Postage rates are going up tomorrow. A first class stamp will now cost 44 cents. Some people are protecting against postage rate hikes by purchasing Forever Stamps. These stamps are purchased at the going rate, and are good forever. I like them because it means I don’t have to buy additional 1 cent or 2 cent stamps to cover the difference. It is worth noting that postage — by law — can never outpace inflation. Therefore, points out My Money Blog, stockpiling the Forever Stamps as a hedge against inflation isn’t much of an investment plan:
However, there is no point in stocking up on them, because Forever stamps are not a good investment. For one, postage rates have not outpaced inflation historically. But more importantly, according to the 2006 Postal Accountability and Enhancement Act, the postage rate will never be allowed to outpace inflation.
Indeed, there are better ways to save on postage. My favorite way to save on postage is to do online billing. Most of my statements come via email, and I pay them over the Internet or automatic withdrawal. This makes things easy as well as saving money on postage. I do use stamps on letters and cards sent to my grandparents. As long as they still want something a little more tangible (and many people the age of my grandparents do), I’ll need stamps. But buying a few Forever Stamps now means that I probably won’t need to buy new stamps for years.
image credit: Miranda Marquit — photo USPS stamps