Cash is king!

Did you ever think that you could save money simply by paying cash? Sure, we all went for the reward credit cards to gain some money on the money we spent, but now that a lot of us are knee deep in debt, why not save some money by not using your credit card?

Remember some years ago when Mobil gas stations offered a cash price and a credit price? Then the credit card companies said something like it was unfair and they stopped. Well, they were on to something back then.

My vet gives a 5% discount if I pay cash.

My dentist offers 5% off if I write a check.

Heck, I offered cash to have a window replaced and got a substantial discount.

Why? Because credit card fees are amazingly high. So are business bank fees. Of course, there are those (like my painter and electrician) who probably prefer cash so they don't have to claim it, but that's their choice, I'm just trying to save my money any way I can.

Cash is becoming more and more popular once again. It has advantages other than just saving money like I mentioned, it also has accountability and a sense of what you can afford. My mother told me a story once about a training session she had while working at a department store.... about pushing the credit card to the customer. It went something like this (at least it's how I remember it, it was a long time ago):

Say you have $10 in your pocket to buy a birthday gift for a friend. You find several items that you think said friend might like. Then you spot something that said friend would absolutely love but it's $5 more than you have in your pocket. But if you get a credit card, you can buy it. 

Most people would probably buy the more expensive item on a credit card. After all, it's only $5, right?

That's good business for the store, they just got you to spend 50% more money.

And that's just for starters, because if you don't pay off a credit card each and every month in full, they're getting a lot more of your money.

That story sounded a lot better in my head, but I think it makes a lot of sense.

So the next time you need something, whether it's at the doctor, a painter, or even the department store, it doesn't hurt to ask if there is a cash discount. Most places don't advertise it, but a lot of places you wouldn't expect would take you up on it.

Cash is king.