Beginner’s Guide: Maximizing Miles with a $2K Monthly Spent
For many in Singapore, the choice between cashback and miles credit cards comes down to spending habits and travel goals. If your monthly credit card spend is below $2K, cashback cards are a better fit—they offer straightforward rewards without the need for complex planning. However, if you consistently spend $2K or more, a well-planned miles strategy can unlock businss class experiences.
Why the 2k Monthly Spending Benchmark?
Imagine you’re dreaming of flying to Japan in business class. A one-way business saver ticket typically costs 52,000 miles. For a round-trip or one-way for 2 pax, you’ll need 104,000 miles. If you’re earning 4 miles per dollar (mpd), you’ll need to spend $2,167 monthly to hit this goal in a year. (104,000 miles ÷ 12 months ÷ 4 mpd = $2,167/month).
A Hypothetical Spending Plan for Miles Enthusiasts
If you’re spending $2,000 monthly, here’s how you can optimise your credit card usage to maximise miles:
Category | Monthly Spend | Recommended Credit Card | Earning Rate (mpd) | Earned Miles |
Dining (Restaurants) | $400 | UOB Lady’s/Lady’s Solitaire (Dining + Travel) | 6 mpd | 2,400 |
Groceries/In-person Shopping/Contactless | $500 | 4 mpd | 2,000 | |
Travel (Flights & Hotels) | $200 | UOB Lady’s/Lady’s Solitaire (Dining + Travel) | 6 mpd | 1,200 |
Online Shopping/Subscriptions/PHV | $700 | 4 mpd | 2,800 | |
Spillover Spend | $200 | 3 mpd | 600 | |
Monthly | $2,000 | 9,000 |
With this strategy (and some card sign-up bonuses), you’ll earn more then 104k miles annually—enough to redeem 1 pair of Japan business class tickets.
Conclusion
Remember, most credit cards exclude categories like insurance, income tax, and government services from earning miles. If your spending doesn’t align with eligible categories (e.g., dining, shopping, travel), miles might not be the best option. Also note that award availability isn’t guaranteed—so be flexible with your travel plans to maximize redemption value.
If your credit card spending is below $2K, cashback offers better returns without the complexity of miles redemption. However, if you consistently spend $2K or more, using the right miles cards can earn you free business class flights within a year. By understanding your expenses and leveraging the best earning rates, you can turn everyday spending into luxury travel experiences.
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