Get The Most Out of Credit Card Rewards for Your Next Vacation

February 1, 2025

According to a survey conducted by Lending Tree, even though 87% of all credit cardholders earn rewards, nearly 70% are sitting on unused cash back, points, or miles. Regarding travel, only 12% optimized their rewards to earn a free flight or hotel stay last year. “Many people who collect rewards are doing so with a goal in mind, such as a dream vacation with their family,” says Matt Schulz, a credit analyst at Lending Tree. “As they earn, those rewards points and miles sit unused.”

While the reasons behind leaving rewards vary, many people don’t know how to use them. Understandably, cashing in rewards benefits for the first time can be intimidating, but that’s no reason to leave value on the table.

Here’s everything you need to know about earning the most travel benefits from your spending and cashing them in for priceless vacation memories.

Compare Credit Cards to Find the Best Fit For Your Goals

Take your time comparing credit cards to find one that fits your needs, and then make it your main payment method. This means comparing bonus offers and the types of rewards offered.

You’ll want to make sure you’ll be able to use the points you earn for the travel you want. A good credit score is a normal requirement to get the best travel rewards cards, which is usually at least 670. If you’re not quite there yet, you may want to focus on improving your credit first to get the best offers.

Everything to Consider When it Comes to Bonus Offers

If you’re open to getting more than one credit card, then you may want to get a few that offer the best sign-up bonuses. A sign-up bonus involves charging a certain amount of money within a specified time period to earn the cash back or points bonus. When using your rewards for travel, you would then put that cash back or points toward your next vacation, including airfare and lodging.

For instance, with a Citi Double-Cash Card, rated the third-best credit card in 2024 by Card Critics, you could earn $200 cash back or 20,000 Thank-you points after spending $1,500 within the first six months. For most people, charging $1,500 worth of expenses over six months is feasible, but your spending capability should be the top consideration when comparing bonus offers. “Sign-up bonuses can be really helpful for folks on a tight budget,” Schulz says. “Just make sure that you’re comfortable with how much you have to spend to get the bonus.”

If you find yourself trying to spend more than you normally would to earn a sign-up bonus, then the cash-back offer likely doesn’t make financial sense. As long as you think of bonus offers as something you could earn simply by paying your existing bills, then they’re a great way to earn rewards toward a vacation you might not otherwise be able to afford.

Rack up Rewards Beyond the Sign-Up Offers

Once you’ve earned your sign-up offers, you’ll want to spend as much on your credit card to continue earning rewards. When considering which cards are the best for you, you’ll want to pay attention to the rewards they offer and what kinds of purchases qualify for reward points. Many card purchases only qualify for points in certain categories, such as gas or groceries, while others only qualify with specific experiences like dining or travel.

This is why it’s so important to think about what you’re already spending money on, because the goal is to earn rewards for what you already need to buy rather than changing your lifestyle to rack up points. “No matter how lucrative the rewards, overspending to get them doesn’t make sense,” Schulz says. “The math just doesn’t work in your favor.” If you’re someone on a budget that saves by not eating out a lot, then a card that rewards you for groceries is going to be the best fit for you, while the person who eats out and hardly ever cooks at home is going to benefit the most from using a card with dining rewards.

Know the Difference Between Types of Points

Typically, credit cards work with certain airlines and hotels where you can redeem your points, so when choosing the card for you, make sure you want to use the companies where your points will be easy to redeem and worth the most value. There are three types of reward points: fixed value, variable value, and transferable points.

• Fixed value points have a clear published dollar value. For example, points might be worth one cent each when redeemed for travel rewards. The advantage of fixed value points is that you can always use your rewards for purchases that would otherwise require cash, but the downside is that there’s no way to outsize the value of your points. A $100 ticket may require 10,000 points at one cent per point.
• Variable rewards involve the cost of a hotel stay or airfare being attached to a specific amount of points, so one night at a specified hotel may cost 20,000 points, even if the cash amount of the room varies. The perk of variable rewards is knowing when to redeem them for outsized value.
• Transferable points are also known as flexible points because they can be transferred to other partner programs for redemption. You may also be able to cash in on rewards as statement credits or redeem them toward travel at a fixed rate. This variability makes transferable points desirable.

