Like this site? Consider supporting it with a blog subscription!

Sign up for a blog subscription here.

This weekend I’m off to my ancestral homeland for a family reunion up in the Rocky Mountains, and I assume I’ll be mostly out of communication until Monday night.

While I’m gone, you have the chance to reflect on the gaping hole left in your blog reading routine by my absence! You see, this site only exists because of the support of readers, just like you, who sign up for a monthly blog subscription.

There are lots of revenue models used by different kinds of websites. Some travel hacking websites are ad-supported, and require a huge number of page views in order to make money. Unfortunately, my peculiar brand of no-nonsense, hard-headed analysis and advice doesn’t attract that number of visitors, so my monthly ad revenue remains humbly in the 2 digits. By the way, thanks to all my readers who whitelist my site in their adblocker, and to those who don’t know that adblockers exist.

Other websites accept money from banks and credit card affiliate networks to promote their products. Long-time readers may remember that I actually briefly tried that model, but when you enter into those kinds of relationships, you turn over editorial control of your content to the people cutting the checks. For obvious reasons, that wasn’t going to work for me, and I was soon cut loose. I never even got paid, not that I’m sore about it.

Because I know I have a core group of dedicated and loyal readers, I finally decided to go a different direction, and allow readers to support the site directly by signing up for a blog subscription. This way, my readers always know exactly who I’m working for (hint: it’s you).

Today, I’m lucky enough to have over 100 monthly subscribers, some of whom have been supporters for over 2 years. I’m incredibly honored to have the lasting support of so many travel hackers for what started as a side project to promote an ebook. The ebook never took off, while the website and blog have become my full-time gig.

Unfortunately, the model is starting to show signs of strain. Earlier this month I moved from an affordable Midwestern city to a gentrifying East Coast metropolis, and my rent went up correspondingly. While the plan was never for this site to make me rich, grinding poverty doesn’t have much appeal to me either.

Fortunately, there’s an easy solution: readers just like you can sign up for a monthly blog subscription. You see, if everybody who appreciates this site thinks somebody else is going to pay for it, then the site won't get paid for at all. If that happens, it means I'll go get a job doing something else: a classic lose-lose situation. On the other hand, if readers just like you individually decide that this site is worth keeping around, together your blog subscriptions will make sure the lights stay on around here.

Additionally, it’s always a good time to sign up for a monthly blog subscription, because the sooner you sign up, the sooner you lock in your price. Since the price of a monthly blog subscription goes up every 6 months (the next increase will be November 1), the longer you wait to subscribe, the more you’ll pay in the long run, or even in the not-so-long run.

Besides the fresh, honest takes on the world of travel hacking that you already enjoy here on the blog, as my small way of expressing thanks for the support of my beloved readers, subscribers also receive my occasional subscribers-only newsletters, access to the entire archive of past newsletters, and invitations to subscribers-only meetups around the country. So far I’ve met up with readers in Chicago and New York City, and additional meetups are always in the works — hopefully coming soon to a city near you!

As always, thanks for reading, and for your support.

—The Free-quent Flyer

Sign up for a blog subscription here.

Hacking business travel: the good, the bad, the ugly

Last night I was chatting with a friend who's going to be in town next month for a work conference. Even in my spare time I'm always trying to help people save money, so I quickly checked whether I could offer him a better rate than what he'd paid for the conference hotel. I offered to book the stay for about half of what he had reserved the same room for, and then he asked the fateful question: "will the hotel still give me a receipt?"

Most people travel mostly for business, and business travel is expensive

Loyalty programs have a fundamental genius in their core value proposition: direct your company's travel business to us during the week, when hotels and airlines are engaged in a cutthroat competition, and we'll give you free flights and rooms on the weekends, when we're empty.

Credit cards directed at business travelers have a similar premise: use our product, instead of our competitor's, for your reimbursed business expenses and we'll share our cut of the transaction fees with you.

The travel hacker would ideally like to complete this circle by redeeming loyalty currencies for his reimbursed business expenses, thereby monetizing his points balances precisely when those points are most valuable.

Taxes make hacking business travel difficult

The core problem with hacking business travel is taxes: taxes make business travel cheap.

The marginal federal tax rate on a self-employed person is between 14.13% and 50.93%. That means a self-employed person who pays for travel in cash already gets a huge discount off retail simply by excluding the cost from her self-employment income. A nominal 3 cent-per-point redemption therefore becomes a 2.58 cent-per-point redemption for someone in the lowest tax bracket, and a mere 1.47 cent-per-point redemption for a self-employed person in the highest federal income tax bracket. Accounting for state income taxes would make the situation correspondingly worse.

