Drinks On Us, Flights On You
Posted on March 09, 2007 by Him and tagged credit, rewards
Ever since we've received the Citibank AAdvantage card, we've been thinking of all of the possible ways that we could maximize our mileage. Thus I present to you this case study: Happy hour.
The last few weekends, my co-workers and I have been extending happy hour to a happy 5 or 6 hours. Sometimes only a few of us go, but on other occasions we've had a crowd of 15 or more people. Most people don't stay past the first hour and only have one drink; others tend to stick around for a few more drinks and order food. When people leave they throw in whatever amount they owe - I've been the money collector more than once and I've never needed to ask for more to cover the bill. In fact, on occasion people overpay (in which we all agree that the extra should just be added to the tip).
Normally I contribute to the bill using my personal allowance money to fund my libations, but the last few times the bill came close to $500. During those times I assumed my position as the money guy, and saw there was enough to cover the bill. Instead of paying with cash, I paid with the mileage rewards card. I then pocketed the cash, and the next day I deposited it into our account and put it into our savings account where it earns interest until the bill comes.
I just hope I don't become an alcoholic just for the miles.
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Someone at work does this all the time for Citicard Dividend Rewards. I would, but I never seem to transfer the money over. Now I just pay cash for my lunches. But she's happy with the cash back. Glad someone is benefitting, even if it's not me.
I do this once in a while. It's kind of like a 0% balance transfer arbitrage. It seems like a lot of trouble for not a lot of profit. Not to mention the risk of ending up paying fees or interest if you goof up. But if done right, you just made $5 in rewards and about $2 in cash. That'll pay for a beer and tip!
I do this with travel through work all the time. Three or four people going on a trip? Put it all on my card! I know the company will reimburse me as soon as we get back.
And I'm not ashamed to admit I'm using my Disney Rewards card. Mickey Mouse, here I come!
Albert | Mar 10, 2007
Rewards cards are like playing with fire. All that effort and so little payoff. Let me know when you go on a fabulous vacation or get big bucks off on a car because of a rewards program. Heck, let me know if you retire even a little more comfortable because of them. If fine print hasn't demolished the benefits or they don't cancel the program... :-D
JJ | Mar 10, 2007
All year I'm very diligent at paying off my Discover card without ever leaving a balance or paying interest. At the end of the year there's enough "cashback bonus" money to get a massive pile of Border's cards. I use those to purchase holiday gifts for my family (luckily everyone's addicted to books) and have some left over for the rest of the year.
Albert, maybe you should look around for different cards. My husband and I have had one about a year now and the rewards are great. Check out this chart I made for last year. They are especially great for large purchases that you already planned to make.
tracey | Mar 26, 2007
I'm a Chase customer too. I had to call Chase recently and was told that Chase is now offering a debit card with UA mileage awards. I jumped on it, because a)I don't use credit cards at all and b) still want to earn mileage. Guess we'll see if I earn enough to go anywhere! Great blog btw
Cami | Dec 28, 2007
That's awesome. I do this all the time. It's so smart, like interest-free cash advances.
My boyfriend always puts gas in his work vehicle, for his boss, using his credit card. Then, the boss refunds my boyfriend cash the next day for the gas expenditure. We deposit the cash in our savings account, and it builds interest until the next month when the credit card statement comes out.
Filling up at about $80 a day, and depositing that in an account, sure builds some nice free interest money. We have a 4.1% savings account, so by the end of the month we usually build up enough money to eat out, go to a movie, etc.
It's too bad the boss isn't taking advantage of using credit for HIS bills!
Sidecar Willy | Mar 9, 2007
I've been a'ramblin' on the rails for quite awhile...town to town, state to state, and I've a'done me some a'learnin:
1) Ya' derned ijit...ya' never slap down yer' plastic a'fore yer hobo brethren. You want Skeeter Pete to know your packin'??
2) Yer in the mood to drink yer' fair share, huh? Well, think ahead next time, greenhorn; wear your best running loafers. Last time I done drunk 500 dollars worth of whiskey, my feet got a beatin' (if ya' take my meanin'). "Best ta' drift n' drink near the rails", that's what I always say.
3) Fruit-cocktail moonshine's cheap, easy, and hell'affective. No need to go a'hoppin' when you've got a cask of that sittin' in yer' toilet basin (just don' let Cookie see ya' stash).
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