I still use cash not credit cards should I reconsider?

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LiterallyIronic
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Re: I still use cash not credit cards should I reconsider?

Post by LiterallyIronic » Fri Aug 24, 2018 12:25 pm

mrmass wrote:
Fri Aug 24, 2018 6:44 am
I'm in my mid 50s. I work make a decent living. Same with DW. Every 7-10 days or so I grab $3-$400 from the atm. That's how I spend money. I have credit cards and only use them if for travel or if I'm in a pinch. DW uses her credit card for everyday items.

Perhaps it's a phobia of sorts but I feel that I lose track of spending if I use my cc for daily purchases. We don't have a spending problem as we live below our means but using too much cc (for me) makes me feel financially disorganized.

We don't play the points game and am wondering if I should be embracing points/cash back programs etc. We're both able to pay our full balance off monthly.

Any thoughts? BTW her cc and my cc are in our names only.

Thanks
Nah, what you're doing is fine and it makes you happy. I mean, I rarely use cash, but I use debit cards almost exclusively. Credit cards are too much work. Like you said, it's too easy to lose track. If I swipe my debit card (or if you use cash) to buy that gallon of milk, the transaction is over. Never have to think about it again. If I use a credit card, then I have to remember for a couple of days that I bought milk so I can go to my bank's website and transfer money from checking to the credit card to pay off the two bucks. All to get 1% cash back? That's a lot of work for two cents. Auto pay? I don't trust it. I'd still end up logging into my account every day to make sure it auto-paid. And I can't use a credit card on big-ticket items like the mortgage, so the 1% is always a negligible amount.

That all being said, there is a thing called "churning" in which people sign up for lots of credit cards in some manner to get sign-up bonuses. But that's too much work for me and it sounds like you wouldn't care to do that, either.

So I think you're fine.

go_mets
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Re: I still use cash not credit cards should I reconsider?

Post by go_mets » Fri Aug 24, 2018 12:38 pm

My current contract job pays me by paper check every week, so I have to go to my bank and make a deposit.
It is a major pain the butt as far as I am concerned, but I do it.
It would be a even more major pain in the butt if I was withdrawing money.

I use:
1. Chase Freedom 5% rewards for changing categories every quarter
2. TD Bank Visa 3% rewards for eating out
3. American Express for instant/immediate statement credit for certain promotions;
recently it was 10% on $200 for supermarkets (bought ShopRite gift cards), 10% on $100 at department stores (bought BP gift cards),
$5 off $25 at Staples (bought Target gift card)
4. Fidelity Visa 2% for everything else

jrbdmb
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Re: I still use cash not credit cards should I reconsider?

Post by jrbdmb » Fri Aug 24, 2018 1:00 pm

At the current time I get 5% back on utility bills / cell phone bill / gas, 4% back on restaurants / entertainment, 3.5% back on groceries / travel, and about 2.6% back on everything else. And that does not count the sign up bonuses I got for these cards, which ranged from $100 to $500 each.

For me it's worth the trouble to keep track of a moderate number of credit cards I use regularly.

But if you are more comfortable using cash and don't miss the rewards / points, then by all means stick with cash.
Last edited by jrbdmb on Fri Aug 24, 2018 1:02 pm, edited 2 times in total.

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whodidntante
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Re: I still use cash not credit cards should I reconsider?

Post by whodidntante » Fri Aug 24, 2018 1:01 pm

LiterallyIronic wrote:
Fri Aug 24, 2018 12:25 pm
mrmass wrote:
Fri Aug 24, 2018 6:44 am
I'm in my mid 50s. I work make a decent living. Same with DW. Every 7-10 days or so I grab $3-$400 from the atm. That's how I spend money. I have credit cards and only use them if for travel or if I'm in a pinch. DW uses her credit card for everyday items.

Perhaps it's a phobia of sorts but I feel that I lose track of spending if I use my cc for daily purchases. We don't have a spending problem as we live below our means but using too much cc (for me) makes me feel financially disorganized.

We don't play the points game and am wondering if I should be embracing points/cash back programs etc. We're both able to pay our full balance off monthly.

Any thoughts? BTW her cc and my cc are in our names only.

Thanks
Nah, what you're doing is fine and it makes you happy. I mean, I rarely use cash, but I use debit cards almost exclusively. Credit cards are too much work. Like you said, it's too easy to lose track. If I swipe my debit card (or if you use cash) to buy that gallon of milk, the transaction is over. Never have to think about it again. If I use a credit card, then I have to remember for a couple of days that I bought milk so I can go to my bank's website and transfer money from checking to the credit card to pay off the two bucks. All to get 1% cash back? That's a lot of work for two cents. Auto pay? I don't trust it. I'd still end up logging into my account every day to make sure it auto-paid. And I can't use a credit card on big-ticket items like the mortgage, so the 1% is always a negligible amount.

That all being said, there is a thing called "churning" in which people sign up for lots of credit cards in some manner to get sign-up bonuses. But that's too much work for me and it sounds like you wouldn't care to do that, either.

So I think you're fine.
If I had to make a separate transaction to pay for milk two days after buying it, I wouldn't use a credit card either. But none of my cards work that way. Also, beer tastes better than milk.

Frank Grimes
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Re: I still use cash not credit cards should I reconsider?

Post by Frank Grimes » Fri Aug 24, 2018 1:42 pm

LiterallyIronic wrote:
Fri Aug 24, 2018 12:25 pm
mrmass wrote:
Fri Aug 24, 2018 6:44 am
I'm in my mid 50s. I work make a decent living. Same with DW. Every 7-10 days or so I grab $3-$400 from the atm. That's how I spend money. I have credit cards and only use them if for travel or if I'm in a pinch. DW uses her credit card for everyday items.