For employees, the situation is similar. Even if you were able to negotiate with your employer for higher pay in exchange for making your own travel reservations (I'm not even sure this arrangement would be legal), the increase would have to be higher than the retail value of your travel expenses to account for federal and state income taxes.

But we think outside the box around here, so here are three approaches to hacking your business travel: the right way, the wrong way, and the illegal way.

The right way: just ask

If you work at a company where travelers book their own travel and are later reimbursed, then you could simply ask your supervisor or boss whether you could redeem miles and points for your travel and be reimbursed with cash. The human resources and accounting departments would probably have to sign off on the idea, but at a small company those might be the same person, and they might agree.

They also might not, so you have to be willing to risk flat-out rejection (and potential followup questions about your sanity) to go this route.

The wrong way: spoof reservations

Another option I consider moderately unethical would be to in fact book paid reservations, print off your receipts and, if necessary, your credit card statements, then cancel the reservations and rebook the same reservations with points.

Naturally, this would only work if the travel department doesn't require, or doesn't check, that hotel folios and boarding pass ticket numbers match the supporting documentation.

There are two reasons I believe this approach to be at least moderately unethical, even though at face value the outcome is identical to the "proper" method of paying cash and being reimbursed for travel expenses. The first is that I regard any technique that requires you to obscure your activity is inherently suspect. Now, we all may hem and haw and come up with circular explanations for carrying around thousands of dollars in gift cards, but the fact is that money orders are, in fact, perfectly legal to buy and use in the United States — if pressed, no one would feel the need to deliberately conceal their use of gift cards to manufacture spend.

The second reason I'm wary of this technique is the potential consequences for the travel hacker's employer in case of audit. While the travel or bookkeeping department might not bother to compare PNR's, ticket, or reservation numbers, that's precisely the kind of information an audit team might notice, or even look for. If your behavior puts your employer in legal or business jeopardy, I regard that behavior as ethically suspect.

The (il)legal way

While misleading your employer about your travel reservations may be unethical, trying to do the same thing with the IRS is an excruciatingly bad idea. If you're deducting business travel from your Schedule C or other business tax form, you'd better have supporting receipts showing what you actually paid for your travel. Redeeming miles and points, then claiming the cash value of your trips as a deduction, is a recipe for disaster.

On the other hand, it's also true that miles and points are treated as having a cash value in other situations. For example, when you win a stash of miles and points in a sweepstakes, or when they're awarded as a bonus for signing up for a checking account, you're issued a 1099-INT or 1099-MISC for the value of the points.

If you have a large enough business, and travel enough, it may be worth consulting with a tax attorney and getting some formal advice about what values you might assign to the miles and points you redeem for your business travel.

For example, if you could convince a tax attorney to advise you that Hyatt Gold Passport points are worth 1 cent each, then a 15,000-point redemption for a $400 hotel night would yield a $150 deduction, compared to a $400 deduction. Applying the same 14.13% tax rate to both deductions yields $21.20 in tax savings for the point redemption and $56.52 for the cash rate, for a total redemption value of 2.43 cents per Hyatt Gold Passport point (an out of pocket cost of $400 minus $56.52, compared to 15,000 points minus $21.20).

Again, that's an avenue that's only worth pursuing if you have a large enough business that the savings involved comfortably cover any fees you pay to your tax attorneys.

"Common Stocks and Uncommon Profits" is a beautiful, not-very-useful book

This is a review of "Common Stocks and Uncommon Profits" by Philip A. Fisher. You can find all my previous book reviews here. If you're interested in buying a copy, I hope you'll consider using my Amazon Associates referral link.

In my May review of the "Masters in Business" podcast I mentioned that the host asks his guests for book recommendations, and one extremely common recommendation is "Common Stocks and Uncommon Profits," by Philip A. Fisher. In it, the legendary fund manager describes his investment philosophy and, in great depth, his strategy for selecting stocks he believes will dramatically increase in price over a period of many years.

"Common Stocks and Uncommon Profits" is a book about late-1950's America

It is rare to come across a book that is so strongly rooted in a particular time and place. When reading "Pride and Prejudice" you notice some quirks of English law (like perpetual entails) but you basically get the idea that it's a story about a bunch of young people growing up and getting married.

"Common Stocks and Uncommon Profits" is not like that. Here's Fisher writing about labor unions:

"In this day of widespread unionization, those companies that still have no union or a company union probably also have well above average labor and personnel relations. If they did not, the unions would have organized them long ago. The investor can feel rather sure, for example, that Motorola, located in highly unionized Chicago, and Texas Instruments, Inc., in increasingly unionized Dallas, have convinced at least an important part of their work force of the company's genuine desire and ability to threat its employees well. Lack of affiliation with an international union can only be explained by successful personnel policies in instances of this sort."

