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It’s easy to think of points and miles as a variant of Monopoly money. They can be easy to throw around and spend nonchalantly.

To other people, though, travel rewards can be easy to hoard. They are a form of currency, after all, and we can become as tight-fisted with our reservoir of points as we are with our hard-earned savings account balances.

However, there is one very important distinction between travel rewards and cash: Unlike most true currencies, which can appreciate if invested wisely, your points and miles are almost guaranteed to lose value over time.

In other words, points and miles are not a great long-term investment. The sooner you can spend them after earning them, the more value you’ll likely receive.

Let’s examine why carrying large balances of points and miles without a plan to use them is a bad strategy. This will help you avoid setting yourself up for disappointment, heartache and a possible loss in net (rewards) worth.

Related: Getting started with points, miles and credit cards to travel

Points and miles devaluations

In recent years, we’ve seen many egregious devaluations from some of our favorite loyalty programs. The general mantra is that transferable rewards are slightly less susceptible to devaluations than rewards in a frequent flyer or hotel program.

Travelers can usually redeem points like these for a fixed rate, at the very least.

But even transferable currencies take a beating now and again. For example:

• Bilt Rewards lost the American Airlines AAdvantage program as a transfer partner. This is a shame because transfers to American were one of the most compelling reasons to collect Bilt Rewards Points (though Citi ThankYou Rewards has now added AAdvantage as a transfer partner).
• American Express ended its Hawaiian Airlines HawaiianMiles transfer, which closed the valuable ability to earn Atmos Rewards points via Membership Rewards; it also devalued the 35% Pay with Points bonus for The Business Platinum Card® from American Express.
• Citi ThankYou Rewards points and American Express points could previously be transferred 1:1 to the Emirates Skywards program. However, they now transfer at a 5:4 ratio, representing a 20% devaluation.

Devaluations within airline and loyalty programs are unfortunately even more common, with changes including:

• Hilton Honors increased standard room reward rates on its most luxurious properties from 120,000 to 250,000 points per night.
• Air France-KLM Flying Blue increased the cost of saver-level redemptions to Europe and beyond by approximately 20% on average, but promised 30% more seats at the lowest saver pricing to compensate.
• World of Hyatt moved 118 hotels and resorts to higher award categories (while moving 33 properties down in category).
• United MileagePlus introduced dynamically priced upgrade awards, as well as eliminating the valuable Excursionist Perk.
• Virgin Atlantic’s Flying Club program increased the surcharges payable on redemptions to Europe and beyond.

What about cash?

Even if you collect and redeem points at a fixed value (which is the case when you have cards like the Capital One Venture Rewards Credit Card, a popular option that lets you offset paid travel at a rate of 1 cent per mile), your rewards still lose value over time.

The U.S. Bureau of Labor Statistics estimated that the inflation rate in the last 12 months rose 3% on major items.

What if you’d opted for cash from the beginning? We like to think of our travel rewards as “free,” but you’re sacrificing money for miles every time you swipe a rewards card instead of a cash-back card.

If you’re just letting your hard-earned points and miles sit in your account, it could be more beneficial to opt for a cash-back card so you can immediately see a return on your purchase.

How to redeem your points for maximum value

Redeem your points and miles regularly, and avoid letting your balances grow too high. If you find yourself with hundreds of thousands of points but no trips on the calendar, figure out when your next vacation will be and start planning.

If you’re in the enviable position of earning more points than you can spend, consider sharing your wealth with friends or family members while they still hold their current value.

You might even consider switching to a cash-back credit card. There can be such a thing as having too many points and miles if you can’t spend them fast enough. If you know you can quickly replenish your loyalty accounts, earning cash in the interim is a viable option.

The other great form of protection involves diversification. Currencies that transfer to multiple airline and hotel programs aren’t immune to devaluation, but they still offer far more redemption options if an airline or hotel program undergoes a drastic change.

So, if you don’t already have a card that earns transferable points, now’s the perfect time to consider one.

Related: Airline credit cards vs. travel credit cards: Which are best?

Bottom line

Points and miles can yield a substantial return today and a relatively unremarkable return tomorrow. Simply put, this currency is not suitable for investment, as you are at the mercy of the program, which can and will occasionally increase prices without warning.

So, live by the “earn and burn” philosophy, and get value from your miles before they depreciate. If you haven’t already, review the points you currently have and ensure you can use them before the next wave of inevitable devaluations hits.