Perhaps it's a phobia of sorts but I feel that I lose track of spending if I use my cc for daily purchases. We don't have a spending problem as we live below our means but using too much cc (for me) makes me feel financially disorganized.

We don't play the points game and am wondering if I should be embracing points/cash back programs etc. We're both able to pay our full balance off monthly.

Any thoughts? BTW her cc and my cc are in our names only.

Thanks
Nah, what you're doing is fine and it makes you happy. I mean, I rarely use cash, but I use debit cards almost exclusively. Credit cards are too much work. Like you said, it's too easy to lose track. If I swipe my debit card (or if you use cash) to buy that gallon of milk, the transaction is over. Never have to think about it again. If I use a credit card, then I have to remember for a couple of days that I bought milk so I can go to my bank's website and transfer money from checking to the credit card to pay off the two bucks. All to get 1% cash back? That's a lot of work for two cents. Auto pay? I don't trust it. I'd still end up logging into my account every day to make sure it auto-paid. And I can't use a credit card on big-ticket items like the mortgage, so the 1% is always a negligible amount.

That all being said, there is a thing called "churning" in which people sign up for lots of credit cards in some manner to get sign-up bonuses. But that's too much work for me and it sounds like you wouldn't care to do that, either.

So I think you're fine.
I think a lot of the credit card challenges you're mentioning are a bit exaggerated, such as not trusting credit card auto pay for some reason. Same as autodraft for any other bill or mortgage.

With auto pay set up, it's the same day to day effort as a debit card but with the added benefits of 1. cashback rewards, 2. better fraud protection and 3. itemized spending history so you don't have to track receipts.

SpaethCo
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Re: I still use cash not credit cards should I reconsider?

Post by SpaethCo » Fri Aug 24, 2018 3:16 pm

Frank Grimes wrote:
Fri Aug 24, 2018 1:42 pm
I think a lot of the credit card challenges you're mentioning are a bit exaggerated, such as not trusting credit card auto pay for some reason.
I love the subtle irony that on this forum we have the faith to trust our life savings to automated systems accurately executing market trades to allow our fund and ETF holdings to conform to an index, but we don't trust a computer to debit our checking account the $20 to pay our monthly credit card statement on time. :wink:

RickBoglehead
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Re: I still use cash not credit cards should I reconsider?

Post by RickBoglehead » Fri Aug 24, 2018 3:27 pm

Lots of tin foil hat wearers.

Excluding travel, my cashback in a year easily exceeds $1,000. Utility bills, insurance payments,... Everything but mortgage and property taxes. When I traveled, the cashback was several times that.

Citi Price Rewind nets me hundreds of dollars each year also.

I set my accounts to email me for every charge over $1. Logging on every day is crazy. Paying weekly is crazy. I have statement date in Quicken, I log on once a week on Saturday mornings and reconcile. Saturday after statement I verify statement via Quicken, then enter future autopay from Checking (never had one go wrong ever). Around the 25th of each month I review checking withdrawals for coming my month and setup 2-4 transfers from savings to cover everything.

My FIL carried so much cash in his wallet that the doctor told him to move it to his front pocket because it was creating an issue for his back when sitting. I told him opening a wad like that at the store made him a target. He eventually switched to credit cards in his 70s. When we cleaned out his house, we found thousands in mad money that could have grown in the market instead.

JackoC
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Re: I still use cash not credit cards should I reconsider?

Post by JackoC » Fri Aug 24, 2018 4:03 pm

SpaethCo wrote:
Fri Aug 24, 2018 10:46 am
camillus wrote:
Fri Aug 24, 2018 7:09 am
6) Dave Ramsey claims that people who use cards spend 12% more than cash users.
Interestingly enough, the study that Dave cites to make that claim doesn't actually exist.

https://www.getrichslowly.org/money-myt ... -yourself/
Most people believe what he says is true, on that particular point, not to make it a question of Ramsey's overall credibility. However even 'studies' which might show it to be true have to be constructed in somewhat artificial ways to get their results. There is IMO a lot of confirmation bias in studies purporting to show financial irrationality, they tend to use contrived laboratory situations in which it's not really as important if people act rationally. Do some people act irrationally with money? obviously some do, but the blanket statements like 'most believe this doesn't apply to them but it almost always does' I don't really buy. Because of the often artificial nature of the study mechanics if you look under the hood (again for studies which actually exist :happy ).

Simply studying the real life habits of people who use CC's and those that don't wouldn't work: there might be other systematic differences between those two groups even if you control for income, education, etc. Likewise it you have people use CC's, then have the same people later use cash, again other things could change. I think some people are too credulous about the results of social 'science' studies in general.

Also there are two somewhat distinct claims made about CC use. One is that people buy more goods and services if they use CC's but not necessarily that they are any less price sensitive for a given item. The stronger claim is that CC users pay higher prices for the same things, don't look as hard for discounts, wait for sales, etc. Even if 'most people believe neither applies to them but it probably does', I'm about 100% sure the second claim is not true for us. The first might be to some indeterminate %, though certainly not as large as 12%. But let's say for argument's sake Ramsey's made up number is correct and we spend 12% more with CC than we would w/ cash. We also get 12% more stuff. How is that coming out behind? You have to make a value judgement that we're not 12% better off with 12% more stuff. Which, subjectively, another person can make for themselves, but can't really make for us. And it would be still be a tie if we were 10% better off spending 12% to get 12% stuff more because of the cash back. Again the second stronger claim has to be true to make it a matter of fact that we harm our own welfare by using CC. That's assuming we can afford to spend what we spend, we absolutely can (and way more if we wanted to). People who come to Dave Ramsey and his ilk are people who can't afford to spend what they are spending. That's an objective difference, if it's anywhere near as big as the difference between us and people drowning in CC debt.

