Miles Aren’t Free: How To Value Your Redemptions

Discussion in 'Blogstand' started by BoardingArea, Jul 29, 2015.

  1. BoardingArea

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    One of the first things I try to encourage people who are just starting out is to think of their miles as currency -- you generally paid something to get them either in time or money, and you will get something of value when you redeem them. In other words, you might have Delta SkyMiles, American AAdvantage miles, or United miles in your frequent flyer account just like you might have Dollars, Euros, Pounds, or Yen in your wallet. All of them have some value, and they all have different values relative to each other. Determining those values, however, is tricky. The reason you want to start treating your miles like currency is so that you can make smart decisions about when and how to acquire miles and when to redeem them . Simply put, you should want to get "good" value when you spend your miles the same as you want to get "good" value when you spend your cash. Because in some ways, the two are fungible in the sense that pretty much everything that can be bought with miles can also be bought with case. (The converse is not true.) I'm not going to tell you how you should value your miles, and honestly, nobody else can tell you that either. (Though you can see how Ben values his miles here.) What I am going to do is describe a framework that you can use to think about what your behavior says about your intrinsic mileage valuations. By examining how you earn and spend miles, can establish some rough bounds around where your real valuation lies. The post Miles Aren’t Free: How To Value Your Redemptions appeared first on One Mile at a Time.

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