It’s easy to lose track of how many points you’ve earned, especially if you decide to earn with more than one card, so consider using a spreadsheet to keep track of your earnings. Once you’re ready to redeem your points for travel, you’ve made it the most exciting part. Simply begin with your credit card’s website, which should be your first stop in redeeming your rewards. The website should have all of the information you need to know, such as comparing cash back versus points for travel or step-by-step directions for transferable points, plus any current promotions.

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Whether or not you’re on a tight budget, earning rewards that can be used toward your next vacation is something anyone who uses a credit card should be taking advantage of. As exciting as traveling can be, traveling for less is even more so. With Insureyouknow.org, you can keep track of your spending, rewards earned, and travel goals all in one easy-to-access place. Once you learn how to get the most out of your rewards, you’ll become an expert on traveling for less in no time at all.

The Health Benefits of Even the Shortest Vacations

December 15, 2024

Just like an athlete benefits from breaks during exercise, vacations are an important part of someone’s well-being. According to a Pew Research Center survey in 2023, nearly half of the U.S. workers surveyed said they take less time off than the paid time off their employers gave them, while globally, eighty-five percent of workers reported that vacations make them feel more optimistic and that regular vacations are important for their overall health.

“Not taking time off from work to go on vacation or simply rest can lead to overwork and burnout,” says Joyce Marter, a licensed psychotherapist. “People should use all the vacation time allotted to them—and sick days should also be used.

If you’ve been feeling the need for a true rest, here’s everything you need to know about getting the most out of even the shortest vacations.

The Right Amount of Time Off

While experts agree that any amount of vacation time is beneficial, three weeks per year may be just the right amount to benefit your health. The European Society of Cardiology conducted a 40-year-long study that found people who take less than three weeks of vacation time per year have a 37% greater risk of premature death, even despite living an otherwise healthy lifestyle.

Another study in 2020 showed that people who split two weeks of annual vacation time into five short breaks had a 24% lower risk of metabolic syndrome. Even the long weekend can come with serious benefits, as those who took a four-day vacation had improved stress-levels for an entire month after returning to work.

Since the positive effects of a trip usually fade after a month of being back home, taking several short trips throughout the year can be more beneficial than one or two long vacations. Plus, the planning process can make you feel happier than the trip itself, so allowing yourself to plan and look forward to a trip more often throughout the year extends the benefits of your vacation time even more.

The Right Way to Travel

Simply going on vacation won’t necessarily result in feeling as though you have a break. “I’ve heard countless times how exhausted people are when they come back from their vacation and feel like they ‘need a vacation from their vacation,’ and that’s because many times we pack so much into a very short amount of time,” says Esther Susag, a travel blogger. “We want to see everything, do everything, and not waste a minute.”

In order to benefit from any amount of time away, it’s important that you provide yourself with the opportunity to actually rest.

Slow travel is a more meditative approach to traveling that allows people to slow down, as the name suggests, and literally stop and smell the roses. “If you want to really unplug and relax without the stresses of traveling then slow travel may be for you,” says Mark Wolters, a YoutTube travel channel host. “You get to unpack your suitcases less, take fewer planes, trains and automobiles and just relax in a destination.

Once you’re on vacation, give yourself the gift of a loose plan. Do some research ahead of time and bring a list of some things you don’t want to miss when you’re there, as well as a few restaurant possibilities. For every day that you’re there, have a half day’s worth of activities planned, giving yourself the time and space in each place to really enjoy the experience. 

The Right Companion

In order to have a truly beneficial break, it becomes important to choose the people you vacation with carefully. “Spending time with family and friends are all things that we know can increase well-being and even reduce stress,” says Stephanie Preston, psychology professor at the University of Michigan. “There can be a lot of interpersonal conflict over how you manage the schedule and the priorities.”

While the idea of traveling with extended family, for instance, seems like a good idea on paper, trying to please everyone may prove to be the opposite of a relaxing getaway. 

That being said, vacations can also provide the opportunity to bond with your family members and create truly lasting connections with one another. When you plan to travel slowly, your adventure becomes more about being together as a family than about visiting as many attractions as possible. Slow travel provides the space not only to notice your surroundings but also to notice the people you are seeing them with.

