I still use cash not credit cards should I reconsider?

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mrmass
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I still use cash not credit cards should I reconsider?

Post by mrmass » 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

Jags4186
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Re: I still use cash not credit cards should I reconsider?

Post by Jags4186 » 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.

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

Post by CPonzi » Fri Aug 24, 2018 6:53 am

Some people change spending habits when using credit cards vice cash. If you prefer to use cash then there is no need to change; it's probably all a wash in the end. There is a reason why credit card companies provide these benefits. Personally, I use credit cards for everything because the idea of going to an ATM every 7 days is inconvenient. I do like to have cash on me though because there is always a vendor or instance where it comes in handy. If our family used cash entirely we'd probably spend less but in my opinion it's not worth the tradeoff of convenience.

Nissanzx1
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Re: I still use cash not credit cards should I reconsider?

Post by Nissanzx1 » Fri Aug 24, 2018 6:54 am

You won't get rich off the rewards so if for any reason using the cards makes you uncomfortable, don't do it. There is nothing wrong with cash, I'm sure the merchants love you for it!

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

Post by kaneohe » Fri Aug 24, 2018 6:54 am

perhaps, as you say, it's a phobia.........don't know why you would lose track of spending w/ cc.....seems like it would be easier since the transactions are there to review and at yr end, many cc companies can summarize annual spending by category.

seems more a phobia,IMHO,of losing control of spending if you don't use cash. With cash,seems like you can control spending by controlling ATM withdrawals. With cc you don't have control and it then is solely up to BOTH of you .

perhaps, there is an alternate explanation..............but only you know.

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

Post by mrmass » 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.

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

Post by UpperNwGuy » Fri Aug 24, 2018 6:57 am

mrmass wrote:
Fri Aug 24, 2018 6:44 am
Perhaps it's a phobia of sorts but I feel that I lose track of spending if I use my cc for daily purchases.
That's a surprising comment. I use credit cards because I feel like that I lose track of spending if I use cash for daily purchases. The credit card leaves a record of each purchase, and the lender does the bookkeeping for me.

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

Post by mrmass » Fri Aug 24, 2018 7:00 am

kaneohe wrote:
Fri Aug 24, 2018 6:54 am
perhaps, as you say, it's a phobia.........don't know why you would lose track of spending w/ cc.....seems like it would be easier since the transactions are there to review and at yr end, many cc companies can summarize annual spending by category.

They do summarize nicely, In my mind if I don't have the cash I think twice before buying.

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

Post by BogleMelon » Fri Aug 24, 2018 7:04 am

I play the CC points game, and I love it. Not making me rich, but it is something I enjoy anyways.

I also track every single purchase I do, regardless of how I pay. I spend based on the category budgeted amount, not based on cash on hand or CC limit.

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.

Back in my country I only used cash, because most local merchants doesn't have CC machines anyways, and because the banks suck at protecting you had something fishy happened to your card. Let alone that the banks there themselves would nickel and dime you for using a card. I remember once the bank without notice upgraded me from my only no fee CC to an annual fee CC and charged me without my consent! And it was perfectly legal in that country! I was doing fine with cash back then..

CC's are not for everyone, if you like the game join it, otherwise, no need to. Again, you won't get rich using them. You may get some extra protection and insurance here or there, but overall, you will be just fine without them.
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

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

Post by mrmass » 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.

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

Post by camillus » Fri Aug 24, 2018 7:09 am

I personally haven't carried cash in my wallet for a few years now. A few thoughts:

1) The real boon of the credit card game is sign-up bonuses. Accounting for these, over the past few months my "cash back" rate has been around 18%.

2) However, this brings a lot of complexity and compulsivity to my life - monitoring different spending levels and reward programs.

3) When I'm not playing the sign-up bonus game, I am happy with my 2% cash back Citi DoubleCash card.

4) I think credit card use tends to go with more use of technology, ie having more phone or computer time - checking statements and when transactions are posted.

5) It is fairly convenient to do daily spending on a cc with autopay, balance in full.

6) Dave Ramsey claims that people who use cards spend 12% more than cash users. There is a behavioral component to this. I don't people Benjamins, just a little plastic card.

7) My credit card gives me a great view of my spending. I also use YNAB, a zero-based budgeting program. I know exactly where all my money went, and I plan - with great precision - where it will go next month. I suppose you can do YNAB with cash just as well, but credit cards have a direct import function.

8) Ultimately, I'd do whatever you are comfortable with

9) One of my pet peeves is a thick wallet. I carry my wallet in my front pocket. It is the thickness of a small bifold with a few cards in it including drivers license, health insurance, AAA membership, 2 debit cards, and currently 3 credit cards.

10) After a few years of intermittent sign-up bonus gaming, my credit score rose to 830. Pleasant side benefit. I will always get the lowest rate for loans.

stan1
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Re: I still use cash not credit cards should I reconsider?

Post by stan1 » Fri Aug 24, 2018 7:13 am

mrmass wrote:
Fri Aug 24, 2018 7:00 am
They do summarize nicely, In my mind if I don't have the cash I think twice before buying.
I don't carry cash so I use a credit card just about everywhere including micro purchases. At this point I avoid businesses that do not accept credit cards. I am very careful about deciding to spend money but I also tightly manage the amount of money that goes into the checking account used to pay bills each pay period. Most of my paycheck goes to investing accounts not my checking account. A few times a year such as if I buy an international air ticket I need to pay my credit card balance off with money from a designated investment account (or make a transfer back to the checking account) but generally I don't need to.

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

Post by bgf » Fri Aug 24, 2018 7:15 am

'cc rewards won't make you rich'

well, duh. unfortunately, neither will my job or literally anything else I currently do in my life. I'm never going to be rich.

2% rewards on everything that I purchase is competitive with current rates however, so it is like boosting the annual return on my emergency fund. my emergency fund currently has like ~$24k in it @ 1.75%. i spend between $2-3k on my cc per month and earn 2% or more, so it is effectively like earning 4-5% on my savings.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

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Alexa9
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Re: I still use cash not credit cards should I reconsider?

Post by Alexa9 » Fri Aug 24, 2018 7:18 am

Cash is a nuisance to carry. Cards are easy. They're also easy to spend more though and well documented in studies. Think late night Amazon with a few drinks.
Citi Doublecash - 2% Cashback
Amazon or Costco Card
Chase Freedom
Many Travel Cards - your airport hub brand closest to you
Hotel Cards
Last edited by Alexa9 on Fri Aug 24, 2018 7:19 am, edited 1 time in total.

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

Post by student » Fri Aug 24, 2018 7:18 am

As others have indicated, there a number of benefits in using a credit card. However, if you are happy with using cash, there is nothing wrong with it.

Jack FFR1846
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Re: I still use cash not credit cards should I reconsider?

Post by Jack FFR1846 » Fri Aug 24, 2018 7:23 am

If you are taking out $400 from the ATM every week and your wife is taking out $400 a week, you missing out on $832 in money back with a 2% cash back credit card for doing absolutely nothing.

As far as losing track.....really? So if I were to ask you what you spent last September 26th, you could tell me? Ask me and I go back to my credit card statements and rattle off every purchase I made.

The one and only thing I use cash for these days is craigslist purchases. Nothing else. I'm not some millennial either. I'm 61.
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mrmass
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Re: I still use cash not credit cards should I reconsider?

Post by mrmass » Fri Aug 24, 2018 7:30 am

Jack FFR1846 wrote:
Fri Aug 24, 2018 7:23 am
If you are taking out $400 from the ATM every week and your wife is taking out $400 a week, you missing out on $832 in money back with a 2% cash back credit card for doing absolutely nothing.
Only I do.

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

Post by veindoc » Fri Aug 24, 2018 7:39 am

I spend less when I use cash than when I use a credit card.
I have at least ten cards with limits of 30,000 on many of them. I am not going to sweat a $20 purchase. If I only have $300 in my pocket and I have to go to an ATM to get more than yes I will sweat the $20.

I would be curious to see if you spend more if you transition to credit cards.

Having said that I always use credit cards. I worry about losing cash, I don’t fret about losing my credit card. I also would find going to ATM’s inconvenient or pumping gas. I don’t collect receipts since capital one and discover will send me a text once a transaction has posted. For record keeping, I just check my credit card statement to see what posted. I don’t care so much about the rewards. Perhaps if I added them up across the cards it might generate more excitement. I do however put large purchases on my ventures card for the miles. I’ve had several solo trips to visit family and what not and that has come in handy.

You seem to want to convince yourself to use credit cards. Why? What’s not working in your current system?

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

Post by SimonJester » Fri Aug 24, 2018 7:42 am

Why not give it a try for a month or two and see what happens to your spending. I track every single purchase cash or credit in quicken. Set your cards to auto pay the full balance every month so you never pay interest.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

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

Post by RickBoglehead » Fri Aug 24, 2018 7:42 am

$400 x 52 = $20,800 x 2% = $416. Bonus percentage quarterly brings that up even higher.

Plus time value of money, albeit not much.

Plus two year additional warranty on any items with warranty.

Wasted time at ATM x 52.

Chargebacks if services/product inadequate.

Theft and damage protection.

Quicken and credit cards allow us to track everything.

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

Post by mrmass » Fri Aug 24, 2018 8:02 am

veindoc wrote:
Fri Aug 24, 2018 7:39 am


You seem to want to convince yourself to use credit cards. Why? What’s not working in your current system?

What I don't think is working is that I don't think I'm being efficient with my money. While not a big spender I should at least get a 2% card and try it out for a while. This also is reflective in my investments. I hoard cash. Likely due to growing up eating ketchup sandwiches.


On another note I actually go into the gas station and pay with cash..it's kinda funny since I'm likely the only one doing that.

Thanks

invst65
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Re: I still use cash not credit cards should I reconsider?

Post by invst65 » Fri Aug 24, 2018 8:05 am

I've been using my 2% cash back card wherever possible for many years now.

Unless I have gone on vacation or made a major purchase my payoff balance never varies by more than a few hundred dollars each month. Once frugality and living within your means becomes habitual, things pretty much run on auto-pilot.

After so many years of using cash to discipline your spending maybe you should do an experiment with a credit card to see if it causes you to overspend. It would be interesting, if nothing else. My guess is it won't, but if it does, you can always ditch it and go back to cash.

bloom2708
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Re: I still use cash not credit cards should I reconsider?

Post by bloom2708 » Fri Aug 24, 2018 8:08 am

I would try it for 2 reasons:

1. Tracking - Cash just disappears with no accountability, no way to remember where it went.
2. Rewards - As mentioned, you won't get rich, but you take the free money, points, etc.

Do you go to Costco? Use their rewards Visa. Gas alone with the discount and 4% back makes sense. I filled up for $2.34 at Costco. The next station closest was $2.64. Plus you get 4% on top of that back in rewards.

I would pair #1 with Personal Capital.

Getting a FIRM grasp of real spending by tracking can really help as you head toward retirement/fixed income years.
"We are not here to please, but to provoke thoughtfulness." --Unknown Boglehead

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

Post by munemaker » Fri Aug 24, 2018 8:10 am

Aside from the points (which are nice), using the card gives you a good record of your spending, you do not have to handle dirty money or go to the ATM. People behind you in line will appreciate you using the card, getting through the payment process faster (phone payments such as Google Pay make it even faster). A side benefit is using the card improves your credit score.

I notice there are still quite a few people who pay with cash. Personally, I don't get it.

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

Post by mptfan » Fri Aug 24, 2018 8:12 am

mrmass wrote:
Fri Aug 24, 2018 6:44 am
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.
That's funny because I have exactly the opposite feeling...I feel that I lose track of my spending if I use cash. It's just too much work for me to keep receipts and take the effort to track cash spending, whereas when I use my credit card, I get a nicely itemized list of transactions from the credit card website or statement I can easily track each transaction on my spreadsheet. I also have a record of purchases that I can refer back to, sometimes months or years later, either if there is a dispute, or more commonly, sometimes I just need to remember when something happened, like "When did I buy that computer?" or "When did we meet Joe and Cathy for dinner at that restaurant?" Also, transactions are quicker, and I don't have to carry a bunch of cash and coins around with me everywhere I go. And think of how much time and gas you spend going to ATMs. And this may be a small issue, but every time you go to an ATM to get cash you make yourself a target for a criminal.
Last edited by mptfan on Fri Aug 24, 2018 8:16 am, edited 1 time in total.

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

Post by PhilosophyAndrew » Fri Aug 24, 2018 8:15 am

OP, i would be ruthlessly pragmatic:

If your limited use of credit cards works for you, carry on if you want to;

If you are bumping up against limitations of using cash and want to start using credit cards more frequently, do so;

If you believe that your behavior is determined by an irrational fear and you want to change this, takes steps to address that phobia.

Andy.

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

Post by JackoC » Fri Aug 24, 2018 8:24 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. There is a behavioral component to this.
This is the central issue, I believe. Is this really accurate, but moreover even assuming it's accurate in general
a) is it accurate for *me*?
b) does it matter, to the degree it's true for *me*?

I doubt if it's accurate for us. 'Cash' is the relatively small category in my fairly meticulously maintained 28 yr spreadsheet of spending by month in multiple categories. If it were just a big list of ATM withdrawals... OK can do the 'cash in envelopes' thing, but that's considerably more involved IMO than letting the CC co itemize for you.

Also to me psychologically, money taken from the ATM is already spent. Using the CC on something is actually spending.

Then on b) discussions of spending sometimes seem to assume no value in more or better goods and services. But there is. Then finally but also pretty centrally you can't make a single blanket assumption that everyone individually would be better off spending less. Some people naturally spend perhaps even less than they really should, we might be among them.

I see no reason to turn down the 2% discount plus a free itemized bill, and now that savings account rates are getting back toward 2% the float on waiting till the CC bill due date to pay is once again not entirely negligible.

To each his or her own though of course, on something like this.

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

Post by djpeteski » Fri Aug 24, 2018 8:24 am

Numerous research shows that, when using cash, one spends less. The amount of rewards one receives, or the TVM is negligible to the amount of overspending one does.

So if your goal is to spend at least as possible and also save money, then by all means use cash.

If you want to use a card, go ahead if pay it off every month and have some disposable income to burn.

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

Post by dccboone » Fri Aug 24, 2018 8:28 am

Are we going to beat this dead horse again? I guess we are. :(

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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 8:50 am

mrmass wrote:
Fri Aug 24, 2018 6:44 am
Any thoughts? BTW her cc and my cc are in our names only.
If you each only have one credit card then you should get a backup card and use it a couple of times a year to keep it active. With Murphry's law you could have your one credit card have a problem at a bad time.
mrmass wrote:
Fri Aug 24, 2018 6:44 am
We don't play the points game and am wondering if I should be embracing points/cash back programs etc.
One thing you might do is to start out simple and get a 2% cash back cards and use it for any purchase that is over $50 and cash for anything less. That would get the easy money and not drastically change your spending patterns.

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

Post by DaftInvestor » Fri Aug 24, 2018 9:02 am

If you are concerned about being undisciplined then don't use it.
If you believe you would still be disciplined you would gain ($400*4*0.02=) $32 monthly in cashback if you were using credit cards (provided you use a 2% cashback card like the DoubleCash from Citi card) and then you would not have to deal with pocket change, holding up lines while the cashier counts out your change, etc.

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

Post by Marshview28 » Fri Aug 24, 2018 9:19 am

I am 59 and although i do carry cash I don't trust ATM's. The only time I use it is at the bank to make a deposit. With the bank apps on the phone and the alerts you get when you use the credit card it is easy to follow and check your purchases. I use the credit card for everything, dinner, groceries, movies, gas, everything. It is like free money for a month. I see the balance and I know how much I have to pay any given day or night. Pay off the balance when the invoice comes. Not sure how fast you get the money back if your ATM gets hacked. With a credit card you don't pay for it. No money to return.

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

Post by MiddleOfTheRoad » Fri Aug 24, 2018 9:21 am

I cannot believe Bogleheads let this one slide. Let me help you look at it another way.
The price of everything you buy (at merchants that accept credit card) has a ~3% buffer built in. That is what the banks charge the merchants and they pass it on to you. By getting 2% credit card reward back you are just getting some of that back, the banks still pocket 1% transactional fee.

If you are an exlusive cash spender you are spending at least an extra 2% on everything. That is like paying a 2% ER (or AUM) on all your spendable money! Bogleheads would choke in tears at that 2% if it was labeled as “AUM” or “ER”.
The justification of “psychological advantage” to pay an extra 2% is not unlike all the excuses that Edward Jones give you. :twisted:

invst65
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Re: I still use cash not credit cards should I reconsider?

Post by invst65 » Fri Aug 24, 2018 9:28 am

MiddleOfTheRoad wrote:
Fri Aug 24, 2018 9:21 am
I cannot believe Bogleheads let this one slide. Let me help you look at it another way.
The price of everything you buy (at merchants that accept credit card) has a ~3% buffer built in. That is what the banks charge the merchants and they pass it on to you. By getting 2% credit card reward back you are just getting some of that back, the banks still pocket 1% transactional fee.

If you are an exlusive cash spender you are spending at least an extra 2% on everything. That is like paying a 2% ER (or AUM) on all your spendable money! Bogleheads would choke in tears at that 2% if it was labeled as “AUM” or “ER”.
The justification of “psychological advantage” to pay an extra 2% is not unlike all the excuses that Edward Jones give you. :twisted:
Right, but everyone pays the same price whether they use a cash back credit card or not, so we aren't going to see a 2% reduction in the prices until everyone stops using them. Given this fact, using a cashback card seems entirely Bogleheadish to me.

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

Post by MiddleOfTheRoad » Fri Aug 24, 2018 9:36 am

invst65 wrote:
Fri Aug 24, 2018 9:28 am
MiddleOfTheRoad wrote:
Fri Aug 24, 2018 9:21 am
I cannot believe Bogleheads let this one slide. Let me help you look at it another way.
The price of everything you buy (at merchants that accept credit card) has a ~3% buffer built in. That is what the banks charge the merchants and they pass it on to you. By getting 2% credit card reward back you are just getting some of that back, the banks still pocket 1% transactional fee.

If you are an exlusive cash spender you are spending at least an extra 2% on everything. That is like paying a 2% ER (or AUM) on all your spendable money! Bogleheads would choke in tears at that 2% if it was labeled as “AUM” or “ER”.
The justification of “psychological advantage” to pay an extra 2% is not unlike all the excuses that Edward Jones give you. :twisted:
Right, but everyone pays the same price whether they use a cash back credit card or not, so we aren't going to see a 2% reduction in the prices until everyone stops using them. Given this fact, using a cashback card seems entirely Bogleheadish to me.
Yes, my argument is to support using a reward credit card everywhere possible. I am surprised many here support cash-only spending. I am just framing the “2%” a little differently so people see the cognitive bias.

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

Post by Luke Duke » Fri Aug 24, 2018 9:41 am

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.
This is what I was going to recommend. Pick a hotel chain and/or airline and find some cards with good signup bonuses. Don't balk at the annual fee until you read what is included with the card. Many include a free night, statement credits, Global Entry, etc.