That is an almost-unrecognizable vision of the American labor movement, but it's listed as one of the most important considerations when deciding whether to invest in a company!

Needless to say, an investor today should not base their decisions on 1958's union environment, which we now know was almost literally the peak of union membership as a percentage of the American workforce.

This is also a book about America as a manufacturing powerhouse. Fisher describes with wonder the almost-miraculous invention of titanium and exciting new uses for aluminum. Even DDT gets a nod as an exciting new insecticide, guaranteed to increase American agricultural production for many years to come (it's now illegal).

Importantly, Fisher is describing a world where the only investment choices for working Americans are actively-managed mutual funds and stock brokers. Because of that, the book can be read in two ways: if you're an active manager of a mutual fund, it's advice on how to do your job. If you're in investor, it's advice on how to select an active fund manager: pick one who agrees with Philip A. Fisher!

"Common Stocks and Uncommon Profits" provides no useful information about picking stocks

If you picked up a book like Michael Covel's "Trend Following," and read it cover to cover, you could start trading stocks using the strategies in that book.

You'd lose a lot of money, perhaps slowly at first, and then all at once, but the book does give you instructions on how to trade according to Covel's theories.

"Common Stocks and Uncommon Profits" isn't really like that. Fisher's strategy requires you to gather information about companies that is not publicly available. I don't mean "insider" information, but simply information that is not knowable without spending a lot of time hunting down employees, customers, vendors, and competitors and communicating with them at length. It's a strategy that could only be followed by a wealthy, well-connected mutual fund manager with a lot of money to invest.

The problem, of course, is that identifying the disciple of Philip A. Fisher (the author died in 2004) who truly and correctly follows his investment principles is impossible in advance. The successful fundamental fund manager will naturally say that he "correctly" applied Fisher's strategy, while his unsuccessful competitors "incorrectly" applied it, and give you all sorts of reasons why. Unfortunately, there's no reason to believe past performance is any indicator of future results.

Fisher has some interesting insights about dividends

Fisher makes two interesting arguments in his discussion of whether dividend-paying stocks are better or worse investments than companies that retain most or all of their profit for further investment.

The first is a straightforward mathematical insight that's frequently glossed over: the dividend yield that should matter to you is the yield on the price you purchased a stock at, not its current price. If a company pays the same 2% of its share price in dividends, but its share price quadruples over 15 years, the lucky owner over that time period will be earning an 8% yield on the price she paid for it, despite the stock never paying a "high" dividend at any point in the entire period.

The second point has to do with transaction costs. The high historical stock market yields you frequently see quoted in investing propaganda require the reinvestment of all dividends paid. If you, quite rightly, plan to reinvest all your dividends, you have three problems: first, until very recently, fixed commissions on stock purchases meant it was as expensive to make small purchases as large ones. If you immediately reinvest dividends, purchase commissions eat up a higher percentage of your capital. If you wait to invest a large amount, you suffer from having more time out of the market, losing some of the benefits of compounding.

The second problem is that it can be cumbersome to reinvest dividends because of the need to buy integer values of stocks.

And third, you also have to find a stock to invest in! It may be your current stocks have already gone up too much in value to be good candidates for further investment, which means you have to find something new to buy. That friction imposes another transaction cost. Retained earnings reinvested in a quality business, on the other hand, eliminate all those transaction costs by (hopefully) increasing further the value of your existing shares.

Basically, Fisher is not a big fan of dividends.

Conclusion: read this book for nostalgia, not for advice

This may sound like I'm being harsh on the author: after all, what period was he supposed to write about if not the period he was living in?

On the contrary, I actually found "Common Stocks and Uncommon Profits" to be a beautifully written description of the world our Baby Boomer leaders grew up in. When Donald Trump says he wants to make America great again, this is the America he has in mind: heavily unionized, highly-paid, a manufacturing powerhouse, with exciting research developments that would only years later prove to be toxic to humans and the environment. Men work in labs and factories, women purchase previously-unheard-of consumer goods, and during periods of economic recession the government runs a deficit of "25 to 30 billion dollars."

It sounds like a lovely place to visit, but I'm not sure I'd like to live there, and I definitely wouldn't recommend investing as if you did live there today!

Is this how UberPOOL is supposed to work?

On our return from Germany last month, we stayed overnight in New York City, flying into JFK on airberlin Saturday evening and out of LaGuardia on Delta the next morning. Traveling between the two airports and midtown Manhattan should be easy on public transportation, but when we boarded an E train Saturday evening in Jamaica, we discovered after 30 seconds of panic and 2 minutes of confusion that E trains were running on F tracks in Manhattan.

