Money Management

The rules of frequent flyer programs can change overnight. Learn frequent flyer hacks to maximize your miles for elite airline status and upgrades. 

Frequent flyer miles and airline loyalty points are like an underground economy or alternate financial system within the airline industry; everybody wants frequent flyer miles, but the value that you get for your miles is not guaranteed. The rules of the game are complex, mysterious, and can change overnight.

Let’s take a look at the current landscape of airline frequent flyer programs, and how you can keep getting upgrades and other great travel experiences.

Why frequent flyer programs are getting less customer-friendly

When airlines are struggling with low demand for air travel and empty seats on planes, they’re often more willing to offer perks to loyal customers. But when demand for air travel is strong, and everyone on Earth seems to be waiting in line to hang out at crowded airport lounges, airlines tend to change the rules.

Airlines are now making moves to limit the number of people who can get upgrades and other benefits. For example, Delta Airlines recently rattled the frequent flyer world when it announced major changes to its SkyMiles® loyalty program:

Less airline lounge access: Delta is reducing lounge access for all but the biggest-spending customers and premium airline card members. For example, under the new program, if you want unlimited lounge access, you’ll have to spend $75,000 per year on a qualifying Delta airline credit card or cobranded travel rewards card. No more credit for miles flown: Another disappointment to longtime frequent flyers is Delta’s plan to replace “miles flown” with “dollars spent” as the only way for customers to earn elite status. Instead of letting customers get creative with strategically booking flights to earn points, airlines want you to pony up more cash.

Many longtime Delta customers were dismayed to hear about these changes, and some air travel experts are questioning whether it’s still worth chasing elite status at all. Delta responded to this brouhaha apologetically, saying that the company appreciates its customers’ loyalty and intends to make further revisions to the frequent flyer program.

But the overall trend is clear: airline lounges are overcrowded, too many people are competing for upgrades, and airlines are likely going to become a bit less generous with frequent flyer perks. Since air travel demand is so strong, airlines have more power. Other airlines might follow Delta’s lead, and start to drive a harder bargain with frequent flyers.

But that doesn’t mean frequent flyer programs aren’t worth the effort. With careful planning and strategies, you can still upgrade your travel experience.

Get elite airline status — it’s still worth having

Despite the controversial cutbacks on Delta’s elite status program, most other airlines offer elite status that can still unlock upgrades to business class and other worthwhile perks. Wes Cunningham is a digital nomad and travel blogger at WorldWideyedWes.com who flies an average of 25,000 miles per year. Cunningham has AAdvantage Platinum Pro® elite status with American Airlines, and Emerald status with oneworld member airlines.

“On average, I’m upgraded to business class 75% of the time, and these are complimentary upgrades due to my Platinum Pro status,” Cunningham said. “A great benefit of having elite status is that you are automatically entered for the upgrade. I do tend to double check this if I don’t see my name on the list, but generally speaking it happens over 90% of the time. It works out great since I don’t have to do anything extra.”

Even if you can’t get a free upgrade, there are many occasions where elite status can help you get a better deal on a more comfortable flight.

“On other airlines, for people with my elite status, they will give you a discounted rate to upgrade or you can even bid on an upgrade,” Cunningham said. “I’ve done this with Qatar Airways, Mexican Airways and Royal Jordanian. Be on the lookout for their emails after you have booked your flight, normally about 10-14 days before departure, where they will offer you a flat price or allow you to submit a bid for the seat at a reduced rate.”

Use airline credit cards to keep getting — and spending — frequent flyer miles

Are you serious about getting the most out of your frequent flyer miles? If so, you should consider shifting your everyday spending habits and personal finances to spend as much money as possible through airline credit cards, airline partner travel rewards credit cards, and airline shopping portals.

“With American Airlines, and most major airlines, you can earn points and status through spending on their card along with shopping through their shopping portals where you can earn additional miles, up to 15 miles per dollar spent,” Cunningham said. “I completely changed my spending habits to only shop through their portals and use airline credit cards to maximize my earnings to apply to future flights.”

But don’t assume you’re going to get every upgrade for free. Sometimes you need to spend a bit extra to get the flight deal or business class upgrade you want — and frequent flyer miles can help.

Here are a few examples that Cunningham shared of how he’s combined frequent flyer miles with money to get great flight deals and upgrades on American Airlines:

Buying four roundtrip award tickets to Mexico, most in business class, for $400 plus milesMoving up a class for 25,000 miles plus $250Spending $44 on an award ticket and getting a free upgrade to business class Buying Economy class tickets and getting a free upgrade to business class (saving 20,000 frequent flyer miles)

“With a little planning and strategy, you can make the system work for you and get those upgrades or book directly into business class through miles,” Cunningham said.

Even though the frequent flyer landscape is changing fast (not in airline customers’ favor), there are still great deals to be found. Getting elite status with an airline and maximizing your frequent flyer miles can still help you save money and enjoy premium travel experiences.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool recommends Flow. The Motley Fool has a disclosure policy.

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Some states have much higher average utility costs than others. Here are the 10 states with the lowest utility bills. 

We pay utility costs all year round, but most of us don’t think that much about them until this time of year. With more people staying cozy in their homes and thermostats cranked up, it’s not unusual to see gas and electric bills make a sizable jump during the winter.

But not all states see huge increases. Utility costs vary a lot by location. Below, we’ll look at which states have the lowest average utility costs and how you can keep yours down this winter.

