Annual Fees

The credit card annual fees I pay each year for my travel cards come out of our travel sinking fund. I may pay $1,300 in fees annually between my husband and I, but I’m averaging $11,000+ worth of travel each year for FREE by using points and miles from those cards. The return is definitely worth the “investment!”

Note: You do NOT have to spend that much on annual fees to travel hack. I didn’t used to. But as our family grew and travel became more extensive, we signed up for and used more cards.

Not every travel card has an annual fee, but most do. The most common fee is $95. The first year of getting the card is a no brainer because sign-up bonuses have values from $750-$1,250+ toward travel. Beyond the first year, you often can recoup that cost with the perks and benefits the card provides. We take advantage of those perks and we have many cards.

Don’t be short-sighted about annual fees. The bigger picture of what you can get from travel cards is tremendously valuable. If you love to travel, then you know that the out-of-pocket cost of flights and hotels can really add up when you aren’t using points and miles.