My wife has been asking me to give a simple math equation to understand valuing your miles.
My newly married voice in my head tells me...
If you recall on February 8th I wrote a post detailing why 2 cents per mile should be your barometer for mile redemption. Easy enough, but no one talks about Cents when it comes to purchasing anything anymore. However, cents add up, and when you throw a 2% cashback card into the equation consumers start thinking about the bottom line: how do I get more while spending less..
Without further adieu I present the equation I use when determining spending $$$ vs. redeeming miles.
There it is! The damn purchasing peg. It's not for everyone, but for people just starting out it's simple to follow.
- If the value of the Mile is Less Than 2¢, keep your miles.
- If the value of the Mile is Greater Than or Equal To, cash them in.
If you have found this post useful or have any other suggestions please share and add your comments below.