Coffee shop conversation that got me thinking about my budgeting system

I was at a local diner in Akron last Tuesday and overheard this young guy telling his friend he pays his rent with a credit card for the points. He was all proud of it but then mentioned he carries a balance almost every month... It hit me different because I've been doing cash envelopes since 2019 and I never really thought about the hidden costs of those rewards. Like, how many people are actually ahead with those point systems? Has anyone else run the numbers on what credit card bonuses really cost you in the end?

2 comments

2 Comments

samward18d ago

Haven't you ever added up what those "free" flights actually cost you in fees though?

the_faith18d ago

Kind of, but you're missing how the math actually works out for a lot of us. A typical round trip "free" flight on a domestic carrier will cost you like $11.20 in fees for security and stuff, that's it. Meanwhile a paid ticket for that same route could be $300 or $400 before you even check a bag. So unless you're getting hit with a crazy high fuel surcharge on an international award, the difference is still huge. I think the real question is why that $11 fee is even a thing, not if the flight is actually free.