| >This is highly misleading since it doesn't include $ value of all the freq flyer miles used (as far as i can tell). Yep. Here are the amounts with the value of the miles factored in[1]: >$1366.06 on Alaska, 307500 Alaska miles 307500 Alaska miles * 1.2 cents/mile = $3690 >$380.86 on Southwest, 43732 Southwest points 43732 Southwest points * 1.5 cents/point = $655.98 >$42.80 on United, 5500 United miles 5500 United miles * 1.2 cents/mile = $66 >$15.60 on Avianca, 6500 Avianca miles 6500 Avianca miles * 1.2 cents/mile = $78 So for the fall semester it costed him $1805.32 in cash, but if you factor in the value of the points that rises to $6295.30. He also mentioned that he spent 45972 minutes on commuting. If you factor the value of time (eg. minimum wage), the "cost" rises further to $17,788.30. [1] obtained from googling "[points program] value" |
Firstly, unlike $ they can expire. So it's not like you can save them forever. I recently had 15 000 miles expire, simply because there was nothing I wanted, or needed, that I could spend them on.
Secondly they're not universal. To follow the article, i can't spend them on rent. So they really only have a value if I can trade them for something I would/could have spent $ on. So sure, upgrades are nice, but not like essential.
It's the same with time. You can be time-rich or time-poor. You can be cash-rich or cash-poor. Typically your priorities will be to reduce poorness. Rich people spend cash to get more time. Cash-poor people spend time to get more cash.
Miles-rich follows the same argument.
So it's not so easy to put a $ price on miles or time. Clearly the equation will vary from one person to another.
Incidentally given the choice of commuting or working minimum wage, I'll choose commuting all day long. Especially if that commuting is eyes-free, so I can use that time in a productive or entertaining way.