LiterallyIronic
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Re: I still use cash not credit cards should I reconsider?

Post by LiterallyIronic » Fri Aug 24, 2018 4:12 pm

Frank Grimes wrote:
Fri Aug 24, 2018 1:42 pm
LiterallyIronic wrote:
Fri Aug 24, 2018 12:25 pm
mrmass wrote:
Fri Aug 24, 2018 6:44 am
I'm in my mid 50s. I work make a decent living. Same with DW. Every 7-10 days or so I grab $3-$400 from the atm. That's how I spend money. I have credit cards and only use them if for travel or if I'm in a pinch. DW uses her credit card for everyday items.

Perhaps it's a phobia of sorts but I feel that I lose track of spending if I use my cc for daily purchases. We don't have a spending problem as we live below our means but using too much cc (for me) makes me feel financially disorganized.

We don't play the points game and am wondering if I should be embracing points/cash back programs etc. We're both able to pay our full balance off monthly.

Any thoughts? BTW her cc and my cc are in our names only.

Thanks
Nah, what you're doing is fine and it makes you happy. I mean, I rarely use cash, but I use debit cards almost exclusively. Credit cards are too much work. Like you said, it's too easy to lose track. If I swipe my debit card (or if you use cash) to buy that gallon of milk, the transaction is over. Never have to think about it again. If I use a credit card, then I have to remember for a couple of days that I bought milk so I can go to my bank's website and transfer money from checking to the credit card to pay off the two bucks. All to get 1% cash back? That's a lot of work for two cents. Auto pay? I don't trust it. I'd still end up logging into my account every day to make sure it auto-paid. And I can't use a credit card on big-ticket items like the mortgage, so the 1% is always a negligible amount.

That all being said, there is a thing called "churning" in which people sign up for lots of credit cards in some manner to get sign-up bonuses. But that's too much work for me and it sounds like you wouldn't care to do that, either.

So I think you're fine.
I think a lot of the credit card challenges you're mentioning are a bit exaggerated, such as not trusting credit card auto pay for some reason. Same as autodraft for any other bill or mortgage.

With auto pay set up, it's the same day to day effort as a debit card but with the added benefits of 1. cashback rewards, 2. better fraud protection and 3. itemized spending history so you don't have to track receipts.
Oh, I absolutely have my tin foil hat on nice and tight. Though I must say that, regarding cashback rewards, they're not enough to be worth my time, and my debit card itemizes my spending history just as well as my credit card.

scrabbler1
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Re: I still use cash not credit cards should I reconsider?

Post by scrabbler1 » Fri Aug 24, 2018 4:51 pm

mrmass wrote:
Fri Aug 24, 2018 6:57 am
I'm aware there are a lot of cc threads but I was just curious if anyone has transitioned from using mostly cash to mostly cc's.
I have moved in this direction the last few years, after I got a cash-back CC from the bank I have my checking account and recently acquired online banking privileges through. I still use cash for some things such as small purchases (under $30) and for gasoline (price discount for cash is 10%). The big difference now is using CC for most of my supermarket shopping. I now get cash once a month instead of twice a month.

simmias
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Re: I still use cash not credit cards should I reconsider?

Post by simmias » Fri Aug 24, 2018 4:54 pm

go_mets wrote:
Fri Aug 24, 2018 12:38 pm
My current contract job pays me by paper check every week, so I have to go to my bank and make a deposit.
It is a major pain the butt as far as I am concerned, but I do it.
Does your bank allow you to deposit checks using your phone? Maybe switch banks if they don't.

MJS
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Re: I still use cash not credit cards should I reconsider?

Post by MJS » Fri Aug 24, 2018 7:19 pm

How much are privacy & anonymity worth to you? Do you avoid store loyalty cards? Dislike knowing that Google tracks online & brick/mortar purchases via credit cars & names? Many retailers track you & your purchases via debit or credit card for years (which is convenient if you want to return something!)

I use cash at most big box stores, which is a bit tin hat, but makes me happy. For utilities, bills, anything where I'm already known - credit cards are more convenient and cost effective. ... CostCo, of course, Knows Everything.

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Watty
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Re: I still use cash not credit cards should I reconsider?

Post by Watty » Fri Aug 24, 2018 7:28 pm

coupleofcents wrote:
Fri Aug 24, 2018 11:41 am
By using all cash, you are indirectly subsidizing all the credit card users since merchants make more money off cash sales than credit card sales.
it is a bit more complicated than that. When a merchant takes cash they have handling costs for that too, like having a armored card stop by the store to pick up the cash.

rgs92
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Re: I still use cash not credit cards should I reconsider?

Post by rgs92 » Sat Aug 25, 2018 1:36 am

Doesn't your wallet get big and thick and unmanageable with all that cash in it?
What do you do with the change in coins when you pay with cash?
(I find myself letting merchants keep the coin-change whenever I use cash. That adds up I find.)

rgs92
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Re: I still use cash not credit cards should I reconsider?

Post by rgs92 » Sat Aug 25, 2018 1:42 am

I look forward to the day when I can use a finger-print or voice recognition or iris scan to pay anything and have it charged to my credit card or bank account. Then I wouldn't need a wallet at all. I hate carrying a wallet.