The 10 states with the lowest average utility costs

The following 10 states have the lowest average utility costs, according to the Missouri Economic Research and Information Center:

Louisiana (17% cheaper than average)South Dakota (13.8% cheaper)Mississippi (13% cheaper)Nebraska (12.2% cheaper)Georgia (11.7% cheaper)Illinois (11.7% cheaper)Idaho (11.6% cheaper)Arkansas (8.5% cheaper)Wyoming (8.1% cheaper)North Carolina (7.6% cheaper)

But this isn’t to say you should despair if your state isn’t on the list. Actual utility costs depend on a lot of factors. First and foremost is your usage. If you have every light and appliance running in your house all day and your thermostat set to 80, you’re going to have some pretty high bills, even if you’re living in Louisiana.

Likewise, if you’re careful to minimize your utility usage and keep temperatures a little lower, you could have a manageable utility bill even if you live in a more expensive state.

When you use your utilities also matters, since many companies charge higher rates at certain times of the day. And a lot also depends on the rates your utility provider charges.

How to keep your utility costs down this winter

You have some control over how much gas and electricity you’re consuming. Keeping usage to a minimum is the simplest way to keep utility costs within your budget. Try taking steps like:

Turning off lights and TVs when you leave the roomSetting your thermostat and water heater temperature a degree lower than normalDoing things like drying clothes or charging electric vehicles at off-peak hours when it’s cheaper

In addition, consider reviewing your home for weatherproofing opportunities. Seal drafty doors and windows or cover them with plastic to prevent heat from escaping. You should be able to get materials from your local hardware store.

It’s also worth checking with your utility provider to see if it offers a payment plan. Some companies will look back at your average electricity and gas usage for the past year and divide this by 12. Then, it’ll give you a regular, monthly payment so you don’t experience as many seasonal highs and lows. Keep in mind that it will reevaluate your payment amount annually, and your bill could increase if your usage goes up.

Finally, if you have some extra cash in your bank account, consider investing in solar panels. There’s a big upfront cost here, but it could save you a lot on electricity costs in the long run. Plus, you’ll help the environment.

If you try all of this and you’re still struggling with your bills, look into programs that help low-income households with utility costs. Apply right away if you think you qualify so you can begin receiving assistance as soon as possible.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Do you have a good handle on tipping? Read on for tips on navigating this perpetually tricky situation. 

Americans tend to have a wide range of opinions when it comes to topics like politics and economic policies. But there’s one thing many people can agree on — tipping culture has gotten out of control.

During the height of the COVID-19 pandemic, there was a push toward generosity for restaurant workers and food service professionals, and understandably so. Many of these people were risking their health to keep the public fed while earning minimal wages.

But nowadays, it seems like pretty much any time you go to the store and swipe your credit card at checkout, there’s a message on the screen asking how much of a tip you wish to add to the transaction. And it doesn’t necessarily matter whether you’ve been served a sandwich you watched someone make or handed a can of soda from a fridge — you might still be pressured to give some sort of tip, even in a scenario where it normally wouldn’t cross your mind.

Compounding the problem of constantly being asked to tip is that many Americans have no idea how to navigate these situations. Recent Pew data finds that only about one-third of consumers say it’s easy to know whether to tip in a given situation, and how much to tip. And as a result, workers who have historically relied on tips to stay afloat may be getting shortchanged.

Americans believe in tipping restaurant workers, but they’re not all tipping 20%

Restaurant workers have long been reliant on tips to manage financially. These workers are commonly paid below minimum wage and depend on consumers who dine out to supplement their earnings. (Whether this is a reasonable and fair system is a whole other discussion.)

The good news is that 81% of Americans say they always leave a tip when they’re served at a sit-down restaurant. But 57% of U.S. consumers say that they only tip 15% or less for an average restaurant meal. Just 25% of people say they tip 20% or more.

Part of the reason more people may now be tipping 15% at restaurants is that they’re being asked to tip so frequently. Before the pandemic, it would’ve been unusual to walk up to a kiosk, buy a bag of chips, and be asked to tip at checkout. These days, it’s becoming the norm. And so it’s easy to see why consumers may be tipping less generously at restaurants — they’re simply tapped out.

Aim to reward great service

If you’ve been struggling with the “when to tip and how much” conundrum, you’re not alone. So a good rule of thumb may be to focus your tipping dollars on people who go above and beyond to offer you great service.

If you’re at a restaurant where the server only checks in on occasion and doesn’t seem particularly friendly or helpful, then you may decide to leave them a 15% tip when the check arrives. But if you have a restaurant server who goes out of their way to be accommodating, and who’s constantly running over to make sure you have everything you need, then that may be a person who deserves a 20% tip — even if you’re then forced to say no to a tip the next time you buy a premade sandwich at a local deli.

Also, in that latter situation, recognize that just because you’re asked to tip on a screen doesn’t mean you have to. And you’re not a bad person if you say no to a tip when all the person behind the counter has done is hand you a packaged muffin.

Of course, if your personal finances are in good shape and feel inclined to tip in those situations, go for it. But the pressure shouldn’t be there. And it shouldn’t drive you to spend money you can’t afford to part with.

Some people will make the argument that if you can’t afford to tip on a store-bought coffee or sandwich, then you shouldn’t be treating yourself to those things. But that frankly, is bogus.

So if you’re feeling guilty about not tipping in that type of situation, think about it this way. If it weren’t for consumers like you supporting local small businesses, the person behind the counter wouldn’t have a job to begin with. While you may not be inclined to tip them 15% on a $4 muffin, by purchasing that muffin, you’re helping to keep them employed.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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