Friday, July 11, 2008

Living Life Richly on the Cheap #1

Today, I am starting a new series called: Living Life Richly on the Cheap. I'll show you examples on how my wife and I have saved money.

Tip#1 Pay with Cash. Yes Hard Cold Cash.
I finally decided to replace the original muffler on our faithful '94 Saturn with 147K miles. According to the mechanics not only did the muffler need replaced, but the long pipe from the converter to the muffler needed to be replaced as well. Total cost with parts and labor was $235.19 before tax. I asked if there was a discount for paying with cash verses a credit card, knowing that he would have to pay credit card fees. He said that if I paid in cash I would not have to pay the tax. He even rounded down to a flat $235. And best of all we have a much, much less noisy car!! Wahoo!

Total savings: $12. 97 (((6.5% of 235.29) + .19) - (1% Credit Card Rewards) enough gas to drive 95 Miles ($4.099/Gallon @ 30MPG)
Extra Bonus: No Credit Card Debt.
Extra Hassle: Asking for a discount & Stopping by the ATM
Catch: This typically only works for larger purchases at small businesses. Beware of ATM Fees. Must have savings in the bank.

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