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Old 06-24-2017, 05:08 PM   #41
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For that oil change case, what if my trusted mechanic tells me my tires are no longer safe and I should replace them? With just cash in my pocket, I say I'll think about it, and may or may not come back, before I slide off a slick snowy road like I did a couple years ago (see the car maintenance thread).


For the Thanksgiving party, am I getting something extra for the extra money? Probably. Is it overly extravagant, or do my friends groan when they see how I've cut corners?


I'm sure I do spend a bit more with a credit card nowadays. I can afford a splurge now and then, and I'm not going to deprive myself. When I was struggling to make ends meet, I was always careful even with a CC and always made sure I could pay it off each month. I think I'm in the majority that way here, and in the minority with the rest of the world.
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Old 06-24-2017, 05:10 PM   #42
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This is the forum where people rationalize that a 2.5% WR is reasonable because the world might implode tomorrow. The last thing we need to encourage members on this forum to do is spend less. So I say if using credit cards encourages 20% more spending, fantastic!

I am curious though, for those of you who say they "pay cash", exactly what that means. Do you walk around with hundreds of dollars in your wallet? If you go to a store and want to buy something that you had not planned for, do you have to leave and find an ATM and then go back to the store?

Do you worry about losing the money, or having it stolen, or getting mugged? How frequently do you have to go to an ATM to replenish? Are you on of those annoying people who insist on writing a check in the grocery line to pay for four items? And if so, do you wait until the cashier has finished ringing everything up before you take the checkbook out of your pocketbook and look for a pen to begin filling out the check?
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Old 06-24-2017, 05:12 PM   #43
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... And if so, do you wait until the cashier has finished ringing everything up before you take the checkbook out of your pocketbook and look for a pen to begin filling out the check?
LOL, big pet peeve of mine! I always want to ask if they just now realized they'd have to pay for the items?
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Old 06-24-2017, 05:23 PM   #44
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Whenever I see someone pay a larger ticket thing with cash nowadays, my thoughts drift, correctly or incorrectly, to wondering if they have a "cash business" and are spending out of the revenue bucket to reduce their income tax. I think it's because I know that, with a little effort, they could save at least 2%, maybe more, and not have to risk walking around with many hundreds in cash in their pocket.
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Old 06-24-2017, 07:18 PM   #45
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This is the forum where people rationalize that a 2.5% WR is reasonable because the world might implode tomorrow. The last thing we need to encourage members on this forum to do is spend less. So I say if using credit cards encourages 20% more spending, fantastic!

I am curious though, for those of you who say they "pay cash", exactly what that means. Do you walk around with hundreds of dollars in your wallet? If you go to a store and want to buy something that you had not planned for, do you have to leave and find an ATM and then go back to the store?

