Traveling multiple times a year on free flights, thanks to credit card frequent flyer rewards, sounds like a dream. But is it truly attainable? After reaping the benefits of a generous credit card sign-up bonus, how much must one spend to actually secure those free flights?

Don’t be swept away by the allure of points without considering the realities. Many websites touting these rewards are sponsored by credit card issuers. Remember, banks and credit card companies are highly profitable entities—they’re not in the business of giving away free money.

Here are the facts

  • Credit card sign-up bonuses and rewards points in Australia are far less generous than those in the U.S.
  • Even if you eventually accumulate enough points, free flights may not be available on your preferred travel dates.
  • Hidden credit card surcharges in Australia add up quickly and can be costly.
  • Given Australia’s distance from many desired overseas destinations, it takes a significant number of miles to get anywhere.
  • Most frequent travelers we know do not rely on points—they pay with money they’ve saved.
  • If you avoid spending money just to earn reward points, you’ll have more REAL money to spend on REAL family holidays!

Most people are not suited for credit card hacking

Credit cards only make sense if used for necessary expenses, and the balance is paid in full every month. Let’s face it: most people struggle with self-control. Research consistently shows that those using credit cards tend to overspend compared to those who pay with savings.

Typically, what happens is that more spending becomes “money we would have spent anyway” just to accumulate points. People end up purchasing random items, frequenting stores labeled as “bonus reward points partners,” and stocking up on unnecessary products. Many overspend on Amazon purchases (Amazon in Australia is not cheap), sign up for numerous cashback reward sites, and dine out regularly.

And if that credit card balance isn’t paid in full at the end of the month? You’re hit with exorbitant interest rates! That next family holiday remains out of reach and your house is full of random junk bought on credit card. Even if you eventually accumulate enough points, you may find yourself without the funds to afford hotels and other holiday expenses.

Other reasons we’re not fans of credit card rewards:

  • Based on our monthly spending, we can only fly to places we are not interested in, with airlines we don’t like.
  • Rewards points have higher value when spent on business class, which we don’t need.
  • Airlines can change the value of points at any time.
  • Most credit cards offer “bonus” reward points at more expensive stores, with local discount stores unlikely to appear on the reward partner list.

So how do WE afford to travel multiple times a year? It’s the tried-and-true method of saving money for the next holiday.

The age-old principle: spend less than you earn

We don’t advocate for penny-pinching extremes like turning off air conditioning to save money for European holiday. Focus on the three big expenses:

  • Housing
  • Car
  • Gadgets

Our daily car is a 13-year-old Toyota, costing less than $300/year to service. We haven’t made a single car loan repayment in over a decade and don’t plan to start again ever! Our smartphones aren’t the latest models. We’d rather take photos with an iPhone 13 on holiday than with an iPhone 15 Pro Max at home. We avoid staycations and rarely dine at fancy restaurants when in Perth. Read more in our articles:

How We Afford to Family Travel Twice Every Year

7 Best Tips to Save Money on Your Next Family Holiday

After many years, we still follow these simple steps to holiday multiple times a year.

Do we have a credit card? Absolutely! It has zero annual fees, offers free foreign transactions, and has a simple cash rewards scheme (we use points towards weekly groceries—exciting, right?). A credit card is just a tool, not a miracle solution for free family holidays.

Still convinced credit card point hacking will get you free holidays? Do your research thoroughly to avoid pushing your dream holiday even further away. Those who accumulate points quickly often do so by diverting business spending onto their personal credit cards.

Finally, if you know families who travel on free points, ask them how often they travel, how they accumulate enough points, and how long it takes them. Also, ask how much cash they still need to top up to secure those “free flights.”?

Travel smart and spend wisely—real holidays await!

For other places we have visited, checkout our website’s travel Destinations section. We buy our travel essentials online via Ebay