The Right Location

Once you decide who to travel with, opt to stay at a vacation rental rather than a hotel. Rentals are rarely at the center of the tourist attractions. This provides both a more relaxing environment to unplug in but also immerses you more deeply into the local experience. Plus, with rentals that have fully stocked kitchens, there’s less of a reason to have to leave and more of an opportunity to stay in and unwind.

The Right Format

Most people intuitively sense that taking a break is good for their health. What’s most important for people to realize is that they don’t need a vacation to have a break. “Many people don’t often have a choice in how much rest is available to them,” says Julia Kocian, a social worker and mental health counselor. “The way society is set up, we treat rest as a privilege, not a right,” she says.

Whether it’s taking a walk in the evening or meditating while you fold the laundry, only you will know what activities best help you to relax. “I view rest as intentionally slowing down or stepping away from an activity, while taking a break can be more active, like going on a walk or stretching,” says Samantha Artherholt, a psychologist and professor at UW School of Medicine. “The goal of any sort of rest or break is it should feel relaxing. You should feel refreshed and better after the break than you did before.”

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Work yourself up towards taking more vacation time by finding ways to distribute downtime throughout your day and week. “The biggest thing is giving yourself permission to do it,” Artherholt says. When you learn more about what feels like rest to you, then you can start planning a handful of short vacations for yourself throughout the year. With Insureyouknow.org, you may store your destination research, savings goals, and travel plans all in one place. Remember that planning for your next vacation may be over half of the fun.

Know Your Rights: Flight Cancellations and Delays

November 1, 2024

According to the Bureau of Transportation, almost 1.4 million U.S. flights were delayed in 2023, which is 20 percent of all domestic flights. Nearly 90,000 were outright canceled. Previously, airlines were not required to compensate travelers if their flight was delayed or canceled. They only had to provide compensation if they moved or bumped passengers from an overbooked flight. However, as of April 2024, the U.S. Department of Transportation has issued a final rule requiring airlines to refund travelers who have had significant flight delays or changes, including cancellations.

Since even the smallest change can derail your entire trip, it’s important to know what to do if your flight is delayed or canceled and what rights you have as a traveler. Here’s everything you need to know if your flight is delayed or canceled.

How to Receive a Refund in the Event of Significant Changes

Under the new final rule, airlines must refund passengers when their flight is “significantly changed.” Significant changes include:

• A domestic arrival time altered by more than three hours and six hours for international flights
• Departures and arrivals moved to different airports
• An increase in connecting flights
• Service class downgrades, such as from first or business class to economy
• Any changes to accessibility for those with disabilities, such as to less accessible airplanes

When the airline cancels your flight less than 14 days before your departure, and you want to cancel your plans entirely, the airline must refund you, even if your tickets are non-refundable.

To try and receive compensation for a significantly changed flight, the first step is calling the airline’s customer service line. A little-known trick is to call the airline’s international numbers to avoid long wait times. “While it can be costly, you can often get through to an agent more quickly,” says Nick Ewen, content director at The Points Guys. “During times of mass travel disruption, you should try all different avenues for getting help,” he says.

Another option is to use the airline’s app directly from your cellular phone, which allows you to easily rebook your flight for free. You may also visit the customer service desk at the airport, but in the event of flight delays, the line will likely be long.

“It’s good for people to know they have rights,” says Teresa Murray, consumer watchdog for the U.S. PIRG Education Fund. “That way, they’re empowered to stand up for themselves,” she says. When the airline cancels your flight, they must provide a prompt refund within seven to 20 days, depending on the initial form of payment. “You don’t have to accept a rebooking, voucher or anything,” Murray says. “They have to give you a refund if that’s what you want,” she says.

How to Work With the Airline When You Want to Continue on Your Trip

If you’d rather continue your trip instead of receiving a refund, the airline will usually offer to rebook you on another flight with their airline. Still, the departure date and time will differ from your original ticket. Airlines can book your flight with a different airline, but they are not required. It never hurts to ask if switching airlines for a more convenient flight is possible. The worst that can happen is that they say no.

