Traveling has picked up in the last couple of years, so have travel costs. However, it is always good to travel when you can. As business owners, traveling offers peace of mind, renewed perspectives, and fresh ideas to implement in your life and business. Although it might not seem affordable to travel, responsible consumers can use a credit card hack.
Before discussing this travel strategy, it’s important to note that a responsible consumer has enough cash in the bank to cover immediate and emergency expenses. To further our discussion on this credit card travel rewards hack, empiriKal partners Associate Investment Advisor Chris Monzon details a strategy he recently used on his recent trip to Hawaii and to book a future trip to Bora Bora to stay in an over-water bungalow.
What is Monzon’s credit card reward travel strategy? Monzon stated that this credit card hack only works with good financial habits. “I sign up for a premier travel rewards credit card and use that card for my normal expenditures to hit predetermined spending requirements and earn huge bonus points.” These points can be converted into cash or credit toward groceries or travel.
According to Monzon, each card is different. For example, the Chase Sapphire charges a $95 annual fee. An example of how the points would work is that $4,000 in purchases in three months equals 60,000 in points, which can convert to $1,200 in bonus money toward travel. Customers must visit the credit card’s website to find transfer partners, such as Southwest or American Airlines. To learn more about Monzon’s travel hack strategy, check out his The FI Guys YouTube channel, (1) ep. 2 Travel the world for free!!! The Art of Credit Card Hacking – YouTube.
How can a business owner benefit from this credit card travel hack? Monzon stated a business owner has a special advantage – the double dip. How? They can open a personal and a business card. Just as a consumer would collect points for individual purchases, a business owner can do the same with a business credit card. An added bonus is that this double-dip strategy might help build a business owner’s commercial credit.
Okay, so we know how the credit card travel hack works. What risks should a consumer consider when using credit card points to travel? According to Business Insider, the average credit card debt per American is estimated at $5,733 with a 20% interest rate. It wouldn’t be a wild guess to think that you might be paying for your own credit card travel hack. Therefore, the risk is that, as a consumer, you could get addicted to using credit. Consequently, it is crucial to have personal fiscal policies in place regarding budgeting, savings, and building up a healthy emergency fund before any travel hack considerations.
If you would like guidance in budgeting, saving, or building an emergency fund, now is the best time. Since interest rates in savings accounts with us are nearly 5%, it would be wise to start these programs today. Of course, we will also include a travel budget if you’re interested in traveling.
If you already have an investment advisor, congratulations. However, if you’d like to learn more about what investment advisors do for their clients, please contact me at empiriKalpartners. com for an individual assessment.
Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Past performance does not guarantee future results. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your situation. The opinions expressed and the content provided are for general information. This is not a solicitation for the purchase or sale of any security.
