An old phrase that makes me reminisce for the day when I worked for tips and so could measure my worth by what I had in my pocket at the end of the day. But a quick search of the definition for that term shows me that there is more to it than meets the eye. For instance, in the stock market the term refers to how you can connect two trades through arbitrage. But historically, the term goes back to a time of war and the very real truth that we have always been a nation divided on the question of making war. They say if you want to know why something happens, follow the money.
Meanwhile, back to the topic. I remember this term because at one time we did all our grocery shopping at a local store called the Cash and Carry. So my financial education trained me to think in terms of real money whenever I wanted to buy something. Personally, both T and I have developed a set aside system (hah!) for this purpose. I use a coffee can; she uses a quart jar. All loose change, extra money from side jobs, refunds, rebates; they all end up there waiting for the next purchase of something she or I really need or really, really want. Yes, I confess. I sometimes buy CDs that only have two or three songs worth listening to on them. But that’s because I am still a neanderthal as far as techtronics are involved. No Ipod, MP3, no downloading for me. That, and the fact that I really don’t want to spend a lot on extra stuff just in case it might entertain me.
Money is like water in the sense that as much as we’d like to keep it in hand that’s how much it wants to leak away.
In our business, we have learned the art of stoozing. We get a lot of 0% interest credit card offers primarily because we always pay off our active cards within the month or way ahead of time. Our FICO is 780. So when we are planning an equipment purchase or an upgrade or we just need funds for operational reasons, we pick an offer and draw what we need and since there is no interest we repay with cash the credit amount borrowed from the ongoing business income. It’s our own version of cash and carry.
Funny, isn’t it? How it started out that pay as you go was the strategy for staying debt free and now it’s pay as much as your able to and carry the rest for later.