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Home Exchange vacationing has always been lauded as a means of free vacationing or free travel, which technically it isn’t, because families and individuals still have to travel to and from their home exchange destinations. It’s also been all too evident recently that the price of travel has been increasing exponentially.

So—I thought it was about time I shared a method my brother uses, and has passed on to me, where even the traveling can be 100% free as well.

Use a credit card with mileage rewards!

No—I mean REALLY use the credit card for absolutely everything—grocery, gasoline, paying utilities, buying clothes for the kids (and yourself!), medical and dental expenditure—EVERYTHING!

The clincher is that at the end of each month the outstanding balance on the credit card is always paid off in full—NO EXCEPTIONS. Instead of writing checks or using your debit card for various day to day transactions, leave all your cash in the bank and use it to pay your credit card, then the next month begin the entire process all over again.

My brother does exactly the same thing with all his business expenses as well.

Both last year and this, he used his accumulated mileage rewards to take his family (wife and two children) to England on vacation, flying out of San Francisco. All their travel expenses were covered and of course, they exchanged homes. This year the exchange included a car; last year it did not, but he was able to fund a rental car with mileage rewards.

Of course you have to be disciplined and always pay the balance in full every month, but when the routine is established that’s easy enough, after all the necessary money should be sitting in your bank. Another nice touch—deposit your paychecks into a savings account and transfer out just the amount necessary to pay the credit card balance. The fact that it’s not available in your checking account will force you to use the credit card, plus it will earn a little interest for you.

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