Unrelated: is there another city in the world that phrases their maintenance-related inconveniences in this way? On every other system I'm familiar with, if such a rerouting were required, they would announce that "this train is an F train between such-and-such stations." Why do New Yorkers insist on saying that it remains an E train while behaving in every way like an F train? Is it for union-related purposes, so E-train drivers can continue to operate what are obviously F trains?

Rather than try to figure out which E trains were E trains and which E trains were F trains, Sunday afternoon we decided to take a car to LaGuardia instead.

UberPOOL was strange, but cheap

This taxi fare guesser suggests a yellow cab would have cost $26.70, plus tip, for our Sunday trip to the airport, and the Uber app estimates an UberX would cost $32-$41. Then, since I'd never seen the UberPOOL icon in my Uber app before, I decided to check how much that would cost, and was offered a fixed price of $26.27.

This ended up feeling like an even better deal than those numbers suggest because Sunday was also the day of the New York City Pride march, and 5th Avenue was tied up with revelers. So instead the driver took what I guess you would call the scenic route under Central Park to avoid the parade. This longer route would have run up a higher UberX or yellow cab fare, so we benefited from locking in our UberPOOL rate in advance.

That's not the strange part. The strange part is that since the driver ignored the directions Uber was feeding him, he was forced to ignore all the other UberPOOL users trying to hail him. For Uber to add people to a pool they have to be able to predict where a driver will be, and when. But since our driver was never where he was supposed to be, he ignored all the additional UberPOOL requests he was given, and we enjoyed a private ride to the airport.

Conclusion

I will definitely use UberPOOL again, if I'm ever in a city where it's offered as an option. Their prices seem extremely competitive, and I consider being able to lock in prices in advance regardless of traffic and route to be a big convenience.

Now, I'm perfectly aware that having a fixed up-front price does not save anyone money, on average, and indeed allows Uber to apply "sneak" surge pricing and quiet rate increases. I'm totally fine with that — if the ride's too expensive, I'll take a different form of transportation. You should too.

This is what Uber's promise should be: identify the most annoying practices of the existing cab monopolies, and eliminate them. Then, some people will be willing to pay higher prices to avoid experiencing those inconveniences and some people won't. I consider the constantly-ticking taximeter and attendant fear that a driver is taking you on the long haul and deliberating missing traffic lights to be one such inconvenience, and I'll happily pay a premium to avoid it.

Microhacking: ATM fee refund edition

Even before most travel hackers' American Express prepaid cards were shut down last year, American Express had restricted Bluebird and Serve cash withdrawals to ATM's in the United States. That was a shame since they had previously worked as fee-free ATM cards around the world, and with reasonable exchange rates.

Fortunately, I have a Consumers Credit Union Free Rewards Checking account, which offers as one of its rewards "No ATM fees - CCU will reimburse all ATM and surcharge fees." I'd never actually made an ATM withdrawal with the card (I bank with a local credit union), so I was eager to see how this benefit works.

My experience withdrawing money in Europe

It works really well!

I made three ATM withdrawals during the two weeks we were in Europe, and incurred ATM fees on each withdrawal:

• 30,000 Hungarian forint ($109.40), $0.87 ATM fee;
• 200 Euro ($226.85), $1.81 ATM fee;
• 200 Euro ($225.96), $2.26 ATM fee.

On the first of July, I received an ATM fee credit of $11.19. Since only $4.94 had been charged to my account in separate ATM fees, that leaves $6.25 in ATM fee refunds unaccounted for.

That $6.25 happens to be the sum of the difference between the first two ATM withdrawals in dollars and the next lowest multiple of $5 ($109.40 minus $105, plus $226.85 minus $225).

Now, maybe that's a coincidence ($6.25 is the sum of a lot of numbers, real and imaginary). But it's my current best hypothesis, although it doesn't explain why the odd $0.96 on my final ATM withdrawal wasn't refunded.

Microhacking ATM fee refunds?

If my hypothesis is correct, that means a simple hack is possible: intentionally make ATM withdrawals that are at least $1 more than a multiple of $5, getting the additional amount refunded the following month.

The only ATM's I've ever seen that allow such odd withdrawals are TD Bank ATM's, which allow you to specify the exact composition of a withdrawal, including $1 and $5 bills.

According to this CNN article, Chase and PNC were rolling out ATM's with this function back in 2013, but some light Googling didn't turn up any more recent information than that.

Have you tried this? Does it work? And do you have a better explanation for my mysterious $6.25 ATM fee refund?

When do you contact the hotel, or, living gratefully

The feeling I most associate with travel hacking is "gratitude." That's because before I discovered the world of miles and points, or at least before I knew just how big and beautiful that world is, I still traveled all the time.

