Spend or Save? The Smart Way to Time Your Travel Rewards Like a Pro
Lisa BaumanShare
If you’ve been building your Points Portfolio for a while, you’ve probably hit that crossroads:
“Should I cash in these points for next summer’s trip — or keep saving for something bigger?”
It’s the grown-up version of the “eat the marshmallow now or wait for two later” dilemma.
Except now, the marshmallows are airline miles and the stakes are a week in Santorini versus a retirement kickoff trip through Italy.
So let’s settle it: when should you spend your points, and when is it smarter to save?
Like any portfolio, it’s about strategy — not luck, hype, or whatever the internet says is a “sweet spot.”
The Case for Saving: Compounding Freedom in Action
When you’re mid-career, saving points isn’t just restraint — it’s a strategic choice.
Every point you earn has potential value growth if you play it right. Think of it like this:
- Transferring to a high-value airline partner can double your redemption value.
- Stacking promotions or limited-time bonuses can add 25–40% more value later.
- Strategic timing (like booking international premium seats during partner sweet spots) can turn your 200K points trip into a 300K+ experience.
That’s not “waiting forever.” That’s letting your portfolio mature.
👉 Example:
Say you’ve got 150,000 Chase Ultimate Rewards points. Redeemed for a cash-equivalent gift card? That’s $1,500.
Transferred strategically to a partner airline like United or Air France during a bonus promo? You might score $2,250–$3,000 worth of flights.
That’s how patience pays off — literally.
The Case for Spending: Value Is Only Real When You Use It
But let’s not get lost in hoarding logic. Points aren’t stocks; they’re currencies with expiration dates and devaluation risk.
Airlines and hotels can (and do) change redemption rates. Quietly. Overnight.
So while saving strategically is smart, sitting on points too long is like leaving cash in a 0% interest checking account while inflation eats away at it.
Here’s when spending makes financial and emotional sense:
🔹 A meaningful milestone — family reunion, anniversary, or long-overdue vacation
🔹 Redemption value is strong — you’re getting at least 1.5–2¢ per point
🔹 Promotions align — like a 25% transfer bonus to your favorite airline
🔹 Availability matches your schedule — no point saving for a dream that never aligns with PTO
Freedom isn’t about waiting forever. It’s about knowing when the tradeoff is worth it.
The “Spend vs. Save” Rule of Thumb
Think of this as your Unchained Plans Freedom Formula:
Redeem points when the experience adds more life value than their future gain.
Ask yourself:
- Will I regret missing this trip more than missing a future bonus?
- Is the redemption rate good (≥1.5¢/pt) and stress-free to book?
- Does this trip align with the freedom I’m building toward?
If yes — redeem.
If not — keep building.
Remember, your Points Portfolio isn’t a “use it or lose it” game; it’s a freedom fund.
But even freedom funds deserve the occasional withdrawal to remind you why you’re doing it.
The Math Behind Smart Redemption Timing
Let’s say your goal is a $10,000 trip two years from now.
If you earn 200,000 points per year (through bonuses, everyday spending, and strategic cards), that’s 400,000 points in two years.
If each point is worth an average of 1.7¢ when redeemed smartly, you’re looking at:
400,000 points x $0.017 = $6,800 in travel value.
Now, if you’d redeemed small chunks early (say, at 1.2¢/pt), you’d only get $4,800 in total value.
That’s a $2,000 “growth gain” — just from letting your points mature.
That’s compounding travel freedom.
Emotional ROI: The Other Kind of Return
Let’s get real — not every reward has to be mathematically optimized.
Sometimes, the value isn’t in the cents per point. It’s in what those points unlock.
A surprise trip for your spouse’s 50th?
A flight to see your college kid abroad?
Those aren’t “bad redemptions.” They’re the exact kind of investments your Points Portfolio is meant to fund.
Just make sure the spend feels intentional, not impulsive.
Quick Decision Checklist
Before redeeming, ask these five questions:
- Value Check: Am I getting 1.5¢ or better per point?
- Goal Alignment: Does this trip align with my long-term travel goals?
- Risk Review: Could my points devalue soon (program changes, expiring miles)?
- Opportunity Cost: Will waiting offer better partner bonuses or availability?
- Life Timing: Does this trip make sense now, personally and financially?
If you can confidently say “yes” to at least three, it’s a green light to book.
Bottom Line: Strategy Over Sentiment
You don’t need to overthink every redemption or track a dozen programs.
Just follow the Unchained Plans approach: simple, steady, strategic.
- Build your points portfolio with intention.
- Redeem when the math and the moment align.
- And always, always remember: points are meant to fund your freedom, not complicate it.
FAQ: Should You Save or Spend Your Points?
Q1: Do points lose value over time?
Yes — most programs periodically raise redemption rates. That’s why strategic use beats indefinite saving.
Q2: How do I know if I’m getting good value?
A solid rule: aim for at least 1.5¢ per point. If you’re below that, you might be underspending your rewards.
Q3: Should I use points for flights or hotels?
Flights often deliver higher value (especially business/first class redemptions). But if hotel stays fit your travel goals better, prioritize simplicity and satisfaction.
Q4: Is it bad to use points for gift cards or cash back?
Not bad — just less efficient. You’ll usually get only 1¢ per point or less, versus 1.5–2¢+ for travel.
Q5: Can I mix points and cash?
Absolutely. Think of it as diversification — use points for big-ticket items and cash for smaller costs. That keeps your portfolio flexible.
Ready to Build a Smarter Points Plan?
Your future trips are already paid for — you just need the system to make it happen.
Start building your Points Portfolio today at Unchained Plans and learn how to turn patience into plane tickets.