Tag: credit cards

Credit Card Tips: Commit to One Big Airline Transfer Partner
In the world of premium travel credit cards, you’ll typically get the best redemption value by transferring your points to travel partners.

My favorite premium travel card is the Chase Sapphire Reserve, which earns Ultimate Rewards points. You can transfer Ultimate Rewards points to certain travel partners, like United.

Then, you can use those United miles to book airfare directly through United’s website.

This is my preferred method for getting maximum value out of my credit card points.

This is true regardless of the credit card that you have.

What you’ll notice is that most premium travel credit cards, like the Chase Sapphire Reserve and American Express Platinum card, have a designated set of travel partners.

If you are in the market for a new premium travel credit card, here’s a credit card tip that sometimes gets overlooked:

Pay close attention to the travel partners for each card.

Then, commit to a single airline and prioritize flying with that airline whenever possible.

Why commit to a single airline? Isn’t it better to have options?

Not necessarily.

For most of us, we are better off committing to a single airline (and hotel brand) to maximize rewards.

Today, we’ll discuss some of the main reasons why you may want to commit to a single airline and base your credit card choice on that airline.

To begin, let’s look at the travel partners for the two most popular premium travel cards, the Sapphire Reserve and American Express Platinum.

Sapphire Reserve travel partners include United and Hyatt.

Here is a list of the Sapphire Reserve travel partners:
- Airlines:
  - AerClub, loyalty program of Aer Lingus
  - The British Airways Club
  - Emirates Skywards
  - Air France KLM – Flying Blue
  - Club Iberia Plus
  - JetBlue TrueBlue
  - Singapore Airlines KrisFlyer
  - Southwest Airlines Rapid Rewards
  - United MileagePlus
  - Virgin Atlantic Flying Club
  - Air Canada Aeroplan
- Hotels:
  - IHG One Rewards
  - Marriott Bonvoy
  - World of Hyatt
The bottom line: if you prefer to fly United or stay at Hyatt hotels, as I do, the Sapphire Reserve is the card for you.

American Express Platinum travel partners include Delta and Hilton.

For comparison, here is a list of the American Express Platinum card’s travel partners:
- Airlines:
  - British Airways Club
  - Cathay
  - Delta Sky Miles
  - Emirates Skyward
  - Etihad Guest
  - Flying Blue
  - Iberia Club
  - Qantas Frequent Flyer
  - Qatar Airways Privilege Club
  - SAS EuroBonus
  - Singapore KrisFlyer
  - Virgin Atlantic Flying Club
- Hotels:
  - Hilton Honors
  - Marriot Bonvoy
  - Radisson Rewards
If you prefer to fly Delta or stay at Hilton hotels, the American Express Platinum is a better card for you.

Pay close attention to who the travel partners are.

In my opinion, what matters most is who a credit card’s travel partners are, not the number of travel partners.

In this context, it’s helpful to think of credit card travel partners in terms of “quality over quantity.”

Why quality over quantity?

As you can see, there is some overlap in transfer partners when it comes to foreign airlines. Both programs also allow transfer to Marriot Bonvoy.

The thing is: I have my doubts that the average flyer will receive much benefit from these foreign airline transfer options.

For starters, the major airlines like United and Delta have alliances with the major foreign carriers. You can easily book international flights through the big US airlines.

Besides that, it takes a lot of effort to research and become an expert in maximizing transfers to these foreign carriers.

Yes, it’s possible. But, is it worth it for the average traveler?

I don’t think it is.

Of course, I can say that based on personal experience.

Photo by Suhyeon Choi on Unsplash

For a time in my life, I did put the effort in to become an expert in point transfers.

I used to exert significant effort to maximize point transfers.

However, those days are over.

My favorite strategy was to transfer my Chase Ultimate Reward points to British Airways so I could then book domestic flights on American Airlines metal.

It worked well for flights to Florida and Colorado because the British Airways redemption chart at the time was based on distance flown instead of the actual cost of the ticket.

Confusing, huh?

It took time and effort, but the tradeoff was worth it at that point in my life. However, the program changed and this particular advantage went away.

If you’re interested in playing the points game, there are endless websites dedicated to these kinds of strategies. Just know that it takes effort and time.

What I’ve come to realize is that most of us don’t have the time or energy to become credit card transfer experts.

That’s why I recommend you focus on the quality of the transfer partners instead of the quantity.

On top of that, I recommend you focus on one airline.

Select one airline to be your primary option.

When you look at the above lists, you’ll notice that each credit card is partnered with a major US domestic airline.

The Sapphire Reserve partners with United (and Southwest, if that’s your preference).

The American Express Platinum partners with Delta.

My recommendation is that you commit to one of these major airlines and then choose the credit card that matches that airline.

How can you select the right airline for your situation?

If you live near a United hub, go with the Sapphire Reserve.

If you live near a Delta hub, go with the American Express Platinum.

I live in Chicago, which is a major United hub. It’s an easy choice for me to prioritize United.

Photo by Patrick Konior on Unsplash

The advantages of committing to a single airline include more free flights and status.

When you commit to a single airline, you have a couple of main advantages when it comes to rewards.

1. You’ll earn free flights faster.

The first advantage is that you’ll earn free flights faster.

That’s because you earn miles whenever you buy a ticket and fly with that airline. The more you spend, the more miles you’ll earn.

This is like supercharging your credit card points balance.

For example, if you buy a $500 plane ticket on United with the Sapphire Reserve, you’ll earn 2,000 points (4 points per dollar spent on travel).

For that same ticket, you’ll also earn 2,500 United miles (5 miles per dollar spent). If you have status with United, you’ll earn even more. More on that below.

Assuming you transfer your Sapphire Reserve points to United, that’s a total of 4,500 miles earned on this one purchase.

If you stay committed to United and repeat this same process for even a few flights, you’ll have enough points and miles to trade in for a free plane ticket.

On the other hand, if you bought tickets on multiple airlines, the odds are you won’t have enough points and miles on any single airline to get yourself a free ticket.

