Last month, I got an email informing me that one of the benefits associated with my American Airlines AAdvantage credit card would be “discontinued” in May:
Beginning May 1, 2019, the benefit offering 10% of RedeemedAAdvantage® Miles Back will be discontinued. Book your trip with miles on or before April 30, 2019 to earn 10% of your redeemed miles back.
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I took the email’s advice and booked a flight with miles right away—this was a trip I had been planning to take, but I hadn’t been sure whether I wanted to use miles on summer travel or save the miles for more expensive holiday travel in December.
As NerdWallet reports, using your miles as soon as you have enough to cover a plane ticket—the “earn and burn” strategy—is often the best choice:
When asked what they would do if they accumulated 50,000 travel rewards points or miles, just over half of Americans (55%) said they’d use them for flights or nonflight travel expenses. However, about 1 in 8 (13%) say they’d continue to save them. That could be a big mistake.
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Why is it a mistake to save those miles for the future? As NerdWallet explains—and as I recently learned—credit card issuers frequently update their rewards programs. Points and miles can lose value, which is why sites like The Points Guy track monthly valuations, and point/mile earning options can be adjusted or eliminated completely.
NerdWallet also reminds us that the value of our rewards will drop over time due to inflation—probably less of a big deal if you’re trying to decide whether to use those points for a summer vacation or a winter trip, but something to think about if you’re saving up for a special occasion that’s still a few years out.
In other words:
Don’t assume your rewards will hold their value. Save up enough to cover your next trip, then book it.
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If you want to get as many rewards flights as possible, earning and burning is the way to go.
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