Travel Hacking from Philadelphia: Our Next Steps

Fresh off our first travel rewards trip, I am planning our strategy for our next travel hack.

Our first travel rewards trip was to the Bahamas.

We used Chase Ultimate Rewards and Chase SW miles to fly from Philadelphia to Nassau (with 1 stop in FL). From Nassau, we caught a puddle jumper to Eleuthera Island and VRBO’d a house on the beach. Yeah, we still spent money, but a ton less ($3,480 less) than full price. Traveling with two energetic young boys for multiple days, we definitely prefer the space, kitchen and privacy of a home versus a hotel room.

Other expenses included a car we rented from the home owners, the $5 per gallon gas and eating out; taxes are 12% and a 15% gratuity is typically added. Not complaining, just the facts.

bahamas
Stand-Up Paddle Boarding at Sunset, Bahamas, Nov 2018

It was our first time there and a great trip. We all swam, snorkeled and stand-up paddle-boarded from the house at least once a day.  The kids had plenty of space inside and out and, after a long day of sight-seeing and beach hopping, we enjoyed our own private showing of the sunset on our beach each night with drinks in hand and a beach fire. Definitely a great vacation and even better knowing we saved so much on flights.

So moving on to our next trip … or trips. I’m exploring two tactics:

  1. We know we want to keep up with Southwest Air miles because of their low redemption threshold and abundance of domestic flights from PHL to friends we want to see in Denver and Dallas. With that, my husband will open and use a Chase Southwest Air card to take advantage of the 60k mile bonus (which is 10k more than the bonuses offered via my referral) and build on the base of miles we already have.
    Goal: Denver Ski Trip in December 2019 plus a guys weekend in Dallas at some time. The flights from Philly to both cities are direct on SW Air.
  2. I am going to segue from the Southwest Air card to a Chase British Airways card and take advantage of the 100k bonus offer. Philadelphia is our nearest airport and it’s a hub for American Airlines. I finally believe what I’ve been told: you can transfer British Air Avios miles to American Airline miles. Goal: International family vacation in 2020. 

I’m a bit concerned about spreading ourselves too thin with the spend thresholds required for the bonus miles and companion tickets. I suppose I could analyze the heck out of our spend and map out what this will really look like, but I haven’t. I’ll say I’m 88% sure this plan will achieve these goals.

A takeaway here is to follow a path that works for you. This doesn’t follow any path as discussed in the FI community. I had to look at what made sense for our family, our goals and, most importantly, what works with our closest airport, PHL.

2018 FIRE Goals

Building on the strong foundation we set in 2017, here are our goals for 2018:

#1: Debt reduction. We made some great strides in 2017 by simply organizing our finances and recognizing that we need to be more aggressive and focused on debt reduction. This will, of course, continue …

Hawaii, 2015

#2: Travel. We haven’t traveled much lately and we NEED to! This is a no brainer: open a Chase rewards card. Actually, I already got mine and my husband will get his soon. We went with the Chase Sapphire. I’m not sure yet if we’ll get as aggressive as the chase gauntlet just yet. We’re thinking a family vacation to the Bahamas … perhaps that’s because it’s freezing cold right now.

​#3: Max out all pre-tax contributions (401k, HSA, FSA).

#4: Increase college savings. Keep 529s at $100 per month and contribute an additional $100 per month into another, separate investment account or Roth IRA for each child.

#5: Save (more) on wireless phone bills. Change DH from Verizon to a Monthly Shared plan with Total Wireless for $60 per month, saving $67 per month. That’s over $800 per year. Cha-ching!

The debt reduction is the biggest nut: credit cards, HELOC, two car loans and three mortgages. It’s daunting, but it’s there and we’re going to make it disappear. POOF!