A significant change to your flight can become an expensive nuisance when other unexpected costs may arise in the event of altered travel plans, such as meals, lodging, and other forms of transportation. Airlines are also not required to help with these additional unforeseen costs. It’s within their discretion to offer vouchers for meals or lodging, so it’s always worth asking. Most major airlines will cover meals when there’s a delay of three hours or more, and many will cover a hotel stay in the event of overnight cancellations. In most cases, the airline would rather work with you than lose your business.

How to Avoid the Odds of Travel Troubles

There are three things any traveler can do when booking their initial flight to avoid travel troubles: book early flights, avoid connecting flights, and choose airlines that offer multiple flights per day to your destination. To reduce the odds of issues with your flight, it’s best to plan on flying early in the day. Airlines generally experience the least disruptions earlier in the day. Plus, if there is a change, then there’s more time in the day to make alternate plans.

When making your initial flight plans, avoid connecting flights. Connecting flights increase the odds of being stranded somewhere in between your arrival destination when there are unforeseen changes to flight departure times. Choosing an airline with multiple flight departures to your desired destination is another smart way to plan. If your original flight is canceled or significantly delayed, it may be easier for the airline to get you where you need to go if they have multiple flights available that day to where you’re headed.

If you get delayed between your original departure city and final destination, it is wise to plan overnight accommodations even before you book your new flight. That’s because in the event of several delays and canceled flights, lodging in the area will fill up quickly, and no one wants to sleep in the airport. “If you were originally booked on the last flight of the night and there are no other options,” Ewen says, “grab a hotel room near the airport before they’re all taken.”

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Planning for a vacation can be as fun as taking the vacation itself. To keep the joy in your travel, make all of your plans well ahead of time, including plans for the unexpected. With Insureyouknow.org, you may store your destination research, itineraries, and travel needs in one easy-to-access place. That way, you can focus on the trip ahead.

How to Cut Down on the Cost of Owning a Car

February 15, 2024

In 2023, the average cost of owning a new car was $12,182 a year or $121 a month according to AAA. In addition to car payments, insurance, and maintenance costs, the price of gas is $5 a gallon,, which means that most U.S. households will spend $2,750 on gas per year. “If you are living paycheck to paycheck, it could put you over the edge,” says Ivan Drury, senior manager for Edmunds.com, a car shopping site. “But even if you are not, it’s very emotional. It’s in your face twice a week.”

The good news is that by cutting your expenses in other areas, such as with car insurance, you can save money and make up for the added charges at the pump. Besides simply driving less, which isn’t an option for many people, here are a few ways to make car ownership more affordable.

1. Shop Around For Car Insurance

According to J.D. Power, only 1 in 7 drivers changed auto insurers last year, but shopping around for lower premiums could save you a lot of money. In addition to your location and the type of car you own, other factors affect your rates, including your age and credit score. If you’ve improved your score within the last year, this one factor may lower your car insurance bill.

You can collect quotes through an insurance agent or use an online search engine, such as Experian, who claims to have saved drivers an average of $961 a year or $80 a month in 2021. Calling around or doing a quick search takes only fifteen minutes and could shave a lot of money off of your premium.

2. Check For Discounts and Adjust Your Existing Policy

Your existing carrier may offer discounts you don’t even know about, such as for paying your bill online and in advance. According to Zebra, paying your bill early online saves the average customer $170 a year. Bundling insurance policies, such as combining your homeowners and auto insurance, is another way insurance companies incentivize their policies through discounted rates.

There are usually three types of coverage on any given insurance policy, including liability, collision, and comprehensive. While most states require drivers to carry some amount of liability coverage, eliminating collision and comprehensive coverage could save you up to $900 a year. You may also opt to lower your car insurance premium by raising your deductible from $500 to $1,000. This makes sense if you don’t have a new or expensive car and can afford to pay the deductible if anything were to happen.

3. Outside Financing And Refinancing

One of the smartest ways to avoid high interest rates on a car payment is by securing outside financing. Compared to what the dealership will offer you, this can save you a ton of money in interest alone. Your local bank or credit union can help you shop around for the best offer. If you already have a monthly car payment, the next best thing to do is to look into refinancing your loan. Drivers who benefit the most from refinancing are those who have improved their credit score since initially securing their loan.

