Introduction to Category        Bonuses
What are Category Bonuses?- Extra Points or Cash Back forSpending in Certain Categories
AMEX Premier Rewards Gold-   3X Points Airfare    - 2X Points Gas/   Groceries
Sapphire Preferred-   2X on Travel/Dining on Chase Sapphire Preferred
Worth It or Not?- Displaces spending on sign-up bonuses forother credit cards
$50,000*2010 US Census
Earning Miles & Points – Credit Cards - Spend everything you earn, you’ll get only 50,000 miles/points - Pay-off is with t...
Worth It or Not?- Incremental Earning  - 3x on airfare. Actually 2   EXTRA  points (or 1 EXTRA point if you have  Sapphire...
Worth It or Not?- $750 a month on gas and groceries= 750 extra points per month or 9,000points per year$ 175 Annual Fee - ...
Worth It or Not?- Annual Fees  - $175 for Premier Rewards Gold  - $95 for Chase Sapphire Preferred  - $95 for Chase Ink Bold
Worth It or Not?- Complex          - Time Consuming
Worth It or Not?- Keep your partner happy!
Worth it!No fee for many of the best 5X and 6X bonuses!•   Chase Ink Classic, Ink Cash: 5X•   US Bank Cash+ 5X (choose 2)•...
Worth it!Best alternative is sign-up bonus spend. Let’s look at some sign-up offers…
Ink Bold / Ink Plus• Current offer: 50K points after $5K spend.  • If spend within 1X categories, total 55K points  • Earn...
Sapphire Preferred• 40K points after $3K spend  • If spend within 1X categories, total 43K points  • 14.33X
BA 100K offer• 50K Free, 50K more after $20K spend  • BA card earns 1.25 points per dollar  • Total 75K additional points ...
More…• Citi AA: 50K after $2500 spend  • Total 5250 points  • Earnings: 21X• Amex SPG: 10K free + 15K after $5K spend  • T...
Worth it!• Sign-up bonus spend ranges from 3.5X to 21X  • Better than category bonuses, but not by orders of    magnitude•...
Worth it!Use tools to make card selection easier(more on this later)
Best Category Bonuses                             6X   5X                    groceries,telecom,                 gas, drug ...
Cash+
Category Bonuses – Simple Solution•2X Travel/Dining•$95 Annual Fee                 •5X Rotating Categories•No Forex Fee   ...
Simple Solution - Payoff• $200 monthly telecom = 5 X $200 = 1,000 Pts (Ink)• $300 travel & dining = 2 X $300 = 600 Pts (Sa...
What to do with 49,200 points?•   ~2 United domestic coach tickets or $821 Southwest• $615 in travel through Ultimate Rewa...
Another Simple Solution    6Xgroceries,gas, drug  stores, telecom                               5X                        ...
Simple Solution 2 PayoutHilton Amex: 5400 monthly, 65K annually  •   $200 monthly telecom = 6 X $200 = 1,200  •   $500 mon...
What to do with 65K Hilton & 15KThankYou points?• Two nights category 5 HiltonAND• $200 airfare
Advanced Solution                          6X      5X              groceries,  telecom,            gas, drug    cable,    ...
Advanced Solution Payout•   60K Hilton HHonors•   50K Ultimate Rewards•   15K ThankYou•   $800 cash back
What to do with all that?A trip for two:• Two round trip award flights on UnitedPlus• $200 revenue flight or car rental vi...
Tools to find and use Category            Bonuses…
Frequent Miler page
Best Category Bonuses
Wallaby
Wallaby iPhone app
Tools: Glyph               - I-Phone App               - Easy to Add Cards               - More locations
Tools: Glyph Wallet                - Tracks Your Rewards
Tools: Glyph – Dashboard             - Shows You How Much You Lost
Tools: Glyph – Guru           - Not Accurate all the Time           - Doesn’t Explain How “%” is Calculated           - Cr...
