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Tuesday, March 9, 2010

Sorry USPS, but...

In these troubled economic times many of us are looking for ways to cut the costs of our normal household operating expenses, be it shopping at Grocery Outlet or at outlet stores. We have seen the cost of stamps continue to creep up every year or two. It’s a vicious circle for the U. S. Postal Service because as they increase the cost of mailing, more people opt out of paying bills by snail mail and instead use electronic payments; then to increase their revenues, the USPS raises their rates, causing more people to reduce their stamp usage. Sorry USPS, but that’s how the free market works.
I started paying a few bills electronically (with BillPay or with an automatic electronic payment) about seven years ago and now I pay them that way as much as possible. I’ve even paid a neighbor girl who did the watering for us in the summer time when we were on vacation using BillPay. Some might say, “Oh, good, you’re going paperless; you’re living a greener lifestyle.” Well, yes, I’m going paperless more often, but no, it’s not to be pc; it’s to save money.
Out of curiosity I looked through my check register to see just how many times in one year I had used electronic payments or BillPay and I counted 130 of them. The checks I use are the ones with carbons so they cost about $0.08 each. Stamps are currently $0.44 each. So, multiplying 130 times $0.52, I saved $67.60 in the last year by using electronic payments. That covered a few tanks of gas. A penny saved is a penny earned!
On top of that, I use a no-annual-fee credit card to pay for almost everything else and pay it off every month,…AND we get a 1% rebate on most purchases (sometimes a higher percentage for purchases of gas, groceries, pharmaceuticals). So I save the cost of the check on every credit card purchase and receive a rebate on most purchases.
A word of caution: Whenever you do an electronic payment or use BillPay, be sure you have your check register with you so that you can write it down immediately. Otherwise, you might forget to do that and then you might end up with a fee for being overdrawn in your checking account! (It's not that I've been overdrawn, but I have forgotten once or twice to write down the payment in my register.)
I don’t know what will become of our USPS in the future. Perhaps they’ll become more like FedEx or UPS, something more competitive anyway.

What's your guess about the future of the United States Postal Service? We already have heard that they are going to eliminate Saturday deliveries. What's next, deliveries only on MWF?

5 comments:

L.C.T. said...

It's good that you're saving paper in the process :) Our stamps in the UK have recently gone up in price too. Sad because I'm just starting to like sending snail mail to friends!

Ebie said...

I too, have been paying bills on line, and even statements are electronic. It has saved me a lot of space and unnecessary clutter of the paper statements I get. Moreover, a safeguard on mails getting stolen. Lets go green!

SandyCarlson said...

Good thoughts. Thanks for making it make sense.

Ruth said...

I remember when there were deadlines for mailing Christmas cards and extra employees were hired by the post office for the holiday rush. I no longer mail out cards and know few people who do. I use maybe half a dozen stamps a year.

Michelle said...

I'm with you... while the green benefits are great and I'm happy to do my part, I'm also cheap (not frugal but truly cheap). I havne't calculated the savings to it, but you're so right on all that. As for the mail, I'd like to keep Saturdays, but get rid of Wednesdays. Or Tuesdays and Thursdays. I'd be good with that :)