Thinking about Delta Skymiles

Have you ever ever wondered how much money it takes to earn one Skymile on Delta?  If so, have you taken it so far to do the math?  I'm sure this information could be found online somewhere, but I didn't look for it.

The reason I was curious to know is because I have approximately 150,000 Skymiles with Delta.  It would take 70,000 (plus approx. $95) to purchase one round trip ticket to Tokyo, Japan.  To visit Mexico city, it would take approximately 55,000 plus under $100 cash.  My boyfriend and I have been playing with the idea of visiting Japan, but I want to go to Mexico.  I can't do both, and use Skymiles for both trips; he wouldn't be going to Mexico with me.

I know $1 spent equals 1 Skymile unless the dollar is spent in a grocery store, gas station, or Post Office, then it equals 2 Skymiles per dollar.  Sometimes there are promotions to earn more miles, but I have not seen any in a while.  Having said that, it would take spending over $45,000 to earn enough Skymiles to get a trip to Mexico and even more for Japan!  This takes into account that if you spend over $25,000 in one calendar year with AMEX, you get a 10,000 mile bonus.

When booking a ticket on Delta, you are given the option to pay a portion of your trip with Skymiles at the rate of 10,000 miles (in 10k increments) deducting $100 from the cost of your fare.  This means:

10,000 Skymiles gives $100 credit

1,000 Skymiles would be equivalent to $10 credit

100 Skymiles would be equivalent to $1 credit

10 Skymiles would be equivalent to 10 cent credit

1 Skymile would be equivalent to 1 cent credit

Therefore, if you spend $1 on AMEX, you would earn 1 cent off a future ticket, or 2 cents off if the purchase was made at a gas station, grocery store or Post Office.

Of course, none of this matters if you don't have an American Express card!  I still use mine, but don't carry a balance so don't accumulate or pay interest...just the yearly fee.  I don't like the fee, but do receive one "free" companion ticket to be used for US travel which expires yearly.  If my boyfriend and I didn't like to travel, it wouldn't be worth it.  The fee is just under $200, and the amount we typically spend on one round trip ticket would be between $400-500.

By the way, Delta is changing the rules to their Skymiles program in 2015.  You will not earn 1 Skymiles per mile flown, but 1 Skymile per dollar spent on your fare.  This means if you fly 4,000 miles round trip, but only paid $500 for your ticket, you'll only earn 500 Skymiles instead of the 4,000 you would have with the current program.

Yup, I'm kind of a nerd and love it!

Writing a report on debt for class

I've been thinking a lot about debt lately due to a speech I'm writing for a public speaking class assignment.  We are to write a 4-6 minute informative speech on any topic we choose.  Since I'm so passionate about personal finance, this is the topic I've chosen; to be quite honest, although speaking in front of a class isn't my cup of tea, I'm really looking forward to it for the teaching aspect!

I feel my speech could go on forever with what I've learned and gone through, but will need to narrow it down to a few points.  My hope is that it will help at least one person in the class realize that life can be lived without debt!

Debt seems to be a way of life these days and it hasn't been that long since credit cards have been around.  Since I'm in my 30s and credit cards were introduced when I was approximately 10 years old, and most of my classmates are in their 20s, they were born when credit cards were already a household staple and probably don't know any different.

Now I must get my report written and organized so I can stay on track and not have points docked for talking too long!

On another note, I've wondered many times if anyone has been helped by my blog.