Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-13-2014, 09:14 AM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,971
Quote:
Originally Posted by Walt34 View Post
We use a mixture of cash and credit cards. No debit card because the consumer protections on a cc are so much better. Generally we use cash for something that will be used up by the time the bill arrives (gasoline, meals out, etc.) and yes, I'm one of those who still writes a check at the grocery store, or cash for smaller purchases. This is not cast in stone and sometimes we'll use a cc if not doing so would require an ATM run. But that is the exception.

I just have some inner difficulty with having to pay for something long after it is gone. There is no rational reason and sometimes I will use the cc at a gas station. Where we usually buy gas they still let you pump first and then pay. At others, especially if it is raining, very cold, or crowded I'll go for the convenience and use the cc. Every cc purchase is immediately recorded in a spreadsheet that DW wrote so there are no "surprises" when the bill arrives and we always know what amount of discretionary spending we have left for the month.

This way of doing things has just evolved other the years and it works for us. YMMV.
No judgement here. Unlike you, we use CC or online payment for everything possible. But like you, we record each charge as it occurs in our check register and subtract it from our balance immediately - we've done that since 1980 or before. When we (online nowadays) pay our monthly CC balance, it's recorded as NC (no charge) and all the prior CC charges are checked off in the register (already subtracted). So we're a mix of new and old...
__________________

__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-13-2014, 09:50 AM   #22
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,878
I also use a CC for everything I can, for the cash back reward. Rarely ever use cash, haven't written a paper check in many years. As other mentioned your liability for fraud is limited, just check and report it promptly.

One annoyance is when changing cards, is changing the various accounts that are setup to autobill the card.
__________________

__________________
rbmrtn is offline   Reply With Quote
Old 01-13-2014, 09:55 AM   #23
Thinks s/he gets paid by the post
 
Join Date: Feb 2012
Posts: 1,103
Quote:
Originally Posted by Midpack View Post
No judgement here. Unlike you, we use CC or online payment for everything possible. But like you, we record each charge as it occurs in our check register and subtract it from our balance immediately - we've done that since 1980 or before. When we (online nowadays) pay our monthly CC balance, it's recorded as NC (no charge) and all the prior CC charges are checked off in the register (already subtracted). So we're a mix of new and old...
Very similar to what I do. Anything that can go on CC does, and every day or two post it in quicken on the CC register. Then the ending balance is posted in the checking register; the shown balance in the checking register is sort of a real time "this is what we have" figure. Each month when pension and what I take from investments is moved in to checking, I put in a dummy estimate of the four biggest recurring expenses; electric, gas, smartphone, and cable. That way the checking balance is a pretty good estimate of "what's left" as you go along. Yeah, it's excessive but I enjoy doing it that way. When cc bill comes in I reconcile and have discovered occasional errors. Last one was when we gave a niece a subscription a year ago for Christmas; they re charged us for renewal which we did not want. Amex took care of it.

DD and SIL are very well off and charge everything. They don't reconcile, just pay the cc bill. As much as they use it I can only guess there are some false charges hitting them. I just can't go that way.
__________________
H2ODude is online now   Reply With Quote
Debit, Credit or Cash
Old 01-13-2014, 10:03 AM   #24
Thinks s/he gets paid by the post
Dash man's Avatar
 
Join Date: Mar 2013
Location: Limerick
Posts: 1,668
Debit, Credit or Cash

Quote:
Originally Posted by Walt34 View Post

I just have some inner difficulty with having to pay for something long after it is gone.

I have an aversion to debt, but I pay 95% of all purchases with a rewards credit card. I use my iPhone banking app to monitor my accounts and pay my bill the same day the charge shows up on the account. It's amazing how the rewards add up over time. We're saving $1500 on a cruise later this year from a combination of credit card cash back ($900) and travel agency rewards ($600). Haven't paid a cent in interest or fees in years.
__________________
Dash man is offline   Reply With Quote
Old 01-13-2014, 10:14 AM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
I am getting rid of all the debit cards. One of my kids just had his checking account cleared out by someone making online charges with his his debit card number. It is one thing to have fraudulent charges on your accounts where you can just say, nope not mine, and another to have your checking account wiped out and hope the financial institution makes you whole again some day in the future. I think in this case he will get his money back, because the fraud department discovered it first and alerted him, but it was after his money was already gone.