You may end up with an equivalent amount of points and miles, but they’ll be too spread out over different carries to be of use.

This is one of the main reasons why I prefer to stay loyal to a single airline. I can more quickly earn free flights by focusing on a single rewards program.

2. You have a better chance of earning status.

The second big advantage of choosing one airline is that you have a better chance of earning status.

With status, you’ll benefit from earning more miles, better boarding groups, free checked bags, better seat assignments, and a chance at free upgrades.

For today’s conversation, let’s focus on the part about earning more miles.

When you earn status on United, you earn bonus miles for every dollar you spend. The bonuses range from 2 to 6 miles per dollar spent depending on your status level.

Even the lowest bonus level of 2 miles per dollar is the equivalent of 40% more miles earned. Using our example above, you would earn 3,500 United miles on a $500 ticket purchase (up from 2,500).

If you bounce from airline to airline, you’ll have a hard time earning status.

You may not care about free bags or upgrades, but you will be sacrificing miles and eventual free flights if you bounce around.

If you don’t already have it, now is a great time to consider the Sapphire Reserve.

Chase is currently offering a sign-up bonus of 125,000 points for the Sapphire Reserve, the largest bonus ever offered.

That translates to $2,562.50 in value, according to The Points Guy.

I recently wrote about why I’m keeping the Sapphire Reserve in my wallet, even with the higher annual fee:

Is the New Chase Sapphire Reserve Worth the Annual Fee?

The bottom line is that I will still earn a ton of points each year, not to mention the other benefits, that the Sapphire Reserve will remain the primary card in my wallet.

Check out my post to learn how I evaluate credit cards and how I came to the no-doubt conclusion that the Sapphire Reserve is still worth it for me.

Is there value in keeping both your Sapphire Reserve accounts open?

After I wrote that post, a number of readers (with spouses, partners, kids, etc.) reached out asking if there is value in keeping separate Sapphire Reserve accounts.

It was such a good question that I wrote a full post addressing it:

Is There Value in Keeping Both of Our Sapphire Reserves?

The short answer is that my wife and I each had Sapphire Reserve cards before we got married. We eventually closed one of the accounts and kept the other one open.

Today, we still each have a physical Sapphire Reserve card through the “authorized user” option on just the one account.

Keeping just one account between the two of us saves a bit of money, but more importantly, keeps things much easier for us.

As I mentioned, I value simplicity right now.

I recommend most couples with two accounts do the same.

Nonetheless, there may be valid reasons why you would want to keep both accounts open.

For my complete thoughts, and the reasons why you might want to keep both Sapphire Reserve accounts open, check out my post here.

Keep it simple by selecting one airline that lines up with your credit card.

There’s no need to overcomplicate premium travel rewards credit cards for the average lawyer or professional.

Pick your favorite airline. It’s probably the one with a hub nearby.

Then, pick the credit card that lines up with that airline.

Fly with your preferred airline whenever possible. Use your credit card to buy the flight and earn points.

I live in Chicagoland, so it’s an easy choice to fly United and use my Sapphire Reserve.

What is your preferred airline?

Does it line up with your current travel credit card?

Let us know in the comments below.
September 21, 2025
Is There Value in Keeping Both of Our Sapphire Reserves?
I recently posted about the major overhaul to Chase’s popular luxury credit card, the Sapphire Reserve. The change catching most people’s attention is the higher annual fee.

I wrote that even with the increased annual fee, I am keeping the Sapphire Reserve in my wallet.

I heard from a number of readers who also decided to keep the card despite the increased annual fee.

Just as good, I heard from some readers who applied for the Sapphire Reserve for the first time after reading my post.

I love hearing these types of comments from readers. Keep ’em coming!

Today, I want to share my thoughts on another question that came from multiple readers. The question goes something like this:

My spouse and I both have our own, separate Sapphire Reserve accounts from before we were married. With the higher annual fee, we are wondering if it makes sense to keep both accounts open.

If we closed one account, we could then add that person as an authorized user on the other account.

What do you think?

This is a great question because there’s lots to think and talk about.

Besides maximizing credit card value and minimizing fees, this question also touches on how couples manage their finances together.

While that is an incredibly important conversation, we’ll have to leave it for another day. Today, I’ll simply highlight some of the relevant considerations.

Finally, I love this question because it’s a good reminder that talking about money is not taboo. We all benefit when we discuss how to use money as a tool that works for us, not the other way around.

Let’s get to it.

What changed with the Sapphire Reserve?

The Sapphire Reserve now comes with an annual fee of $795 (up from $550). That is the highest annual fee in the luxury credit card market.

On top of that, the fee for authorized users increased from $75 to $195.

In its press release announcing the revamped card, Chase advertised $2,700 in annual value for cardmembers.

Compared to an annual fee of $795, that sounds like a whole lot of value.

The problem is it takes effort to receive all that value. More than effort, it takes spending. This can get complicated, even with only one card. With two cards, it can be even more challenging.

For a complete description of all of the potential benefits, you can visit the Sapphire Reserve website.

Remember that with all credit cards, the more you spend, the more you earn. That’s true whether you are accumulating points or utilizing shopping or travel credits and other discounts.

This is a good place to emphasize the first rule of responsible credit card usage:

Don’t spend money just to earn rewards. That’s a recipe for financial disaster.

The Sapphire Reserve is no exception to this rule, regardless of whether you have one or two cards in your household.

Before we go further, it’s important to understand what it means to be an authorized user.

What is an authorized user on a credit card?

An authorized user is someone added to the primary account holder’s credit card account. Authorized users typically include spouses, partners or children of the primary cardholder.

The authorized user gets his own physical card, but all spending is tracked on the primary account holder’s account.

Importantly, that means that the primary account holder remains responsible for all payments.

That also means the primary account holder receives all the points earned when the authorized user makes a purchase.

Photo by Guilherme Stecanella on Unsplash

With cards like the Sapphire Reserve, the authorized user gets most of the same perks and benefits as the primary cardholder. Most notably, that includes lounge access and other travel perks.

