With the holiday season coming up, there will be plenty of reasons to spend money on credit cards, but remember it’s important to be grounded in reality.

It’s all a game, but don’t go overboard

Points devalue over time, so all that effort you put into collecting points is going partially go to waste. We hate to tell you that, but it has to be said. No points currency reliably inflates in value over time. None. All currencies devalue and there is no way to place your points in a bank to have them accrue value to offset the value lost.

There is a business behind the scenes with these loyalty programs. They want to encourage you to book direct or dedicate your travel to that company over others. So they will try to sweeten the pot just enough for you to make it hard for you to say no.

So, from that perspective, try to remember that this is a hobby. Enjoy it over time. While points make it easier to improve the travel experience, taking an extra half a year to earn the points you need isn’t going to set you back and prevent you from going where you want to go. Stressing about how to get to your destination generally doesn’t make for a pleasant vacation.

Spread out your credit card applications

Special case scenarios

Full disclosure, there can be good reasons why you might want to cluster credit card applications together. For example, Citibank has a weird rule where you can’t earn a signup bonus if you’ve already earned one within the last 24/48 months. So, you apply for a new card, and then before earning that signup bonus, but at least eight days after applying for it, you apply for it again. Then, you could earn two sign up bonuses and be set for four years.

In the old days, there used to be something called an “app-o-rama” where an individual would sign up for multiple credit cards on the same day.

Part of that was rooted in a belief that an application wouldn’t appear immediately on a credit report. At one point that would have been a true statement, however I think the myth existed far longer than it should have. Once you apply, it will show up instantly on your report, and the rapid influx of new credit requests could be a red flag to an issuer.

The other part of wanting to do an app-o-rama? Potential ease of planning. Sometimes it helps knowing that your annual fees will come due around the same time. I never really understood this argument well—everyone should keep track of their own apps and open cards. You could use Travel Freely for that or just be like me and use an Excel spreadsheet. It’s not hard to track this and you shouldn’t feel forced to apply for multiple cards on the same time to remember it.

Cash flow is key

It’s so easy to get caught up applying for so many great deals all at once. Grabbing four cards for 400,000 total points can help rejuvenate that point balance. But you might also need to spend $15,000-$20,000 in three months to make it happen. For many of us in this hobby, spending $5,000 in three months isn’t too hard to do. But $20,000 in three months is going to be a challenge.

Maybe you can handle it if you shift things around temporarily, like tapping into savings or your emergency fund. There are real financial implications to doing so, especially if an unplanned medical emergency comes up for you or a loved one. It’s a non-zero risk, so don’t treat it as if it is zero risk. Your points or elite status won’t help much at the hospital.

Pace yourself, and be willing to let a once-in-your-life offer pass you by. Odds are, a once-in-your-life offer isn’t truly a one-time-only thing. Credit card offers come and go, and with bigger spend requirements and points inflation come bigger sign up bonuses. If you don’t get a great bonus now, it’ll come back. Don’t stress it.

Black Friday, the holidays, and special occasions aren’t a good reason to overspend on credit cards

It’s tempting, and I think it’s fair to say we’ve all been there before. There’s a big purchase coming up where you’re tempted to open a new card (or four), but we already talked about that. It’s also easy to just spend more money that you would otherwise mean to spend.

Maybe there is a great shopping portal bonus that gives lots of bonus points for that new TV you didn’t know you wanted. Or your credit card gives a bonus offer for a new computer that your parents hinted at. Or maybe your furniture store just has a deal that makes you want to change out your couch before you host your next party. Maybe you found a purchase you legitimately wanted to make and it’s cheaper at a different store but you’d rather buy it at the one that offers some extra points for doing so.

Spending your money to make a purchase, big or small, that you don’t need is a waste of money. If you think you’ll need it in the future, don’t buy it now. If you don’t think you need it at all, then why are you buying it? Points might be worth real money, but don’t overvalue your points just to acquire them at a price higher than you would otherwise spend.

During the upcoming holiday season, just take it easy, stop subscribing to the latest deal on Slickdeals Frontpage, and enjoy time with your family. It’s always important to hang out with your family, but it’s probably a good idea to spend some extra time with them without needing to stress over how to pay the bills. Your spouse will probably thank you the most for that.

Suggested reading:

• Primer: How to Travel with Kids and Infants
• Overcome Your Travel Fears and Enjoy Life
• Stop Focusing So Much on 5/24