TAKE IT FURTHER
Gift Cards at Grocery Stores / Gas StationsUse Gas Station Gift Cards at Affiliated Grocery Store      - E.g Kroger/Kwik T...
Gift Cards at Grocery Stores / Gas Stations- Buy Gift Cards from Grocery Stores/ Gas Station With CategoryBonuses         ...
Reload cards
Questions?
Backup slide: Point valuesProgram      Card(s)    Point        Value at      Value at                        Value        ...
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Introduction to Category Bonuses

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Frequent Miler and Million Mile Secrets presentation at 2012 LA FTU.

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Introduction to Category Bonuses

  1. 1. Introduction to Category Bonuses
  2. 2. What are Category Bonuses?- Extra Points or Cash Back forSpending in Certain Categories
  3. 3. AMEX Premier Rewards Gold- 3X Points Airfare - 2X Points Gas/ Groceries
  4. 4. Sapphire Preferred- 2X on Travel/Dining on Chase Sapphire Preferred
  5. 5. Worth It or Not?- Displaces spending on sign-up bonuses forother credit cards
  6. 6. $50,000*2010 US Census
  7. 7. Earning Miles & Points – Credit Cards - Spend everything you earn, you’ll get only 50,000 miles/points - Pay-off is with the SIGN-UP BONUS, NOT everyday spending!
  8. 8. Worth It or Not?- Incremental Earning - 3x on airfare. Actually 2 EXTRA points (or 1 EXTRA point if you have Sapphire) - 2x on groceries. Actually 1 EXTRA point - 2x on gas. Actually 1 EXTRA point
  9. 9. Worth It or Not?- $750 a month on gas and groceries= 750 extra points per month or 9,000points per year$ 175 Annual Fee - Worth it ornot?
  10. 10. Worth It or Not?- Annual Fees - $175 for Premier Rewards Gold - $95 for Chase Sapphire Preferred - $95 for Chase Ink Bold
  11. 11. Worth It or Not?- Complex - Time Consuming
  12. 12. Worth It or Not?- Keep your partner happy!
  13. 13. Worth it!No fee for many of the best 5X and 6X bonuses!• Chase Ink Classic, Ink Cash: 5X• US Bank Cash+ 5X (choose 2)• Chase Freedom, rotating 5X (limited to $6K / year)• Citi Forward 5X• American Express Hilton HHonors: 6X
  14. 14. Worth it!Best alternative is sign-up bonus spend. Let’s look at some sign-up offers…
  15. 15. Ink Bold / Ink Plus• Current offer: 50K points after $5K spend. • If spend within 1X categories, total 55K points • Earnings: 11X• Prior 50K offer: 25K points free + 25K points after $10K spend • If spend within 1X categories, total 35K additional points • Earnings after free bonus: 3.5X
  16. 16. Sapphire Preferred• 40K points after $3K spend • If spend within 1X categories, total 43K points • 14.33X
  17. 17. BA 100K offer• 50K Free, 50K more after $20K spend • BA card earns 1.25 points per dollar • Total 75K additional points • Earnings: 3.75X
  18. 18. More…• Citi AA: 50K after $2500 spend • Total 5250 points • Earnings: 21X• Amex SPG: 10K free + 15K after $5K spend • Total 20K additional points • Earnings: 4X• CitiBusiness ThankYou: 50K after $6K spend • Total: 56K points • Earnings: 9.33K
  19. 19. Worth it!• Sign-up bonus spend ranges from 3.5X to 21X • Better than category bonuses, but not by orders of magnitude• Category bonuses available year around• Ideal: • Meet sign up bonus spend within each card’s bonus categories • E.g. Meet Hilton HHonors min spend at grocery stores, drug stores, and gas stations • Otherwise, meet spend where no good 5X categories exist
