How to Enhance Your Investment in Life Experiences

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I hope this finds you well.

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In 2018, I took my first Mini-Retirement to Europe.

I was able to travel to Europe at that time because I used credit card reward points (I was in debt to the tune of 6-figures and couldn’t afford to add more to that debt).

Since then, (I’ve eliminated most of my debt) I use reward points for airfare almost every time I travel, whether to Europe or somewhere domestic, like Las Vegas.

I haven’t paid for airfare using cash since 2017.

I was recently asked for tips on using credit card reward points for traveling.

I was a bit taken aback because I had never been asked before and didn’t know how to answer in a way that may have been helpful to the person.

I thought about the system I currently use for my specific traveling needs.

This system works for me but may not work for anyone else.

I have this system in place for three specific reasons:

• Mini-retirements

• Weekend getaways

• Cross-country road trips

Here’s the system I use (if you can call it a system) that may work for you:

I only have three credit cards. That’s it.

I use two of the credit cards to earn reward points specifically for airfare (mini-retirements): Chase Freedom (“Freedom”) and Chase Sapphire Reserve (“Sapphire”).

I use the third card, the M1 Owner’s Reward credit card, specifically for Airbnbs and gas purchases (weekend getaways and cross-country road trips).

To earn points, I use the Sapphire card primarily for dining out (I currently earn 3x points) and the Freedom card for everything else (I currently earn 5x points for grocery purchases and 1.5x points for everything else).

The beauty of using these two cards is that I can transfer points from one card to the other and combine points with someone else in my household who uses the same cards.

When I’m ready to purchase airfare, I purchase through the Chase Ultimate Reward website.

The M1 card, issued through my investment account, is great for when I want to stay in an Airbnb for any length of time (mini-retirements) or when I drive to an Airbnb in the US or take a cross-country road trip (which I do every year).

I earn 2.5% of the total cost of any Airbnb I stay in, and every time I fill up for gasoline at 6 major gas stations.

The money I earn from the 2.5% is deposited into my M1 high-yield savings account, where I earn a straight 5% interest rate.

That’s it. That’s the system.

The most important thing to remember is that I pay off my credit card balance each month.

I never carry a balance (which is critical to avoid obscene credit card interest rates).

While there’s no annual fee for the Freedom card, there is a $550 annual fee for the Sapphire Card.

But, the bonuses I receive from the Sapphire card to justify its fee are worth it:

The benefits I use consistently include, but are not limited to, the following:

• Airport lounge access

• A $300 per year travel credit

• A statement credit of up to $100 every four years as reimbursement for the application fee charged to your card for either Global Entry or TSA PreCheck (both of which I use)

Having TSA PreCheck going through any New York City airport is worth its weight in gold.

I can’t think of a time when I went through, say, JFK airport, and the security line wasn’t insanely long (plus, you don’t have to take off your shoes through PreCheck).

To avoid the line at Customs, Global Entry is worth it when returning from an international trip, again through any NYC area airport.

Is airport lounge access worth it?

Heck, I’d pay a $550 annual fee for airport access alone.

I remember two specific incidents that made airport lounge access great:

One time, when flying home from Florida, my flight was delayed 3-4 hours. I made my way to the lounge for a meal and unlimited beers.

Most recently, arriving early in the morning at the Budapest airport for a flight to Dublin, we went to the lounge and had the place to ourselves.

We were treated to an excellent breakfast spread, and as much as we wanted to drink for the hour before boarding our flight.

Lastly, the $300 per year travel credit issued by Sapphire is automatically applied every year.

Are these specific cards worth it?

If you travel often, they may be worth it to you.

I’ve flown every year since 2018 (except 2020 and 2021), and I’ve definitely gotten my money’s worth.

And, because I take cross-country road trips every year (my annual non-negotiable), earning money back on gas purchases through my M1 card makes sense to me.

I pay $36 annually for the M1 card and make that back on gas purchases whenever I drive and fill up for gas.

Plus, each of these cards offer benefits that I haven’t discussed (links are posted for each below).

Are there better options out there?

Probably. I don’t know. I’m unwilling to research and change up the system I’ve been using for many years.

But, depending on how often you travel, it may make sense to research your options.

A $550 annual fee (well, $250 because of the annual $300 travel credit) may be a tough pill to swallow for some people.

And some of the benefits have been reduced. For example:

I can tell you that when I first applied for the Sapphire card, I earned 100,000 bonus points by spending $2500 in the first three months of having the card (I paid my rent with the card, earned the points, and went on my first mini-retirement).

Currently, you only earn 60,000 points if you spend $4000 in the first three months.

I used to earn 5x points for dining out on the Sapphire card, but that’s been reduced to 3x points (but grocery spending on the Freedom card increased to 5x).

The M1 card previously offered 5% cash back on gas purchases, currently down to 2.5% (but the Freedom card currently offers 5% cash back on gas purchases).

For me, it’s all about life experiences.

I will always invest money in life experiences.

These three credit cards help enhance that investment.

Credit card rewards may help enhance yours.

If you’re wondering whether the Chase Sapphire Reserve card is worth it (benefits valued up to $5000+), read this.

Earn 60,000 bonus points (after you spend $4,000 on purchases in the first 3 months from account opening) with Chase Sapphire Reserve here (affiliate link).

Read more about Chase Freedom’s valuable benefits here.

Earn up to $200 cash back with Chase Freedom Unlimited here (affiliate link).

M1 is the home for my:

• Roth IRA

• Brokerage Account

• High-Yield Savings Account (5%)

You can read a comprehensive review of M1 here.

If you become an M1 Plus member, you’ll also have access to benefits I take advantage of:

• A high-yield savings account (5%)

• The M1 Owners Reward credit card (you can learn more here).

Get a $100 investment bonus when you deposit $5,000 into your account within the first 30 days. Open your account here (affiliate link).

Interesting reads:

A buddy of mine has been crushing it with his financial newsletter. Check it out here: The Freedom Launch Newsletter.

Check out this 2022 CNBC Make It article about credit card rewards:

Not sure if your rewards card is still worth the annual fee? Ask yourself these 3 questions

You can find the collection of financial tools & resources that helped me grow from a 6-figure debt to a 6-figure net worth by clicking here.

Thanks for reading!

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