Traveling new places is always the dream of ours. I have always wanted to explore the world and see what’s out there. Why spend tons of money on an uncomfortable seat in coach when you can use your credit card points and miles to fly up front?

Luckily over the years I have learned how to use credit card points and airline miles to my advantage so that I can fly in business or first class with a lie flat seat for pennies on the dollar. While travel is never completely free, there is always some sort of taxes and fees that you’ll have to pay. There are always sights you’ll want to see and of course meals you’ll have to eat. Saving money on flights and hotels can free up money to dine at that Michelin star restaurant or go on a cool excursion at your final destination.

Let’s take a couple that is planning a trip to Europe for a week over the summer and are on budget. They are looking to spend around $5,000 to go to France for a week. They find flights to Paris for around $1,000 each. They find a decent hotel for $350 a night for six nights which is another $2,100. Now they only have $900 for food and whatever else they want to do.

Alternatively, they use their credit card points to find business class seats and only spends $11.20 on taxes and fees. They also use their hotel points to stay in a luxury property. That leaves $4,998.80 for the rest of their trip! Or they can save that money and plan a second trip.

There are a few things you can do with your credit card points depending on what matters the most to you.

1.     If travel isn’t what you’re after, you can redeem those points for a statement credit or cash back. By using the right card, you can get anywhere from 2-5% cash back on your purchases. Think of it like a 2-5% discount on your purchase compared to using your debit card or cash.

2.     Be able to take lots of trips: learn how to efficiently use your credit card points to take multiple trips by flying in coach and staying in affordable hotels.

3.     Travel in luxury by maximizing your points and miles to fly in business or first class and stay in top notch hotels across the world.

4.     Or combine one or all of the above strategies. You may not care to fly in first class on a 2-hour flight and instead want to save those points for a big trip for an 8-hour flight and have a lie flat seat.

Personally, my preference is to use my points and miles for a business or first class seat to a faraway destination. These seats lie flat so that you can stretch out and get a good night’s sleep. On top of that you’ll have a great meal before you drift off to sleep at 38,000 feet.