Five mistakes that make points and miles expensive

1. Skipping the budget

Before considering business class, list income, recurring expenses and the whole trip cost. Banca d’Italia recommends planning across several months, ideally a year, with room for unexpected expenses. An award flight still needs a budget for possible taxes, accommodation and transfers. A points balance cannot replace the money required for those items.

2. Buying to earn

An unnecessary EUR100 purchase remains a EUR100 outflow even when it earns points. Under Shop with Points, 1,000 MR provide EUR4 off the balance, subject to its conditions: EUR0.004 each. Do not use a future trip to justify purchases you would otherwise avoid. Start with spending already included in your budget.

3. Confusing liquidity and returns

Money for an imminent bill serves a different purpose from money for a distant goal. Compare interest-bearing accounts using net returns, promotional duration, limits and access to funds. An old advertised rate is not a current offer; do not move an emergency reserve solely for a bonus. This guide assigns no unverified current yield to an individual account.

4. Using the wrong units

In Italy, 100,000 Membership Rewards normally become 80,000 British Airways or Iberia Avios, at 5:4. Dividing ticket value by the Avios received measures value per Avios, not per MR spent. Record both quantities and deduct the award cash payment. An impressive percentage can hide the wrong comparison.

5. Counting an award you cannot book

An advertised minimum is insufficient: you need seats for everyone on usable dates in the required cabin. Compare against the alternative you would genuinely pay for, not just the highest price of that seat. Include extra nights or distant airports imposed by the award. Saving means improving the trip within budget, not displaying the largest balance.