Back then I traveled "on the cheap," the same way many people travel today: booking flights based on the price of a ticket, regardless of the number or inconvenience of the connections, and booking noisy, inconvenient hostels. That wasn't all bad — I once stayed in a trailer park reconfigured as a hostel on the far, far, far outskirts of Amsterdam and had a great time biking around the Dutch countryside. But it also wasn't great (the steel trailer got up to 100 or so degrees in the sun).

Altogether, that means I'm sometimes confused about what conditions rise to the level of a "complaint."

Club Carlson properties are confusing

Last month we stayed in two Club Carlson properties, the Radisson Blu Beke Hotel in Budapest and Radisson Blu Carlton Hotel in Bratislava, and both properties had an ice situation that was confusing (remember, I'm easily confused).

The Radisson Blu Beke Hotel had an ice machine on our floor that appeared to me to be a Soviet relic. After I tweeted about the thing, someone apparently managed to get it working and it was full of ice the next day. Although in all honesty, I'm fairly sure they just filled it with ice from the restaurant to get me to shut up.

The beautiful old Radisson Blu Carlton Hotel in Bratislava upped the weirdness ante: every single floor of the hotel had an ice machine in a specially designed cabinet across from the elevators, and every single ice machine was unplugged, apparently permanently. I called the front desk for an explanation and the young lady working was happy to send up a bucket of ice from the bar. So that was terrific service, on the one hand, but on the other hand what were the ice machines doing there on every floor?

Hyatt Diamond food and beverage amenities are confusing

One of my favorite things I learned last month was the neologism "regranding." It's when, well, it's when this happens.

But that's neither here nor there. What I find confusing is when a Hyatt property has already installed some fruit basket or something in your room, then asks whether you'd like the Diamond points amenity or the food and beverage amenity. As a rule, I always take the food and beverage amenity.

At both the Park Hyatt Vienna and Grand Hyatt Berlin, the property then sent up a bottle of wine, which was much appreciated after a day of travel.

But under those circumstances, does the already-existing bowl of fruit in the room count as the food amenity? If I selected the points, would someone come up and take the fruit away? At the Grand Hyatt Berlin I simply told the agent at checkout that we'd never received a food amenity and he gave me the 1,000 Gold Passport points instead. Was I wrong?

What kind of feedback do hotels appreciate?

The waiters at the Park Hyatt Vienna breakfast buffet are absolutely incompetent (with one marvelous exception). The first day, we got a cup of coffee from our waiter and never saw him again. The second day, I managed to place an order with my waiter from the à la carte menu, and never saw him again. Only on our third morning in Vienna was I able to actually receive eggs Benedict cooked to order from the à la carte menu, once I shanghaied the only competent waitress in the entire restaurant (if you're staying there, e-mail me and I'll let you know which one she is).

Why I started this post by mentioning "gratitude" is that none of these things bother me at all. I tweet about stuff because it amuses me, or because I think my readers will find it amusing, but the fact that I'm able to stay in a hotel with a spa (even if the guy who does massages no longer works there) is a radical improvement over the kind of travel I did before I learned about the game.

But the response on Twitter from the brands themselves is invariably, "did you contact the hotel?" And that's a question I never have a good answer to. The Radisson Blu Carlton Hotel presumably knows that its ice machines don't work, but does the Park Hyatt Vienna know that its service staff is incompetent?

What helps improve the experience of guests, and what is just another box the property has to check when the chain's social media team tells them a guest is complaining?

Conclusion

I never "contact the hotel" unless my comfort is directly impacted in some way, like the time we had to get a maintenance man to fix the lights in our very strange room at the very weird Grand Hyatt New York. So I'm just throwing this out there: when do you "contact the hotel," and when do you just enjoy the ride?

The travel hacking index card

I popped by the library this week to pick up "The Index Card," the famously slender volume of personal finance advice by personal finance columnist Helaine Olen (author of "Pound Foolish," a previous entry in my pretty good book review series) and University of Chicago professor Harold Pollack.

It's a pretty good book about personal finance, although not spectacular. The authors' "model portfolio" is invested in small-cap and international index funds for reasons that are not made clear, presumably in order to keep the book as simple as possible. But people who don't understand why they're doing the right thing are just as vulnerable to persuasion from hucksters are people who are doing the wrong thing. So while their model portfolio isn't terrible, it also doesn't have a straightforward evidence-based argument presented for it.

Reading "The Index Card" got me to thinking about what would go on a travel hacking index card. There's plenty of information about individual rewards programs and "sweet spots," which makes it easy to get bogged down in specifics — and difficult to tell the difference between real values and credit card sales pitches.

