Wasted Money or How to Save Money

[RSKY]

After some of the discussions here in Rural Living I got to thinking about the bills we are paying by credit card on autopay. Things like Dish, Verizon, and other monthly bills. Since I have several credit cards that pay back different amounts and since some of these payments have been set up for years I went thru and looked at them.

AARRRGGGGHHHHH !!

What a dummy!

I have shafted myself out of over five hundred bucks the past few years.

Some items were being paid on a card that gave back 1% in a yearly check. Some items were on cards not giving back one single thing. Everything possible has now been shifted to a card that puts 2% of every purchase back into my IRA.

A penny saved is a penny earned. When on a fixed income one must take all opportunities possible to save money. What we are saving monthly now verses yesterday will more than pay enough to keep our I-Pads on wireless service plus maybe buy us a cheap meal at Hardees.

Not that we are that bad off but I am by nature a complete tightwad unless it is a restaurant meal, something for the grands, or something I really want.

Every single penny counts.

For example, I received the final bill for a surgery I had in November. It was for $1500+. Had the check made out and getting ready to put it in the envelope when I got to thinking. Two percent of $1500 is $30. So why I am spending $0.49 to mail a check I can pay online for $30 less.

And I saved $0.49 on a stamp!

Told you I was a tightwad.

RSKY

 

[4570Man]

I saved money by canceling the cable company. I saved money by driving a old truck. I’m a titewad on restaurant meals. A saved money with no landscaping.

 

[RNeumann]

I’ve never seen anyone get rich using a credit card. But we are reminded daily of the problems they cause. Divorce, bankruptcy etc.
Your suggestion is fools gold and reckless. The reality is they made more off of you in the last few years while you weren’t paying attention then you will make in two lifetimes of transferring the 2% into your IRA.

 

[Ford850]

I’ve never seen anyone get rich using a credit card. But we are reminded daily of the problems they cause. Divorce, bankruptcy etc.
Your suggestion is fools gold and reckless. The reality is they made more off of you in the last few years while you weren’t paying attention then you will make in two lifetimes of transferring the 2% into your IRA.

That's only true for those who don't pay the balance in full every month.

 

[Jcoon]

I believe there is some “money” to be made using credit cards with their points system, all credit card company’s are just banking on the average American to slip up and not be able to make that full interest fee payment every month and then they got you!

 

[Thomas]

We have one credit card when in need like to pay cash when able,also stay away or hang up on professional beggars.

 

[rekees4300]

RSKY glad you saw the light. :thumbsup: The secret to using credit cards is to pay them in full every month. The credit card companies still make money from the merchants but not from you. You profit from their cash back schemes if you avoid their outrageous interest rates. We charge all of our stuff to a card associated with Krogers. Each quarter we get > $100 back that is used to shop at Krogers. Food is good, especially when it's free.

 

[newbury]

I've never seen anyone get rich using a credit card. But we are reminded daily of the problems they cause. Divorce, bankruptcy etc.
Your suggestion is fools gold and reckless. The reality is they made more off of you in the last few years while you weren't paying attention then you will make in two lifetimes of transferring the 2% into your IRA.

Over the last 20 or 30 years I think I've spent about $6 on interest because I was out of town for work, my travel got extended and I had to pay a bill late. This was before I could do all of it online. I only get 1% back on my Navy credit union card. BUT the tellers, both B&M and online are VERY good at detecting bogus charges, easy to work with and all speak very good American English.
I've had several bogus charges that amounted to several hundred dollars caught and I didn't have to pay.
But then I always pay attention to my credit card charges.

 

[RSKY]

I致e never seen anyone get rich using a credit card. But we are reminded daily of the problems they cause. Divorce, bankruptcy etc.
Your suggestion is fools gold and reckless. The reality is they made more off of you in the last few years while you weren稚 paying attention then you will make in two lifetimes of transferring the 2% into your IRA.

In the past twenty years the only interest I have paid was once when I wrote a check and transposed numbers. I pay my bills every month two days before the deadline. It won't make anybody rich but can you understand the difference in paying a $1537 bill with nothing coming back and paying a $1537 bill with $36.74 going into another account.

We pay balances every month. Never carry a balance, never use the card as a short term loan, never buy anything with the card that we wouldn't buy with cash.

So I use the cards to my advantage. Like the Lowes card which gets me an instant 5% discount, paid off every month.

Or the $200 I saved by buying a freezer from Sears online, with a card, over buying the same thing with a different name at Lowes, Home Depot, or any other store. That price was for a credit card purchase which will be paid off with no interest or fees.

I buy nothing that costs more using a credit card.

Sounds like you may have been the fool that went bankrupt or got a divorce due to buying more than you could pay for.

Is it true?

RSKY

 

[farmeratheart]

In the past twenty years the only interest I have paid was once when I wrote a check and transposed numbers. I pay my bills every month two days before the deadline. It won't make anybody rich but can you understand the difference in paying a $1537 bill with nothing coming back and paying a $1537 bill with $36.74 going into another account.

We pay balances every month. Never carry a balance, never use the card as a short term loan, never buy anything with the card that we wouldn't buy with cash.

So I use the cards to my advantage. Like the Lowes card which gets me an instant 5% discount, paid off every month.

Or the $200 I saved by buying a freezer from Sears online, with a card, over buying the same thing with a different name at Lowes, Home Depot, or any other store. That price was for a credit card purchase which will be paid off with no interest or fees.

I buy nothing that costs more using a credit card.

Sounds like you may have been the fool that went bankrupt or got a divorce due to buying more than you could pay for.

Is it true?

RSKY

I got a Discover card the 1st year they came out which was 1986. In almost 32 years I have paid less than $20 in interest charges. Pay it off in full each month and treat it with respect. Even at the 1% rebate level I know I’m money ahead!