Not all credit cards offer the same perks for authorized users. Be sure to understand the rules about authorized users for any card you are considering.

Before you add an authorized user to your account, make sure you understand that you are 100% responsible for that person’s spending.

On the flip side, before you become an authorized user, understand that all of your points earned will go the primary account holder.

If either of these restrictions are enough to give you pause about adding or becoming an authorized user, there’s no need read any further.

You should continue to have separate credit card accounts.

And, you should review my post to help you decide whether the Sapphire Reserve is right for each of you on an individual basis.

If you have no problems with adding somebody as an authorized user, read on to find out whether it makes sense in your situation.

What is the actual cost difference for adding an authorized user instead of keeping our accounts separate?

Assuming you are OK with adding or becoming an authorized user, let’s look at what the actual cost is compared to keeping your accounts separate.

Here are the options for couples that currently have two Sapphire Reserve accounts:
- Option 1: Keep both accounts open and pay $1,590 in annual fees.
- Option 2: Close one account, add an authorized user to the open account, and pay $990 in annual fees.
Note: while you don’t have to add an authorized user to your account, I’m assuming you’re reading this post because you are considering it.

If you stopped your analysis here, you’d see that there is a $600 difference if the couple keeps both Sapphire Reserve accounts open.

That’s a lot of money and may lead you to think cancelling one of the cards is the easy decision.

However, just like we explored in my post on why I’m keeping the Sapphire Reserve, there are ways to offset and reduce the annual fee.

You can check out my post if you’re curious how I evaluate and use credit cards.

For today’s purposes, remember that the Sapphire Reserve offers a $300 annual travel credit. The credit gets automatically applied whenever you make a qualifying travel purchase.

It’s safe to assume that anyone willing to pay $795 for a luxury travel card is going to spend at least $300 per year on travel.

The same assumption goes for couples thinking about keeping two Sapphire Reserve cards: they are going to spend at least $600 on travel between the two of them each year.

Applying the $300 travel credit, the total cost for each scenario drops as follows:
- Option 1: Keep both accounts open and pay $990 in total fees. (Each account holder receives a $300 travel credit, reducing the total cost by $600.)
- Option 2: Close one account, add an authorized user, and pay $690 in annual fees.
So, the real question becomes: is it worth an extra $300 annually to keep both Sapphire Reserve accounts open?

When the extra cost of keeping both cards drops from $600 to $300, the decision gets a bit tougher.

You may still be thinking that $300 is too much money to spend each year to have two of the same cards in your household.

Personally, I agree with you.

Below, I’ll show you what my wife and I do instead of having two Sapphire Reserve cards.

However, there are some reasons why it may be beneficial for couples to keep both cards. Let’s look at those reasons now.

Why it might make sense for couples to have two Sapphire Reserve credit cards.

Here are some of the main reasons why it would make sense for a couple to keep two Sapphire Reserve cards.

Trust issues. The bottom line is some couples just don’t trust each other when it comes to spending and paying bills. There’s no shame in that. It’s just a reality.

Like we discussed above, if you find yourself in this situation, it doesn’t make sense to add or become an authorized user. The potential downsides, resentment, and arguments outweigh the $300 in annual savings.

Accounting challenges. When you add an authorized user, all purchases get tracked together on the primary cardholder’s account. If it’s important for you to know who is making each purchase, this can be an accounting nightmare.

Plus, some couples maintain separate bank accounts and pay bills separately. Having all credit card purchases appear on only one person’s account makes it more difficult to figure out who should pay for what.

Photo by Felix Rostig on Unsplash

Business expenses. It’s also not uncommon for lawyers and professionals to use their Sapphire Reserve cards for business purposes and then get reimbursed by their employers.

If that’s the case, it may not make sense for you to blend personal and business expenses on one card. You could use one Sapphire Reserve strictly for business purposes and the other for personal expenses.

Impact on your Credit History. You may not want to close your account because of the potential impact it will have on your credit history. This is particularly important if your Sapphire Reserve is the card you’ve had for the longest time.

While this is a valid concern, there are ways to close your account without having any impact on your credit history whatsoever.

The best thing to do before you close your account is to transfer your available credit line to one of Chase’s other credit cards, like the Freedom Unlimited.

The Freedom Unlimited is the only other credit card I keep in my wallet.

There is no annual fee with the Freedom Unlimited, and it’s the perfect compliment to the Sapphire Reserve.

If you need help with this part, reach out to me on Instagram or LinkedIn, and I’ll walk you through the exact steps.

Sign-up Bonuses and Credits. If you are thinking about getting a Sapphire Reserve, now is the time to do it. Chase is offering its biggest sign-up bonus ever: 125,000 points for new applicants.

Using The Points Guy’s valuation, 125,000 points are currently worth $2,562.50.

Combined with some of these other reasons, these bonus points might make this decision a no-brainer.

Besides the sign-up bonus, the Sapphire Reserve comes with a number of other credits and benefits valued at $2,700 annually.

For a complete description of all of the potential benefits, you can visit the Sapphire Reserve website.

If you and your spouse or partner will independently take advantage of all these perks, then it could be worth it to keep both cards.

In the end, if any one of the above applies to your situation, it may make sense to keep two Sapphire Reserve cards despite the extra $300 annual cost.

My wife and I used to have two Sapphire Reserve cards.

There was a time in my life when I had 10 different credit cards because I wanted to maximize the points I earned on every purchase.

My wife and I each had Sapphire Reserve cards, too.

We did earn a lot of points. But, it was so stressful.

Keeping track of what card to use for every single purchase was complicated. Making sure we paid off each card every month was even harder. In the end, it wasn’t worth it.

We now keep things simple, and I recommend most people do the same.

Today, I only have two credit cards in my wallet: the Sapphire Reserve and the Freedom Unlimited.

I use the Sapphire Reserve for travel (4 points per dollar spent on airlines and hotels) and dining (3 points per dollar).