So what kinds of simple rules can keep a travel hacker from making expensive mistakes while developing a travel hacking practice that helps them achieve their financial and travel goals?

Here's what I came up with, with a few words about each.

View fullsize

1. Start slow

When you're just getting started, there's absolutely no reason to sign up for more than a single new credit card as you get a feel for how credit card rewards programs and travel loyalty programs really work.

This rule also applies to experienced travel hackers testing out new techniques. I'm happy to take a loss by putting $5 on a prepaid debit card with a $5 activation fee, so I can find out whether it's PIN-enabled before I start filling up shopping carts with them.

2. Keep good records, but don't get hung up on a single system

When you're dealing with thousands of dollars in financial products or merchandise, you obviously want to keep good records. But the system you develop when you are just getting started might not serve you well as you scale up or down. A reseller handling $50,000 in merchandise per month has different record-keeping needs than one who just jumps on the biggest deals. When a system starts to get clunky, take a step back and think about how you can improve or simplify it.

Likewise, an envelop in the glove compartment may work great when you're handling a few thousand dollars in money orders, but may start to become unwieldy when you're handling a hundred thousand dollars.

3. Build relationships

The overwhelming majority of travel hackers love this game and love helping people think about the myriad problems we encounter on a daily basis. The rest are ornery bastards, but you'll learn to identify them pretty quickly.

I'm always reminded of the couple that spent a million Starpoints on a paid American Airlines flight using SPG Flights, instead of transferring a small fraction of that number to AAdvantage and booking award tickets. If they'd known to ask anyone in the travel hacking community, they'd have half a million Starpoints left in their account! Don't be them.

4. Every deal dies eventually

I like to joke on Twitter about bloggers killing deals, but the simple fact is, most bloggers of any merit are fairly circumspect about deals they believe are fragile, and most credit card affiliate bloggers either don't know or don't care about real travel hacking deals, since there's no money in it for them.

Bloggers don't kill deals; time kills deals. So when your favorite deal dies, take a moment to mourn, but don't lash out at the blogger you're certain is responsible for its passing.

5. Treat employees calmly and with respect

Let's stipulate that you're always right. You know a store's point-of-sale system better than any of the cashiers there. You know a chain's purchase limits by heart. You have a Christmas card from the CEO clearing you to purchase an unlimited number of cash equivalents using the payment method of your choice.

If you cannot explain yourself briefly, calmly and with respect for the employee you're dealing with, you will fail, you will be remembered, and you will draw attention to techniques that will become harder to implement. Service employees don't work for you: they work for their supervisors, managers and, ultimately, for faceless corporations that they know are completely indifferent to their well-being.

Customer service employees have more to lose than you do.

6. Spend cash last

Once you've dug deep into the travel hacking weeds, you're going to have some unavoidable expenses (or investments, if you prefer): annual fees on your most valuable credit cards, activation fees and liquidation costs, losses on reselling mistakes, postage on 94 envelopes, and so on.

The last thing you want to do is unnecessarily add to those expenses by paying cash for your travel while you hold out for some "ideal" points redemption! You've already paid for the points — now use them. Save your cash for expenses that can only be paid for with cash.

7. Be realistic about your travel goals

In other words, earn the points you redeem and redeem the points you earn. I'm not saying you should think small: if you want to go to the Maldives, travel hacking makes that possible, if not exactly easy. But don't build a travel hacking strategy around something amorphous like "this blogger made the Maldives sound nice."

If you have an ambitious goal, then pick a date (or range of dates, since award availability can be tough), pick a strategy (Hilton or Hyatt?), earn the points you need, then stop. Enjoy your vacation.

If you have less-ambitious goals, then focus on earning the miles and points you find yourself redeeming most often. Consider using fixed-value points currencies like US Bank Flexpoints. Earn points you're likely to be able to use across a range of destinations, like Hilton HHonors.

8. Don't structure transactions

It's against the law, and if you do it the government will ruin your life.

Conclusion

The travel hacking index card isn't a travel hacking strategy: it's a strategy for developing a practice that will achieve your travel and financial goals with mistakes as few and cheap as possible along the way.

So what did I miss — what would my readers add to a travel hacking index card?

Well, I'm going to Europe

As much as it pains me to say this, having dropped out of the formal labor force a few years ago, for the last few months I've been busy.

The bulk of that business has been maximizing the value of my Wells Fargo 5% cash back offer. But as of tomorrow, my 6 months of Wells Fargo 5% cash back will be at an end, and I'll be flying to Europe to spend a few weeks jaunting around Hungary, Slovakia, Austria, and Germany.

