In the fast-paced world of credit card rewards, savvy spenders are always on the lookout for the best deals to turbocharge their points accumulation. Today, we're excited to introduce a revolutionary tool that shifts your mileage earning into high gear – the Refined Points Metric (RPM).
Why RPM?
The idea for RPM was born out of a simple observation: not all spendings are created equal. With credit cards offering different rates for local and overseas expenses, it became clear that a new benchmark was needed – one that could provide a holistic view of a card's true mileage-earning potential. That's where RPM comes into play, giving you the horsepower to make informed decisions about which credit card fuels your travel dreams most efficiently.
The Logic in Our Revs
To create the RPM, I've made some key assumptions. First, I recognize that the average consumer spends the majority of their year at home. Based on this, I assume 11 months of local spend compared to 1 month of overseas expenses. This ratio reflects the typical spending pattern of our readers and ensures that our RPM reflects the most realistic scenario for your mileage accrual.
I'm not sure about you guys, but I typically spend around a month for holiday every year. This does not include working trips, in which, most spending is covered by my company anyways, and is not factored into this calculation. For those of you travel enthusiasts who are travelling out of Malaysia much longer than the default 1 month, don't worry, as I'll be coming up with a personalized calculator for you to estimate how many miles you can accumulate in a given year.
Breaking Down the RPM Formula
The RPM is calculated using a precise formula that balances local and overseas spending rates. Let’s pop the hood and look at the components of this formula:
To put it simply, the RPM tells you, on average, how much in Ringgit you need to spend to earn one airline mile, taking into account your spending habits throughout the year.
Final Thoughts: The RPM Roadmap
With RPM, you can now look beyond the flashy sign-up bonuses and headline rates. RPM takes into account the subtler aspects of spending, helping you navigate the landscape of credit card benefits with the precision of a seasoned traveler.
Stay tuned as we roll out RPM scores across our comprehensive credit card reviews and tables. Fasten your seatbelt – the journey to maximizing your mileage earnings is about to get a whole lot smoother with Refined Points and RPM!
