Wasted Money or How to Save Money

[ultrarunner]

We are credit adverse and never carry a balance.

That said, you really can't exist if you have to travel for business without a card.

I liked the American Express and Discover through Costco... not thrilled with the new one.

For many years I would have to turn in my work expenses every two weeks... during times of expansion I was able to rack up a lot of airline miles... last year I got an official company card... more trouble than it is worth and not always does it work but that is a different story.

I think realizing where you money goes is just as important as knowing where it comes from... some are excellent at making money but can't hold onto it... others are super frugal but miss opportunities for income.

Realizing that you have choices is the first step in my thinking...

One thing I detest is reoccurring bills... probably why I never have had cable or cell phone and that cell service is spotty here.

I manage rentals and to a last one... my low income families all spend a lot of TV... some spend $2,000 a year... it boggles my mind.

A more simplistic approach is to "Pay" yourself first... set a portion aside from each paycheck as if you don't even have it...

My very first real job was $50 a week at age 12... payday was every Friday... $20 to my savings, $20 each week to my folks for room and board a couple of bucks to with holding and about $6 left for me to spend... kind of followed this my entire life... using savings only for things like buying property.

 

[ovrszd]

I love contradictions. When an answer can be both "yes" and "no", and both answers are true.
Yes, as an individual, you can save 1%, 2%, 3% etc...by using a credit card. But there's a tipping point collectively. When a certain percentage of customers use credit cards, who charge the retailer 1%, 2%, 3% in transaction fees, what do you think happens to the price of the item? It's going to go up 2%.
So what have you saved when you get 2% back on an item that's marked up 2%? Is it 0% or 2%? Answer: Both.

Locally, there is a convenience store chain that offers 10 cents a gallon reduction on gas if you use their "membership gas card" that directly deducts from your linked bank account. At first I wondered, why do they do this? I'm pretty sure it's so they don't have to pay the credit card company, and it's a way to get around not being not allowed (by the credit card companies) to offer a "cash price" reduction.

Now Coby,,,,, you can't go throwing logic into these discussions!!!! Haven't you realized those who use their CCs regularly take serious offense to anyone who doesn't???

 

[fried1765]

I love contradictions. When an answer can be both "yes" and "no", and both answers are true.
Yes, as an individual, you can save 1%, 2%, 3% etc...by using a credit card. But there's a tipping point collectively. When a certain percentage of customers use credit cards, who charge the retailer 1%, 2%, 3% in transaction fees, what do you think happens to the price of the item? It's going to go up 2%.
So what have you saved when you get 2% back on an item that's marked up 2%? Is it 0% or 2%? Answer: Both.

Locally, there is a convenience store chain that offers 10 cents a gallon reduction on gas if you use their "membership gas card" that directly deducts from your linked bank account. At first I wondered, why do they do this? I'm pretty sure it's so they don't have to pay the credit card company, and it's a way to get around not being not allowed (by the credit card companies) to offer a "cash price" reduction.

If a price goes up at one retailer, you can always buy from another.
It is called: "the free market".

 

[plowhog]

How would you handle it if you could redo it?

I am already kind of re-doing-it with many companies. That is, I never ever use "their" autopay.

If I were in your shoes, I would cancel autopay today. Either start to pay it manually (ugh) or through online banking that you control. Once you have that established (through at least one billing cycle) then I would make the changes to your account. Maybe ATT has fixed their problem in this area but it isn't worth chancing.

 

[fried1765]

Not really. The average credit card purchase even when the buyers' intention is the same is 5-10% more than the average cash purchase. Often it's because they are willing to pay more for the same item, not because they are getting more for their money. The sensation of parting with money is shielded by the credit card and more is spent. This has been demonstrated repeatedly across all financial spectrums. Rich, middle class, or poor. Getting 2% back when paying 5, 10, 20% more does not Save Money".

I do not understand how you arrive at your conclusion!
I shop for price with basically EVERY item I buy.
I pay the exact same price, that anyone else would pay with cash, for the exact same item.
I get 2% cash back, the cash paying person does not.
How am I NOT saving money?

 

[CobyRupert]

If a price goes up at one retailer, you can always buy from another.
It is called: "the free market".

Irrelevant. The CC company charges both.

 

[LD1]

Irreverent. The CC company charges both.

Yep. And until a merchant starts offering a cash discount (or charge a fee to use a card) in excess of my "rewards"......then I will never use cash. Thats like volunteering to pay 2% more to use cash vs card.

So since the CC card company gets ~3% profit from the merchant........and the merchant charges EVERYONE 3% more for goods and services to cover their costs.......I'll choose to at least recoup 2% of that.

Am I paying 1% more in the long run than if credit cards were never invented in the first place......probably. But its still 2% LESS than everyone that pays cash. and 2% LESS than if I were to pay cash. So either way.....I save 2% vs a cash buyer. So thats what I'll continue to do until something changes with the system as a whole. I am gonna continue to do what is in my best interest financially.....foolish not to do so.

 

[4570Man]

Some places won’t budge off list price. You might as well swipe the card. Small businesses will almost always give a better cash price. Advertising a higher CC price is illegal. Advertising a lower cash price is fine.

 

[LD1]

Advertising a higher CC price is illegal. Advertising a lower cash price is fine.

Not sure if that is true or not. At least not for everything.

Maybe its the wording? They dont charge a higher price for the good/service......but they charge a "convince" fee for using a card.

Centurylink (phone/internet).....Delco Water......and Ohio BMV......And county treasurer for property taxes are the 4 bills that I do not pay with a card because the fee is higher than the perk

 

[CobyRupert]

Some places won’t budge off list price. You might as well swipe the card. Small businesses will almost always give a better cash price. Advertising a higher CC price is illegal. Advertising a lower cash price is fine.

There's some logic for you! Is that a government law?

Heck, I know some places if you pay cash, it's tax free too! (Shhhh. :shhh
And in NY, that's a LOT bigger savings than the 2% CC rebate.

(^ Again, another example of individual financial gain at the collective expense of others! )