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

Post by MathWizard » Fri Aug 24, 2018 9:45 am

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.
Yes, I just did in the last year.

I've been getting quite busy, and trips to the ATM were getting old.

I have not found a large increase in spending, though that was one of my concerns.

jnet2000
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Re: I still use cash not credit cards should I reconsider?

Post by jnet2000 » Fri Aug 24, 2018 9:51 am

Why change now? Cash has worked for you.
"You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing" Warren Buffet

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

Post by mrmass » Fri Aug 24, 2018 10:02 am

I'm looking at cc's now. Looking at the Capital one Savor or Savor One.

I like Visa since we shop at Costco don't want the Costco card since the membership we're not the primary holders of the membership.

We dine out often and of course food shop alot too. We don't buy stuff from Amazon. I was drawn to the Discover but really want to use it at Costco.

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

Post by bloom2708 » Fri Aug 24, 2018 10:16 am

mrmass wrote:
Fri Aug 24, 2018 10:02 am
I'm looking at cc's now. Looking at the Capital one Savor or Savor One.

I like Visa since we shop at Costco don't want the Costco card since the membership we're not the primary holders of the membership.

We dine out often and of course food shop alot too. We don't buy stuff from Amazon. I was drawn to the Discover but really want to use it at Costco.
The Executive membership can get you (an additional) 2% on all Costco purchases. If you use the Costco Visa, then you get the added 2%, 4% on gas, 3% restaurants. 1% outside of Costco purchases.

It seems that picking another Visa wouldn't make sense compared to just buying a Costco membership. Sometimes a straight path works out best.
Last edited by bloom2708 on Fri Aug 24, 2018 10:38 am, edited 1 time in total.
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infotrader
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Re: I still use cash not credit cards should I reconsider?

Post by infotrader » Fri Aug 24, 2018 10:35 am

I use cc when possible including all my utility bills.

I have fidelity visa, amazon prime, chase freedom, and discover.
At Costco, I use their cash cards. I bought 2-3k of them when there are 5% on warehouse purchase offers from chase freedom and discover (usually at the last quarter of the year).

I also use cc for car purchase.

Of course, I never pay interest, since I pay everything by the due date.

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

Post by knightrider » Fri Aug 24, 2018 10:40 am

DaftInvestor wrote:
Fri Aug 24, 2018 9:02 am
holding up lines while the cashier counts out your change, etc.
haha, that reminds me of when I posted in another forum about how I dislike people with cash since they hold up the line. That thread got 500+ responses in 3 days with 90% of people defending their right to use cash.. So I guess there is a strong culture of folks who love cash no matter what others may think!

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

Post by SpaethCo » 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/

arf30
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Re: I still use cash not credit cards should I reconsider?

Post by arf30 » Fri Aug 24, 2018 11:01 am

I used to walk around with a big wad of cash until I realized I had no idea where I was spending my money. I was also sick of having a pocket full of loose change all the time. Now I do everything on cards and keep a few $20s in my wallet for emergencies. The cash back is nice but organization and security is the main reason I use them.

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rocket354
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Re: I still use cash not credit cards should I reconsider?

Post by rocket354 » Fri Aug 24, 2018 11:06 am

My points will probably be a collection of previously made points:

1) By going to CC you get free money in the form of sign-up bonuses and cash back. Some of these can be pretty lucrative--from one sign-up bonus, I've gotten airline miles which have translated into about $1000 in what I would have spent on flights. Others are straight cash, too.
2) Convenience. You don't have to always be going by the ATM.
3) Tracking purchases. It's easy to see what you've spent and where. As well, CCs often have their own coverage for purchases.
4) Security. If your CCs are stolen you likely won't be out any money other than time/inconvenience. If cash is stolen it's gone, baby, gone.
5) You will likely spend more. The convenience of a credit card, and the removal of the task of having to pull out a stack of $20 bills and count them out means purchasing is easier both as a physical and psychological process. People like to think psychology applies to everyone else but themselves. However, it is very unlikely that psychological habits don't apply to you. Buying a new $600 or more smartphone is much more easily accomplished online through the click of a button than if you have to count out a stack of bills in person at the store. At that point, maybe you hang onto the old one a little while longer, and when you do have to purchase it's a budget model at $200-300. As well, purchasing things on Amazon is easier when it's "only another $15 to add such and such."