We also do the 2% back and are getting into the more advanced rewards points / frequent flyer points games. I can't believe I didn't start doing this years ago. It does seem like it is not that hard to make an extra $500 - $1,000 a month in cash and travel value. Just doing the sign up bonus points a few times a year each seems like it will be a number of free round trips to Europe at minimum.
__________________
daylatedollarshort is offline   Reply With Quote
Old 01-13-2014, 12:47 PM   #26
Thinks s/he gets paid by the post
Live And Learn's Avatar
 
Join Date: Feb 2012
Location: Tampa Bay Area
Posts: 1,689
I only use my debit card inside my bank at their ATMs. I've written about 5 paper checks over the past three years. I pay everything I can by credit card; items I can't use a credit card for get paid via bank draft (basically you enter the info onto the banks online bill pay system and the bank writes a check).

I NEVER allow a company to pull money from my accounts. I always push the transaction through my bill pay.

I check my credit card activity at least once a week and I have alerts for my savings accounts for all transactions more than $100.

I use a cash back card and have used those points to buy myself a tablet and a kindle. I have another $1000 due to me and when I finally see a discretionary thingy that I really want I'll use my points to get it.
__________________
"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
Hebrews 12:11

ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.
Live And Learn is offline   Reply With Quote
Old 01-13-2014, 01:42 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by Midpack View Post
we record each charge as it occurs in our check register and subtract it from our balance immediately
This really sounds like a huge hassle. Stopping and writing down each purchase as you charge it? Why do you do that? There must be something I'm missing.

We charge most purchases on credit cards. But, after some friends got burned, I asked DW to use cash when she makes small purchases at little trendy spots she and her girlfriends like to frequent. Boutiques, quilt shops, small eateries, etc. I feel there is a greater chance of fraud when the clerk or server walks away with your card in these places than when you use the card at a Target or other major retailer.

To those who don't use/have debit cards: totally agree. I've yet to be able to find any advantage to using a debit card over a credit card. The opposite actually.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 01-13-2014, 01:49 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
Quote:
Originally Posted by youbet View Post
Boutiques, quilt shops, small eateries, etc.
don't forget Target!
__________________
daylatedollarshort is offline   Reply With Quote
Old 01-13-2014, 01:58 PM   #29
Thinks s/he gets paid by the post
jollystomper's Avatar
 
Join Date: Apr 2012
Posts: 1,358
I use mostly CC and cash. No debit cards due to the exposures other mentioned - I don't want anything tied directly to my accounts.

I download from my CC accounts every day into Quicken, so I always know the card balance and how it maps against our budget.... and that keeps me disciplined in using the CC.

I seemed to get "burned" every other year or so with fraudulent CC charges (interestingly only with cards I've used in restaurants, never with one I have used online or in a retail store). But (a) it doesn't cost me anything, and (b) I get the CC replaced in a few days (and have others to use if needed), so for me it is a minor hassle, but not a big deal.
__________________
Current target FIRE date: Under negotiation, can happen anytime.
jollystomper is offline   Reply With Quote
Old 01-13-2014, 02:01 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by daylatedollarshort View Post
and Target!
As I mentioned, situations like the one that occured at Target are certainly a concern. But I'm still more concerned about using a CC at small, independent shops and restaurants where a clerk or server has your card out of your sight than I would be about using the CC in a Target store today.

Admittedly, this is based on anecdotal evidence. We know several folks who had CC issues that stemmed from individuals using their CC data after obtaining it by simply jotting it down off their CC while they had the card out of sight of the owner. We don't know anyone who were actual victims of CC fraud from a data hijack from a major retailer like Target.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 01-13-2014, 02:07 PM   #31
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 3,624
Two credit cards, two debit cards. Actually one of the debit cards has never been activated. One C card is for gas only, other gets just about all our purchases. It has about $1,800 in cash back credit now. Debit card is used to get cash from USAA.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
Rustic23 is offline   Reply With Quote
Old 01-13-2014, 02:07 PM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,971
Quote:
Originally Posted by Midpack View Post
we record each charge as it occurs in our check register and subtract it from our balance immediately.
Quote:
Originally Posted by youbet View Post
This really sounds like a huge hassle. Stopping and writing down each purchase as you charge it? Why do you do that? There must be something I'm missing.
I shouldn't have said immediately, DW throws all our receipts in her "wallet" and actually enters them once or twice a week, so they're only roughly in order. If I'm not with her, my charge receipts go in the mail pile on the kitchen table and she snaps them up daily. Online receipts I fwd to her, per her request.

It's a throwback to when we first married and 1) we used cash and checks more often than credit cards, and 2) we didn't want to be among the many we've known who didn't pay attention and then were repeatedly surprised at how much their monthly CC statement was, and couldn't pay the whole thing (paid partial and interest). We just never got out of the habit, and it's much easier to have every expense in one place (check register in our case) for tracking expenses/budget. I was simply stating our old fashioned approach, not making a recommendation.

She still reconciles our checking account statement every month to the penny. I've told her there's no need for decades, but you pick your battles...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Old 01-13-2014, 02:24 PM   #33
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by Midpack View Post

It's a throwback ..... We just never got out of the habit.
I can definitely identify with that! We've got our list of old habits sticking to us too.......
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 01-13-2014, 03:14 PM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
Walmart.com called my son today to ask about one of the charges to his debit card that cleared out his account last night. So the debit card company caught the charges right after they happened and walmart had their transaction flagged as suspicious.

The debit cards scare me because the money can get taken out of accounts right away. It is like letting thieves have direct access to your checking account and then you have to work to get the money restored. There are more consumer protections with credit cards.
__________________
daylatedollarshort is offline   Reply With Quote
Old 01-13-2014, 04:23 PM   #35
Thinks s/he gets paid by the post
Nemo2's Avatar
 
Join Date: May 2011
Location: Belleville, ONT
Posts: 4,313
Quote:
Originally Posted by Midpack View Post
I shouldn't have said immediately, DW throws all our receipts in her "wallet" and actually enters them once or twice a week, so they're only roughly in order.
We keep our current receipts in an envelope, and on the CC bill date I cut & paste all the transactions onto notepad and delete them one at a time against the corresponding receipts (which I save for a year or so) before paying the CC balance due.
__________________
"Exit, pursued by a bear."

The Winter's Tale, William Shakespeare
Nemo2 is offline   Reply With Quote
Old 01-13-2014, 10:03 PM   #36
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 3,624
I download the cc data to quicken two or three times a week, we'll at least once a week depending on how much shopping we have done. I check the validity of each charge then.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
Rustic23 is offline   Reply With Quote
Old 01-13-2014, 10:32 PM   #37
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Posts: 1,648
I have only had one credit card. No debit card. After discovering today I had 30,600 reward points and realizing how much more quickly they could add up if I used it for everything, I'm rethinking my ways. Was able to make a "cash back" credit payment against my card purchases for Christmas with those points of $290.00. If I had used the card for everything rather than just online and store purchases it would have been far more. I can see where it can relate to some significant dollars and benefits.
I asked them to up my credit limit and I applied for an "immediate cash back" card as a back up card for travel (since I didn't have a back up card).
Late to the game but better late than never. Now I just have to set up a system and become comfortable with it.
__________________
sheehs1 is offline   Reply With Quote
Old 01-14-2014, 07:43 AM   #38
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,459
An easier way to deal with potential credit card fraud is to have a card you use only for recurring charges, and not even carry it in your wallet. That way if your "everyday" card is compromised, you don't have to scramble to update a bunch of automatic charges.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 01-14-2014, 07:49 AM   #39
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by frayne View Post
I don't have and will never have a debit card.
If you use an ATM for your bank/CU, it will probably be a debit card.
__________________
rescueme is offline   Reply With Quote
Old 01-14-2014, 09:56 AM   #40
Recycles dryer sheets
Cassie's Avatar
 
Join Date: Jul 2012
Posts: 281
I'm not online with banking...or purchases other than a plane ticket. I also don't have a pay-pal account. I do move $$ from my bank account to my brokerage account. Help me get the other foot in the 21st century.... what are the pros cons of using cc or banking online? Thanks
__________________

__________________
Cassie is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 03:12 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.