I use the Freedom Unlimited for everything else. The Freedom Unlimited earns 1.5 points across the board for every purchase. In contrast, the Sapphire Reserve only earns 1 point per dollar spent in non-bonus categories.

Same as me, my wife only carries the Sapphire Reserve and Freedom Unlimited. This way, we can combine points to maximize our rewards.

Together, we still earn plenty of points and our finances are much simpler.

I prefer to have two different cards that offer distinct but complimentary benefits.

If your household is going to keep multiple cards, I suggest having different cards instead of doubling up on the same one. That’s true whether you combine accounts or keep them separate.

That way, you can reap a more diverse set of benefits for a comparable cost.

If you go this route, it’s helpful to keep your credit cards within the same bank (i.e. stick with Chase or stick with American Express) so you can combine points and accumulate rewards faster.

Even if the Freedom Unlimited doesn’t appeal to you, I’d suggest looking at other credit cards within the Chase portfolio that earn Ultimate Rewards points.

For example, my wife and I have the Chase Ink Business Unlimited and the Chase Ink Business Cash for our various rental property businesses.

Each card earns Ultimate Rewards points that we can combine with our Sapphire Reserve.

Let us know in the comments below how you view having two of the same cards in your household.

As always, reach out if I can be of any assistance.
June 29, 2025
Is the New Chase Sapphire Reserve Worth the Annual Fee?

Disclosure: This page contains affiliate links, meaning I receive a commission if you decide to apply using my links, but at no additional cost to you. Please read my Disclosure for more information.

Making big waves in the credit card world, Chase just announced a major overhaul to its popular luxury credit card, the Sapphire Reserve.

Think and Talk Money readers know that I only have two credit cards in my wallet: the Sapphire Reserve and the Chase Freedom Unlimited.

Since the announcement of the changes to the Sapphire Reserve, I’ve received a number of questions about whether I’m keeping my card.

To be fair, all the changes are a bit complicated to sort through.

Along with a revamped points structure, the card offers new travel perks and a variety of spending credits.

However, it’s not the changes to the earning potential or redemption options that’s prompting all the questions.

What is the change to the Sapphire Reserve that’s driving most of the questions?

The Sapphire Reserve now comes with an annual fee of $795 (up from $550). That is the highest annual fee in the luxury credit card market.

On top of that, the fee for authorized users is increasing from $75 to $195.

Ouch.

Offsetting some of that pain for new cardmembers , Chase is currently offering a sign-up bonus of 125,000 points, the largest bonus ever offered.

That translates to $2,562.50 in value, according to The Points Guy.

Even with these increased fees, I am keeping the Sapphire Reserve in my wallet.

Today, I’ll walk you through my thought process as to why I’m keeping the card.

I’ll show you how I value certain benefits and ignore other potential benefits, mostly because they’re just too complicated or don’t apply to my personal situation.

Whether you are thinking about applying or are a current cardmember, this post will give you the tools to decide for yourself if the Sapphire Reserve is right for you.

Before diving in, let’s start with a little bit of context.

I used to have 10 different credit cards to maximize points.

There was a time in my life when I had 10 different credit cards because I wanted to maximize the points I earned on every purchase.

I had airline branded cards, hotel branded cards, and general travel rewards cards. I had credit cards with Chase, American Express, and CitiBank.

My wallet was thicker than my Chicago accent.

I did earn a lot of points. But, it was so stressful.

Keeping track of what card to use for every single purchase was complicated. Making sure I paid off each card every month was even harder. In the end, it wasn’t worth it.

Photo by rupixen on Unsplash

I now keep things simple and recommend people do the same. The exception would be if you enjoy the challenge of maximizing every credit card purchase and perk.

How do I keep my credit card life simple?

I use the Sapphire Reserve for travel and dining and the Freedom Unlimited for everything else.

Same as me, my wife only carries the Sapphire Reserve and Freedom Unlimited. This way, we can combine points to maximize our rewards.

Together, we still earn plenty of points and our finances are much simpler.

Before we go any further, to read more about the responsible use of credit cards, check out my series on credit here. A good place to start is my post with 10 credit card tips for lawyers and professionals.

The Sapphire Reserve’s benefits are geared towards high spenders and frequent travelers.

In its press release announcing the revamped card, Chase advertised $2,700 in annual value for cardmembers.

Compared to an annual fee of $795, that sounds like a whole lot of value.

For a complete description of all of the potential benefits, you can visit the Sapphire Reserve website.

The problem is it takes effort to receive all that value.

More than effort, it takes spending!

With all credit cards, the more you spend, the more you earn. That’s true whether you are accumulating points or utilizing shopping or travel credits and other discounts.

This is a good place to remind you of the first rule of responsible credit card usage:

Don’t spend money just to earn rewards. That’s a recipe for financial disaster.

The Sapphire Reserve is no exception to this rule.

In general, if you are a high spender and/or frequent traveler, the card likely offers more than enough benefits to make it valuable to you.

If you aren’t a high spender and/or frequent traveler, you may end up paying more than the card is worth.

Here are the Sapphire Reserve benefits that actually matter to me.

Today, I want to highlight the benefits of the Sapphire Reserve that matter most to me. The reality is that so many of the offered benefits don’t apply to my situation or are too complicated to use.

You may find value in some of the benefits that don’t matter to me. Regardless, you can go through the same thought process to determine if the Sapphire Reserve is right for you.

To begin, the Sapphire Reserve will cost my wife and I $990 per year in annual fees. To justify that cost, I’m looking for benefits that equal at least that much.

There are 3 annual credits that matter for my personal situation.

Not all of the offered credits are useful to me. Here are the three that matter for my personal situation:

1. $300 Annual Travel Credit

Each year, cardmembers earn $300 in credits for travel purchases. These credits are automatically applied when you make a qualifying travel purchase, which is broadly defined.

Put simply, the annual travel credit is not hard to earn. If you book even one flight throughout the year, you’ll qualify.

Applying the annual travel credit, the overall cost drops to $690 per year.

