travel, hotels, gas, and dining |
1:1 transfer to airline partners, No foreign transaction fees |
|
annual_fees |
bonus_miles_full |
2x miles on all purchases |
Flexible miles redemption, 1:1 transfer to airline partners, $100 Global Entry/TSA Pre✓® credit |
|
annual_fees |
bonus_miles_full |
3% on Dining, Pharmacies 1.5% on all else |
5% on travel booked through Chase, No annual fee |
This table highlights the key features of each card, helping you choose the best option for accumulating points and miles to support your travel budget in 2024.
Bottom Line
Traveling on a budget in 2024 doesn’t have to mean sacrificing comfort or experiences.
By strategically using miles credit cards, accumulating airline miles, and redeeming travel points wisely, you can explore the world without breaking the bank.
Whether you’re a seasoned traveler or just starting to navigate the world of miles and points, these strategies will help you make the most of every point earned and every mile flown. Safe travels!
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