After the travel planned early next year Finance Punk will have reached $100,000 in value from rewards redemptions – a pretty substantial chunk of change accumulated over three years.
The Real Questions:
Did you torch $100k on travel?!
No, I redeemed a fair amount for cash and ultimately investments.
How much did you redeem for cash and how much for travel?
Roughly $40k was cashed out, or awarded, in USD and the other $60K was redeemed on travel.
How could you spend $60K on travel in 3 years?!
I redeemed less than 500k points that could have been converted into around $5,000 which ends up being about $1,500 a year in travel expenses for $20,000 in experiences!
*I spent significantly more that $1,500/year on these vacations mostly on restaurants and bars.
So, you have $40,000 invested then, right?
No, unfortunately, I took a year off from work after college and then it took some time (and is still a work in progress) to get my spending habits under control.
I’ve learned a lot from three years of accumulating and redeeming rewards points so I’ve come up with some goals and some things to avoid as I continue.
- Reach 10 million points accumulated overall
- I have about 4 million to go
- Save/invest $50,000 from rewards
- Travel for an entire year on points
Things to avoid:
- I spend way too much on restaurants and bars and I spend too much on travel considering I should be traveling for free but it really goes back to I spend to much on restaurants and bars
- Redeeming points for travel when they have a decent value in cash
- I have plenty of, and will continue to get plenty of, hotel and airline points so I need to use these exclusively for travel and cash out all other points
- Spending unnecessary time on this hobby
- I don’t think I waste a huge amount of time but there are things that could be automated and there are things that could be thought about less
Good luck to me and I hope you enjoy following as I attempt to meet these lofty ambitions.