Increasing My Net Worth By $45,000 . . . With Credit Card Points?

Over the past few years, I’ve accumulated a ton of credit card points. I was recently reminded of how many points I’ve amassed when I went to book some flights for our international summer trip next year – we’re flying to France to catch the tail-end of the Olympics, then taking a train over to Switzerland for a few days before flying back to the US.

Even after booking three business class flights each way, I found I was still left with over 3 million points in my Chase and American Express accounts. And that doesn’t include the points and miles I still have in various other airline and hotel programs like Delta, American Airlines, Marriott, or Hilton.

Most of these points came from my regular mainstays – cards like the Chase Ink Unlimited and the American Express Business Platinum (specifically, the targeted no-lifetime language offers). But some of this came from my regular spending too – with two kids, daycare, taxes, and all sorts of other things to pay for at this point in my life, my household expenses are abnormally high right now.

3 million points is A LOT of points. But in the abstract, it’s just a random, arbitrary number – like saying I have a bajillion dollars or something.

When I do the math though, it’s pretty incredible how much my points are worth. Assuming a reasonable redemption value of 1.5 cents per point, those 3 million Chase and American Express points could be worth an astounding $45,000 in travel (and likely more if I’m more strategic with how I use them).

Using these points for travel and assigning a value to them is all theoretical. But even turning them into cash would be possible. At a bare minimum, I could cash out my 3 million points for around 1 cent per point in statement credits. That means those 3 million points are worth $30,000. That’s a lot of money to have sitting around!

Could My Credit Card Points Be Part Of My Net Worth?

I don’t obsess about my net worth too much because I don’t think it’s all that helpful, but I still like to keep track of it just so I have a general idea of where I stand financially.

Net worth has always seemed like a vanity metric to me since much of it isn’t really “real.” Yes, you have things with immediate value such as cash and easy-to-access investments. But like a lot of people, much of my net worth isn’t easily accessible – money stuck in retirement accounts or my house. Even things like this blog could technically be part of my net worth – it has value and could be sold to someone.

When I think about it, my 3 million in credit card points could easily be considered an asset and something that should be counted as part of my net worth. I usually hesitate to treat my credit card points as something of value, mainly because they’re a made-up currency that can be devalued or lost entirely based on the whims of a company (this is a story for another time, but back in early 2020, American Airlines shut down my frequent flyer account and I lost over 300,000 in American Airlines miles).

And yet, the 3 million points I have sitting in my credit card accounts undoubtedly have value. The most obvious value they’ve given me is their value for travel. Indeed, my points have made it so I haven’t had to pay for a flight or hotel in over 6 years. That’s a significant amount that I haven’t had to pay for using my “real” money.

So should my credit card points be part of my net worth? Do I have an extra $30,000 or more sitting around? I think there are good arguments to say I do.

Credit Card Points Are Tax-Free Money

One thing that I don’t think gets talked about much is the tax benefits of credit card points. Unlike other forms of income which require you to pay taxes at some point, credit card points are unique because they aren’t considered taxable income (rather, they’re considered a non-taxable rebate). The fact that credit card points aren’t taxable can actually be a big deal, especially if you’re a high-income household like my family is.

I do a lot of this sort of gaming of financial products, such as how I earn thousands of dollars each year in bank account bonuses. Bank account bonuses are nice because the money you earn from them is pure cash, but they come with the disadvantage of being taxable interest income. So even though I earn several thousand dollars each year from bank account bonuses, I inevitably lose some of it to taxes.

But credit card points don’t suffer from that disadvantage. If I earn 100,000 points that are theoretically worth $1,000, I get the full $1,000. Considering that I now have tens of thousands of dollars worth of credit card points, that’s a pretty significant savings. And it does save me money when I travel because instead of paying for my flights or hotels with taxable income, I’m able to pay for these things with untaxed points.

I Try To Earn Something Back Whenever I Spend Money

I try to optimize a lot of my life, which means when it comes to spending money, I try to never spend a dollar without getting something back in return. The way I see it, if I have to spend money, I should try to get something back for it if I can.

Interestingly enough, because of the ubiquity of credit cards and credit card rewards, the cost of everything is essentially increased to cover the fees that businesses pay to credit card companies. As explained by Vox:

With more credit cards and more rewards come more swipe fees. And merchants don’t want to pay those fees out of their own pockets — so they pass some of them on in prices that everybody pays, not just the credit card holders. People paying with cash or debit cards wind up footing the bill to pay for the rewards of people who pay with credit cards — people who tend to be more well-off.

Source: https://www.vox.com/the-goods/22454885/who-pays-for-credit-card-rewards

This is the system that we live in, and whether or not this is right or not, it’s the world we’re in. This is why I use credit cards for all my purchases.

Final Thoughts

I’m in a situation these days where I accumulate way more points than I can spend. It’s not the ideal thing to do – points have no value until they’re used – but I can’t help it. I spend a lot of money because my expenses are higher than normal these days. Since I keep spending so much money, I keep opening more and more credit cards to earn valuable signup bonuses. And I’m not really spending these points very quickly because I can’t travel as much as I’d like due to work and kids.

But even though I’m not necessarily using my points, they are still an asset. They might be a made-up asset with no inherent value, but they do have value if I use them – so long as these banks don’t massively devalue the points.

The ultimate takeaway I guess is that net worth might be made up of more than just cash, stocks, and real estate. There are a lot of other things that could be included in that number. In this case, I happened to notice all these points sitting in my credit card accounts – a lot of points. I think those should be counted somewhere, even if it is a made-up currency.

This post may contain affiliate links. Financial Panther has partnered with AwardWallet and CardRatings for our coverage of credit card products. Financial Panther, AwardWallet, and CardRatings may receive a commission from card issuers. Some or all of the card offers that appear on the website are from advertisers. Compensation may impact on how and where card products appear on the site. The site does not include all card companies, or all available card offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

More Recommended Ebike/Scooters

Check out these other ebikes and scooters I've reviewed:

Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that's perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.

More Recommended Investing App Bonuses

For additional investing app bonuses, be sure to check out the ones below:

M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
Webull (20 free stock shares) – Webull's current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.

More Recommended Bank Account Bonuses

If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.

Upgrade ($200) – Upgrade is a free checking account that’s currently offering a $200 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $200 Referral Bonus – Step By Step Directions.
Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
Fairwinds Credit Union ($175) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
US Bank Business ($900) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
GO2Bank ($50) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $50 referral bonus.
Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
Varo ($25) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $25 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.

Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.

Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.

Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:

SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
US Bank Business. US Bank is currently offering new business customers a $900 signup bonus after opening a new account and meeting certain requirements.
M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.

Feel free to send Kevin a message here.