Do you worry about losing the money, or having it stolen, or getting mugged? How frequently do you have to go to an ATM to replenish? Are you on of those annoying people who insist on writing a check in the grocery line to pay for four items? And if so, do you wait until the cashier has finished ringing everything up before you take the checkbook out of your pocketbook and look for a pen to begin filling out the check?
Yes I walk around with 100's of dollars. I went to dinner last Friday for Fathers day at a fine steak house, I had $2200 dollars in my pocket, I spent $560 including tips for valet and waiters. I haven't written a check at the grocery store since i started having money, probably around 1989. I find the person buying 1 thing and putting in a chip credit card and wait 2 minutes annoying. Mugging? Im blessed, Im a large man, Im a retired cop too. Im packing "heat" all the time, I dont worry about getting attacked by people. The muggers are weak scared social predictors that attack who they perceive are weak. Lose money you bet, i now have a wallet with a chain on it, or i might lose the entire thing. I dont go to the ATM, I have about 10k in my house, I have an alarm, cameras, locks . When the 10k goes to 5k i go to the bank. I get a free cup of coffee from the counter, and take out another 5 large. I walked around with 2 bucks in my pocket every day from 1983-1989 and i brown bagged my lunch. Starting in 1989 i graduated to never leaving the house without 5 bucks, i still brown bagged it. At the end of my career i walked around with probably 30 bucks and the brown bag lunch. I waited to live like this,now I am living my dream.
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Old 06-24-2017, 07:39 PM   #46
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Yes I walk around with 100's of dollars. I went to dinner last Friday for Fathers day at a fine steak house, I had $2200 dollars in my pocket, I spent $560 including tips for valet and waiters. I haven't written a check at the grocery store since i started having money, probably around 1989. I find the person buying 1 thing and putting in a chip credit card and wait 2 minutes annoying. Mugging? Im blessed, Im a large man, Im a retired cop too. Im packing "heat" all the time, I dont worry about getting attacked by people. The muggers are weak scared social predictors that attack who they perceive are weak. Lose money you bet, i now have a wallet with a chain on it, or i might lose the entire thing. I dont go to the ATM, I have about 10k in my house, I have an alarm, cameras, locks . When the 10k goes to 5k i go to the bank. I get a free cup of coffee from the counter, and take out another 5 large. I walked around with 2 bucks in my pocket every day from 1983-1989 and i brown bagged my lunch. Starting in 1989 i graduated to never leaving the house without 5 bucks, i still brown bagged it. At the end of my career i walked around with probably 30 bucks and the brown bag lunch. I waited to live like this,now I am living my dream.
For all of the large, gun carrying ex-cops on the forum, this may work just fine. For the rest of us, I would not be comfortable carrying $2,200 around in my wallet.
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Old 06-24-2017, 07:40 PM   #47
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I have a Chase Sapphire card, and recently took advantage of Chase AARP card offer. I was surprised I was approved because of that Sapphire card. I'd do a heckuva lot more "churning" to get the free money incentives, but DW won't let me.
My primary card is AMEX Blue Preferred. I use that AARP card for restaurants as the rebate is better. Between AMEX and Chase AARP I charge virtually everything I buy. As soon as statement cycle ends, I schedule the payment near the payment due date. It takes a minute to do this, no 14% (or whatever) interest and the rebates add up quickly and significantly.
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Old 06-24-2017, 07:45 PM   #48
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For all of the large, gun carrying ex-cops on the forum, this may work just fine. For the rest of us, I would not be comfortable carrying $2,200 around in my wallet.
Very valid point., But this is how I live my life. I was just commenting on my world and the credit card issue.
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Old 06-24-2017, 07:46 PM   #49
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Very valid point.
But more importantly, did you spend 20% less at the restaurant because you were paying with cash?
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Old 06-24-2017, 07:49 PM   #50
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For all of the large, gun carrying ex-cops on the forum, this may work just fine. For the rest of us, I would not be comfortable carrying $2,200 around in my wallet.
Yeah, and that plan works until it doesn't.
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Old 06-24-2017, 07:51 PM   #51
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But more importantly, did you spend 20% less at the restaurant because you were paying with cash?
The restaurant does not accept credit cards. Peter Lugers.https://peterluger.com/. So the meek & elderly that dine there are loaded with cash to the eye teeth.
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Old 06-24-2017, 08:28 PM   #52
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I like to pay cash because nobody knows what I bought. I always have 100 to 300 in the wallet.
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Old 06-24-2017, 09:14 PM   #53
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Similar to the OP, I was mainly a cash-only user except for large purchases (for me, large is anything over ~$50). But about 3 years ago, I switched to a cash-back CC offered by my own bank, one I use for my everyday activities and had recently obtained online banking access earlier in 2014. Makes it really easy to pay the bill.


I began using the CC for many of my previously cash-only purchases, mainly my trips to the supermarket. I still pay cash at the supermarket sometimes, when I buy less than $30. For over $40, I use the CC, and for $30-$40 I sometimes use the CC, sometimes use cash. The result of my increased CC use is that I make only 1 monthly trip to the ATM instead of 2.


But when I go to the supermarket, I no longer have to worry about not having enough cash with me in case something is on sale and I want to load up on it. In that sense, I do spend more when I use my CC. But it isn't like I am eating more food, just being more able to take advantage of something I always buy when it costs less. So, besides the small cash-back I get from using the CC, I save far more money from being able to buy more marked-down items.


For a time in 2014 and 2015, I was able to use my CC to pay my health insurance premium on line. That greatly ramped up my cash-back for a while. But when I changed insurance companies in 2016, my new company did not accept CC to pay monthly premiums.


I have been using my CC to make other payments on line such as my auto insurance (after a check got lost in the mail last year) and car registration renewal.


One place I don't use my CC is to buy gas for my car. Any cash-back would be more than offset by higher per-gallon gas prices for using a CC. I buy gas once very 3 weeks so it isn't a frequent purchase.


I use ACH or online bank check for my monthly bills, so I rarely use my CC even with the added use the last few years. For me, the CC is a tool to enhance my regular spending, not a way to spend more or spend recklessly.
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Old 06-24-2017, 09:33 PM   #54
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Originally Posted by Blue Collar Guy View Post
Its always pleasant to hear both sides of a situation. It is very possible the majority on this forum doesnt overspend when using plastic, I for one find it more painful to use cash , as for being skeptical,
Here is one study its shows 20%, Because of these two reasons, people overspend when using credit cards. In one study, the authors found that participants were willing to spend $175 to throw a Thanksgiving party when using a credit card to buy the food, but only $145 when using cash. These findings have been replicated by others.https://www.psychologytoday.com/blog...or-credit-card
Im just putting it out there, I for 1 believe you spend more using a credit card.
Not usually. Yesterday I was at a sushi place in Maui. Two prices, cash $70, credit card $85. Easy easy, I had cash with me. But on this vacation I had plan to spend my kid's inheritance so I did blow some dough. I'm not a large person with a gun let alone a large retired cop with a gun, so no way I would carry $600 to Mama's fish house. So credit card was it. It was frivolous spending, but we were there for the good time and excellent service. I could have eaten somewhere for 1/5 the cost but why bother. It's YOLO time.
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Old 06-24-2017, 09:37 PM   #55
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Similar to the OP, I was mainly a cash-only user except for large purchases (for me, large is anything over ~$50). But about 3 years ago, I switched to a cash-back CC offered by my own bank, one I use for my everyday activities and had recently obtained online banking access earlier in 2014. Makes it really easy to pay the bill.


I began using the CC for many of my previously cash-only purchases, mainly my trips to the supermarket. I still pay cash at the supermarket sometimes, when I buy less than $30. For over $40, I use the CC, and for $30-$40 I sometimes use the CC, sometimes use cash. The result of my increased CC use is that I make only 1 monthly trip to the ATM instead of 2.


But when I go to the supermarket, I no longer have to worry about not having enough cash with me in case something is on sale and I want to load up on it. In that sense, I do spend more when I use my CC. But it isn't like I am eating more food, just being more able to take advantage of something I always buy when it costs less. So, besides the small cash-back I get from using the CC, I save far more money from being able to buy more marked-down items.


For a time in 2014 and 2015, I was able to use my CC to pay my health insurance premium on line. That greatly ramped up my cash-back for a while. But when I changed insurance companies in 2016, my new company did not accept CC to pay monthly premiums.


I have been using my CC to make other payments on line such as my auto insurance (after a check got lost in the mail last year) and car registration renewal.


One place I don't use my CC is to buy gas for my car. Any cash-back would be more than offset by higher per-gallon gas prices for using a CC. I buy gas once very 3 weeks so it isn't a frequent purchase.


I use ACH or online bank check for my monthly bills, so I rarely use my CC even with the added use the last few years. For me, the CC is a tool to enhance my regular spending, not a way to spend more or spend recklessly.
I did pay cash for 2 years before I retired just to get an idea of how much we actually spent. But now if I don't have time, I pay cash for anything less than $20.
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Old 06-24-2017, 11:02 PM   #56
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Not usually. Yesterday I was at a sushi place in Maui. Two prices, cash $70, credit card $85. Easy easy, I had cash with me. But on this vacation I had plan to spend my kid's inheritance so I did blow some dough. I'm not a large person with a gun let alone a large retired cop with a gun, so no way I would carry $600 to Mama's fish house. So credit card was it. It was frivolous spending, but we were there for the good time and excellent service. I could have eaten somewhere for 1/5 the cost but why bother. It's YOLO time.
I love the "spending the kids inheritance part",
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Old 06-25-2017, 01:00 AM   #57
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This is the forum where people rationalize that a 2.5% WR is reasonable because the world might implode tomorrow. The last thing we need to encourage members on this forum to do is spend less. So I say if using credit cards encourages 20% more spending, fantastic!

