David Do, a 33-year-old social worker from Florida, achieved an inspiring personal finance achievement. Since 2017, he has earned more than one million credit card points! He aspires to travel more than anyone in the world. In fact, thus far he’s already traveled to 33 different countries, and hopes to reach at least 35 before turning 35. Do, who works remotely and makes $78,000 a year. He does an admirable job of making ends meet and affording his travel lifestyle.
In 2021, David bought a two-bed, two-bath townhouse in his new Florida town for $182,000, using 3% down. His current mortgage rate is just over 3%, putting his monthly housing payment a little over $1,700. On top of that, he pays another $156 a month in utilities. In reality, despite these commitments, David has systematically been able to save close to—by his own count—close to $250,000 across multiple accounts.
To earn points efficiently, David personally ultra-manages about 30 credit cards. To help stay organized, he pages each day’s readings in advance and stores them in a zippered binder. He doesn’t want to manage these cards by Excel spreadsheets, basically, all done by memory. He don’t want to deal with Excel as a spreadsheet.
“For people who do travel hacking, like what I do, they have the proper way of using an Excel sheet. I don’t use an Excel sheet at all,” – David Do
David’s method of handling his credit cards is unusual for most people. He states, “Truthfully, I just go by memory and just be like, ‘Oh, yeah, I did apply for this card last year. So let me just keep a timeline of when the annual fee is due, or when this credit card statement is due.’”
Do’s encounters with budgeting and spending are heavily shaped by his childhood. He remembers the way his parents molded him as a child to be frugal.
“My parents were always very, very frugal with things. They were strict about eating out and things to buy. If we wanted something, they were always like, ‘We can’t afford that right now,’” – David Do
Currently, David has about 370,000 points saved. His approach to earning the most rewards changes each month depending on what’s offered and what the different credit cards earn you across their respective benefits.
“It really just depends on what month it is because each credit card’s points have … you get extra cash back on the category, like, let’s say, for example, groceries or gas,” – David Do
He times all of his purchases to optimize sign-up bonuses from different credit cards. This lets him maximize rewards at times when larger purchases come due.
“I know if I have a big expense coming up, let’s say, for example, I have to pay for tuition or I have to pay for car insurance or I have a big quarterly tax I need to pay, then I’ll try to time it accordingly with one of the credit cards that offers a big sign-up bonus,” – David Do
David considers himself lucky to have bought his home before interest rates soared. The prospect of homeownership in South Florida would be a burden for many, for him it’s a welcome chance.
“Fortunately, I was able to buy at a time where the interest rate was relatively low, so that kind of helped a bit,” – David Do
You know that paying Homeowners Association (HOA) fees can be a big drain on your wallet. You can stomach them, due to the huge value your home delivers.
“I do have HOA fees. That’s a little bit hefty, but it’s still a pretty decent value for what it is in South Florida,” – David Do
By continuing to live at home before buying his townhouse, he was able to focus on his other financial priorities first. It allowed him to save in a more strategic way, saving the most for the things he knew he would need in the future.
“Living at home made it a lot easier because I could prioritize certain things I needed to,” – David Do
David’s financial philosophy is all about saving enough to enjoy life, but still have fun. That’s why he believes it’s key to invest in retirement, but invest in your life so you can live the lifestyle you want.
“My goal right now is to contribute as much as I can to retirement but also trying to live a fulfilling life,” – David Do
Leave a Reply