In this economy, we need to stretch every dollar we spend. Usually you pay your bills in full and on time, taking advantage of discounts offered for payment by a certain date.
In this economy, we need to stretch every dollar we spend.
Usually you pay your bills in full and on time, taking advantage of discounts offered for payment by a certain date. One of my clients made his payables a profit center by paying many of his bills—telephone, stamps, office supplies, food for the office, occasional lunches for his staff, gas, cell phone, pager, uniforms for his staff, subscriptions, medical supplies, printing, hotels and meals for meetings—with his credit card, which he paid in full every month.
How was it a profit center for him? He earned mileage on that card. He was moving to another state and for the better part of 2 years, as he purchased land, designed and built his home, he and his family flew back and forth across the country for free.
There are other benefits, both tangible and intangible. You will never be late paying the bills if you are out of town. Your credit card itemizes your expenses by payee. You and your family may have free airfare for vacations and meetings. You or your spouse can pay this and the rest of the office bills online from home, reducing the possibility of embezzlement.
Your savings, including the cost of checks, stamps and time, can add up to hundreds of dollars over a year. Your rewards can be in the thousands of dollars.
Lesson: Sometimes the way you pay is more beneficial than reducing costs.