Why should I have to carry any physical cards (or paper currency) in these modern times? I actually resent it.
(And this includes drivers licenses and insurance cards.)

And I wish my car would recognize me and unlock and start up.

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JoMoney
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Re: I still use cash not credit cards should I reconsider?

Post by JoMoney » Sat Aug 25, 2018 2:50 am

I find cash burns a hole in my pocket. I can budget much easier with a credit card where I can login and see my transactions at any time an download statements. I've read that studies say people spend more when they buy using a credit card, but I'm pretty sure that's not me. When I spend cash I tend to splurge more, if I'm breaking a $10 bill to buy a $5.99 lunch deal, I'll spring for the 'super size' or a pack of gum or whatever makes up the change... I don't do that when I'm not getting change, and know it will show up as an item to reconcile on my credit card statement.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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GoldStar
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Re: I still use cash not credit cards should I reconsider?

Post by GoldStar » Sat Aug 25, 2018 6:28 am

simmias wrote:
Fri Aug 24, 2018 4:54 pm
go_mets wrote:
Fri Aug 24, 2018 12:38 pm
My current contract job pays me by paper check every week, so I have to go to my bank and make a deposit.
It is a major pain the butt as far as I am concerned, but I do it.
Does your bank allow you to deposit checks using your phone? Maybe switch banks if they don't.
I was wondering the same thing - call your bank and ask if they have an eDeposit App. It's very easy - you click a button in the app - it has you take a picture of the front and back of the check - click submit - and the deposit is made. No reason to go to the bank. This is assuming you have a smartphone of course.

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Doom&Gloom
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Re: I still use cash not credit cards should I reconsider?

Post by Doom&Gloom » Sat Aug 25, 2018 3:31 pm

Why ask others what you should do? Do what works best for you. Threads on cash vs CCs come up monthly on this board--sometimes even from a new perspective. Read them and make your own decision.

For years I walked around with two credit cards in my wallet but rarely used either for anything. What finally broke it for me was having to wait in line at convenience stores and gas stations to pay for gas rather than using a CC at the pump. About that same time I discovered CC sign-up bonuses and never looked back. I still carry currency around but seldom use it. I haven't had a coin in my pocket for a few years now. I feel as if this choice has not only saved me time and money but has also liberated me.

Your system may work best for you. None of us can tell you what you should do. If you do try out CCs and don't like them, you can always revert to cash. It isn't as if you permanently committed to pick one or the other.

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whodidntante
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Re: I still use cash not credit cards should I reconsider?

Post by whodidntante » Sat Aug 25, 2018 3:59 pm

rgs92 wrote:
Sat Aug 25, 2018 1:42 am
I look forward to the day when I can use a finger-print or voice recognition or iris scan to pay anything and have it charged to my credit card or bank account. Then I wouldn't need a wallet at all. I hate carrying a wallet.

Why should I have to carry any physical cards (or paper currency) in these modern times? I actually resent it.
(And this includes drivers licenses and insurance cards.)
You can get pretty far with mobile payments with a card case on the phone for backup. I keep my driver's license and the card I'm putting most of my spending on in the card case. And I have my car and motorcycle insurance cards on my phone as well. I can authenticate with a thumbprint.

JBTX
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Re: I still use cash not credit cards should I reconsider?

Post by JBTX » Sat Aug 25, 2018 7:07 pm

Today kid and I went to fast food drive through. About $13 order. I ordered then realized I forgot my wallet. I always use credit cards. I had to drive to the side and I dug around the car and mustered up about $12 in coins. So I went inside and subtracted a drink to stay under $12.

I think this definitively proves you will spend less with cash (or even less with coins!). In spite of this rock solid evidence, I plan to continue using credit cards.

gd
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Re: I still use cash not credit cards should I reconsider?

Post by gd » Sat Aug 25, 2018 8:19 pm

My thoughts are to do what you want. To keep track, I enter all purchases-- cash or credit card-- into quicken manually. No downloads.

Consider that with a CC, you will get a monthly summary of all your purchases. Now you just have the inhibitory act of needing to get a wad of cash every few days. I'd guess it's not so much about tracking as it is a bit of behavioral manipulation. Which is perfectly ok.

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wander
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Re: I still use cash not credit cards should I reconsider?

Post by wander » Sat Aug 25, 2018 8:39 pm

Op, do what you feel comfortable.

cs412a
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Re: I still use cash not credit cards should I reconsider?

Post by cs412a » Sun Aug 26, 2018 8:39 am

I found I stopped carrying more than $25 in cash when my son became a teenager.

indexonlyplease
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Re: I still use cash not credit cards should I reconsider?

Post by indexonlyplease » Sun Aug 26, 2018 9:05 am

If you like what you are doing with paying cash then keep doing it.

The point will not make you rich and will not change your lifestyle.

I do a little of both because I still like paying cash.

The points will not make any difference in my life.

Also, we have never kept a budget and have no debt. So now money issues with us spending either way.

NOW if you are like my neighbor with a buisness and making large buisness purchases that would make sense. Because he flies first class every where with his points.

Silence Dogood
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Re: I still use cash not credit cards should I reconsider?

Post by Silence Dogood » Sun Aug 26, 2018 12:16 pm

The real problem with cash is that it's becoming increasingly less convenient to use as prices rise over time (inflation over the long term).

