Travel Hacking

Written By The Financial Gym Team

On this episode of Financially Naked: Stories from The Financial Gym, Garrett and Tina are here to talk about the world of travel hacking. They break down what it is, how to get started, and key strategies to maximize points and miles for discounted travel. Whether you’re new to travel hacking or looking to refine your approach, this episode offers information, practical tips, and tricks to help you travel for less in style.    

Podcast Notes 

Before You Start Travel Hacking  

  • Travel hacking is using credit card points, airline miles, and other rewards programs to book travel at a discount.

  • Before you start travel hacking, make sure your financial foundation is solid first. You’ll want an emergency fund, no high-interest debt, and the ability to pay your card off in full each month.   

  • Chasing credit card rewards without financial stability can backfire. When you are paying 30% interest on a credit card, it negates travel perks or benefits earned.   

  • The dollar value of travel points is often less than the interest paid on debt, which is why starting with a strong financial foundation is important before travel hacking.   

Earning Points and Miles  

  • The first step in travel hacking is accumulating points. Chase and American Express are common players in the space, but most companies offer some type of benefit. You can earn points through sign-up bonuses, referrals, and everyday spending.   

  • Understand how each card's points system works. Some, like Chase Sapphire Preferred and Reserve, offer welcome bonuses that can be earned every 48 months, while American Express’ welcome offers are one-time only.

  • You want to choose a card that aligns with your spending habits and preferred airlines or hotels. For example, AmEx has co-branded cards with Delta, while Chase points transfer well to Hyatt.  

  • Take advantage of welcome offers by using incognito mode to find the best sign-up bonuses, and only sign up when you can meet the spending requirement within your normal budget and habits. You do not want to overspend just to get points.   

  • Referral bonuses can be a great way to earn extra points. Talk with your friends to see if they have a link, or you can do “two-player mode,” as Garrett calls it, with a partner or spouse to maximize points accumulation. 

Maximizing Points for Travel  

  • Once you’ve earned points, understanding redemption strategies is important. Look at point valuation. At a minimum, points should be worth at least one cent per point. Take your time, do your research, and plan ahead. 

  • Travel hacking shines when you can book first-class flights and luxury hotels. For example, transferring Chase points to Hyatt was how Tina secured a $1,500/night hotel for just 35,000 points.

  • Do your research! Use airline alliances and travel portals to compare redemption values. Sometimes, booking through a partner airline can lead to better deals than booking directly.

  • Be flexible with travel dates for the best redemptions, and don’t transfer points until you’re ready to book. Sometimes, the transfer can take some time, but once you transfer the points, they can’t be transferred back. 

  • If you are just getting started, keep it simple. Stay within your usual budget, focus on welcome offers, and use cards that align with your lifestyle and spending habits. 

If you want to work with a Certified Financial Trainer to help navigate your finances, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com. 

Resources 

Meet The Trainer 

Tina Hang, Certified Financial Trainer 
Garrett Faulconer, Certified Financial Trainer 

The Financial Gym Team
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