Tag Archives: use your miles
Posted on 03. Jun, 2011 by PointsAdvisor.
To redeem or not to redeem – that is the question (Tip #2: Do the math)
We’re continuing our Friday series on determining the best time to redeem. Now that you’ve identified your redemption goal with the tips from last week, it’s time to make a plan for redeeming.
Some simple number crunching can help you create your redemption plan of attack. Don’t worry, you don’t have to be a mathlete to create your redemption plan!
Tip #2: Do the Math
Get out your notepad and let’s get going. Ask yourself the following questions:
- How many points/miles do you have in the program you want to redeem from (you can check your balance on Points.com)? How many points/miles do you need for your award? What’s the difference between the two?
- Do you need to get this award for a special occasion? For example, do you want to redeem for a flight to your family reunion or for a birthday present for your best friend? If you need to have your reward by a specific time, this should be a part of your plan.
- What is the approximate value of the award? You can calculate the value of your award by figuring out how much you would need to pay to get the award using cash, and then dividing by the number of points/miles needed to get the award on any given day. For example, if you need to redeem 2,500 miles to take a flight that would normally cost $700, the approximate currency value is 28 cents ($0.28) per mile.
Once you have the answers to these questions, you’re ready to start researching (which we’ll discuss in next week’s post: Research Your Options).
Do you have any tips for building a redemption plan? Let us know your ideas by leaving a comment below!
Image sourced from: http://www.sxc.hu/profile/winjohn