Higher earners, are we spending/wasting too much? (trigger warning)

[Bs0u416d]

We've recently started putting all our joint expenses through a credit card in order to earn airline points, my DP's idea, not mine. We put groceries, fuel, pet expenses (daycare, food, vets), holidays, dining out, clothes, hobbies etc through the card. We pay for mortgage, bills etc separately but jointly. Cars, savings, pensions and various insurances etc are done individually. We're averaging nearly 5k a month on the credit card and this feels like quite a lot. I feel like the credit card encourages spending because it is unscrutinised, in a way that debit card spending isn't and I'm not sure we get the return in airline points. We're two professional adults and we can afford this, I just wonder if we're wasting money. We're a 300k+ household pre tax, to avoid the drip feed. Can't really ask friends as its awkward.

Only thing i might add op - you are spending a lot on holidays given no kids.

You can travel much more cheaply outside school holidays and with only two to pay for. Also you aren't paying school fees or kids violin lessons or any of that stuff.

As an example of what I've managed to get out of BA in the last 12 years...
2 people London to Sydney in First
4 people London to NYC in Club
4 people Las Vegas to London in First
2 people London to Las Vegas in Club - return
2 people London to Las Vegas in First - return
4 people London to NYC in First
4 people Denver to London in First
2 people London to Miami in Club - return
2 people London to Las Vegas in Club - return
2 people London to NYC in Club - return

For all of these all I've paid is the tax - which is generally much less than the economy fare.
I qualify for 2-4-1 voucher each year meaning that I only need sufficient Avios for one person and I get 2 seats.

We put everything we can through BA Amex card to get avios points and companion vouchers. We have 2 cards and switch when we get the companion voucher. Our household income is only 100k and we spend roughly £5k a month on the card including paying for holidays, surely if you are using it to pay bills etc then you are not wasting money?? We never pay interest on the credit card and transfer the money immediately seems like a no brainer to put every possible thing through an airline card unless you never go on holiday?!?!

Oh my God 😲. Just a matter of good timing or good planning?

High earners - i know it’s a little off topic, but can I ask what jobs you have please? ( career ideas for my dc 🙈)

Another post that makes me feel better. Bills don't go through the card actually. Just all the additional spending. I think I'll feel better once we've actually seen a benefit. It's also perhaps more the way that Barclay card is set up, so I don't have an app, get statement or get spending alerts so it is just tap tap tap and I feel disconnected from the spending

I'm a dentist in private practice and my DP is a consultant anesthetist in NHS and private practice

Similar salaries here (and a mortgage because we like living in a nice house) and we easily spend that much a month, I imagine more. It's paid off in full every month. We have a decent chunk of savings. I don't see the problem at all. We like buying nice things and going to fancy places!

Good to hear! And yay for mortgages. For the reason you said. And because I don't want to eat tinned peaches so I can be mortgage free.

I was about to admit to spending recklessly but you made me feel so much better about my 50-100 on clothes per month 😬

We book at least one holiday a year using a companion voucher and avios points. Last year we went skiing in Canada at xmas, our companion voucher and points meant the flights were £1500 for 5 of us, without they were £4500 savings are massive! Obviously if you are not big on holidays its maybe pointless but I have just used our latest voucher to go to Mexico,we only saved £1000 but it was quite last minute and a save is a save! We do a cheapie holiday May/June then a biggie in October so definitely works for us.

You're right but I suppose we spend what you might on school fee/sports clubs etc on the holidays. I certainly don't regret spending on those. Thank you for your kind and constructive replies.

We spend about the same and always on a card. I think it’s silly not to, you’re protected and you earn points/vouchers. It has spoilt me though as I’ve got used to first class now!!

"Trigger warning" YABU for writing that. Attention seeker.

We're big on holidays!!! Several European trips per year and one or two long haul. We've just struggled to find a way of using the voucher/points. It seems quite complex. I think if I were seeing a material benefit I'd feel differently about the credit card!

We spend about £5 - £6k a month too OP, and a lot more on holidays. We do though max out pensions, so both save £60k. I’d ensure I was doing that too, and I’d save that before paying off a modest mortgage.

I wasn't attention seeking. It was tongue in cheek and half serious because many threads about money get overtaken by people bashing the OP. I'm sorry if I caused any offense, it wasn't my intention.

Feels about right. We also started putting everything on Amex recently in an attempt to reign in spending - I actually find it helps me track things better rather than encourage spending exactly because DD goes out every month. Otherwise, it’s just drip drip drip from the current account. I am trying to understand our burn rate given upcoming tax changes and need to potentially rejigger financials.

We are high earners and nursery alone for 3 under 2's full time is 6k per month so seems absolutely fine to me. You can clearly afford it.

It's also perhaps more the way that Barclay card is set up, so I don't have an app, get statement or get spending alerts so it is just tap tap tap and I feel disconnected from the spending

YNAB is what you need to feel super connected to your spending.

How you spend (credit card or debit card) is a bit irrelevant. To a certain extent how much you spend is also irrelevant if you can afford it easily.

What matters is, does your spending align with your priorities in life? And I find YNAB excellent for really making me think about that.

So 14k ish net?
I don’t think 5k is excessive.

Yeah we do similar these are our family holidays, also do flights just the 2 of us but they are good for gaining tier points etc. the more points you have you can use them for business class flights, also anything you buy online if you buy though avios you get so many bonus points! I have been doing it for years and I am only just getting my head round it and starting to use it properly.

Mostly good planning. Know where you want to go 355 days before take off, as that is when the flights are released.
Although to be fair some were booked on the spur of the moment and we were lucky to find availability. New York is easiest. Sydney is tough,

I too don’t see the problem - I put everything I can on credit cards and pay them all off in full every month
Just work out what incentives work for you - I don’t use airmiles but have M n S credit card, John Lewis, Sainsbury’s etc which give vouchers and extra points schemes

Well, that's the perspective I needed! Thanks. But that's shit about childcare, I'm shocked!