One of the most fun perks of being a business owner:
Credit card points
You can *legally* use credit card points earned by spending money on your small business for yourself or your family
I travel a ~lot~ and almost exclusively on credit card points
Here's how I set it up:
Credit card points
You can *legally* use credit card points earned by spending money on your small business for yourself or your family
I travel a ~lot~ and almost exclusively on credit card points
Here's how I set it up:
Let's start with the most important principle -
The goal here is zero credit card debt
Credit cards are really bad deal if you are borrowing money and getting in debt
But if you pay it off every month, credit card points are free money
And for travelers, they are even better!
The goal here is zero credit card debt
Credit cards are really bad deal if you are borrowing money and getting in debt
But if you pay it off every month, credit card points are free money
And for travelers, they are even better!
I have two primary credit cards, though either one is probably fine
1 - The JP Morgan Chase Reserve Card
2 - Amex Platinum
For me, optimizing travel is the biggest goal & while not the cheapest, they come with a ton of travel perks
But if your biz spends enough, 100% worth it
1 - The JP Morgan Chase Reserve Card
2 - Amex Platinum
For me, optimizing travel is the biggest goal & while not the cheapest, they come with a ton of travel perks
But if your biz spends enough, 100% worth it
Then take all your biz expenses that can be paid with a CC & move them over
If you have large variable expenses like paid Google / FB ads or large infrastructure bills, you'll start accumulating hundreds of thousands in CC points
Ask all your providers if they can accept cards
If you have large variable expenses like paid Google / FB ads or large infrastructure bills, you'll start accumulating hundreds of thousands in CC points
Ask all your providers if they can accept cards
So far, so good
The biggest mistake most people make is they stop here & book travel directly via the Travel Rewards website on their credit card account
Do NOT do this
The way to unlock the most value from your credit card points is to transfer them ~out~ to a travel partner
The biggest mistake most people make is they stop here & book travel directly via the Travel Rewards website on their credit card account
Do NOT do this
The way to unlock the most value from your credit card points is to transfer them ~out~ to a travel partner
Time for an example:
I was flying from NYC to Dubai last December
On Emirates, a business class ticket was ~$6K and a first class ticket was ~$10K
And via the Amex travel rewards website, it'd cost roughly 400,000 points or $4K "worth of points"
Slightly better deal
I was flying from NYC to Dubai last December
On Emirates, a business class ticket was ~$6K and a first class ticket was ~$10K
And via the Amex travel rewards website, it'd cost roughly 400,000 points or $4K "worth of points"
Slightly better deal
But instead I:
- Created an account w Emirates
- Transferred my AMEX points to Emirates (takes a second)
I was then able to get a first class ticket for only 120,000 points
That's $1.2K "worth" of points simply by transferring
You can repeat this with lots of travel partners
- Created an account w Emirates
- Transferred my AMEX points to Emirates (takes a second)
I was then able to get a first class ticket for only 120,000 points
That's $1.2K "worth" of points simply by transferring
You can repeat this with lots of travel partners
Same thing in January:
Was flying from Muscat, Oman to CDMX, Mexico via a night in Paris
By transferring JP Morgan points to Air France, I was able to book two business class flights for only ~100,000 points
Without the transfer, everything else was ~5 times more expensive
Was flying from Muscat, Oman to CDMX, Mexico via a night in Paris
By transferring JP Morgan points to Air France, I was able to book two business class flights for only ~100,000 points
Without the transfer, everything else was ~5 times more expensive
Few caveats:
- Some travel partners (especially US airlines) aren't great value to transfer in
- This only works if you are somewhat flexible on the actual days of travel
- But this sometimes also works really well with really fancy hotel rooms that otherwise cost a lot more
- Some travel partners (especially US airlines) aren't great value to transfer in
- This only works if you are somewhat flexible on the actual days of travel
- But this sometimes also works really well with really fancy hotel rooms that otherwise cost a lot more
If you don't travel, you are better off opting for a cash back card
But for frequent travelers, this is a no brainer
My credit card points are soooo much more valuable than the equivalent cash back because of the reward ticket perks
I can use them for family + friends too!
But for frequent travelers, this is a no brainer
My credit card points are soooo much more valuable than the equivalent cash back because of the reward ticket perks
I can use them for family + friends too!
They also have lots of benefits for disorganized people (ahem)
- They tend to be an even better deal if you book travel last minute i.e. same day flights
- The points are almost always fully refundable if you change your plans suddenly
- Helps with travel cancellations etc.
- They tend to be an even better deal if you book travel last minute i.e. same day flights
- The points are almost always fully refundable if you change your plans suddenly
- Helps with travel cancellations etc.
TL;DR
If your small biz spends a lot of money, you, your family and your friends should be traveling for free in first class all over the world
Obviously don't do this at your tech startup or any business that you don't own 100%
But if it's your own biz, go crazy and have fun
If your small biz spends a lot of money, you, your family and your friends should be traveling for free in first class all over the world
Obviously don't do this at your tech startup or any business that you don't own 100%
But if it's your own biz, go crazy and have fun
Why am I sharing this?
My new startup @ochowealth exists to help business owners build wealth
Expect more such tips as we get closer to launch
If you found this helpful, RT the original post and follow along for more personal finance strategies:
My new startup @ochowealth exists to help business owners build wealth
Expect more such tips as we get closer to launch
If you found this helpful, RT the original post and follow along for more personal finance strategies:
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