How To Travel For Free

If you have ever read our blog or interacted with us, you will have heard us warn you against making short-term financial decisions. Think about when you or someone else has had a bad day and opted to buy something. It may not have been as extravagant as a car or luxury watch, but it’s priced low enough to make you think you can get away with it. You know it’s more than you can afford, but you talk yourself into it. 

This same line of thought often applies to traveling. The upside of this post is that we’re not telling you not to travel or to give yourself a break, but we will explain how you can take advantage of specific benefits, travel for free, and not overextend yourself. 

Here’s the Logic Behind Traveling for Free

Some people only use their debit card rather than a credit card because it ensures they only spend what they have in the bank. This is a disciplined approach, but there are other ways to apply it. When your favorite store determines a price for the product, they usually include the credit card’s surcharge fee. The amount you pay incorporates this fee regardless of whether you pay cash, debit, or credit card. Why not get something back for this added charge?

Before we tell you to use a credit card, it is paramount that you understand that you can only spend what you have in the bank. You must apply the same rigid discipline as you would if using cash. Otherwise, this tip will not work. Use your credit card and pay it off in full each month. Doing this allows you to take advantage of the credit card’s reward system without being negatively impacted. You can use several different cards that will enable you to travel based on the rewards they offer. Before providing examples, we must insert that we are not advocating for these cards. We are simply showing some of the possibilities. You should research other cards before committing to any of them. 

Chase Sapphire Preferred® Card

  • Who It’s For: People who want to travel can also benefit from a flexible reward system.
  • What You’ll Get: 5x points on any travel you book with Chase Travel. 2x points on other travel purchases.
  • Added Benefits: Points are worth 25% more when redeemed through Chase Travel. Plus, an annual anniversary bonus of 10% on total purchases.
  • Is There an Annual Fee? Yes, and it’s $95.
  • Basic Overview: This card is for people who want to use it for traveling and dining. It has a modest fee compared to other credit cards. 

Capital One Venture X Rewards Credit Card

  • Who It’s For: Travelers who want a simple card but can take advantage of premium benefits.
  • What You’ll Get: 2x miles on all purchases.
  • Added Benefits: $300 annual travel credit through Capital One Travel and unlimited access to Priority Pass lounges and Capital One lounges. You’ll receive a 75,000 miles sign-up bonus if you spend $4,000 in the first three months.
  • Is There an Annual Fee? Yes, and it’s $395.
  • Basic Overview: This card is for people who fly regularly. It has straightforward rewards and premium perks like lounge access. 

Remember, credit cards are not a free pass, and using them requires planning. You can use these cards to your advantage with careful planning and budgeting. You only pay the interest (which is enormous) if you don’t pay off the card each month. Plan, be disciplined, and use the rewards to see and do what you want to. If you need tailored financial advice, contact our office and schedule a meeting with us. We’re here to serve and help you. 

Disclaimer: Always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation to sell or purchase any securities. Any rates of return are historical or hypothetical in nature and are not a guarantee of future returns, which may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions and security positions, which, when sold, may be worth less or more than their original cost.