How Money is Spent - concept #5
Knowing how money is spent can be instrumental in our ability to get it, get it regularly, and get it in a timely manner. It's a subtly to many, but it's a key to decisions of a financial nature that we make in our personal and business lives.
Learn how people part with their money. Some of the more common ways money is spent is by using paper currency, coins and checks. Other methods include electronic transfers, issuing credit for a future transaction, credit cards and debit cards.
There are also reimbursements from a third parties, barter and trade. The easier you make it for others to pay you, the more likely you'll be to get their money.
If you're doing business with an organization, they may pay you with a check, but don't expect a check on the day your work is done. You may have to wait 30 days from the date of your invoice to get paid - if they're speedy about paying their bills. More likely, you'll wait 60 days to get paid.
So, knowing how money is spent is more than just how you get paid, but the manner in which you get paid.
If someone is paying you through PayPal, it's easy for those spending money, but it costs the recipient a percentage of the sale. The same holds true for credit card purchases, the merchant pays a small percentage of the sale to allow their customers the convenience of using a credit card.
There is a liquor store here in Cheyenne that hires off-duty sheriff deputies as security personnel. They park their marked car out in front of the store and keep themselves visible during business hours, usually on the weekend. The owners of the establishment do this because they don't accept credit cards - it's cash or check only.
The owners save the small percentage credit card charge, and clearly it's worth the cost of the "hired guns," otherwise they wouldn't do it. Local robbers know how money is spent there, so they know that the establishment has plenty of cash on hand.
So you see, it's important to know how people spend their money.
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