My Top 5 Mistakes with Points & Miles
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this episode, Chris Hutchins shares his top five mistakes in his points and miles journey, providing an honest self-assessment that will help ambitious professionals avoid similar pitfalls. (00:28) He covers everything from not valuing time properly to overvaluing points, backed by detailed spreadsheets and real-world examples. The episode offers actionable insights for optimizing your travel rewards strategy while maintaining perspective on what truly matters.
- Core themes include time valuation, opportunity cost analysis, status chasing psychology, realistic point valuations, and the importance of actually using accumulated points rather than hoarding them indefinitely.
Speakers
Chris Hutchins
Chris Hutchins is the host of All The Hacks podcast and a recognized expert in travel rewards, credit card optimization, and financial efficiency. He creates detailed analyses and strategies for maximizing points and miles while helping people upgrade their money, points, and life. Chris regularly speaks at conferences like Chicago Seminars and maintains a popular newsletter focused on actionable financial and travel optimization advice.
Key Takeaways
Establish a Minimum Hourly Rate for Points Activities
Chris realized he was spending countless hours on low-value activities like driving to check for out-of-stock gold or sitting on hold for small refunds. (02:57) He recommends setting a personal minimum hourly rate—something you could earn doing DoorDash or Uber—and evaluating whether points activities meet that threshold. For example, a crypto deal offering $500 for 10 minutes of work equals $3,000 per hour, clearly worth it. However, spending an hour to get a $2 Amazon refund falls far below any reasonable hourly rate. This framework helps distinguish between genuinely profitable opportunities and time-wasting rabbit holes that feel productive but aren't.
Factor in Mental Overhead Beyond Just Time
Beyond pure time calculations, Chris discovered the hidden cost of mental overhead. (05:15) When he tried to optimize gold sales by setting ask prices rather than accepting market rates, he spent the entire day stressed and checking prices for a potential $10 savings. The mental burden of having unresolved tasks looming can be more costly than the money saved. Chris now prioritizes getting things done immediately when possible—like paying a $30 parking ticket right away rather than researching how to fight it—to eliminate the psychological overhead that diminishes quality of life and focus.
Always Calculate True Opportunity Cost
Chris provides a detailed example where someone earning United status through $270,000 in credit card spend appears to cost only $135 after factoring in miles earned. (07:00) However, when compared to using a US Bank Altitude Reserve card that earns 4.5% back on the same purchases, the true cost of that United status becomes $6,885. This demonstrates how focusing only on the direct costs of a strategy while ignoring better alternatives can lead to expensive mistakes. Every points decision should be evaluated against your next-best option, not in isolation.
Evaluate Status Based on Actual Flying Patterns
Chris achieved status on six different airlines but realized most provided no value given his actual travel patterns. (18:12) He earned American executive platinum status but never once used his American number when booking flights, instead crediting them to Alaska. He had Delta Gold status but flew Delta zero times. This analysis revealed that only Southwest and United statuses provided real value based on his flying patterns. The lesson: audit your actual airline usage before chasing status, and consider whether you'd get more value simply buying the perks (like preferred seats) outright rather than spending thousands to earn status you rarely use.
Question Traditional Point Valuations Through Realistic Comparisons
Chris demonstrates how a flight that appears to offer 4.5 cents per point value drops to just 0.48 cents per point when properly analyzed. (33:16) He shows how comparing one-way premium awards to one-way cash prices is misleading—most people don't book one-way flights, and the cash alternative should reflect what you'd actually pay (a connecting flight vs nonstop, or a round-trip fare). When you factor in the redeemable miles, status points, and credit card points you'd earn by paying cash, plus the realistic price you'd pay if spending your own money, many "valuable" award redemptions become poor deals compared to earning cash back throughout your journey.
Statistics & Facts
- Chris calculated that earning United top-tier status requires $420,000 in credit card spend, making it the most expensive airline status to achieve through credit cards, compared to Southwest at $140,000. (22:20)
- When factoring in milestone benefits, United's 320,000 plus points earned at top tier status are worth approximately $4,500 on the secondary market, essentially making the status free if you can utilize those benefits. (27:25)
- Data from booking platforms shows that while Hyatt points have a median redemption value of 1.66 cents per point, the 90th percentile reaches 2.85 cents per point, supporting the high valuations for Hyatt points compared to other hotel programs. (41:26)
