Comments on: Spend More With Cash or Plastic? http://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Mon, 22 Mar 2010 05:34:43 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: » This Week in the Archives: Cable, 401(k) Borrowing, and Credit Reports on Consumerism Commentary: A Personal Finance Bloghttp://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-89886 » This Week in the Archives: Cable, 401(k) Borrowing, and Credit Reports on Consumerism Commentary: A Personal Finance Blog Mon, 26 Mar 2007 03:03:42 +0000 http://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-89886 [...] 27: Spend More With Cash or Plastic? (7 [...] [...] 27: Spend More With Cash or Plastic? (7 [...]

]]> By: Inchoate Random Abstractionshttp://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2125 Inchoate Random Abstractions Mon, 27 Mar 2006 22:26:41 +0000 http://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2125 I think twice when I use cash or credit because to me, they're one and the same. As the author points out, with the credit card, it's just a tad bit more convenient to tally up purchases at the end of the month, as everyone has noted.You'd have to get rid of credit cards and all forms of credit completely for Scott's argument to work. I think it's just as easy for someone who struggles with overspending to take out a cash advance. They're using 'cash', but it's still money that they technically can't afford to spend. The author says that you should leave your cards at home. But that's unrealistic if one of your primary reasons for having a card is to cover unexpected emergencies. If I'm stranded at the side of the road because my car breaks down, I'm going to need that credit card to hire a tow truck. I think twice when I use cash or credit because to me, they’re one and the same. As the author points out, with the credit card, it’s just a tad bit more convenient to tally up purchases at the end of the month, as everyone has noted.

You’d have to get rid of credit cards and all forms of credit completely for Scott’s argument to work. I think it’s just as easy for someone who struggles with overspending to take out a cash advance. They’re using ‘cash’, but it’s still money that they technically can’t afford to spend. The author says that you should leave your cards at home. But that’s unrealistic if one of your primary reasons for having a card is to cover unexpected emergencies. If I’m stranded at the side of the road because my car breaks down, I’m going to need that credit card to hire a tow truck.

]]> By: Scotthttp://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2124 Scott Mon, 27 Mar 2006 20:25:17 +0000 http://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2124 You are missing the key point of the article - spending control! Credit cards allow you to accumulate debt by making purchases you cannot afford. Conversely, you can't spend cash if you don't have it.I personally limit my routine purchases to cash and, thus, avoid the propensity to overspend. If you don't have spending discipline (and are smart enought to realize it) - cash works!! You are missing the key point of the article – spending control! Credit cards allow you to accumulate debt by making purchases you cannot afford. Conversely, you can’t spend cash if you don’t have it.

I personally limit my routine purchases to cash and, thus, avoid the propensity to overspend. If you don’t have spending discipline (and are smart enought to realize it) – cash works!!

]]> By: Nickhttp://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2121 Nick Mon, 27 Mar 2006 20:11:12 +0000 http://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2121 Lovin' the new design. (Any chance of enabling the feature to let us remember our Name, Mail, and Website in the comment fields?)Liz Pulliam Weston is wrong wrong wrong. Not even taking into account purchase protection and rebates, cash is so much easier to spend because you don't keep track of it as closely as you do (or should) your credit cards. Credit cards let me use Quicken to monitor my spending by category and look for room to cut costs. Cash--it all goes to the same black hole. Lovin’ the new design. (Any chance of enabling the feature to let us remember our Name, Mail, and Website in the comment fields?)

Liz Pulliam Weston is wrong wrong wrong. Not even taking into account purchase protection and rebates, cash is so much easier to spend because you don’t keep track of it as closely as you do (or should) your credit cards. Credit cards let me use Quicken to monitor my spending by category and look for room to cut costs. Cash–it all goes to the same black hole.

]]> By: Sureshhttp://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2120 Suresh Mon, 27 Mar 2006 19:25:58 +0000 http://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2120 If Ms. Pulliam's cash suggestion works for some people, more power to them. I just wonder why there aren't articles that encourage us us to be who we are: adults. Requiring a modicum of discipline in credit card use is not harmful to us. (In the words of that great philosopher Stan Lee, "With great power there must also come -- great responsibility.")I would have much preferred Ms. Pulliam note the benefits of credit cards that Flexo mentioned: a tally of all of one's monthly expenses in one convenient place, for example. I would have preferred an article that notes the (marginal) interest you accumulate by not paying cash at every point of sale.But, you have more than one credit card account, you say? Well, do you have more credit across the accounts than monthly income? If so, why would you be using more than one credit card? Available credit is a cash substitute, not a cash supplement.Off topic: nice clean redesign, Flexo. If Ms. Pulliam’s cash suggestion works for some people, more power to them. I just wonder why there aren’t articles that encourage us us to be who we are: adults. Requiring a modicum of discipline in credit card use is not harmful to us. (In the words of that great philosopher Stan Lee, “With great power there must also come — great responsibility.”)

I would have much preferred Ms. Pulliam note the benefits of credit cards that Flexo mentioned: a tally of all of one’s monthly expenses in one convenient place, for example. I would have preferred an article that notes the (marginal) interest you accumulate by not paying cash at every point of sale.

But, you have more than one credit card account, you say? Well, do you have more credit across the accounts than monthly income? If so, why would you be using more than one credit card? Available credit is a cash substitute, not a cash supplement.

Off topic: nice clean redesign, Flexo.

]]> By: mapgirlhttp://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2119 mapgirl Mon, 27 Mar 2006 18:09:57 +0000 http://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2119 Nice redesign!I think I spend more with cash because I have no idea where it goes. My Quicken Cash Account is always out of balance because not every place gives a receipt. I should probably have one of those note papers in my wallet where I jot it all down. But it's just easier to pay with my debit card and reconcile it all at the end of the day electronically. Nice redesign!

I think I spend more with cash because I have no idea where it goes. My Quicken Cash Account is always out of balance because not every place gives a receipt. I should probably have one of those note papers in my wallet where I jot it all down. But it’s just easier to pay with my debit card and reconcile it all at the end of the day electronically.

]]> By: 2retirehttp://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2118 2retire Mon, 27 Mar 2006 17:43:14 +0000 http://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2118 Being a Dave Ramsey fan this has always been his thought and what I have tried to believe. For me personally though, spending cash over using the debit card doesn't make me stop and think twice. In fact I may be more apt to spend the cash for a particular budget category because it's there in my hand. If I use the debit card I'm never completely sure how much is left for that category and would most likely spend less. Being a Dave Ramsey fan this has always been his thought and what I have tried to believe. For me personally though, spending cash over using the debit card doesn’t make me stop and think twice. In fact I may be more apt to spend the cash for a particular budget category because it’s there in my hand. If I use the debit card I’m never completely sure how much is left for that category and would most likely spend less.

]]> By: SingleMomhttp://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2117 SingleMom Mon, 27 Mar 2006 17:35:38 +0000 http://www.consumerismcommentary.com/2006/03/27/spend-more-with-cash-or-plastic/#comment-2117 I actually spend more when I'm using cash. If I have money in pocket, I feel like it's money that's mean to be spent. Even if I don't need anything, I'll find "something" to buy.When I use plastic, I am more aware of what I'm swiping it for and I think about the interest I would have to pay if I wasn't able to pay it off when the bill comes. It also helps me to track my spending better and keeps me organized.I guess I'm a weird backwards thinker. I actually spend more when I’m using cash. If I have money in pocket, I feel like it’s money that’s mean to be spent. Even if I don’t need anything, I’ll find “something” to buy.

When I use plastic, I am more aware of what I’m swiping it for and I think about the interest I would have to pay if I wasn’t able to pay it off when the bill comes. It also helps me to track my spending better and keeps me organized.

I guess I’m a weird backwards thinker.

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