Total Value of Points/Status/Benefits

Discussion in 'Miles & points via credit cards' started by tcz8127, Sep 27, 2018.

  1. tcz8127

    tcz8127 Member

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    Does anyone keep track of the value they get out of credit card benefits/points?

    I've been recording them and was surprised to find that in 6 months I'm at about £2,000.

    This is largely via points for sign ups and referrals, but also hotel upgrades and status benefits, lounge visits, Amex experiences & offers etc. It doesn't include the value of things like insurance.

    I've used the HiltonHonors Barclaycard, Amex Platinum and AmexGold in that time.
     
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  2. JoeD

    JoeD Well-Known Member

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    Interesting!

    I've never done it properly as a running total like that, but I do usually have a rough idea of my 'points-worth' at any given time.
     
  3. KyleR

    KyleR New Member

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    Is that the value of the points you're currently sitting on or how much you have saved so far after redeeming?
     
  4. JoeD

    JoeD Well-Known Member

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    Just what I'm sitting on, using my approx valuations (which are on the conservative side compared to what I actually get from my points/miles).

    @Tcz8 How did you go about working out what you'd saved? - comparing purely to the equivalent cash price, or to what you would have actually been prepared to pay in cash if the option was there (assuming those 2 things are sometimes different)?
     
  5. tcz8127

    tcz8127 Member

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    That's the value of redemptions in that period, excluding the points I'm sitting on.

    It's not overly scientific and is against cash value - it also includes the cash value of lounge visits and status perks acquired through cards (spa and lounge access, upgrdes, breakfast, etc.).
     
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  6. KyleR

    KyleR New Member

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    I tend to do the same, looking at the value of redemptions I have actually gotten versus cash value, rather than giving a value to the points I'm sitting on.
     
  7. JoeD

    JoeD Well-Known Member

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    The problem I have with valuing points/miles redemptions at their cash equivalent though, is that I would never actually pay £6k for a one way flight in First or whatever, so I prefer to value stuff at what I would (roughly) have paid in cash (if the option existed).

    So, for example, the flights for my upcoming trip to Asia cost about 70k Avios + ~85,000 AA Miles (and a few other bits and pieces), which I'd value at about 2 grand. That gets me 4 biz class flights and 1 First Class though, which I think is pretty much in line with what I'd happily pay in cash for the same, rather than the £20k+ cash costs of the same tickets.

    Of course, if you regularly pay for full cash fares Biz/First Class, then the saving would be completely 'genuine'.
     
  8. KyleR

    KyleR New Member

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    Haha, true, maybe I just like the psychological aspect of having "saved" however many £k!
     
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  9. JoeD

    JoeD Well-Known Member

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    I might tot up the cash totals for this trip actually as a bit of fun. Because there are so many one ways involved, I imagine the total will be astronomical.
     
  10. tcz8127

    tcz8127 Member

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    I never consider it as 'savings', but I do consider it as having a true value - it's all perks/benefits. If I didn't have the cards, I wouldn't have those benefits and through them I gain that value - generally just by carefully organising my day to day spend. (My wife is beginning to hate the 'yes, but did you use the Amex?' question!)

    I generally consider points as a free treats budget!
     
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  11. JoeD

    JoeD Well-Known Member

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    Yeah, the psychology of points/miles is interesting - I sometimes make what are objectively 'bad' value redemptions really just because I can afford to and it's something I want to do. Much in the same way that I might occasionally splurge some cash on something I'd find it hard to objectively defend as being sensible/smart, but because it seemed fun. In that context, seeing points as a way to bag 'free' treats is definitely appealing and it's important to take into account the value of that fun feeling of getting something for free - perhaps especially if points get you something you wouldn't otherwise do.

    On the other hand, I do think there has to be a bit of a floor value, as I absolutely hate to see people 'wasting' their points, simply because they don't know how to make the most of them. Maybe whatever the best free cashback card offers (0.5%?) as otherwise, you're actually effectively paying hard cash for your 'free' points, even if they are fun.
     
  12. tcz8127

    tcz8127 Member

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  13. JoeD

    JoeD Well-Known Member

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    Cheers for sharing! - sounds like a decent evening out.
     
  14. Daiv

    Daiv Member

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    Thank you for sharing.
     
  15. Herman

    Herman New Member

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    This is indeed how you should look at it to get a fair idea of what you "really" have saved.
     

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