Of course if you can purchase a car outright, avoiding any kind of financing is always the very best option. If it’s possible for you to stick to a budget and save up, you may even be able to negotiate a better deal on the purchase price of your desired vehicle. Forty percent of the cost of owning a car is actually depreciation, which can equal more than $3,000 annually. That means that buying a gently used car is a great deal, without the rapid decline in value.

4. Sell One of Your Cars or Trade it Out

If you have a luxury or oversized vehicle, then trading your vehicle or a more practical car is always an option. Once you have a simpler car, you’ll save money on gas, insurance, and even maintenance costs. “Less fancy cars are more reliable,” says editor of Autotrader Brian Moody. “They have fewer gadgets.”

If your family has more than one car, then you may be able to sell one of them and end up saving a lot of money every month. Many families find that they adjust to sharing a vehicle, and when you need your own car for some reason, using Uber or Lyft periodically may still cost less than owning a vehicle. 

5. Save on Gas

Nearly twenty percent of the cost of car ownership comes from fuelling up. Unless your vehicle requires premium fuel, save by filling up with regular gas. You may also choose to slow down as gas mileage increases at lower speeds. If you can, try driving less, such as by walking to close destinations or starting a carpool for work. If you are able to get your annual mileage below 7,500, then your insurance company might even give you a discount on your coverage for that too. 

6. Save up for Maintenance

The cost of vehicle maintenance is equal to fourteen percent of the total cost of owning a car. By keeping up on routine maintenance and using synthetic oil, you will avoid more expensive issues down the road. When a large repair does arise, always call around to get quotes and go with the best deal. Since emergencies happen, setting up a sinking fund for unplanned car expenses is always a good idea. By putting away only $83 a month, you’ll save up $1,000 a year, which could be used for an unforeseen mechanic bill. “You could set aside money every week,” suggests Lauren Fix of Car Smarts. “Then the money will be available rather than using a credit card at a high interest rate.”

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The less money you spend on your car, the more you’ll have for other expenses in your life, from groceries to vacations. With Insureyouknow.org, you can store all of your vehicle and financial records in one place. That way when it’s time to refinance, shop around for better insurance, or sell your car, everything you need will already be at your fingertips. There’s never a good reason to throw away your hard-earned money on unnecessary expenses.

Saving for Your Next Vacation is Easy With a Plan

November 15, 2023

With world oil prices up, so is the cost of everything else. And now that interest rates are on the rise in an effort to combat inflation, hotel prices have risen by ten percent at many popular destinations. The benefits of traveling though are not worth foregoing due to rising costs. Travel is beneficial to your mental health by helping you feel calm and relieving stress and tension. With a little bit of creativity and determination, anyone can save up for a vacation and even get a great deal on travel costs.

How to Save for a Yearly Vacation

The best way to save for a vacation is to plan for it. If you have a specific trip in mind, start thinking about how much it will cost. Then create what is known as a sinking fund. If you think your vacation a year from now is going to cost $2,400, then put away $200 into an account every month. In a year’s time, you would have what you need for that vacation. If you continued the habit, then you’d have that vacation money saved every year.

When bills come in and unexpected expenses pop up, it can become difficult not to dip into your savings. This is why it’s important to keep your vacation account or sinking fund out of reach. Set up an automatic transfer for your savings every month instead of relying on yourself to transfer the money when you get paid. Gaby Dunn, author of Bad With Money, advises separating your money from your general savings so that you don’t use it for a different expense. “It’s also a good idea to open a specific account just for your vacation fund,” she suggests.

Once you’ve determined how much you’ll need to save, it then becomes time to get serious about sticking to a budget. “Many times, people will design their vacation and then attach dollars to it,” says Jesse Mecham, the founder of You Need a Budget. “But it’s better to come up with a reasonable number first, then whittle away at it when you start planning the trip. The reality is that we have only so much money.”