2. $125 credit for Apple TV+

I already subscribe to Apple TV+, so this one is a no-brainer.

I don’t currently have Apple Music, but there’s an additional $125 credit available for this subscription. Because I’m keeping my Sapphire Reserve either way, I’ll probably subscribe to Apple Music, too.

Important Note: if you’re not already spending money on Apple TV+ or Apple Music, I would not recommend using this benefit as a justification for offsetting the annual fee.

Remember the cardinal rule: never spend more money just to qualify for a benefit. Since I’m already a subscriber, this is a good benefit for me.

Applying the Apple TV+ credit, the overall cost drops to $565 per year.

3. $10 monthly credit for Peloton memberships

Like Apple TV+, I already pay for a Peloton membership. This one’s another no-brainer.

Applying the Peloton credit, the overall cost drops to $445 per year.

In total, these three credits reduce the true cost of the Sapphire Reserve for me to $445.

Cutting the true cost in half definitely helps me feel better about the initial sticker shock of the $990 annual fee.

Importantly, I do not have to change my spending habits in any way to qualify for the credits. I would be paying for these things regardless of the credits, so these are true benefits for me.

Here are some of the credits that I won’t ever use.

In contrast to the above credits, there are some other credits offered that are either too complicated or that I won’t really use.

Don’t overlook this distinction. You never want to justify having a credit card because of hypothetical perks. Only focus on the ones you’ll use.

For example, Chase advertises $300 in DoorDash promos. Here’s the offer:

DashPass members get up to $25 each month to spend on DoorDash, which includes a $5 monthly promo to spend on restaurant orders and two $10 promos each month to save on groceries, retail orders, and more.

Uh, come again?

I think what this means is I can save $5 once per month on a restaurant delivery. Then, I can spend more money on two other deliveries per month (but not for food), and save $10 each time.

Did I get that right?

This is way too complicated. I’m ignoring this credit for my analysis.

If I regularly used DoorDash, this might be a different story. Because I don’t use DoorDash, and the credit is so complicated, this one is meaningless to me.

Photo by Jon Tyson on Unsplash

There are other credits like this one attached to the card that don’t do anything for me.

Other examples include credits for dining through the Sapphire Reserve Exclusive Tables and credit for stays with The Edit. In all likelihood, I won’t ever take advantage of these credits.

When reviewing the offered credits, you should do the same analysis and only count what you’ll actually use.

If you won’t currently use the credit, don’t force yourself to use it to justify the cost of the card.

I also don’t put much weight on travel benefits like lounge access and hotel status.

The Sapphire Reserve offers access to 1,300+ airport lounges worldwide through Priority Pass, plus access to Chase Sapphire Lounges.

The Chase Sapphire lounges admittedly look awesome. The problem is there is not a lounge at my primary airport, Chicago O’Hare.

There also isn’t a lounge at any airports I regularly fly to. I likely will get very little benefit from these lounges, unless one opens at O’Hare.

The same goes for the lounges offered through the Priority Pass program. I’ve found this to be a great benefit when traveling internationally but not very useful when traveling domestically.

If you are a frequent traveler and would take advantage of all these lounges, this is a major perk of the card. Personally, lounge access doesn’t do much for me.

The same goes for hotel status through IHG simply because I don’t typically stay at IHG branded hotels.

In short, these benefits may be meaningful to you but don’t provide much in terms of value for me.

If anything, I view them as a bonus. Maybe I’ll take advantage of these travel benefits a couple of times throughout the year, and that would be great.

But, they’re not a factor in my current decision to keep the card.

I am keeping my Sapphire Reserve because I will earn significantly more than $445 in points value.

By this point in my analysis, I’ve reduced the fee as much as possible for my situation. Instead of the sticker shock of $990, the real cost is $445 per year.

Now, I need to decide if I will earn enough points to justify the $445 cost of the card.

It is easier than you think to calculate how much value you’re getting in points.

I like The Points Guy for determining the value of credit card points. While it’s not an exact science, The Points Guy calculates the value of each credit card company’s points and miles every month.

The Points Guy currently values Chase Ultimate Rewards points at 2.05 cents/point. For comparison, American Express Membership Rewards are valued at 2 cents/point.

Meaningful to me, the new Sapphire Reserve offers 4 points per dollar spent on airfare and hotels. It also offers 3 points per dollar spent at restaurants. Finally, you’ll earn 1 point per dollar on everything else.

In my situation, I want to know if I will earn enough points to justify the $445 annual cost. This will require some basic math.

Here’s what the math looks like:

1 point = 2.05 cents.

$445 annual cost x 100 cents = 44,500 cents.

44,500 cents / 2.05 cents per point = 21,707 points.

So, I need to earn 21,707 points to justify keeping the card.

Now, I need to figure out how much I spend each year.

It’s easy to determine how much you spend each year.

The next step is to open your Chase app and look to see how much you normally spend in each category. This is very easy to do.

Chase, like most credit cards today, automatically categorizes your spending for you. Look for the “Spending Planner” option in your app.

Once there, you can find out exactly how much you spent on categories like travel, food, and everything else.

I recommend reviewing your spending for all of last year and so far this year. Then, you just need to do some quick math.

In my case, I use my Sapphire Reserve primarily for travel and dining out, so almost every dollar I spend earns 3 or 4 points.

I can see on the Chase app that I spend thousands of dollars in each category per year. That’s more than enough spending to earn 21,707 points.

In other words, my current spending levels make it an easy decision for me to keep the card.

To put it in perspective, if I spend $5,426.75 per year on flights and hotels, that alone would generate enough points to cover the cost of the card.

5,426.75 x 4 = 21,707 points

Or, if I spend $7,235.67 on dining, I would earn 21,707 points, enough to cover the cost of the card.

In reality, I spend in both categories so neither one has to even reach that level of spending.

That’s all there is to it.

You can follow these same steps to determine if the Sapphire Reserve is worth it to you.

If you aren’t getting enough value, consider the Chase Sapphire Preferred.

The Chase Sapphire Preferred is a less expensive version of the Sapphire Reserve with less overall benefits.