 

[jmc]

I read an article on corporate stunts that are pulled on consumers and one memorable one was that credit card customers on the West Coast must send their payments to the East coast and visa-versa. Furthermore, that distant collection center is never at a major mail center, like San Francisco, but at a secondary mail destination, Like Reno, NV. The whole point is to harvest those late fees if the payments are not received by their, say, 1:30PM cutoff time.

I signed up for an Amazon/Chase card for their promotional discount and rarely use it. When I notice that the payment is almost late, I can pay it at my local Chase Bank rather than mail it. (I am not recommending this card-they have their own stunts)

 

[Steppenwolfe]

I read an article on corporate stunts that are pulled on consumers and one memorable one was that credit card customers on the West Coast must send their payments to the East coast and visa-versa. Furthermore, that distant collection center is never at a major mail center, like San Francisco, but at a secondary mail destination, Like Reno, NV. The whole point is to harvest those late fees if the payments are not received by their, say, 1:30PM cutoff time.

I signed up for an Amazon/Chase card for their promotional discount and rarely use it. When I notice that the payment is almost late, I can pay it at my local Chase Bank rather than mail it. (I am not recommending this card-they have their own stunts)

That's strange, I have an Amazon / Chase card and get close to $1500 a year in cash back.

 

[Tractor Seabee]

Our household expenses including gasoline run between $1 and 2K per month. We have a Fred Meyer (Kroger) credit card that now gets all those purchases and pay off every month in full. The rewards, the gas points, special coupons, and special prices for card holders really add up. We gain over $1K per year on that card.

Ron

 

[4570Man]

How many of you run a tight budget? I’ve been watching the Dave Ramsey videos. I was kinda forced into it but willingly continued. He hammers the idea of a budget and says every dollar should be spent on paper first. I’m naturally a saver not a spender so I’ve never had a budget.

 

[fishheadbob]

For just about all our bills I use a card with a straight 2% cash back on everything. Like everyone says, don't ever get into a position where you must pay interest as generally the higher the cash back, the higher the interest rate on any unpaid balance.
I honestly don't remember where the payments are sent since I do just about all bills by electronic or online banking. Set it up one time then just enter the amount into the screen, press send, and they get their payment the next day. Saves the postage too.
I will open a store card if buying something that might come with 5 or 10% off if I use their store card but those kind of cards carry astronomical interest rates usually 24% or higher. You really have to watch for the bill on those and not toss them with the junk mail.

 

[square1]

That's only true for those who don't pay the balance in full every month.

Many studies show if you pay with cash you will spend less than if you use a credit card.
spend more when using credit card than cash - Google Search

How many of you run a tight budget? I致e been watching the Dave Ramsey videos. I was kinda forced into it but willingly continued. He hammers the idea of a budget and says every dollar should be spent on paper first. I知 naturally a saver not a spender so I致e never had a budget.

Every expenditure is logged in an Excel workbook that has (18) worksheets. It all rolls up to a summary. At a glance I know everything about my income / expenses / savings to the penny. This approach is in part, a large part, responsible for changing my finances from living pay check to pay check (and often running out of money between pay checks) to one were I'll retire without worrying about finances. When you don't sleep much you need something to fill the wee hours of the morning

 

[fried1765]

I致e never seen anyone get rich using a credit card. But we are reminded daily of the problems they cause. Divorce, bankruptcy etc.
Your suggestion is fools gold and reckless. The reality is they made more off of you in the last few years while you weren稚 paying attention then you will make in two lifetimes of transferring the 2% into your IRA.

"Fools gold and reckless" ????
Really?
There may be a "fool" here, but certainly not a "fool" who pays with a 2% rebate credit card.
I charge EVERYTHING that I can on my 2% cash back card, except gasoline, groceries, and drugs, which I instead charge on my 5% cash back card (the 5% is limited to those three categories). I also have a 3% cash rebate card, for hardware stores, office supply stores, Lowe's, and Home Depot.
I pay my CC bills on time, each month. I am 77 years old, and do not spend frivolously!
There is no annual fee for any of my 3 cards.
This "fool" gets cash rebates totaling in excess of $1000 every year.
I would certainly like to learn more, about: "they have made more money off of you (me) in the last few years".
Please advise!

 

[fried1765]

Over the last 20 or 30 years I think I've spent about $6 on interest because I was out of town for work, my travel got extended and I had to pay a bill late. This was before I could do all of it online. I only get 1% back on my Navy credit union card. BUT the tellers, both B&M and online are VERY good at detecting bogus charges, easy to work with and all speak very good American English.
I've had several bogus charges that amounted to several hundred dollars caught and I didn't have to pay.
But then I always pay attention to my credit card charges.

I am of the opinion that ALL credit card companies will cover bogus charges.
You do not need to worry about that.
When you buy on E-Bay, and use PayPal, you have their coverage as well.
Navy Federal is not doing you any favors at 1%.
There are several 2% rebate cards available.
I believe that Citibank offers one, though I use Capital One.

 

[fried1765]

I read an article on corporate stunts that are pulled on consumers and one memorable one was that credit card customers on the West Coast must send their payments to the East coast and visa-versa. Furthermore, that distant collection center is never at a major mail center, like San Francisco, but at a secondary mail destination, Like Reno, NV. The whole point is to harvest those late fees if the payments are not received by their, say, 1:30PM cutoff time.

I signed up for an Amazon/Chase card for their promotional discount and rarely use it. When I notice that the payment is almost late, I can pay it at my local Chase Bank rather than mail it. (I am not recommending this card-they have their own stunts)

Paying your CC amount on line is the absolute easiest, and you get a payment confirmation number.

 

[CobyRupert]

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.