For years I’ve been frustrated by the way gas stations advertise prices. The big sign shows one number, but when you get to the pump, you find out that’s the cash price. Pay with a credit card and you’re charged more. So, the question becomes: Is it worth overpaying for gas in exchange for earning points? In the end, have you gained more than you’ve lost?
Credit Card
Points
Many
credit cards give you points redeemable for travel. I value my miles at about
3% – meaning that, if I spend $100, I get roughly $3 worth of travel. In the
past, I felt that using my credit card for gas was basically a wash: I didn’t
lose, but I didn’t gain much either.
Enter
Earnify
A
client introduced me to an app called Earnify, which gives you five cents off
per gallon. I also applied for a BP gas credit card; together, they should save
me around 20 cents per gallon. Right now, I’m in the “first 60 days” bonus
period, which adds another 50 cents off. So far, it’s working beautifully.
The
app also “talks to the gas pump,” meaning you don’t even need to insert your
credit card. The app unlocks the pump, applies the discount, and the price
drops instantly. Voilà – instant savings. I’ll report back after my trial
period, but this seems like real money saved with almost no effort. If you use
other gas-saving apps, please send in your recommendations.
Water and
Sewer: Catching Hidden Leaks and Cutting Waste
City
water bills have climbed dramatically: several-fold over the last 20 to 25
years. Sometimes I wonder: Do I have a leak somewhere? How is water even
measured?
Baltimore
City has an online portal where you can view your bills, make payments, and – most
importantly – see your hourly water usage. Check the graph when you’re away
from home. If water is being used when no one is there, something is wrong.
A
few more water-saving tips: Replace old toilets. 1) Modern models use only 1.28
gallons per flush, which adds up to major savings. 2) Swap out old showerheads.
You can measure your current flow rate and install a low-flow model yourself.
Good pressure, less water, big savings.
Cell Phones:
Don’t Overpay
I
often see clients paying far more for cell service than necessary. I use
AT&T with five lines on my plan. After a 25% teacher discount, I pay about
$23 per line (just under $30 with taxes).
I
also use Tello, a discount carrier that works surprisingly well. You can bring
your own phone. For my kids who use flip phones with no data, it’s under $10 a
month for unlimited talk and text. Add some data and it’s around $15. Call
quality has been solid, so I’m comfortable recommending Tello.*
Internet:
Some Savings Exist
In
Baltimore City, Comcast is still the only provider offering fast speeds. Prices
run around $70 to 80 per month, and they constantly play games with the
pricing. If you call and complain, they usually lower it.
If
you qualify for government programs like Medicaid, school lunch, or food
stamps, you may be eligible for Xfinity Essentials, which costs only $15 per
month. If you qualify, take advantage. If anyone knows of cheaper high-speed
options, please share.
Landlines:
VOIP Saves a Fortune
Years
ago, I switched my landlines to Ooma,* a VOIP service that runs through your
internet. I was skeptical at first, but after more than 10 years, I’m a
believer. You purchase a
small electric box that plugs into your modem. It was very easy to transfer my
phone numbers, and then, magically, my costs dropped. I pay about $225
per year for two landlines. Compare that to the $1,200 per year I used to pay.
Ooma’s app lets me check messages and even make calls. It has been reliable and
inexpensive.
People
sometimes ask what happens during a blackout. My answer: blackouts are rare,
and when they happen, I use my cellphone. Not a big deal.
Bank Fees:
Stop Paying Them
If
you’re paying monthly fees for your checking account, switch banks. Many offer
free checking. For example, M&T Bank offers free checking with no monthly
charges.
Small
Savings: Big Money
By implementing these ideas, you
will plug up money leaks that will add up to a small fortune – no, a large
fortune! If you had invested $200 a month into an S&P 500 mutual fund 40
years ago, it would be worth over 1.1 million dollars today. That is certainly
amazing and a powerful reminder to take control of your finances.
Eli pollock CPA can be reached
at elipollock2@yahoo.com.
* If anyone out there will be
signing up to Earnify, Ooma, or Tello, please email me so I can get a referral
bonus.
