Chase Rewards offer the best value in a travel points program. Except if you’re flying out of Philly. American Airlines owns PHL and American is not a Chase Rewards partner. I thought I could triangulate with the Star Alliance partnership: British Air is is a Chase partner and British Air and American Airlines are both Star Alliance partners, but I could not see how I could transfer Chase Rewards to British Air to American Air. As far as I can tell, you can’t.
Other Chase partners, like Delta and Southwest, fly out of Philly, but everywhere we want to go (anywhere in the Caribbean) has a connection.
Accepting that I had to give up on the non-stop to the Caribbean dream, I’m going for value. We’ve had our cards since January 2018 and we’ve earned about 130,000 Chase Rewards. That includes the 50k bonuses. With 130,000, there’s only one airline with which we can redeem rewards for four airline tickets: Southwest. Now, Southwest has had a few terrible incidents recently, which makes me nervous. But perhaps because of these incidents, now may be the best (i.e., safest) time to fly with Southwest. We’re planning to take the kids to the Bahamas over Thanksgiving, but Southwest isn’t allowing booking this far out. I’m hoping the holiday booking fares don’t exceed the points we have.
Depending on this experience, we may open the Chase Southwest card in 2019 because it seems we can get more for our money/points with that airline and the annual companion ticket is a great deal, especially with a family of four. However, I may look at what card offers American Airlines has because Philly is an American hub.
This is all my fault. I just got so excited about Chase Rewards, that I didn’t thoroughly research the airline partners. Let this be a lesson learned! It’s not a bad mistake, just some inconvenience with dreaded connections; worth the free tickets we’ve earned.
A part of the path to FIRE (Financial Independence Retire Early) involves consuming less and this really resonates with me. It’s not being frugal to save money, but it’s being frugal to really think about what you need versus want while considering the true value of each purchase. I haven’t been too great at this lately, but all big purchases get scrutinized for their value.
I’ve written about the every day things we do without – cable, subscriptions, expensive cell phone bills, eating out, etc. – and the big ticket items we’re doing without – kitchen remodel and pretty much any large home remodel that applies to this old house. Obviously none of these things are necessary, so these aren’t tough decisions. We have debt and spending money on anything else seems foolish.
And I can be foolish. This laptop I’m using is physically breaking down with missing parts, dents and dings, and running very slow at times. Couple that with a very persistent, soon to be birthday boy asking for a gaming laptop. And we’re getting one. What’s the value in that? Our family laptop will die and now we have one that the kids won’t complain about. There’s a lot of value in that.
But, I digress. Back to the planet.
Listening to NPR’s Living Green segment yesterday got me thinking there’s more we, as a family, can do. Computers aside, I think we’re pretty good with our environmentally-friendly and frugal and then, sometimes we’re not.
Paper products: We use cotton napkins, but we always have a roll of paper towels. Keeping cotton napkins, cloths and rags handy will help reduce that waste.
Compost: We don’t. We did in Seattle but in our Philly ‘burb, it’s available, but cost prohibitive. We have room in our yard to do something about this. I’ve composted yard waste, but I’d like to get a vessel so we can compost food waste, too.
Food: I’ve been trying to cut out meat during the week, but sometimes the convenience of cooking what we know wins. We can make a more concerted effort on this.
Water: We do wash a lot and we don’t have an efficient machine. We adjust the water levels, but it’ll be interesting to see if we save any water by running full loads only.
Clothes: I need to find a second hand store I like!
Stuff: We have too much! It drives me nuts. I need to purge and minimize. I feel like I’m always doing this, but I’m not making progress. I will start with one room at a time, working from the top (bedrooms) to bottom (basement).
Plastic: Stop buying the ziploc bags and use reusable containers and bees wax wraps.
I’m going to see if my library has All You Need is Less – this book was mentioned in the radio show.
I think the food and clothes will yield the biggest cost savings, but it’s not about the cost, it’s about the planet and, in turn, our health.
We haven’t been vacationing much lately. Almost two years ago, we moved our family of four from Seattle back to our native Philly ‘burbs. In our ten years in the beautiful Pacific Northwest, every weekend was like a vacation because everything was new and exciting to us! The mountains, the sound, the Methow, Whistler, San Juans, Portland, Yellowstone, whale watching, etc. We were serious tourists for a full decade.
Back to the East, we’re still weekend warriors, with the benefit of having family (a free home away from home) on a lake in the Poconos, in beautiful coastal North Carolina and in the Finger Lakes … we’re really lucky to have family in great, vacation-worthy places.
But, we still like to take advantage of the culture, food and adventure of the east-coast cities. We’re only a 30-minutes train ride from downtown Philly, so we get there often. But this past weekend, we took the kids to NYC, with a little FI-style.
FI Family in NYC by the Numbers:
Amtrak from Philly to New York’s Penn Station: $243 for four. This is actually what prompted this trip. I got a special offer email from Amtrak … and off we went. SAVINGS: $123
Hotel: FREE! We stayed at the Hilton Garden Inn in Times Square for $0. I redeemed 140,000 Hilton Honors points for 2 nights and it was the perfect location for tackling Manhattan in a weekend. SAVINGS: $652
There is so much to do in Manhattan, so free, some not. Let’s start with the free things we did:
Walked the High Line. Perhaps it was the early spring time of year or the construction or the beautiful day that drove hundreds of other people to it, but it was narrow, very few plants in bloom (it’s been a long, cold winter) and very crowded with a lot of scaffolding. I expected more art installations and we saw one mural and one tank full ‘o art. Perhaps in a few weeks it’ll be in full swing.
