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Clarifying How I use my airmiles!

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I was asked to clarify my statement from my previous post about using your airmiles. I said, "If the airmiles that I’m spending are around $7.00 I’ll purchase. Why $7? Because this is the lower value of airmiles gift cards. " Let's clarify.

I find something that I'd like to buy (or fly) and determine the cost to purchase this said object (or trip), let's call this price X. I then determine the number of airmiles it'll cost me to get a similar (or the same) item. Let's call the number of airmile, Y.

I then take X and divide by Y. This will give me a price per airmiles. If this price-per-airmiles is $7 or less then I'll consider buying the object through airmiles. Again, the $7 comes from the price-per-airmiles for a gift certificate with your airmiles.

Just to be clear when dealing with a trip you must calculate the price per airmiles of the trip BEFORE taxes. This is because you'll have to pay the taxes on the flight regardless. Therefore, if you're adding more costs to the flight and you're paying for these anyway your calculations will be skewed.

In the next post I'll discuss the places I personally use to find prices of stuff for my comparison shopping.


Cheap Flights at westjet.com!

Comments

It would be awesome if you could give an example using actual figures. For example 2 people can fly Van to NYC return on a seat sale for say $900 plus tax. Now based on your $7 per airmile theory does that mean if it was 5000 airmiles you would use them but if it was 7000 miles you would pay cash?

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