Simple Savings Sunday – Pay with Cash or Check

I just had two expensive things done at this house in two days. This past week, we had 6 trees removed and one pruned. There were either dead or leaning over the house. Not cool with either scenario.  We also had our 28 year old water heater replaced with a new one.  We knew these were coming down the pipeline, but no matter what, I don’t like dishing out those kind of payments at any point.  I did shop around before I picked my service providers and I was happy with both of them.  Though I’m all about earning some credit card points for travel, this week, I actually paid both of them with checks. Why?  It saved me money instantly!  Let me explain in this edition of Simple Savings Sunday!!

Save by Paying with Cash or Check

Now, I have been on a credit card rewards kick as of late. I paid for most of my trip to New Orleans in September. I have enough to take another trip somewhere else. This is all from putting my regular expenses on my Barclaycard Arrival Plus World Elite.  Remember, I used to be in over $50,000 worth of credit card debt, but I’m not afraid to use them. In fact, I realized it was just my stupid mentality that got me into debt, not the credit cards themselves. You have to learn how to use them!

OK, back on topic. As I mentioned, we had some services done this week. Both were local companies, which I’m proud to support. I got their quotes and were happy with them. As they were finishing up their jobs and I was looking over my payment options, I realized they both gave discounts for paying with cash or check.  No, I don’t carry much cash on me, but I do have a checkbook. While they did allow me to pay with a credit card, I noticed I could save money instantly by going with a check.  In one instance, I saved 5% off the bill by paying with a check over my credit card. In the other, I saved 2.5%. While It may not sound like much, one was over $100 in savings. Not bad for just pulling out a check.

I like to keep these Simple Savings Sunday posts brief. I mean, it’s in the name. The moral of this story is to check with your service provider to see if they offer discounts for paying with cash or check. The reason why so many do is it costs them less to take cash/checks. It costs them a processing charge to swipe your credit card. Depending on their volume, those costs can be significant. It doesn’t take any time away from you, but it can save you money quickly. Remember, ever little bit counts. Just think about this. If you take that $100 and put it in your favorite investment account (mine are Motif Investing and Scottrade) and then contribute just $25 per month. Over the course of 20 years, you just made over $15,000!  Nice…

So, the next time you have someone quote you for a service, just ask them for a cash/check discount. You would be surprised on how many offer it!  Enjoy the rest of your weekend everyone!