Those are either/ors. I don't have a lot of points at the moment. And i doubt you are doing anything wrong, though I can offer some basic guidance/tips if you'd like (I am only a novice).
For a lot of reasons (not bad ones), I am not well-travelled. My wife is not well-travelled either because she grew up without means. Although we will never be jet setters or nomads, we make a good living from two stressful jobs. We want our kids to be able to see the things we never did and have decided to "invest" in experiences.
To that end, we plan to do two family trips a year (of about a week each), sprinkled in with some long weekends regionally. This year we are hitting Florida and San Diego. Next year is up in the air. Summer of 2020 we hope for Japan. My mother in law came over from Okinawa in the late 70s, and has only been back once since and we are planning an extended family trip.
My points strategy is pretty simple - decide on a place we'd like to visit and come up with a points/miles strategy to minimize cost. All of the places i mentioned are ones where I can pay for lodging with points or, if I went to Mexico and did all-inclusive, I could pay for the flights with miles/points.
Here is a basic points strategy anyone can do if they are interested in Disney World. The Swan and the Dolphin are joint ventures between Disney and Starwood Resorts (Westin and Sheraton), which means you get Disney transportation, extended park hours, early access to fast pass, etc. I became a Starwood Preferred Guest member a few years ago b/c we like to stay at the University Sheraton when we go to games. Last winter they were offering a signup bonus for their SPG Amex card of 35000 after 4000 spend. The card has a $95 fee that is waived the first year. So i signed up, and by the time i hit my minimum spend, I already had about 40k points. The Dolphin is bookable for 10k points per night. When you book 4 rewards nights, you get a 5th night free. So, for maybe the cost of one annual fee and some spending i would have done anyway (+ resort fee and taxes), I got 5 free nights at the Dolphin (not the greatest Disney resort, but it will more than do).