I had the Sapphire Preferred for years before my spending justified switching to the Sapphire Reserve.

You can do the same analysis that we just went through to determine if the Sapphire Preferred is a better card for your personal situation.

Now you can decide if it’s worth applying for or keeping the Sapphire Reserve.

Now you know the exact process I went through when I learned the Sapphire Reserve was undergoing some major changes.

I don’t put much weight on the harder-to-quantify benefits, like lounge access and hotel status, because I don’t have the chance to use those perks very often. If I do get the chance, that’s a nice bonus.

For me, I earn enough points each year to justify the true cost of keeping the Sapphire Reserve in my wallet.

Do you currently have the Sapphire Reserve?

Are you keeping yours or replacing it with something else?

Let us know in the comments below.

June 24, 2025
Good Credit Card Perks Besides Points
We recently discussed 10 credit card tips so you can benefit from credit card reward points without suffering from the penalties.

Today, we’ll look at one of the other major benefits to using credit cards: the ability to easily track your monthly spending.

This one perk can make staying on budget and fueling your Later Money bucket that much easier each month.

When you consistently fuel your Later Money bucket, you’re moving closer and closer to financial freedom.

Let’s take a closer look at how you can use credit cards as part of a healthy financial life.

How to use credit cards to track your spending.

Tracking your spending is a crucial first step in the budgeting process. But, that doesn’t mean that anybody actually likes doing it.

The good news is that once you have created a Budget After Thinking and developed consistent habits, you no longer need to track every penny.

Instead, you can track two simple numbers to stay on budget.

Credit cards make it very easy to track these two numbers.

Here’s exactly how I use credit cards to track my spending.

When I get my monthly statement for each credit card, the first thing I do I add the amount and due date to my Notes app.

I’ve been doing this for years now, which means I have a clear understanding of my family’s usual spending habits.

I can then quickly assess whether it was a good spending month. For example, if I normally spend $4,000 per month on my card, and this month I spent $5,000, I’ll know very quickly that something is off.

Sometimes, it’s obvious why I overspent. Maybe it was something like buying airplane tickets for a family vacation. If that’s the case, I don’t need to study my credit card statement too closely because I already know why my spending was more than usual.

Other times, it’s not so obvious. When I don’t immediately understand why my spending was higher than normal, I take a closer look at my statement.

In just a few minutes, I can look at an entire month’s worth of spending to determine where my money went so I can make thoughtful adjustments during the next month.

This is how I stay on budget with two simple numbers.

This same process also helps me track that month’s savings transfers to make sure I maintain a strong savings rate.

Why I also track the payment due date in Notes.

The reason I write the payment due date is to make sure I never miss a payment. This is the most important rule of responsible credit card use.

If you miss even one payment on a single credit card, that missed payment will appear on your credit report. Your credit score will also drop.

As a landlord, I play close attention to any potential tenant’s credit history and score. I am not willing to risk entering in a financial relationship with someone who has a history of missed payments.

We recently received an application from someone who has missed 8 of her last 25 payments on her auto loan. That was a major red flag.

I automate some, but not all, of my monthly payments.

While we automate most of our monthly payments and transfers, we don’t automate all of them.

Even though my wife and I only use two credit cards for our personal spending, we have business credit cards for our real estate properties.

We also have mortgages and HELOCs that need to get paid at various times each month. I use the Notes function to remind me when these payments are due.

For each credit account, I have automatic payments set up to pay the minimum required amount each month. I then pay the full balance each month manually.

That’s because we have various sources of income that come in sporadically throughout the month. It’s simpler for me to pay certain bills manually instead of automatically.

When you have multiple income streams, you have Parachute Money. Currently, our Parachute Money includes:
- My primary job as a mesothelioma attorney
- My wife’s primary job as an attorney
- Rental Property 1
- Rental Property 2
- Rental Property 3
- Rental Property 4
- Law School Professor
- Emergency Savings
Using the Notes function helps me make the required payments each month after these income streams hit my checking account.

What other benefits do credit cards offer?

Credit cards offer a variety of other benefits to entice customers. Besides tracking your spending, two of my favorite perks are purchase protection and credit score monitoring.

Purchase Protection and Fraudulent Charges

Purchase protection is so important in today’s world. The last thing any of us needs is for our personal finances to get wrecked by scam purchases or fraudulent charges.

Let’s say you buy something with Zelle, debit card, or cash. There are very little, if any, protections to get your money back if that transaction needs to be cancelled.

Credit cards, on the other hand, typically offer the best purchase protection available. If you’ve been scammed or deceived in any way, your best bet at fixing that issue is to work with your credit card company.

Also, credit card companies are generally very proactive and helpful in addressing fraudulent charges. If you do encounter any fraudulent charges, your credit card company will work with you to fix the problem.

While credit card companies are pretty good these days at spotting fraudulent charges, I like to double check my online account to protect myself. To make sure I have not been targeted, I take about 30 seconds to look at my credit card transactions each week.

Credit Score Monitoring

Most credit card companies today offer free credit score monitoring through one of the major credit agencies, like Experian. You can see your credit score right in your online account.

Your credit score will automatically update, usually once per month. You can see how your score changes from month to month and what factors currently influence your score.

This is a very nice perk, as long as you don’t obsess over your credit score.

How can I see all the benefits my credit card offers?

Because there are so many credit card options on the market, the best thing to do is look up the card you have or are thinking about applying for.

I prefer to visit websites like thepointsguy.com for thorough breakdowns and even valuations on each card’s offerings. This makes it easy to compare credit cards from different banks.

You can also visit the credit card company’s website directly to learn the full extent of the benefits offered by each card.

I use the Chase Sapphire Reserve and Chase Freedom Unlimited. Each card has a detailed webpage that details all of the benefits offered with the card.

My favorite credit card benefit is still the ability to easily track your spending.

Even with all these other benefits, my favorite credit card benefit is still the ability to easily track your spending.