  20. 20. Worth it!Use tools to make card selection easier(more on this later)
  21. 21. Best Category Bonuses 6X 5X groceries,telecom, gas, drug cable, storesinternet, office supply 5X restaurants, bookstores, 2X movies Travel, Dining 5X Select two 5X categories Rotatingcategories
  22. 22. Cash+
  23. 23. Category Bonuses – Simple Solution•2X Travel/Dining•$95 Annual Fee •5X Rotating Categories•No Forex Fee •Gas/Drugstores/Amazon •ZERO Annual Fee And/Or Chase Ink Bold/Plus/Classic/Cash • 5X Office Supply Stores, Cable, Internet • 2X Hotels & Gas • $95 Annual Fee/ No Annual Fee
  24. 24. Simple Solution - Payoff• $200 monthly telecom = 5 X $200 = 1,000 Pts (Ink)• $300 travel & dining = 2 X $300 = 600 Pts (Sapphire Preferred)• $500 monthly Chase Freedom = 5X $500 = 2,500 Pts = 4,100 Points Monthly or 49,200 Annually
  25. 25. What to do with 49,200 points?• ~2 United domestic coach tickets or $821 Southwest• $615 in travel through Ultimate Rewards portal• 2 Category 6 Hyatt nights
  26. 26. Another Simple Solution 6Xgroceries,gas, drug stores, telecom 5X restaurants, bookstores, movies
  27. 27. Simple Solution 2 PayoutHilton Amex: 5400 monthly, 65K annually • $200 monthly telecom = 6 X $200 = 1,200 • $500 monthly groceries= 6 X $500 = 3000 • $150 monthly gas = 6 X $150 = 900 • $50 monthly drug stores = 6 X $50 = 300Citi Forward ThankYou: 1250 monthly, 15K annually • $200 dining = 5 X $200 = 1000 • $50 books & movies = 5 X $50 = 250
  28. 28. What to do with 65K Hilton & 15KThankYou points?• Two nights category 5 HiltonAND• $200 airfare
  29. 29. Advanced Solution 6X 5X groceries, telecom, gas, drug cable, stores internet,office supply 5X restaurants, bookstores, 2X movies Travel 5X Select two 5X categories Rotating categories
  30. 30. Advanced Solution Payout• 60K Hilton HHonors• 50K Ultimate Rewards• 15K ThankYou• $800 cash back
  31. 31. What to do with all that?A trip for two:• Two round trip award flights on UnitedPlus• $200 revenue flight or car rental via ThankYou pointsPlus• Two nights HiltonPlus• Cash for dining, excursions, extra hotel nights, etc.
  32. 32. Tools to find and use Category Bonuses…
  33. 33. Frequent Miler page
  34. 34. Best Category Bonuses
  35. 35. Wallaby
  36. 36. Wallaby iPhone app
  37. 37. Tools: Glyph - I-Phone App - Easy to Add Cards - More locations
  38. 38. Tools: Glyph Wallet - Tracks Your Rewards
  39. 39. Tools: Glyph – Dashboard - Shows You How Much You Lost
  40. 40. Tools: Glyph – Guru - Not Accurate all the Time - Doesn’t Explain How “%” is Calculated - Crashes
  41. 41. TAKE IT FURTHER
  42. 42. Gift Cards at Grocery Stores / Gas StationsUse Gas Station Gift Cards at Affiliated Grocery Store - E.g Kroger/Kwik Trip
  43. 43. Gift Cards at Grocery Stores / Gas Stations- Buy Gift Cards from Grocery Stores/ Gas Station With CategoryBonuses Amazon Gift Cards Restaurant Gift Cards
  44. 44. Reload cards
  45. 45. Questions?
  46. 46. Backup slide: Point valuesProgram Card(s) Point Value at Value at Value ~2X ~5X (cents per point)Ultimate Ink, 1 (2) 2 (4) 5 (10)Rewards Freedom, SapphireUS Bank Cash+ 1.875 3.125 6.875ThankYou Forward 1 (1.33) N/A 5 (6.65)Hilton Amex .5 1.5 (at 3X) 3 (at 6X)HHonorsMembership Premier 1.5 3 4.5 (at 3X)Rewards Rewards Gold
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