With 100k Travel Rewards on the line, is the AMEX any Good?

The Neighborhood Finance Guy writes about financial literacy topics: Financial Planning and Budgeting, Millennial Money Management, Investment Strategies, Credit Card Debt, Rewards, and more. The goal is to help you make effective decisions and set S.M.A.R.T. + E.R. goals with your money. The information is free but the struggle is not sold separately. And, if you are into this sort of thing; the blog is PLUTUS nominated, I studied Accounting with a Specialization in Taxation, served in the U.S. Marine Corps and now work as an Auditor. I’m also big on Traveling and watching Anime.

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So We Just Applied for the American Express Platinum Card (the AMEX)…

Wait let’s go back in time just a little. Back in 2015, I applied for the Chase Sapphire Reserve credit card. This little card changed my life. At the time, Chase was the only travel credit card offering 100,000 points. Just in case you need the referral, click for the GOAT.

With a credit score over 700, I applied and I was instantly approved.

Going from a 515 credit score was no easy feat however after 3 years of paying off my debts, decreasing my expenses, and investing in my 401k, IRA and HSA, I was golden.

Beyond that, I used the 100k reward points for a super trip for myself and my sister to Brazil. We are Haitian-Brazilian so we had to do it.

The Chase credit card game is rather simple, pay $450 annual fee and get all the perks.

After crushing the numbers, as long as your travel costs exceed $5,000 per year, the entire card paid for itself. It was a ca n’t-lose proposition. Additionally, the card offered a $300 travel credit per year which reduced the cost by $150 effectively.

On top of that, TSA pre-check and finally something I didn’t figure out until the 2018 Priority Pass. If you don’t know about Priority lounges, you are living a tough life. Aladdin in the streets, though.

Priority Pass is a program that provides members with access to airport lounges around the world, including allowing holders to visit lounges with economy class or premium economy class tickets. With over 1,200 locations as of 2018, you gain entry to luxury. This includes free alcoholic drinks, snack bars, or full-service buffets as well as WiFI and even showers.

They will have to drag me out of Priority living.

The Credit Card Game is Not for the Faint of Heart

None of this would be accessible without a great financial plan.

The average American is retiring broke due to lifestyle. So much so that 1 in 5 couples are leveraging debts through credit cards to pay for their marriage.

It’s a dumpster fire. At an over 22% interest rate, if you don’t have the discipline to pay it off quickly, you are merely shooting yourself in the foot.

So try not to chase rewards (no pun) haphazardly. One of the great ways to leverage debt is to get a card like this right after you purchased a home. To furnish the average home, you are looking at $5,000. That’s enough to ensure that you will get all the extra rewards points in the 3-6 month timeline.

If you were already going to put it on the card anyways, this is a win-win. Just in case you are considering the Chase Platinum, here’s my referral code.

We already have the Chase Sapphire Reserve aka the Travel Card GOAT. With 100K Rewards points on the line, is the AMEX Platinum any Good?

The Best Perk for AMEX Newbies?

100,000 Membership Rewards Points for Travel

After you spend $6,000 on purchases on your new card in your first 6 months of card membership.

To be eligible to earn the 100,000 Membership Rewards points, you must be enrolled in the Membership Rewards Program at the time of the eligible purchases. 100,000 Membership Rewards points will be credited to your account after you charge a total of $6,000 (the “Threshold Amount”) or more of purchases on your Platinum Card^® from American Express within the first 6 months of Platinum Card Membership starting from the date your account is approved.

It’s a nice boost for our 2023 travels.

Automatic Lifestyle Credits for AMEX users

$200 annual airline incidental fees. This is reimbursement for checked-bag fees or in-flight refreshments. It applies to a single airline you choose when you enroll; you can change airlines once a year. This is kinda tricky since I use American Airlines, Jet Blue and etc…
$200 annual hotel bookings. This instant credit applies to prepaid bookings through American Express Travel at the more than 1,700 hotels that are Fine Hotels + Resorts or The Hotel Collection properties.
$200 per year for Uber. These credits are issued on a monthly basis — $15 each month and $35 in December — good for rides or eat orders in the US. These credits don’t roll over; so you have to use them each month. Great for commuter cities like New York.
$300 per year for Equinox gym memberships. This comes in the form of a $25 statement credit per month for select eligible Equinox memberships, including Equinox All Access, Destination, E by Equinox memberships, or the on-demand fitness app Equinox+.
$100 a year at Saks Fifth Avenue (which my wife might like). When you enroll you get $50 worth of credit for in-store or online purchases from January through June, and another $50 for purchases from July through December.
Up to $100 for trusted traveler programs. You can be reimbursed for the application fee for either Global Entry ($100) or TSA Pre-Check ($85) every five years.
Up to $179 a year for CLEAR. Speed through airport security and get into stadiums more quickly with a credit that’s enough to cover CLEAR’s annual cost. This operates on your biometrics and it looks sweet. Very luxury-level traveling.
$240 a year for digital entertainment. Get up to $20 per month toward eligible subscriptions for Peacock, Audible, SiriusXM, and The New York Times. I’ll likely leverage this one with my best friend since he loves Sirius and I need that Audible.

Airport Lounge Access Upgrade for AMEX Users

Basically, if I can’t get into one place, I’ll get into the next.

The AMEX Platinum Card offers unmatched access to airport lounges worldwide — more than 1,300 and counting. This card trumps Chase’s Priority Pass access in my opinion. They include:

The issuer’s own Centurion Lounges and International American Express lounges.
Delta Sky Clubs, when flying Delta.
Priority Pass Select lounges (enrollment required).
Lounges in the Plaza Premium, Escape, and Airspace networks.

Investing in the Credit Card Reward Hustle

Things are getting pricey. It’s best to learn to invest in the Credit Card Game

Turns out 2040 will be way more expensive than 2020. In order for the average person to keep their current $60,000 annual expenses lifestyle, they will have to up the levels to about $100,000. If you are feeling the pinch now, just know it will not be easier later.

My wife and I own some JP Morgan Chase stocks as well as American Express and Bank of America. The dividends alone pay for the annual interest while our investments are growing north of 20%. The game has layers to it.

Invest to hit your millennial millionaire mark, it’s less heavy lifting than you think. I dished out my Million+retirement strategies all the time. Feel free to read up on it.

Other great write-ups include:

So it’s a Yes for the AMEX for us…

With an annual fee of $695 minus $200 for flights, $200 for hotels, $200 for UBER rides, $240 per year for Audible and the New York Times, TSA Pre-check, Global Entry, CLEAR, on top of all airport lounges…

It’s too hard to pass up.

Add in 100k bonus points for travel in 2023, it’s a no-brainer. We are going back to Brazil. Better drinks and better accommodations.

See the terms for yourself. The question now is, are you ready to live like the rich?