Budgeting really becomes about determining where you’re wasting money and where you can save money. Here are five easy ways to save for your next vacation::

• One of the best ways to cut back on spending is to eat out less often and cook more meals at home. “Anyone I’ve talked to who has saved up a lot of money or paid off a lot of debt has cut back on eating out,” says Mecham. “Learning how to meal plan has been the overarching approach that has worked.” It might take some getting used to, but meal planning on the front end of your week can save a lot of money in the long run that you can put toward your travel budget.
• Study your spending habits and cut back on buying unnecessary items. It might be coffees to-go, books that could have been borrowed  from the library, or impulse clothing purchases. Notice your spending weaknesses and then get disciplined about avoiding  those temptations.
• You may have some sneaking subscriptions to streaming services, apps, or memberships that you’re not using often enough to make them worth the added strain on your budget. Take an inventory and see which subscriptions you could go without. The twenty or so dollars you’re spending a month on something you’re not even using could easily go toward your sinking fund instead.
• Savings account interest rates are often higher with online banks than brick and mortar banks. Kelly Johnson of the travel blog, Snap Travel Magic, suggests finding the highest-yield savings account. Then, “Put 5% of each paycheck,” she advises,
  directly into the account.”
• Use credit cards that reward you, whether it’s a bonus sign-up offer, regular cash back percentages on money spent, or points that can be put toward travel expenses. “Many credit cards offer sign up bonuses in which you can earn free cash back, extra airline miles and travel points for spending a certain amount of money within the first few months of account opening which you can use to cover a big portion of your travel expenses,” says shopping consultant Andrea Woroch.  

The most important thing when it comes to saving for your travel goals may be to stay motivated. Keep in mind why you’re budgeting by placing a picture of your desired destination somewhere you look often or making it the background image on your phone or computer. This way, if you’re tempted to make a purchase through your phone, you’ll be reminded of why you’re working so hard to save money for your dream vacation.

How to Get the Best Deals on Travel Costs

If you’re willing to be flexible with where you travel to, there is another way to score inexpensive tickets. Companies such as Scott’s Cheap Flights and Secret Flying allow you to seize temporary deals. By entering your home airport into Google Flights, choosing a desired departure date, and leaving the destination blank, people can find startling low prices on round trip tickets. This is not to say you should forego your dream trip for a deal on plane tickets. This is just one strategy to consider if you’re more in need of a break than of an actual place you have in mind.

Knowing how to avoid the high season in certain places is an artform worth mastering. Besides dealing with less crowds on your vacation, you can also take advantage of lower prices on almost all of your costs. While school schedules affect peak travel times, time off varies depending on the location. The ideal time in most places is likely going to be in between seasons or “shoulder season,” such as May in tropical destinations and October in colder places, including Europe. A little research will tell you when it’s best to travel to the destination you have in mind.

Next, shop around and compare the prices of hotels and rental properties. For instance, the advantage of having a kitchen in a rental may vary widely based on where you’re going. In some places, it will be less expensive to eat out than to cook and vice versa. Whichever you choose – hotel or rental – pay close attention to reviews, especially with Airbnb, where only travelers who have stayed there are allowed to leave a review.

How to Save Even When Traveling

Once you’ve worked hard saving up for a trip and doing your research to get the best deal on transportation and lodging, you’ll want to avoid getting caught up in the moment on your trip and go crazy with frivolous spending. The biggest trap people fall into is the cost of meals on vacation.

One way to avoid overpriced dining is to eat where the locals do. Walking fifteen minutes in any direction out of the city can make a huge difference. Not only will you spend less at restaurants, but you’ll have a more authentic dining experience. Asking the locals for suggestions is another best practice to find places to eat, as most people will love the opportunity to share their recommendations.

Just as in avoiding the peak time to travel somewhere, the same goes for restaurants. Making reservations a little earlier or later than when everyone else is will cut down on the costs of that meal, as many restaurants provide specials outside of peak times. Another way to budget is to plan on one splurge meal a day. If you eat a light breakfast and grab a small lunch on the go, then spending more on dinner won’t feel as glutiness.

Beyond eating, be open to free activities, and again: do your research ahead of time. There are many museums that offer free or reduced admissions on certain days and times. Then there’s the gardens, parks, and general sightseeing that are always free-of-charge. Always check for local markets to get a taste of local fare and the unparalleled experience of people-watching in a new place.

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Getting serious about saving money for travel will also help you to get your finances in tip-top shape and make the most out of your money in your everyday life. While you keep your eye on your goals, Insureyouknow.org can help you stay organized by storing all of your financial records, budgets, and plans in one place. Making a plan and sticking to it will be well worth it when you have the means to take a well-deserved holiday, perhaps even more than just once a year.