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comment by user-inactivated
user-inactivated  ·  3053 days ago  ·  link  ·    ·  parent  ·  post: Do you have cash on you?

With the exception of large purchases or purchases where I want a paper trail (think buying electronics or paying for medical or car repair bills) I deal exclusively in cash. Ever since I've switched over from using credit/debit to dealing in cash I've had better control over my finances and my credit card debt is near zero. I still keep receipts so I know where all of my money is going, plus the Sunday afternoon act of actually figuring out where I spent all of my money on the week prior also helps towards being aware of how and how fast I'm spending my money.





steve  ·  3053 days ago  ·  link  ·  

When I'm counseling people with money trouble I make them do this. It's cash for EVERYTHING where possible. (and I'm not suggesting you have money problems). But if some one wants to really get a handle on their finances... a written, posted budget and a cash only system is a GREAT way to start.

The whole rewards card thing is great and all - but requires discipline.

thenewgreen  ·  3053 days ago  ·  link  ·  

Did you know that many credit cards will let you set up self-imposed spending limits? I think it's smart to have people live on a budget via cash, but it can be dangerous as well. My parents live almost exclusively on cash/debit. They destroyed their credit early in life. I grew up seeing what a boom/bust house looks like. Every two weeks our cupbards were full, then they weren't, then they were, then they weren't. Money management is SO important. Thankfully, I married the woman I did. She really changed me. For the better. We live within our means and it's a good feeling.

But you're right, it requires discipline.

user-inactivated  ·  3053 days ago  ·  link  ·  

It's interesting you say that. The whole reason I switched to cash actually was because all the time now you hear about stolen credit card data. If I pay in cash, that's one less thing I have to worry about. I just discovered by accident that it allows me to control my spending habits better. It's so helpful that it actually overshadows my desire to keep my credit card data safe as a motivator to use cash. Now it's something I recommend to anyone to try out if I hear they're having problems with budget.

WanderingEng  ·  3053 days ago  ·  link  ·  

I've kept track of every electronic purchase for something like 14 years. So while I deal almost entirely on my credit card, I know at any given time how much is on my credit cards, how much is in my checking account, and what the net difference is. When planning large purchases, it's easy to forecast out upcoming expenses and paychecks to see how that balance is likely to change over the next couple weeks. Funny how we end up in roughly the same place, gauging our expenses, in completely opposite ways.