Visited Rockefeller Plaza to see ice skating in 80-degree weather, the Lego store and Top of the Rock
Other free activities we didn’t do include the Staten Island Ferry, so many museums and art galleries, central park, and walking across the Brooklyn Bridge.
We chose to pay for one activity per day: an observation deck on a tall building and a museum. I discovered that my company offers a ton of discounts on shopping, travel, insurance, plays, activities, etc. So we took advantage of discounts on these two:
Top of the Rock: $110 for four. I thought that looking at the Empire State Building would be better than the view from it. We selected 6:40pm so we could watch the sunset, but the warm spring day took quite a turn and it was chilly and cold! The sunset was a bust, but the view was great and we stayed until the Empire State Building’s lights went on. SAVINGS: $55
The American Museum of Natural History: $51.50 for four. Looking at the forecast, we knew we’d want to spend our time on Sunday inside. This museum is huge and was so crowded, but we were still able to see a ton of exhibits without feeling like sardines. SAVINGS: $20.50 and we got out of there without buying anything from any of the many gift shops!
I would have loved to see a show with the kids, so I looked at tickets to the Blue Man Group, but with the charges and fees, it came to $500 for four. It was $350 with the company discounts, but we still chose to pass. It’s a lot to spend and there’s only so much time in the day.
We didn’t save any money eating, in fact I’m afraid to look at what the total damage was. We’re thankful for the food hall trend – we all eat what we want in one place:
Eataly: the Italian food market; we hit the one in the financial district and enjoyed a drink, pizza, charcuterie with wine followed by gelato and some serious market browsing with beer. There’s an incredible amount of prepared food to indulge in here and plenty to offer to make every weary traveler happy.
Finally, how we got around:
Walked 12.6 miles
Climbed 30 floors
Rode the subway six times
And took four cab rides
With what we spent on food, drinks, souvenirs, subways and cabs, this was by no means an FI vacation, but we saved $850.50 with the points and discounts we used. We can be frugal and always look for the best deal, but by no means do we deprive ourselves, especially on vacation.
We’re looking forward to coming back to NYC for a weekend in Brooklyn!
I’ve been meaning to calculate my savings rate and finally got down to it: 29%. Eh. I thought it would be more, but I’m maxing my 401k and the kids college will be funded by real estate.
I haven’t yet calculated my husbands, but I anticipate his is about the same but with a few differences, like funding our HSA.
We’re working to pay down debt, so our savings rate will remain flat for the foreseeable future (three mortgages!).
Here’s the breakdown:
401k: 15% (*just reduced to 13% due to bonus)
Employee Stock Purchase Program: 8%
529: 1% – this is just sad
Roth IRA: 1%
I wonder what our debt paying rate is? I’m not sure what that’ll tell me, but it will be interesting to calculate. It also varies based on other household spends like kids activities and household repairs. And skiing.
We entered this journey already on it.
With the arrival of our first son, I left the work force. We planned for it only in that we decided it would be great for a parent to stay home, but we did not prepare financially. One salary in Seattle and another kid later, I re-entered the workforce with $20k in debt. That meant we lived beyond our means by $5k/year for four years. Which – probably a shocking thing for the FI community to hear – isn’t bad considering where we were living and not being of the FI-mindset. And we were not depriving ourselves. But we also lived in a very walkable neighborhood – it wasn’t unusual to not use the car all week – and didn’t pay for daily childcare.
We knew exactly what we were doing and we took (baby) steps to minimize that:
Cut magazine subscriptions
Reduced cell phone and internet bills
Stopped dry cleaning
Ate out less
But we also did a lot of things on the opposite end of that spectrum:
We vacationed. A lot. Mostly weekend warrior trips around the PacNW, but also CA, Whistler, HI and East Coast trips. Miles/points paid for some at first, but certainly not all.
We went out. A lot. We lived in an incredible neighborhood with great restaurants, breweries, bars and live music. We couldn’t resist.
We paid a monthly fee for a babysitting service. Then paid them by the hour when we used them!
I could go on with both fronts. This was pre-FI and I don’t regret it, but it’s funny to look back and try to see the logic in these decisions.
So when I say we were already on the journey, we had already trimmed a lot of the unnecessary monthly bills about 10 years ago. It was the FI community that gave us the nudge to take savings a lot more seriously and be a lot more budget-minded. We’re almost 10 months in and we’ve taken the basic steps:
already paid off one credit card and have a plan to pay off all debt
I thought a W4 adjustment would be a logical optimization because we had a large tax return and it would be great to have a bigger paycheck instead. But I can’t figure out what our ideal withholdings should be on our W4. Files jointly with two kids … he claims 1, I claim 2. I see conflicting information on the internet and I’m confused. At the same time, the IRS calculator is not available while they’re updating it for 2018 tax law changes.
Maybe understanding this will hit me on the head or maybe it’s no big deal. A large tax return isn’t the worst thing in the world. But until then, I’m just keeping on the road of spending less, saving more, and reducing debt.