Robert D. Gibb is posting a stunning series of articles on Air Miles on the forum. I found the series very useful and enlightening so I’m posting it on the blog as well.
Robert D. Gibb is a Contributing Editor (DRIPs) at the Canadian MoneySaver Magazine. You can read his articles at CanadianMoneySaver.ca. Here’s one of his most recent articles.
Thanks Robert 🙂
Based on my recent post on the “Buy 5 Get 50 Air Miles” this week at Safeway there’s been some interest after the post was placed on the Blog.
There were several questions and I spent a good hour composing a post answering them in depth. Not realizing I had to include my e-mail it was lost into hyperspace.
So I recomposed (and we all know how painful that can be) a shorter reply, filled in all the boxes and it seems to have disappeared as well. Ah! the mysteries of the Internet.
So I’m going to post several threads (over several days) on the forum instead regarding Air Miles. The first will explain my logic (insert your own joke here!) at deriving a value of $0.12/AM.
I know many people use a “dollars spent per Air Mile system” to derive value. E.g. 2 products in the same 10 Get 50 offer but with different prices: A = $2 B = $4
$20 of A gets 50 AMs while it takes $40 of B.
Clearly A accumulates AMs quicker.
But what if item B is what you use and it’s on sale while perhaps item is something you rarely use? It’s something to consider.
However, I also think it’s important to know what an AM can get you. This is where I place a value of $0.12/AM.
How this is derived:
(Note: the value of an AM can be much higher than this but I’ll explain later.)
To value an AM use this formula:
Total Cost of Item/Number of AMs = Value/AM















Earn:


