Stop Trying to Maximize Every Point
Spend enough time reading about credit card points and you’ll eventually get the impression that you need to maximize absolutely everything.
Which card earns the most on groceries? Which one should you use for gas? What about dining? Is 2X good enough, or should you be getting 3X? And when it comes time to actually use your points, are you getting the absolute best possible value out of them?
There’s nothing necessarily wrong with any of that. I pay attention to bonus categories and redemption values too.
I also think this is where a lot of people make credit card points way more complicated than they need to be.
You Don’t Need the Perfect Setup
On paper, maximizing every purchase makes sense. If one card earns more points at restaurants and another earns more at the grocery store, why wouldn’t you carry both?
Take that logic farther and suddenly you have six or seven cards in your wallet and you’re standing at the checkout trying to remember which one you’re supposed to use.
For some people, that’s fun. Points and miles are a hobby, and there’s nothing wrong with squeezing every bit of value out of them. That being said, I don’t think most people enjoy keeping a spreadsheet of earning categories, let alone having a George Costanza wallet!
Most people want to earn enough points to take a great trip without having to think about their credit cards every time they buy something.
Simple Usually Wins
This is why I’m a big believer in keeping your setup relatively simple, especially when you’re getting started.
I’d much rather see someone consistently use one or two good cards than have five cards they’re constantly trying to optimize.
You might give up a point here or there, but does that really matter if the simpler setup means you actually stick with it?
Probably not.
Think about the difference between earning 2X and 3X on a $50 purchase. We’re talking about 50 points. That’s not something I’d lose sleep over.
The bigger wins usually come from having the right cards, earning welcome bonuses when they make sense, taking advantage of benefits you’re already paying for, and knowing how to use the points you’ve accumulated.
Those things can be worth hundreds or even thousands of dollars.
Build Around How You Actually Spend
Instead of trying to have the perfect card for every possible purchase, start with the categories where you spend the most money.
For example, someone who spends a lot on dining and groceries might get a lot of value from the American Express Gold Card. Pair that with something simple like the Chase Freedom Unlimited for purchases that don’t fall into a bonus category, and you already have a setup that covers a huge chunk of everyday spending.
Is it mathematically perfect for every transaction? No, but it’s easy to remember, and that’s worth something!
The best credit card setup isn’t necessarily the one that earns the most points in a spreadsheet. It’s the one you’ll actually use correctly without having to constantly think about it.
You Can Always Optimize Later
As you get more comfortable with points, adding another card can absolutely make sense.
Maybe you realize you’re spending enough in a certain category to justify another card. Maybe there’s a benefit you’re consistently paying for out of pocket that another card includes, like the Delta SkyClub! Or maybe you simply enjoy the hobby and want to start squeezing more value out of your spending.
That’s when optimization becomes useful, but you don’t need to start there.
Get comfortable earning points. Learn how your cards work. Redeem those points for a trip or two. Once all of that feels pretty automatic, then decide whether adding more complexity is actually worth it.
The Bottom Line
I think the points and miles world sometimes puts too much emphasis on maximizing every dollar you spend.
You don’t need to.
If you’re getting good value from your cards, paying them off every month and earning points toward trips you actually want to take, you’re doing it right.
Could you squeeze another few thousand points out of your spending every year with a more complicated setup? Probably, but if getting those extra points means carrying six cards and checking a spreadsheet before you buy lunch, I’d argue you’ve missed the point.
Keep it simple, stay consistent, and actually use the points you earn.
Finally, if your current setup has gotten a little out of control, leave a comment with the cards you’re carrying. I’ll help you figure out which ones are actually earning their place in your wallet.