I’ve found this to be the easiest way to ensure I’m staying on budget and hitting my financial freedom goals.

Do you use your credit cards to track your spending?

What are your favorite benefits to using credit cards, other than reward points?
March 26, 2025
10 Credit Card Tips for Lawyers and Professionals
In today’s post, we’ll discuss 10 credit card tips for lawyers and professionals so you can benefit from the perks of credit cards without suffering from the penalties.

I’ll also share what two credit cards I carry in my wallet for all of my everyday spending.

I’m a big fan of earning credit card points on everyday spending and turning those points into once-in-a-lifetime vacations.

My wife and I have traveled all over the world together using credit card points. Using points, we’ve stayed at some incredible hotels like the Mandarin Oriental in Lake Como and the Park Hyatt in Sydney.

The key is to recognize that credit cards are a privilege, like any other form of credit. If you abuse the privilege, you’ll face severe personal finance consequences.

With that underlying principle in mind, here are ten credit card tips for lawyers and professionals:

10 Credit Card Tips for Lawyers and Professionals
1. Only charge what you can afford to pay off.
2. Avoid overspending because you’re using credit instead of cash.
3. Do not treat your credit card like an emergency savings account.
4. Understand how credit card interest works.
5. Never miss a credit card payment.
6. Know the fees associated with your account.
7. Learn how much points are actually worth.
8. Use points for travel instead of cash back.
9. Be strategic about what, and how many, credit cards you have.
10. Don’t spend money just to earn points.
1. Only charge what you can afford to pay off.

While it may seem obvious to only charge what you can afford to pay off, many of us have trouble following this primary rule of responsible credit card use.

Let’s look at some scary stats about credit card use to solidify this point:
- 48% of credit card holders carry a debt balance, an increase of 9% since 2021.
- 53% of people have been in credit card debt for more than a year.
- From 2023 to 2024, credit card balances on average increased 3.5% to $6,730.
- Credit card balances increased by $45 billion from the previous quarter and reached $1.21 trillion at the end of December 2024.
- Credit card balances have increased or remained the same for 10 of the last 11 quarters.
Before you read the rest of my credit card tips for lawyers and professionals, you have to internalize this first rule.

You need to commit yourself to only charging what you can afford to pay off.

This means creating a Budget After Thinking and staying within that budget.

If you’re having trouble with that, check out this post on my top ten strategies for staying on budget.

2. Avoid overspending because you’re using credit instead of cash.

Making a purchase with a credit card instead of cash makes it seem like we’re not spending real money.

We have all fallen victim to this tendency to overspend because of how easy it is to swipe a credit card.

Whether it’s the daily Starbucks habit, running up a bar tab, or buying another new toy for your kid, it’s a lot less painful in that moment to use a credit card instead of cash.

If you’re honest with yourself and know that you tend to overspend when using a credit card, try leaving your credit card at home. Bring some cash with you instead.

The simple act of needing to pay with cash instead of credit is oftentimes enough to stop you from spending on that thing you don’t really want anyways.

3. Do not treat your credit card like an emergency savings account.

This may be the single most problematic area we’ll discuss in my credit card tips for lawyers and professionals.

33% of Americans report they have more credit card debt than emergency savings.

The main causes of credit card debt are unexpected medical bills (15%), car repairs (9%) and home repairs (7%).

None of us are immune from these types of unexpected expenses.

Be sure to establish an emergency savings account so you don’t end up relying on your credit card when the unexpected happens.

These unexpected expenses can be substantial and result in monthly credit card balances that accrue large amounts of interest.

4. Understand how credit card interest works.

If you’re going to use credit cards as part of your everyday life, you should understand the basics on how interest is charged.

This may be the most overlooked of my credit card tips for lawyers and professionals.

Credit card interest is typically expressed as an annual percentage rate, or APR.

If you carry a balance on your card, the credit card company charges interest by multiplying your average daily balance by your daily interest rate. You will be charged this interest until your balance is paid off in full.

Credit card interest rates are typically variable, meaning they can change over time.

In the abstract, it can be difficult to fully appreciate how penalizing credit card interest is on our finances.

Let’s look at an example to better understand the consequences of carrying a balance.

Let’s say you just moved to a new apartment and purchased a $1,400 TV using a credit card. You don’t have enough money saved up for the full purchase, so you decide to pay off $100 each month. Your credit card charges 23% interest.

At that interest rate, it will take you 17 months to pay for that TV. You will end up paying a total of $1,645, which includes $245 in interest.

The $245 in interest equals 15% of the original price of the TV. That means you paid 15% more than the TV actually cost.

If that doesn’t catch your attention, don’t forget this is just the interest on one purchase after moving to a new apartment.

What if you want to buy a new sofa to go with your TV? How about a coffee table and a rug? Floor lamp? End table?

You can see how a 15% penalty on each of these purchases can start to add up quickly.

5. Never miss a credit card payment.

Write this rule down in stone: never miss a credit card payment.

If you don’t remember any of the other credit card tips for lawyers and professionals, remember this one.

It may seem unfair, but even a single missed payment can severely impact your credit history and credit score.

Because the consequences of a missed payment are so severe, it’s a good idea to set up your account for automatic payments.

You have options when setting up automatic payments. Ideally, you can pay your full balance automatically each month.

If that won’t work for your situation, you can set up automatic payments for the minimum required amount to stay in compliance with your account terms.

By paying at least the minimum amount required on-time each month, you will not be penalized with a missed payment.

What is the minimum required payment?

Credit card companies typically only require customers to make a minimum payment towards their balance each month. The minimum payment is generally 2% to 4% of your balance, or a predetermined minimum fee of around $35.

It may sound enticing to only pay the minimum. However, you will be charged interest on that remaining balance. That interest compounds and will be a major drag on your finances.

Let’s look at another example to see what happens when you only make the minimum required payment.

Let’s say you have a credit card balance of $2,000. Your minimum required payment will likely be between $40 and $80 to stay in compliance with your account terms.

In this example, assume the minimum required payment is $40. If you make the minimum payment of $40 out of your total balance of $2,000, that means your remaining balance is $1,960.

