The Number 1 Reason Why I Don’t Live On Cash

That's the big thing, control, which people have a problem with.

Amex card at costco can offer a good deal too. Ranges from 1% to 3%.

I need all these to buy a Mac book Air! Help!

Great post John. Another good reason I could think is when you charge to a credit card vs cash, every expenses you've made are recorded in the credit card statement. Nothing escapes that. That information can be very useful for lots of people.

Peter Lee

Scary Article Man.... Even though u can say pay it off in full i know plenty of people that have tried credit cards and have put thousands of dollars of debt on themselves... Now myself.... I pay it off in full which i recieve points and get free gift cards every $2,500 i spend..... So It is definitely worth it if you are smart about it.

Thanx

What a nice present visa gave you! :) You are lucky you can control your expenses. Many people can't.

I think it is better to spend money on something you love than to lose it in the Madoff Fraud or some other place sure if it is not its misfortune.

Although charging $140,823 to a Visa card in a year's time could be a substantial amount to some people ... But come to think of it, it's definitely still better to spend on some stuff that you love than to lose your hard earned millions in the Madoff Fraud, don't you think so?

I like your reply when you said "It’s not a crime for a bank to make a killing on the market. Just like it’s not a crime for a blogger to make a killing from a blog. I call that good marketing ..."

And your honest reply that "It would be foolish for me to say there ware no impulse purchases among the $140K. Yes there were. After all, I’m only human and have a weakness for toys as well ..."

By the way, it will be a wonderful idea to give your wife, Sarah that "nice romantic dinner" that she so deserves ... After all, behind every successful man, there is always a supportive wife. :)

I have a debit card instead of a credit card, well I have a credit card but i don't use it incase I go in debt....

I don't understand all the negative feedback. If you can use credit cards and earn enough money to pay off the balances every month, plus get a reward at the end of the year, why not??
I just opened a Chase checking account because they will deposit an extra $100 in my account. No monthly fees, I may keep the account after six months, or I may not, but why not take advantage of perks companies are willing to give?
I still have my primary account, Chase will be secondary. But I don't see what's wrong with using credit cards if you can pay the balance every month, and you get cash back at the end of the year.

Credit card is cool but can put you into boiling hot debt

I believe that every little bit of money saved or earned is good money. I personally don't remember the last time I used cash...

maybe i should get myself a card.But the problem is i dont really buy anything anywhere.thats the problem i feel.

yes john....cause we can take many benefits from our visa card, especially if we do much transaksion using visa card

The credit card with a great accountant is a nice little thing.I love it! But cash money is good as well.I choose both.Using depends on the situation which I live on.

John, now you can treat yourself out to about 7 dinners :D

Please do tell us how many % of the total charges is related to food :)

-Mike

Man why are we getting so serious with this? Everyone has their own style of living..

I agree wholeheartedly. Part of the reason the US is in the financial crunch it's in, is due to people who outspend their means. Used responsibly, credit is a wonderful thing.

I am sure they are using this kind of cheque like as cheese so that you will spend more and more and will get cash back as well.

Is there any extra charges also if you will use credit card.

Thats incredible, I never actually realised you could do that too. $1,400 to me personally is quite a lot so well done there you actually profited from having a credit card pretty much unheard of in todays circumstances.

Your going to make the bank go bust now :P

I also use my credit card. The only time I really use cash is for something that's around $5 or less.

Those 140 G's were for all the Twitter contest you've been having lately :) Wow, those contests add up!

It's a form of advertising that pushes people into getting a credit card. It's a come-on that only huge spenders would benefit greatly from.

way to be smart with your money John... Credit Cards can sure help give you additional perks if you pay them off in full every month.

I use a credit card for the ability to get cash back, but also so that I can automatically track spending categories through using http://Mint.com

As you said, credit is not bad. It’s mismanagement of credit that is bad. I don’t quite get a dividend as large as that, but I tend to put most of my purchases on plastic too.

hahah thats a nice return... Well I do the same so I can get miles instead of money back.... because I love traveling....

"That brings up the question, what the hell did I buy?

What I charged to my Visa isn’t the point."

Yeah that makes sense...

I believe it depends on people's financial behavior. For me, credit card is a great tool. I helps me track my expenses and most of all, it gives me the convenience to not bringing a lot of cash. But some people loathe credit card because it can drown them into huge debts. They blame credit card for THEIR lack of money management. They blame the tool for their lack of ability.

Great job! However, cash is King - especially now, Many stores when asked will offer you a discount when you are offering cash. The merchant saves the interest rate from the bank and whatever other reason they are willing to offer you a good discount.

I go to college and my bank is in my hometown (which my college is not) so I use my debit card for all my purchases. I have not setup a credit card to get rewards for my spending, but I plan to soon. With the prices of the books I have to buy for my classes I would get a nice rebate at the end of the year on those expenses alone :p

Give your wife a nice gift!!

Did you pay an interest to visa this year for you purchases ?

Do you have a Hussein as your middle name?? :)

John, you are right on target with this. But the credit card lifestyle is not for the undisciplined, as you pointed out in your post.

As always, excellent money management wisdom.

The only thing I have to say to them is they don’t know how to manage their money. If you’re the type of person who shops impulsively and doesn’t keep track of your spending, then a credit card is probably not for you.

The ironic thing about this statement is that most people who use cash aren't shopping compulsive. And those who are shopping compulsive are fueled by the fact that they have credit cards to use. These people usually spend up to the amount that they are given in credit cards, and probably don't live with much cash on hand.

Responsible people can spend money however way they choose to and still remain responsible whether it is by cash, check, or credit card, but those who aren't responsible won't be responsible even if it was all in cash, they could simply cash each weekly paycheck and spend it all and end up with $0 sum gained at the end of each month.

You just need good control on your money. Most people can't live like this. Greg Ellison

Actually my credit card doesn't offer a cash dividend as such, but it does offer a points system that I can convert to cash or goods which is just as good. The thing about credit cards is that you have to be careful that you don't fall into the trap of borrowing more than you can pay back, as this is a trap way too many people fall into. I personally only use the credit card when I know I have enough cash to pay any purchase off in it's entirety so as not to incur any interest charges.

I actually don't have bad credit..or probably credit at all. I think I just feel safer (in the city of philadelphia) knowing that my money is in the bank, rather than in my pocket..

yes nowadays, almost every item purchased is premium priced for build-in coupons, points....credit cards with build-in rewards, if you don't use them then you are punished by leaving money on the table. You are forced to carry stacks of cards as thick as deck if you want the lowest price.

And ofcourse, anoter benefit by using a credit card is you get to build your credit score history for free:) the higher your score the lower the interest, and more saving coming your way, it is a vicious cycle of benefits ...

I prefer to live on cash, screw credit cards, if i need one i just go to the store and get a prepaid one, its easier, and you know for a fact you cant screw up your financial future

Just before I moved in May 2008, I signed up for a BP Visa. I got 10% rebate on gas, 4% rebate on dining, and 2% on everything else for 60 days. This was more than enough time to get moved and settled in to my first real apartment. I had to buy a lot of stuff and put almost everything on that card. Within that first 60 days, I had accumulated more than $100 in rebates.

After the 60 days, all the rates are dropped by half. BP is already among the cheapest gas (plus it's not middle eastern). Unfortunately, the card the backed by Chase Bank--friends and family have had problems with Chase but I have yet to encounter these problems.

I, like you, John, do not carry a balance because I live within my means. Credit cards are not the enemy--they are like insurance for that bad month when unexpected expenditures hit hard, but protect only against the requirement to pay immediately. Rather, desire is the enemy, and such leads to poor money management and unmanageable debt.

"If we live beyond our means, we are destined to live beneath our means." - Congressman Dr. Ron Paul

Credit card debt sucks. yes if you pay off you monthly balance then the cash rewards work in your favorite. I'd say majority of the people carry a balance month to month without paying it off so you're earning the credit card companies money! boo! to the credit card companies!