For example, getting back change (coins) is just a nuisance nowadays, whereas 50 years ago coins were actually very useful. The $11 that I spent on lunch the other day would have only cost $1.52 back in 1968. Of course, wages have risen since then but that still leaves cash being less and less useful over time. The highest denomination that the Treasury issues is the $100 bill - and that is unlikely to ever change (especially since higher denominations would most likely be used almost exclusively in the black market).

Just as coins are seen as a nuisance today, 50 years from now prices will have risen enough to the point where bills will be viewed this way as well.

Of course, if the Treasury wanted to, they could introduce a new U.S. currency, stop issuing the current U.S. currency, and establish a fixed exchange rate of something like old U.S. $1 = new U.S. $0.10 (turn in old $100 bill to the bank and get a new $10 bill back). This would make cash relevant again. I haven't heard of anyone proposing this idea though so I doubt it will happen.

One advantage of cash is that it offers a lot more privacy than using plastic.

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Re: I still use cash not credit cards should I reconsider?

Post by gotester2000 » Sun Aug 26, 2018 12:54 pm

mrmass wrote:
Fri Aug 24, 2018 7:08 am
BogleMelon wrote:
Fri Aug 24, 2018 7:04 am

I also pay my CC every 2 or 3 days! I hate to see that red number getting bigger! I hate to be in debts even for a week. And that makes my bank account balance reflecting the real amount of money that I have available anyways, even if I wasn't tracking and budgeting.
This might be something that satisfies me. Just pay my cc weekly. That hasn't crossed my mind.
Almost like going to the atm and taking money out. Thanks for the insight.
Nothing wrong to use cash. Use CC only when needed. Behaviourally, one thinks more while spending in cash than CC. You do not waste time(much more than drawing cash from ATM) analysing and are not bound to making purchases based on points and offers - just buy what you need. CC does offer protection to purchase.

gotester2000
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Re: I still use cash not credit cards should I reconsider?

Post by gotester2000 » Sun Aug 26, 2018 1:04 pm

rgs92 wrote:
Sat Aug 25, 2018 1:42 am
I look forward to the day when I can use a finger-print or voice recognition or iris scan to pay anything and have it charged to my credit card or bank account. Then I wouldn't need a wallet at all. I hate carrying a wallet.

Why should I have to carry any physical cards (or paper currency) in these modern times? I actually resent it.
(And this includes drivers licenses and insurance cards.)

And I wish my car would recognize me and unlock and start up.
This is definitely the future - authorize everything you do using a truly unique identifier - no login/password - just a question of how long it will take and the chaos if the system somehow fails and there are no physical backups!

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Earl Lemongrab
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Re: I still use cash not credit cards should I reconsider?

Post by Earl Lemongrab » Sun Aug 26, 2018 1:17 pm

gotester2000 wrote:
Sun Aug 26, 2018 12:54 pm
Nothing wrong to use cash. Use CC only when needed. Behaviourally, one thinks more while spending in cash than CC. You do not waste time(much more than drawing cash from ATM) analysing and are not bound to making purchases based on points and offers - just buy what you need. CC does offer protection to purchase.
That might be the case for you, but certainly not for me. I analyze every purchase, and think about it hard. How I'm paying doesn't matter in the slightest.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

stvyreb
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Re: I still use cash not credit cards should I reconsider?

Post by stvyreb » Sun Aug 26, 2018 10:42 pm

1) using cash make your expenses visible IMO, it's not just a number on a register

2) more and more, all your purchases are being collated by Big Brother .... which is the long-run is not something you want, and should try to mitigate.

3) I use one card, with a cash back feature, for purchases > $40 or so , gas stations, and online purchases ; otherwise, why get involved in "the game" , I've better things to do, then stoop to interacting with the usury 25% rentiers , really , in my opinion it's a criminal game .

4) if you use 1 cc for larger purchases, shouldn't need to make too many runs to the ATM .

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Re: I still use cash not credit cards should I reconsider?

Post by Dantes » Mon Aug 27, 2018 6:23 am

If you are in line in front of me at the grocery store you should definitely use cash.

hightower
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Re: I still use cash not credit cards should I reconsider?

Post by hightower » Mon Aug 27, 2018 6:42 am

mrmass wrote:
Fri Aug 24, 2018 6:44 am
I'm in my mid 50s. I work make a decent living. Same with DW. Every 7-10 days or so I grab $3-$400 from the atm. That's how I spend money. I have credit cards and only use them if for travel or if I'm in a pinch. DW uses her credit card for everyday items.

Perhaps it's a phobia of sorts but I feel that I lose track of spending if I use my cc for daily purchases. We don't have a spending problem as we live below our means but using too much cc (for me) makes me feel financially disorganized.

We don't play the points game and am wondering if I should be embracing points/cash back programs etc. We're both able to pay our full balance off monthly.

Any thoughts? BTW her cc and my cc are in our names only.

Thanks
Here's some food for thought. Most retailers now a days know that generally everyone is paying with credit cards. Those credit card companies charge the retailer a small fee for their use. In return, the retailers adjust their prices up to cover this cost. So, when you pay for something with cash, you are paying a higher price for that thing so that everyone else around you can use rewards cards. We're all playing a silly game, but in the end, those who pay with cash are subsidizing those who pay with cards.
Now, with that being said, if you're someone who behaviorally speaking would spend more if you used a credit card, then it might make sense to not use the credit card still. Credit cards do make it easier to over spend.

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Re: I still use cash not credit cards should I reconsider?

Post by hightower » Mon Aug 27, 2018 6:53 am

Silence Dogood wrote:
Sun Aug 26, 2018 12:16 pm
The real problem with cash is that it's becoming increasingly less convenient to use as prices rise over time (inflation over the long term).

