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Points Are a Currency – And YOU Get to Set the Value

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Peeps conceptualize their points & miles in various ways. I’ve heard the argument they’re worth as much as you’re willing to pay in cash – logic that has always failed me. I use points because I won’t pay cash… right?

If I get a $10,000 Business Class flight for say, 50,000 miles – but I’m only willing to pay $1,000 in cash for the flight, does that mean the miles were worth the retail value of $10,000… or my “willing to pay” price of $1,000?

points worth

I used points to fly Lufthansa First Class… a product I’d NEVER pay cash for!

To me, they’re worth up to the cash cost because I typically travel for pleasure. Even though I value most points & miles at 2 cents each (at least!). Which in this case, 50,000 miles would be worth at least $1,000 but actually much more because of the retail price.

Knowing the selling price is the thrill of the deal. That’s the point of points in the first place (or First Class). And often, I use points & because only because of the retail value, despite what I’m “willing” to pay.

So I set my minimum value at 2 cents each because under that, you might as well use a 2% cashback card for the same (or better) result. I collect points for those times when I get outsized value – that’s what makes it worth it. And why I set the points value at – benchmark low – 2 cents each. But it all depends.

What’s your points value?

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