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.
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.
Is that the value of the points you're currently sitting on or how much you have saved so far after redeeming?
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)?
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.).
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.
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'.
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.
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!
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.
I wrote a review of my latest Amex Platinum benefit on Head for Points today: https://www.headforpoints.com/2018/...-brighton-hove-albion-fc-premier-league-game/ Always interested in sharing opportunities for getting the best value out of card perks!
