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Townhall Finance...
In
God We Trust; All Others Pay Cash
By Bill Tatro
7/8/11
Traveling
through the countryside
recently, I had the opportunity to stop and fill-up for gas at an old
fashioned
country store. I
meandered inside to pay
my bill because the gas pump did not have a credit card slot.
No
problem, it was a hot summer day,
time for some ice cream. I
noticed a
sign in front of the store that contained a message I had seen once
before as a
youth traveling south with my family.
The
sign read: IN GOD
WE TRUST, ALL OTHERS PAY CASH. In
other words, no credit cards, no checks,
just good ole American greenbacks.
Although
it might seem impossible when so many people are currently trashing the
dollar,
the sign started me thinking about using cash as an investment, or
getting a
return on the dollar.
In
addition, I also thought about all
the opportunities for cash vs. credit.
It
was time to put my theory to the
test. First up was
an antique shop where
I found a medium-sized writing desk that was just perfect for my house. List price: $680.
“What’s the best price?” I
asked.
“You’re
looking at it,” the dealer
said.
“I’ll
tell you what,” I said, “I’ll
give you $500 cash, right now.”
The
dealer thought for a moment, and
then said “Done.”
I
saved $180 on a $680 desk, that’s
26%, not bad.
Next,
off to a garage sale.
The
proprietress was doing a brisk
business, taking checks and credit cards.
I however, had a different strategy.
I saw a beautiful set of 8 crystal martini
glasses worth $240.
The
proprietress saw me looking at
them and said, “Everybody looks, but nobody wants to buy the glasses.”
“I
guess they just don’t want to put
it on their credit card.”
Being
bold, I said “I’ll tell you
what, here’s a $100 bill, I’ll trade you old Ben for the martini
glasses. Looking
around, the proprietress wanted to
see if anyone was noticing.
She
grabbed the $100 bill, stuck it in
her pocket, and said “Would you like them wrapped in
newspaper?”
A
58% savings.
Finally,
I decided to give this form
of investment one more test. I
dashed
over to the used car lot, seeking out my dream car, a lincoln green
Mercedes
Benz.
Well,
I won’t bore you with all the
haggling and negotiating, but in the end I paid cash, and saved almost
30%.
In
one day alone, I achieved price
reductions of 26%, 58%, and 30%. That’s
real savings, and in my mind, a solid return on my cash investment.
When
cash is king, the deal gets done,
often at very deep discounts.
For
me, and from now on, IN GOD WE
TRUST, ALL OTHERS PAY CASH, has become a successful investment strategy.
Read
it at Townhall Finance
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