The author is from Canada and maintains the website http://thoughtsfrommylife.com.
Why I think an airmile can be worth anywhere between 13 cents and 44 cents depending on what you use it for.
Air miles, Aeroplan points, HBC points, PetroPoints, etc, etc, all the way back to Club Z Points at Zellers. They seem like such a gimmick and just a way to influence your spending. The thing is, they are everywhere now and you can't really avoid it, so you might as well take advantage of it. I have calculated how much I think they are worth so read on.
I personally collect Air Miles and Aeroplan Points so I just talk about those. This posting is about Air Miles specifically, but the same techniques can be used to figure out Aeroplan.
Basically, I value an airmile differently depending on the product. Here is my summary.
Entertainment gifts are about 40 cents/airmile.
Travel is around 20 cents/airmile.
Gift cards are around 10 cents/airmile.
So when you see those "double your airmiles when you buy this..." deals, you can add up how much you are going to spend and how many airmiles you will get and see if it will actually pay for yourself. Unless of course you actually need what you are buying, then it doesn't matter.
How to Collect Air Miles
Air Miles, first of all, is free and there are two different ways to collect.
- You can apply for the blue Air Miles card and just keep it on you. If you shop at stores that are affiliated with them (Shell, SportChek, Turbo, Boston Pizza, Safeway, Rona, etc) then you just hand them your card and you collect some points.
- You apply for a no fee BMO Mosaik Mastercard and link it to your Air Miles card you got above. They will give you 1 AirMile for every $40 you spend on their credit card. For a yearly fee you can increase the AirMiles you earn. You will get 1 for every $20 you spend for $35/year (the silver card), or you get 1 for every $15 you spend for $80/year (the gold card). The card upgrades can also give you some cheaper AirMile rates on flights.
These points can later be used to buy flights, car rentals, gift cards, tickets, electronics, and a variety of other products. With flights and car rentals you will still have to pay the taxes, but the base fees are covered by the air miles.
So this is the basics of the system. Now I will discuss what they are actually worth.
Continue reading the full article for details on how I calculated the value and if it is worth upgrading your various reward cards.
- Related Videos
- Related Articles
- Ask / Related Q&A
- How Do The Reward Travel Credit Cards Work For Your Benefit?
- Taking Advantage of Travel Reward Credit Cards
- Why Do you Pay Commissions When you Do your Own Travel Bookings?
- Does the Internet Benefit Small Travel Businesses?
- A Career As A Travel Nurse
- Pros and Cons of a Career as Traveling Nurse
- Traveling With Teenagers - the Right Way
- Chase Sapphire with Ultimate Rewards Credit Card: What you Need to Know
Everything You Should Know About Stilbaai Properties
By: Groshan Fabiola | 29/12/2009Africa as many of us know is one of the most beautiful regions of the Earth. When it comes to tourism, most countries in Africa welcome tourists with beautiful surroundings
Credit Cards For All Your Needs
By: Debona Malhot | 29/12/2009There are varieties of creditcards available which make it tough to choose the one which is just right for you. There are numerous companies and banks offering different type of creditcards for people from all walks of life along with attractive facilities and benefits.
Debt Settlement Help – How To Locate Legitimate Debt Settlement Help Online
By: Matt Couch | 29/12/2009Every person in neck deep debit seeks debt settlement help
Sell Jewelry You Already Have For Cash Online!
By: Jthomas | 29/12/2009If you are like most other people you have an old box somewhere that contains many different treasures including old jewelry you'd either found or was given to you and have collected over the years and saved.
Tips To Find The Best Gold Pawn And Sales Shops
By: Jthomas | 29/12/2009A gold pawn shop may seem like the best place to sell your gold, but there is a better alternative. You may see these businesses advertising on television or in a magazine with a toll free telephone number along with their PO boxes.
Money Problems? Why Not Turn Your Scrap Gold Into Cash?
By: Jthomas | 29/12/2009The price of gold has more than doubled over the past couple of years and most people have no idea how much money they can acquire by selling their scrap gold. Almost everyone has old, broken, or unwanted gold jewelry lying around.
Debt Relief Programs – Why Americans Are Turning To Debt Relief Programs For Help With Debt
By: Matt Couch | 29/12/2009Almost all financial and business sectors are facing the problem of being in debt.
Debt Relief – How To Eliminate Unsecured Debt With A Legitimate Debt Settlement Process
By: Matt Couch | 29/12/2009The issue of debt relief in America has become a point of concern for the loan takers as well as the givers
Camera Shake and Image Stabilization (vibration Reduction)
By: Neil Galloway | 14/05/2007 | PhotographyWhen you are first buying camera equipment you see a lot of lenses that have the IS or VR designations on them. This is Image Stabilization or Vibration Reduction. They mean the same thing except Canon uses the first term and Nikon uses the second. These are mechanisms built into the camera lens to prevent "camera shake." I will discuss how to get rid of camera shake and why I purchased a VR lens for myself.
Understanding the Value of Wide Angle Lenses
By: Neil Galloway | 14/05/2007 | PhotographyWide angle lenses are, in my opinion, the most overlooked "next step" for amateur photographers. Everyone has the "kit" lens that was packaged with their camera and then they go buy the 75-300mm zoom and then they are done. I knew I wanted the 18-200mm when I purchased my camera, but was on a waiting list, so the first lens I bought was the 10-20mm Sigma wide-angle. Wow. It gave me the opportunity to see the awesome potential of wide angle lenses (and their limitations).
Finding the Cheapest Flights
By: Neil Galloway | 14/05/2007 | Travel TipsFinding cheap flights when traveling is always an adventure. I have found a couple techniques work well for me. I recently booked tickets from Calgary to Moscow and I will show you the comparison of prices using the techniques there.
Collecting Air Miles and Their Value
By: Neil Galloway | 14/05/2007 | FinanceWhy I think an air mile can be worth anywhere between 13 cents and 44 cents depending on what you use it for. Air miles, Aeroplan points, HBC points, PetroPoints, etc, etc, all the way back to Club Z Points at Zellers. They seem like such a gimmick and just a way to influence your spending. The thing is, they are everywhere now and you can't really avoid it, so you might as well take advantage of it. I have calculated how much I think they are worth so read on.
Collecting Aeroplan Points and Their Value
By: Neil Galloway | 14/05/2007 | FinanceWhy I think an Aeroplan mile/point is worth 1.6 cents and if you should collect them with a credit card. Aeroplan points, Air miles, HBC points, PetroPoints, etc, etc, all the way back to Club Z Points at Zellers. They seem like such a gimmick and just a way to influence your spending. The thing is, they are everywhere now and you can't really avoid it, so you might as well take advantage of it. I have calculated how much I think they are worth so read on.
Aeroplan Versus Air Miles - Comparing Them
By: Neil Galloway | 14/05/2007 | FinanceAir Miles and Aeroplan points. The two biggest travel rewards programs. There is always the decision on which one to go with. This will provide a bit of an analysis on them and which one I think is better. Personally, I think you should sign up for both, since the programs are free. There are credit cards that allow you to collect more miles and that is what I am going to focus on.