On the next billing cycle, you will be charged interest on that remaining balance of $1,960. At 23% interest, you will be charged $37.39, which gets added to your total balance.

So, on the next billing cycle, your total balance will be $1,997.39.

Let that sink in.

Even though you paid $40 last month, your balance only decreased by $2.61. Ouch!

Note: this example is for illustration purposes only and may not be precisely how your credit card company calculates interest.

By the way, credit card companies want you to only pay the minimum each month. That’s how they make so much money.

How much money do credit card companies make in interest and fees?

Hundreds of billions of dollars each year.

6. Know the fees associated with your account.

Beyond interest, credit card companies profit by charging fees, such as late fees and balance transfer fees.

For these credit card tips for lawyers and professionals, I want to focus on the annual fees tied to rewards credit cards. These fees can cost hundreds of dollars annually and cancel out the value of any points you earn.

For example, if you have a credit card that charges an annual fee of $500, and you only earn $400 worth of points each year, that’s a losing proposition.

You’d likely be better off using a credit card that does not charge an annual fee, even if that means losing out on some points.

For that reason, it’s important to do your homework before applying for a new card.

So, how can you determine if you’re getting enough value out of your card to justify the annual fee?

That leads us to our next tip.

7. Learn how much points are actually worth.

This is not an easy thing to do. Luckily, there are some great websites that are dedicated to credit card rewards that have done these calculations for you.

I like The Points Guy for determining the value of credit card points. While it’s not an exact science, The Points Guy calculates the value of each credit card company’s points and miles every month.

To give you an idea, The Points Guy currently values Chase Ultimate Rewards points at 2.05 cents/point and American Express Membership Rewards at 2 cents/point.

With that information, you can then determine if a certain credit card is worth having in your wallet.

For example, let’s say a particular Chase card you have charges an annual fee of $500 per year. When you look at your total spending from the previous year, you see that you earned 20,000 points using that Chase card.

Using The Points Guy valuation of 2.05 cents/point, that means you earned $410 worth of points. That’s $90 less than what you paid as an annual fee to have the card. That’s obviously not a good tradeoff.

Yes, credit cards come with other benefits that may add value to you. These benefits are oftentimes related to travel. If you travel frequently, these benefits may be worth it. If you don’t travel often, these benefits may not offer much value to you.

Keep in mind there are plenty of credit cards available that do not charge an annual fee and still offer points.

The takeaway is that you should regularly evaluate your spending habits and credit card reward programs to ensure you are still getting value from that card.

8. Use points for travel instead of cash back.

Many credit cards offer various options to redeem points. The easiest redemption option is to convert your points into cash that then gets applied to your balance.

While cash back is the easiest redemption option, it is typically the least valuable. You’ll get far more value by redeeming your points for travel rewards.

Credit card companies like Chase and American Express have partnerships with airlines, hotels and other travel providers. You can transfer your credit card points to these travel programs to maximize the value of those points.

If you’re reading a blog on credit card tips for lawyers and professionals, I’m guessing travel is a part of your life. Whether for leisure, business, or necessity, there should be plenty of opportunities to use your points for travel.

To figure out the best redemption options, it takes a little bit of effort. There are endless options and entire websites dedicated to point redemption strategies.

Before you get overwhelmed, I’d suggest first talking to your friends and family to see if any of them have already investigated the best redemption option for your personal situation.

Did you know that talking about money, and credit card points, is not taboo?

9. Be strategic about what, and how many, credit cards you have.

There was a time in my life when I had ten different credit cards because I wanted to maximize the points I earned on every purchase.

I had airline branded cards, hotel branded cards, and general travel rewards cards. I had credit cards with Chase, American Express, and CitiBank.

My wallet was thicker than a Harry Potter book.

I did earn a lot of points. But, it was so stressful.

Keeping track of what card to use for every single purchase was complicated. Making sure I paid off each card every month was even harder. In the end, it wasn’t worth it.

In these credit card tips for lawyers and professionals, I recommend you keep things simple.

I now have only two credit cards in my wallet: Chase Sapphire Reserve and Chase Freedom Unlimited.

I use the Sapphire Reserve for travel and dining and the Freedom Unlimited for everything else.

We still earn plenty of points and our finances are much simpler.

One other suggestion: if you’re in a relationship and share finances, I suggest you align your credit card strategies. Most major credit card companies allow you to combine points with a household member.

You can more quickly accumulate points by focusing on a single rewards program, instead of spreading out those points among various programs.

Same as me, my wife only carries the Sapphire Reserve and Freedom Unlimited.

10. Don’t spend money just to earn points.

As crazy as it sounds, you may be tempted to spend money you otherwise wouldn’t because you want to earn more points.

It’s possible to become so obsessed with collecting points that you forget about the strong personal finance habits you’ve worked so hard to establish.

It can be easier to justify careless spending when we trick ourselves into thinking that spending will eventually lead to a vacation. For example, if you have a credit card that offers bonus points at restaurants, you may be tempted to spend more money when you eat out.

Or, you may be tempted to pick up the tab for your friends even though that spending doesn’t align with your budget.

The temptation to earn points can overwhelm your plans to stay on budget. This logic applies to any type of spending, not just dining out and bar tabs.

Use your credit cards to spend within your Budget After Thinking, not as an excuse to justify blowing your budget.

To recap, here are my ten credit card tips for lawyers and professionals:

10 Credit Card Tips for Lawyers and Professionals
1. Only charge what you can afford to pay off.
2. Avoid overspending because you’re using credit instead of cash.
3. Do not treat your credit card like an emergency savings account.
4. Understand how credit card interest works.
5. Never miss a credit card payment.
6. Know the fees associated with your account.
7. Learn how much points are actually worth.
8. Use points for travel instead of cash back.
9. Be strategic about what, and how many, credit cards you have.
10. Don’t spend money just to earn points.
Let us know your best credit card tips for lawyers and professionals in the comments below!
March 24, 2025