For example, getting back change (coins) is just a nuisance nowadays, whereas 50 years ago coins were actually very useful. The $11 that I spent on lunch the other day would have only cost $1.52 back in 1968. Of course, wages have risen since then but that still leaves cash being less and less useful over time. The highest denomination that the Treasury issues is the $100 bill - and that is unlikely to ever change (especially since higher denominations would most likely be used almost exclusively in the black market).

Just as coins are seen as a nuisance today, 50 years from now prices will have risen enough to the point where bills will be viewed this way as well.

Of course, if the Treasury wanted to, they could introduce a new U.S. currency, stop issuing the current U.S. currency, and establish a fixed exchange rate of something like old U.S. $1 = new U.S. $0.10 (turn in old $100 bill to the bank and get a new $10 bill back). This would make cash relevant again. I haven't heard of anyone proposing this idea though so I doubt it will happen.

One advantage of cash is that it offers a lot more privacy than using plastic.
That's a good point. The only time we ever use cash is when we're traveling, especially overseas. I hate dealing with change. It's such a nuisance. We end up with pockets full of coins by the end of the week and have to dump them all on some small purchase before we head home otherwise we're stuck with change we'll never use. Perhaps it's a sign that we spend too much, I don't know, but it's sure annoying to have multiple transactions with single digit cents left over.

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Re: I still use cash not credit cards should I reconsider?

Post by Doom&Gloom » Mon Aug 27, 2018 8:41 am

Dantes wrote:
Mon Aug 27, 2018 6:23 am
If you are in line in front of me at the grocery store you should definitely use cash.
I used to feel the same way, but nowadays it seems that cash transactions are more time-consuming than credit card transactions.

At least the days of people writing checks at grocery stores seems to be mostly a thing of the past :beer

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Re: I still use cash not credit cards should I reconsider?

Post by Earl Lemongrab » Mon Aug 27, 2018 10:44 am

Dantes wrote:
Mon Aug 27, 2018 6:23 am
If you are in line in front of me at the grocery store you should definitely use cash.
You think cash is faster? Admittedly the chip slows things down these days, but I almost never have the process not be finished by the time the cashier or bagger is done loading everything.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

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Re: I still use cash not credit cards should I reconsider?

Post by 28fe6 » Mon Aug 27, 2018 11:18 am

Silence Dogood wrote:
Sun Aug 26, 2018 12:16 pm
The real problem with cash is that it's becoming increasingly less convenient to use as prices rise over time (inflation over the long term).

For example, getting back change (coins) is just a nuisance nowadays, whereas 50 years ago coins were actually very useful. The $11 that I spent on lunch the other day would have only cost $1.52 back in 1968. Of course, wages have risen since then but that still leaves cash being less and less useful over time. The highest denomination that the Treasury issues is the $100 bill - and that is unlikely to ever change (especially since higher denominations would most likely be used almost exclusively in the black market).

Just as coins are seen as a nuisance today, 50 years from now prices will have risen enough to the point where bills will be viewed this way as well.

Of course, if the Treasury wanted to, they could introduce a new U.S. currency, stop issuing the current U.S. currency, and establish a fixed exchange rate of something like old U.S. $1 = new U.S. $0.10 (turn in old $100 bill to the bank and get a new $10 bill back). This would make cash relevant again. I haven't heard of anyone proposing this idea though so I doubt it will happen.

One advantage of cash is that it offers a lot more privacy than using plastic.
True but there's no need to re-denominate; just issue bills and coins in useful denominations. There would be no problem issuing $500 bills and $5 coins. I don't see this happening without very different-thinking leadership because cash does not benefit the government.

The EU has a 500eu note. Yes, I have heard it's popular with organized crime.

The Japanese use 500 and 100 yen coins extensively; there is no 100yen bill at all. I remember in Japan I bought a chapstick with 2000-yen bill (equivalent of our $20 bill) and they handed back only a few coins. I thought for sure they were shorting me, or else that was the most expensive chapstick ever, but that 4 coins was worth about $18.

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Re: I still use cash not credit cards should I reconsider?

Post by beth65 » Mon Aug 27, 2018 12:25 pm

I equate using cash to holding on to cash/saving cash under your bed - you are losing value to inflation. If your wallet gets stolen, the cash is gone forever. You can cancel your cards immediately and they will refund you any amount that was purchased fraudulently. I understand that older people have issues with trust, but with credit cards and online banking, there is a record of everything. Once cash is in your pocket, you have to write everything down and save receipts.

Like most other posters here mention, credit cards actually save you money IF used responsibly and wisely. The key is to maximize rewards, always pay the balance in full, and use an excellent budgeting app to keep track of everything you have already spent.

I have investment accounts with Merrill Edge, and a no-fee IRA (friend is a FA and waives fees for me completely). Between my investments, my checking and now the new Bank of America Platinum rewards, I have over $100k in all accounts, which puts me at the highest rewards tier, which is 2.62% for all purchases, and 3.5% for travel and dining. I use American Express Preferred for groceries and gas, since they offer 6% back for groceries for the first $6000 (I then use B of A for the remainder of the year) and 3% for gas.

I use Personal Capital to manage my overall financial picture and to monitor investments/retirement, and I use YNAB for my budgeting. I sync transactions from all accounts every morning, and I know exactly how much I have spent in every single category that I have created (you can go as broad or detailed as you like and create subcategories). I pay all cards in full at the end of the month like cash, and I use the YNAB app on my phone to track every purchase and to be aware of exactly how much I have spent in every category, so if I want to spend extra on dining out, I take it from the excess in another category like clothing,

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Re: I still use cash not credit cards should I reconsider?