Since I'll be staying at perfectly normal hotels the entire time I'll be in Europe, I tentatively plan to continue updating the blog a few times per week, but while I'm overseas the focus may shift from day-to-day manufactured spend and loyalty strategies to my first-hand experiences in Europe.

But who knows?

In any case, I don't have any vacation posts scheduled or anything like that, so you can still expect my unvarnished opinions on whatever happens to be going on in Eastern Europe and the travel hacking universe.

By the end of June blog programming should return to normal, as long as you don't go and ruin manufactured spend while I'm gone.

Anniversary post: what I've learned in two years of blogging full time

How time flies. It's been an entire year since I wrote my first anniversary post, about your economy, which means I must be due for another post commemorating my second year of working for myself — and working for you!

If my first anniversary post was a retrospective on how I came to be where I am, then I want to use this post to reflect on everything I've learned in the two years since I left graduate school and started blogging full time.

Lesson: the world is hungry for quality content, because there is almost no visible supply

I started this website because, after a year or so of reading FlyerTalk and visiting the most popular travel hacking blogs, I realized that it was almost impossible to find answers to the simple question: "how does it really work?"

The people who knew were too busy promoting their credit card affiliate links, and the people who didn't know weren't curious enough to ask the right questions. But I was curious, so I started investigating and writing about how loyalty programs work in practice.

For example, how do refunds from US Bank Flexperks redemptions work? There's only one place on the web to find out.

And of course, once you spend any time at all sincerely investigating how loyalty and rewards programs work in practice, you invariably stumble over unadvertised opportunities to save money or get outsized value from them.

If you have something good and true to say, and it's not being said elsewhere, you're likely to be able to find an audience of people eager to listen.

Lesson: changing minds is impossible

My goal in my travel hacking practice is simple: to travel whenever and wherever I want, and no more.

To that end, I advocate that readers honestly assess their travel goals and plan out the cheapest possible way to achieve them, using all the techniques I write about here and in the newsletters I periodically send out to blog subscribers.

In two years of full-time blogging and, before that, 16 months of blogging as a side gig while I was in graduate school, I do not believe I have convinced a single person of the merits of my approach, and no longer believe that changing minds is a realistic or even desirable goal.

People who come to my blog intent on experiencing every A380 first class seat will leave with the same goal in mind. Likewise readers who come interested in earning cash back to supplement their income will leave with, hopefully, a useful trick or two for doing so.

Being able to engage readers is an honor, even when you never change a single mind.

Lesson: you can encourage people to think harder and better

While you may never change anyone's opinion, that doesn't mean you can't encourage them to examine their settled opinions more critically.

When people angrily disagree with me, I'm happy to see them angrily disagree with me by subjecting their assumptions to the same analytical scrutiny I apply to my own views.

When I compare that to affiliate bloggers who make a practice of assigning garbage "values" to different point currencies based on which way the credit card payout wind is blowing, I'm satisfied that even readers who don't agree with a single word I write are at least doing the hard work of developing a rewards strategy that works for their actual lifestyle — not some affiliate blogger's.

Challenge people to be their best selves, not your best self.

Lesson: my readers are the best

It's no secret that the internet, like middle school, is full of trolls anxious to tear down anyone who shows a glimmer of creativity or outside-the-box thinking.

As long as I've been writing this blog I appear to have been blissfully exempt from that rule. My readers furiously disagree with me all the time, and very occasionally call each other names, but in over 3 years of blogging I've never felt the urge, let alone the need, to delete or censor any comments here.

I don't know why I'm not subject to constant internet harassment, but I like it.

Lesson: every deal dies eventually

If a travel hacker went to sleep in January, 2012, and woke up today, there's scarcely an element of the landscape they'd recognize. Vanilla Reload Network reload cards off-limits at CVS. OneVanilla prepaid debit cards useless at Walmart. Bluebird and Serve shut down for many or most (they would have slept through Target Prepaid REDcards, of course). Formerly cooperative 7-Eleven store locations refusing credit cards for prepaid debit cards. ISIS!

The lesson some people take from this experience is to not depend excessively on any one deal, but I don't think that's quite right. Leaning heavily on each of those deals as long as it lasted was a fantastically lucrative choice, which I wouldn't dream of second-guessing.

It's a mistake is to believe that any given deal will last forever — it won't.

Lesson: there will always be more deals

Looking at a list of the deals that have died in the last 4 years, you might despair that manufacturing spend must, today, be completely impossible!

I don't think it's interesting or necessary to compare the atmosphere today with that of any previous era.

