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Who needs cash...

February 28th, 2008 at 12:46 pm

I have mentioned many times before that we don't use cash for the most part.

Anyway, I roll my eyes at the idea that just because you have a credit card you spend more. Sure, may be true for many. But I find quite the opposite.

I earn 2%, on average, on every credit card purchase I make.

It is easy to track. When I spent more cash, I have to tell you I had NO IDEA where most of my money went. Now with the magic of online banking and Quicken I know where every penny goes. With pretty much no effort on my part. (That's the best part. I don't have to write anything down).

Likewise, we have a budget and we know how much we have to spend. Whether we use credit or cash, doesn't make a difference.

HOWEVER.

There is a BUT here.

I keep cash for my fast food/junk food purchases. My small luxury I guess. We don't have a lot of room for eating out, but I give myself a cash allowance of sorts.

I am just so used to guaging how much I have and how much I Can spend by the cash in my wallet.

Anyway, while we were sick dh ran to BK a few times for dinner/lunch. I saw all these BK charges on the card. I asked if he had paid through the drive thru. The thought had never occured to me, though I usually swipe the card when I go INSIDE a fast food place (generally only to let the kids play).

Anyway, so I tried it today. HAd leftovers all week and was in the mood for something greasy. Went to McDs and swiped the card.

Well, wasn't that easy?

It's just going to take a bit of mind shifting.

I think my best bet is to set up something in the budget. "Burn money" or something. Just limit it to the $20/month or so I usually pull out of the ATM. There's really not much need for cash any more. I could hardly think of anything else we need cash for. The occasional split lunch with friends or gambling money (poker/bunco). That's about it. Dh and I always carry an extra $20 in our wallet for this kind of stuff, or for emergencies.

I really enjoy handling cash less and less. Woohoo!

Plus, heck, I earned a dime of "interest" on my lunch. Big Grin

P.S. It's 70 degrees here and beautiful. Neener neener (LOL).

6 Responses to “Who needs cash...”

  1. JanH Says:

    Nice day here, too, if you love wind. Must be the windiest winter we've had. Now, I would love some breezy weather in July/August!

  2. Maismom Says:

    I know the weather is soooo nice. I HAD TO go outside and ate my lunch at the picnic table in front of our office bldg.

  3. nance Says:

    It was in the sixties in Northern Colorado, and breezy, but not windy.
    I am just the opposite with credit cards. I spend a lot more with plastic than with cash. We need to do what works best for each of us.

  4. Caoineag Says:

    I have never had much use for cash. Not to mention I can never make it to banks. It is useful for the junk food though. $1 is a bit small to put on a credit card. I am actually going the other way. I will start getting a little cash because I don't like to spend it so I won't eat out lunches as much. At least that is the hope :P

  5. merch Says:

    There has been a couple of articles in the past that detailed McDonald's increase revenues just by accepting revenues. I think, if memory serves me, the jump was around 17% more in average purchase of cc vs. cash.

    Most people do spend more on CC because of the different mindset people have between cc and cash.

  6. -Jerry- Says:

    It takes more discipline to use cards effectively, I think. Kudos to you that you have it, though! I think that dividing up cash into a budget leads (OK, forces) people to realize that there is a finite amount of resources at play in their finances. Once you have the understanding of that, though, credit cards can give you the insurance of knowing exactly where your money goes and when!
    Jerry
    www.leads4insurance.com

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