Why Do People Ignore Easy Money?
August 3, 2007
Why would anyone pass up free money? I was amazed when my co-workers pulled out their credit cards to pay for lunch today and only one other person in the group had a rewards card!
Rewards Cards Savings
I was carrying my American Express Blue Cash and one lady was using the Discover Open Road card but the other 4 just had regular credit cards. I understand some people stay away from credit cards altogether and prefer to use cash. What I don’t understand is if you’re going to use a credit card, why not use a rewards card? That just seems like leaving money on the table. Don’t get me wrong, charging on a rewards card is not going to make you rich but you can save hundreds of dollars a year by using one.
Small Savings Matter
Something I’ve learned about personal finance over the years is that many small savings can add up to a lot of money over time. It is difficult to save or earn a lot of money all at once, so a slow and steady approach is the most likely to succeed. One key to that success is taking advantage of the little easy things when you can.
Easy Money Ignored
How hard is it to save a little money by using a rewards card, practically no effort at all! It’s not just cash back credit cards; there are many other simple money-saving actions available to us that some people just ignore.
I know one lady who paid an extra annual subscription fee for a service she no longer used simply because she didn’t take the time to pick up the phone and cancel.
My company has an employee discount option for several major wireless carriers yet some people on our floor don’t take advantage of the $5 a month I save on my cell phone bill simply because it is not a big enough savings. It took me maybe 10 minutes on the phone 5 years ago to set up my employee discount that saves us $60 annually. So it took me 10 minutes to save $300 over the last five years, pretty easy money if you ask me.
Money Saving Month
Since the month just started, it’s the perfect time to sit down and come up with a list of small easy things you can do to save money this month. The best opportunities are places where you can cut recurring costs, such as your television or phone bill because the savings continue month after month. Using a rewards credit card is another example that will have long term savings since you’ll always be spending money. What other simple things can we do to take advantage of “easy money”?
All posts by Ben Edwards