Post by mikep » Mon Aug 27, 2018 2:11 pm

From using credit cards I have not paid for a flight or hotel in years. There is always a signup bonus out there to get the next one free and I focus on earning Chase transferable UR points. I even redeemed points for Disney world tickets saving $1800 from a recent sign up bonus. When I'm done with one bonus I go for another. I'm hooked.

We have also earned perks such as the southwest companion pass from credit cards, giving buy 1 get 1 free southwest tickets for almost 2 years. The one ticket bought can be with southwest points also.

I register them with cash back sites that we get points or cash back with zero effort after setup from sites like rapid rewards dining, ebates, dosh, uber visa local etc.

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Re: I still use cash not credit cards should I reconsider?

Post by Jack FFR1846 » Mon Aug 27, 2018 2:17 pm

Many of the mom and pop stores I go into who do a lot of cash business have signs up "No Bills Over $20". Likely burned by counterfeit bills in the past. So if you walk in with a pocket full of $3k in $100 bills......you won't even be able to buy a slice of pizza. Credit card? No problem.
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Re: I still use cash not credit cards should I reconsider?

Post by penguindance49 » Mon Aug 27, 2018 2:28 pm

Earl Lemongrab wrote:
Sun Aug 26, 2018 1:17 pm
gotester2000 wrote:
Sun Aug 26, 2018 12:54 pm
Nothing wrong to use cash. Use CC only when needed. Behaviourally, one thinks more while spending in cash than CC. You do not waste time(much more than drawing cash from ATM) analysing and are not bound to making purchases based on points and offers - just buy what you need. CC does offer protection to purchase.
That might be the case for you, but certainly not for me. I analyze every purchase, and think about it hard. How I'm paying doesn't matter in the slightest.
I analyze every card purchase, but cash will fly out of my wallet faster than anything. I'll occasionally take $20-$60 out for fun money, fully acknowledging that I'm not gonna track it, I'm not gonna know what I'm spending it on at the end of the month, and that's fine.

This is why apps like Venmo are a godsend... one friend picks up the tab for something and you send what you owe them easypeasy. None of the "do you have change for a $20?" "Wait, I only have a $5." "Crap, can I get you next week?" "Ok, give me that $20 and I'll owe you $8..."

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Re: I still use cash not credit cards should I reconsider?

Post by coupleofcents » Wed Aug 29, 2018 7:04 am

Watty wrote:
Fri Aug 24, 2018 7:28 pm
coupleofcents wrote:
Fri Aug 24, 2018 11:41 am
By using all cash, you are indirectly subsidizing all the credit card users since merchants make more money off cash sales than credit card sales.
it is a bit more complicated than that. When a merchant takes cash they have handling costs for that too, like having a armored card stop by the store to pick up the cash.
That's a good point Watty. Didn't consider that. I guess you could argue that all businesses must provide an option to pay by cash, whereas some businesses (less and less in the U.S.) do not provide for CC payments. So a cost associated with cash is a given. Of course, businesses who don't provide CC payment receive less sales.

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Re: I still use cash not credit cards should I reconsider?

Post by Agggm » Wed Aug 29, 2018 7:45 am

Jags4186 wrote:
Fri Aug 24, 2018 6:51 am
There are 1,000,000 CC threads but the general answer is: if you'd like to go through life with a 2% discount on everything you should get a credit card.

Regarding your questions about keeping track--if you're just walking around with a stack of $20s and replenishing when you are low, I can't imagine how that's keeping more track than getting an itemized bill of every single thing you spent money on at the end of the month.
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Re: I still use cash not credit cards should I reconsider?

Post by smitcat » Wed Aug 29, 2018 9:15 am

coupleofcents wrote:
Wed Aug 29, 2018 7:04 am
Watty wrote:
Fri Aug 24, 2018 7:28 pm
coupleofcents wrote:
Fri Aug 24, 2018 11:41 am
By using all cash, you are indirectly subsidizing all the credit card users since merchants make more money off cash sales than credit card sales.
it is a bit more complicated than that. When a merchant takes cash they have handling costs for that too, like having a armored card stop by the store to pick up the cash.
That's a good point Watty. Didn't consider that. I guess you could argue that all businesses must provide an option to pay by cash, whereas some businesses (less and less in the U.S.) do not provide for CC payments. So a cost associated with cash is a given. Of course, businesses who don't provide CC payment receive less sales.
Our business offers a discount for cash and check - full pay for CC.

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Re: I still use cash not credit cards should I reconsider?

Post by smitcat » Wed Aug 29, 2018 9:19 am

Agggm wrote:
Wed Aug 29, 2018 7:45 am
Jags4186 wrote:
Fri Aug 24, 2018 6:51 am
There are 1,000,000 CC threads but the general answer is: if you'd like to go through life with a 2% discount on everything you should get a credit card.

Regarding your questions about keeping track--if you're just walking around with a stack of $20s and replenishing when you are low, I can't imagine how that's keeping more track than getting an itemized bill of every single thing you spent money on at the end of the month.
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Yes agreed - our daughter who is still attending college has fully funded some half dozen vacations just by utilizing credit cards. She will pay for just about everything on the CC and her friends pay her cash or venmo the cash to her account since they do not use CC's. Even on the vacations that she does with 3-5 friends most all the bookings are through her CC so she gets all the points and discounts. So her week long cruises or vacations to the DR and Jamaica have been completely subsidized by CC utilization.