I am curious though, for those of you who say they "pay cash", exactly what that means. Do you walk around with hundreds of dollars in your wallet? If you go to a store and want to buy something that you had not planned for, do you have to leave and find an ATM and then go back to the store?

Do you worry about losing the money, or having it stolen, or getting mugged? How frequently do you have to go to an ATM to replenish? Are you on of those annoying people who insist on writing a check in the grocery line to pay for four items? And if so, do you wait until the cashier has finished ringing everything up before you take the checkbook out of your pocketbook and look for a pen to begin filling out the check?
We pay cash for the normal "planned for" expenses like groceries, picking up a few things at Home Depot or Target or Costco, etc. DH gets his pension deposit once a month so we withdraw cash for a month. It covers groceries, our pocket cash, eating out and a chunk of cash for "other". I don't use the ATM, I go into the bank, usually the one in our grocery store or there is a full sized branch on the next block.

Usually we know what we're going shopping for and take more than enough for the errand. We both carry a cash back credit card just in case something comes up that we didn't bring enough cash for. I also keep extra cash in my car for when I stop at the store while I'm out and I didn't plan ahead. When we go for a major grocery run we take $200 but usually spend much less than that.

At first it felt very odd to be walking around with a couple hundred dollars in cash. To DH it feels very concrete. He felt like using credit cards for our normal spending was too detached, he'd rather just pay for things.

Here's a few times recently when we've used a charge card. We went shopping for a new bed and didn't know how much it would cost. We had enough extra cash at home but didn't want to deplete it so we bought the bed with a 1% cash back credit card. We also had some travel and car rental to reserve online and paid with the 1% credit card. Besides the 1% cash back the credit card (Chase Freedom) had some nice deals if you reserved through their site. There was also some cancellation protections through the credit card.

We have an Amazon credit card and use that often for Amazon purchases. We also use our debit card or PayPal for online things.

I don't worry about getting mugged or losing the cash. I am careful that when I go to the bank for a months worth of cash that I go right home.

We don't carry a months worth around in a store, just somewhat more than we need for that errand. We don't write checks for anything except property taxes twice a year so we aren't writing a check in a store. I don't think my checkbook has left the house in years. Monthly household bills are all on autopay/ACH/debit card.

I used to enjoy the credit card reward thing but DH has always been totally detached from any aspect of household finance for our entire marriage. When he retired I asked him to get involved (or at least pay attention) to our household finances and he said he would if we went to cash. It turns out that we both like this now.
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Old 06-25-2017, 05:44 AM   #58
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One of the reasons DH & I use our 2% cash back card for almost everything is tracking costs. I like to track what we are spending by category vs a pre-established budget. Paying with a card makes this MUCH easier. DH used to pay cash for gas, trips to the grocery store, etc. it drove me crazy because there were large ATM withdrawals that I couldn't really categorize. Now that we both use cards, if I see that we're spending more than we planned for in a particular area, we can either increase our budget or find a way to reduce what we're spending. Also, when one needs to return an item, it's much easier if purchased with a card. At most stores, you don't need a receipt to return if you used a card for the original purchase.
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Old 06-25-2017, 06:36 AM   #59
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Not usually. Yesterday I was at a sushi place in Maui. Two prices, cash $70, credit card $85.
This differential tells me that they're not just giving you a discount because they don't have to pay 2 to 5% to the credit card company- likely they're evading taxes on the cash sales.
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Old 06-25-2017, 07:10 AM   #60
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Agree that the ~18% discount is much more than one would expect for cash vs a credit card so it is suspicious... I wonder if they are running cash sales through the register or not.
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