But I will say that every serious travel hacker I know is manufacturing more, not less, spend today than they were even in the era of unlimited CVS Vanilla Reload Networks cards. They may be doing so at greater (or lesser) expense and greater (or lesser) convenience, but there is no obstacle for a serious US-based travel hacker to manufacture as much spend as they need to meet their travel goals.

Travel hacking is a game that rewards long-term, reciprocal relationships — one more reason you're unlikely to get good advice from affiliate bloggers.

Conclusion

I've come a long way since I started blogging, and even further since I started blogging full time.

I have a lot more respect for deals that give access to a steady stream of moderately-priced points, rather than big, cheap windfalls.

I've become more realistic about the few rewards currencies that give me consistent access to the flights and hotel properties I need, rather than accumulating large speculative balances across programs.

And, as this post suggests, I've become a lot humbler about my role in this travel hacking ecosystem: on my best days, I can help people arrive at the right conclusion for their situation, but on no day will I convince anyone that my approach is the right one for them.

That's a little bit sad (since I'm right!) but it's also a little bit of a relief: we're all stumbling our way forward together, and at the end of the day there are no bonus points for being right first or penalties for being right last.

I listened to every episode of "Masters in Business." Here's what I learned.

In March, I asked on Twitter for suggestions for podcasts about business and finance since I found the Planet Money podcast from NPR and the Slate Money podcast to be infuriatingly juvenile.

One of my followers suggested the Bloomberg Radio podcast "Masters in Business," hosted by Barry Ritholtz of Ritholtz Wealth Management.

Ritholtz interviews some of the most famous names in business and finance and explores their background, philosophy, and investment strategy in wide-ranging, free-form interviews. It's fantastic.

In the last two months, I've listened to every episode of the podcast. Here's what I learned about success in business and investing.

Read books

Personally, I like to go down to the public library and check out dead-tree books. You might prefer to read books electronically on your phone or on a dedicated Kindle or Nook. But every one of Ritholtz's guests has a list of books they've either read recently or are in the process of reading.

Have a list, and find the time to read. Work your way through your list, and always be on the lookout for new titles to add to it.

Own Stocks

Share prices are an inflation-protected asset, in that the revenue and expenses of the companies held in a sufficiently diversified stock portfolio will rise at the same rate as inflation in the overall economy, unlike a portfolio of fixed-income investments.

So own stocks: it's good for you.

Successful businesspeople are obsessed with bad evolutionary analogies

It is embarrassing listening to Ritholtz and his guests make constant references to "the savannah" where human psychology supposedly evolved oh-so-many millions of years ago, with "lions" waiting in the shadows to snatch unwary humans from around their "campfires."

I don't blame Ritholtz and his guests for this, and I don't even really blame the evolutionary psychologists for promoting this nonsense: they're just talking their book.

I blame the cultural anthropologists who have abdicated the field of popular non-fiction to these charlatans who preach that the behavior of early hominids on their mythical "savannah" explains human behavior in the advanced economies of the 21st century.

But let me be clear: the quick resort of successful capitalists to evolutionary analogies is no harmless affectation. If most people make investing mistakes because of their primitive evolutionary heritage, the ability of a select few to achieve success in investing must make them more evolved, more sophisticated, more worthy exemplars of the race.

And that, handily, excuses their worst excesses.

Jack Bogle is the only person on Earth who believes in passive indexed investing

Jack Bogle is the legendary founder and former chairman of the Vanguard Group.

Jack Bogle will sell you and manage for you a market-capitalization-weighted S&P 500 index fund for 5 cents per $100 invested.

If you prefer a wider stock index, he'll sell you and manage for you a market-capitalization-weighted total stock market index fund for 5 cents per $100 invested.

You should take him up on this offer. But you won't. No one does.

Passive indexed investing has one big advantage and one big disadvantage.

The one big advantage is that it's free. Since Vanguard passive index funds are market-capitalization-weighted, they are never rebalanced. If a stock goes up in price, it becomes a bigger portion of the index. If it goes down in price, it becomes a smaller portion of the index. Shares are not bought and sold to rebalance the portfolio, since the price movements themselves perform that function. No trading means no trading costs.

The one big disadvantage is that when you contribute money to a market-capitalization-weighted passive index fund you're buying expensive stocks when they're expensive, and when you redeem shares in a market-capitalization-weighted passive index fund you're selling cheap stocks when they're cheap.

Jack Bogle will tell you the one big advantage outweighs the one big disadvantage, but you won't believe him.

Probably because of the savannah.

Bonus fact: Barry Ritholtz blocked me on Twitter

At the end of every episode Barry Ritholtz tells listeners to follow him on Twitter. I thought this was a pretty good idea, so I checked out his account @Ritholtz, and somehow he had already discovered my subversive tendencies and blocked me:

View fullsize