Only you can weigh the pros and cons and determine what works for you. For me, I'm pretty frugal anyways, but I did just buy a $600 phone (I did need a new phone. just not necessarily a $600 one) so I am aware that I am probably afflicted by spending more even though I like to think I am disciplined. I do believe that my net return from CCs ($4-5k last year) is greater than my additional spend so I do come out ahead. Even if they were even, I'd come out ahead the extra "stuff" from if I didn't have CCs. But there's a reason you went to all cash, so if you might fall off the wagon so to speak, maybe you should stick to what works.

N10sive
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Re: I still use cash not credit cards should I reconsider?

Post by N10sive » Fri Aug 24, 2018 11:10 am

Sorry as I didn't read all of this thread but there is another thing you can do if you don't like CC's.

That is bank rewards. Open a checking account at a bank and use direct deposit from your work and you can make 150-500 dollars easily. That is a higher return than most credit cards. This will be taxable income which CC's rewards are typically not.

I typically stick to 1 card but recently opened the discover it card which was 0% interest for 18 months and 5% rotating categories, 1% everything else with the caveat that at the end of a year you get your cashback matched. Hard to beat that if only for a year. I imagine I will get maybe 1k back total after the first year.

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

Post by lazydavid » Fri Aug 24, 2018 11:14 am

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.
We pay ours off every other week when we get paid. Easier for us to do all the reconciliation at one time.

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

Post by GerryL » Fri Aug 24, 2018 11:29 am

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 guess I am one of those who has transitioned recently. Before retiring I only used my credit cards for larger purchases, filling the gas tank, eating out maybe (which I did not do often), and online purchases (which are still rare). I used my debit card for groceries. But unlike you, I usually only kept no more than ~$50 cash in my wallet and replenished by getting cash when I used my debit card at the super market (no fee).

I still generally use debit for groceries (and replenishing cash at checkout) but I am using credit cards much more. It seems to have been a gradual move. When traveling in Europe I tend to use cc when possible to avoid ATM fees and to keep a record of my expenses. It's also easier to get a transit ticket at a kiosk with a cc or to pay for entrance to a museum. Come to think of it, maybe it was this experience on my travels that changed my cash/cc behavior at home.

But this is always going to be a personal decision. Look at the advantages/disadvantages and don't worry how others do it.

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

Post by GerryL » Fri Aug 24, 2018 11:39 am

mrmass wrote:
Fri Aug 24, 2018 10:02 am
I'm looking at cc's now. Looking at the Capital one Savor or Savor One.

I like Visa since we shop at Costco don't want the Costco card since the membership we're not the primary holders of the membership.

We dine out often and of course food shop alot too. We don't buy stuff from Amazon. I was drawn to the Discover but really want to use it at Costco.
I just got the Costco card earlier this year. I am not the primary holder of the account but was told I could have my own cc card. I applied in person just to make sure it went as I was told it would. It has become my main card. No fee, since the account holder pays that, and no need to carry a Costco card.

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

Post by coupleofcents » 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. So I guess I should be thanking you and telling you to keep using cash:)

Honestly if there were better incentives for using cash I would but I think now adays there are very few transactions left where you actually get a better deal using cash.

I only use credit cards but that's because I find it easier for me, and I like to get the bonuses and cash back. I've never carried a balance more than 30 days or paid interest either so it works for me.

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