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Re: I still use cash not credit cards should I reconsider?

Post by mrmass » Sat Sep 01, 2018 6:30 am

Just an update. Yesterday got my Capital One QuickSilver card. 1.5% cash back with a $200 bonus if I spend $1000 within 3 months.

I'm going to use less cash and use this card for a few months and see how it feels. I admit I'm feeling a bit excited to spend the first $1K. I need to buy a grill and tix to FL for our annual trip to Naples, FL.

If anyone is following this still-Can I fund an online savings (to get some bonuses) with my CC without it being coded as a cash advance?

Thanks

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Re: I still use cash not credit cards should I reconsider?

Post by PhilosophyAndrew » Mon Sep 03, 2018 6:10 pm

smitcat wrote:
Wed Aug 29, 2018 9:19 am
Agggm wrote:
Wed Aug 29, 2018 7:45 am
Jags4186 wrote:
Fri Aug 24, 2018 6:51 am
There are 1,000,000 CC threads but the general answer is: if you'd like to go through life with a 2% discount on everything you should get a credit card.

Regarding your questions about keeping track--if you're just walking around with a stack of $20s and replenishing when you are low, I can't imagine how that's keeping more track than getting an itemized bill of every single thing you spent money on at the end of the month.
+ 0 liability
Yes agreed - our daughter who is still attending college has fully funded some half dozen vacations just by utilizing credit cards. She will pay for just about everything on the CC and her friends pay her cash or venmo the cash to her account since they do not use CC's. Even on the vacations that she does with 3-5 friends most all the bookings are through her CC so she gets all the points and discounts. So her week long cruises or vacations to the DR and Jamaica have been completely subsidized by CC utilization.
Wow! How many 100,000s of dollars does your college student spend to full fund at least six vacations, includinga 7-day cruise, rom credit card points and rebates?

Andy.
Last edited by PhilosophyAndrew on Mon Sep 03, 2018 6:38 pm, edited 1 time in total.

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Re: I still use cash not credit cards should I reconsider?

Post by TierArtz » Mon Sep 03, 2018 6:38 pm

Yes!

Here are the credit card advantages I value most:
1. Easy tracking of spending and reconciling with Quicken
2. Rewards; we average about $7K/month on our card, which translates to a trip (back to Hawaii) about once every 2.5 years.
3. Don't have to carry much cash
4. I only have to go to an ATM about once every three months
5. The credit card is in my Apple wallet, so I don't even have to pull my wallet out in half the places I shop - just let my phone scan a fingerprint.

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Re: I still use cash not credit cards should I reconsider?

Post by smitcat » Mon Sep 03, 2018 6:41 pm

PhilosophyAndrew wrote:
Mon Sep 03, 2018 6:10 pm
smitcat wrote:
Wed Aug 29, 2018 9:19 am
Agggm wrote:
Wed Aug 29, 2018 7:45 am
Jags4186 wrote:
Fri Aug 24, 2018 6:51 am
There are 1,000,000 CC threads but the general answer is: if you'd like to go through life with a 2% discount on everything you should get a credit card.

Regarding your questions about keeping track--if you're just walking around with a stack of $20s and replenishing when you are low, I can't imagine how that's keeping more track than getting an itemized bill of every single thing you spent money on at the end of the month.
+ 0 liability
Yes agreed - our daughter who is still attending college has fully funded some half dozen vacations just by utilizing credit cards. She will pay for just about everything on the CC and her friends pay her cash or venmo the cash to her account since they do not use CC's. Even on the vacations that she does with 3-5 friends most all the bookings are through her CC so she gets all the points and discounts. So her week long cruises or vacations to the DR and Jamaica have been completely subsidized by CC utilization.
Wow! How many 100,000s of dollars does your college student spend to full fund at least six vacations, includinga 7-day cruise, rom credit card points and rebates?

Andy.
A bit under $100,000 I believe - the points come mostly from booking the flights themselves so airfare becomes zero.

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Re: I still use cash not credit cards should I reconsider?

Post by PhilosophyAndrew » Mon Sep 03, 2018 6:51 pm

Smitcat, a 2% rebate would only amount to $2,000 — the credit card ‘games’ must really pay off well if there are extra earnings to be had that will fund t least six trips!

I’m impressed!

Andy.

Dead Man Walking
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Re: I still use cash not credit cards should I reconsider?

Post by Dead Man Walking » Tue Sep 04, 2018 12:02 am

The number one reason that I use my credit cards is that many cashiers can't count out change even if the cash register shows them what it should be.

smitcat
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Re: I still use cash not credit cards should I reconsider?

Post by smitcat » Tue Sep 04, 2018 9:51 am

PhilosophyAndrew wrote:
Mon Sep 03, 2018 6:51 pm
Smitcat, a 2% rebate would only amount to $2,000 — the credit card ‘games’ must really pay off well if there are extra earnings to be had that will fund t least six trips!

I’m impressed!

Andy.
Andy - 2% does not come close to capture the entire picture when you are booking flights for 5 others and yourself.
The airmiles is what gains the largest advantage for the trips she makes as they are typically they largest costs.
Then there is the initial bonus points/miles on the cards, the extra bonus miles at 2X or 2.5X , flash sales for vacations on the cards, bookings for 4 persons or more get the next free deals, and similar with the cruises she has booked. Not including her time spent working when away or the pay that those days bring but one of the vacations did not require a return flight. All of the advantges do not come from the CC companies but having the cards with the limits is what allows her to get the deals.

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