congrats to you for being cash only...it's truly anti-cultural to be that way today...your 6 points are great...hats off to you for being almost debt free...my wife and I use the envelope cash system for groceries...when the cash runs out we don't buy anything else until next pay period. Good post!
I know him and have used him with mixed results but I have to ask you, how do we know that you aren’t' in fact M.S.?
You don't sign your name but you expect everyone to chime in and spout off. This is a small industry and I need M.S. more than I need “NWguy”.
Sorry but unless you're willing to man-up and tell us who you are, I can't help you. You could be just a competitor or even him trying to see who says what.
P.S. I know him better than you or anybody else. I started at the same company as a rookie with him about 15 years ago.
you can contact me at sueweetdeals@yahoo.com
Glad that you have found a system that works for you. I charge everything on my CC and pay it off each month--the cash back is worth it to me. But no fancy spending--I have a tiny house and my car is 22 years old with more than 250,000 miles (odometer stopped working, so who knows?). As long as you keep the frugal frame of mind, you'll find the system that works for you.
I left my job back in October because of a hostile work environment. Most of my upper mgmt. friends told me I would get my unemployment. Well needless to say my final hearing was back in February and I was just notified via email last week that I was denied my unemployment. I learned a very hard lesson that I should have just called the police and had her charged (she physically removed me from a meeting). Most interesting is I called the hearing department last Monday to find out where they were at on the results. The lady on the phone told me there were 300 hearings ahead of me and it would be another four weeks. Well three hours later I went online and there were the results from the hearing...
Hmmmmmmmmmmmm can you say strange?
I agree with your post. In the past, I thought I was being smart using credit cards so I could get the rewards. I always paid in full so I wasn't in debt; but I also wasn't saving what I wanted. When I switched to cash/debit card only, I realized I simply didn't spend as much. I would buy clothes, but return them later because I realized that I didn't really need them, and that the money would be much better in my account. However, with a credit card, by the time I got the bill, even if I realized I had spent WAY too much, it was usually too late to return anything.
If some people TRULY don't spend a penny more using CC than cash, awesome! However, I think at least some of us will spend more. Maybe not much more; but 10-20% more.
But what about all that cash back for purchases that credit cards give you? If you can force yourself to pay the credit card(s) off each month then credit cards are much better than cash. They're cash + about 2%.
We tried this tonite--20 lbs of pink and 20 lbs of blue play sand for $1.00 a bag, and 3 boxes of cornstarch for 82 cents a piece. We ended up adding more sand than called for and its like wet beach sand. For under $5.00, it will work for a fun outsde activity.
Lots of articles on the internet refer to how playing poker can help you to learn how to invest.
But I think that poker can be even more effective as a tool to tell people if they even have the capability to invest.
As we all know, one of the most effective methods to save money when investing is to cut losses. But unfortunately for some people the best way to cut losses is not to invest at all (or invest in index funds with some sort of stop loss).
If you can't play poker for a significant time period (say at least 6 months), playing thousands of hands, and come out at breakeven or profitable, then you probably don't have the mentality to be a successful investor.
If you can't make money in a game where the rules and probabilities are well defined, how will you make money in the big bad world of investing.
@Neal - the documented studies range from 18% to 22% in increased spending with magnetic strip credit cards. However, the newer cards using 'pay pass' have increased spending from consumers another 5% to 7%.
The Anti-Cash Crowd - my wife and I get a lot of flack for living 'strangely' on cash, driving old cars with 250k miles+ and not upsizing our house after having two boys. Seemingly everytime I have a conversation about getting rid of the plastic, there is an incredible amount of pushback. From where I sit, I'm happy to have zero car payments, a mortgage payment less than half that of the people that think we're strange, and know that it's physically impossible for us to pile up any more debt. Cash is a beautiful thing...heck, have you seen the engraving jobs these guys do at Treasury? Damn they're good.
I've totally had this problem more than once when paying via Paypal. Specifically, my shipping address is different than my billing address because I cannot receive UPS and FedEx at my home. So click, click, and suddenly I realize that something's going to the wrong address. The last time, I *immediately* sent an email to Moo - which they replied to after they'd already shipped my business cards to my home address. Luckily, they were coming via the US Postal Service, so I lucked out and received them just fine.
I have tried to train myself to be extra vigilant when paying via Paypal, but it's just really easy to miss that you need to make sure Paypal is sending the correct shipping address - And yes, it's because you think that the vendor is going to ask for your shipping address and then after you complete the order you're like, Hey! Wait a minute...
glad I can aid in your frugal lifestyle. your comment struck me so funny that I was going to not to change the numbers and continue to offer the bargain deal for all readers! but alas, I must edit the line to read 6 instead of 8 ...
My only concern with a credit card-less lifestyle is the need for a credit history to get financing for big purchases like a home or car. It's not impossible without credit cards but it does seem to help.
However, I do recognize that you can get a car without financing by saving up, and getting a house is certainly not a necessity.
Congrats on becoming debt-free and cash-only! It's always interesting to see what techniques people use to take control of their finances and get out of debt.
Good post, I completely agree that going green is the right approach. Using cash requires discipine but inspires confidence in both your ability to self regulate as well as knowing that there is not a pending backlash when the monthly statements roll in.
Thanks for sharing these great reasons for using cash... I also like that I clicked for 6 and got 8... what a bargan!
"Don't call people names" is pretty basic manners. Other people are in charge of whether they're rude, you're in charge of your response, is how we explain it to our preschooler.
Unfortunately, part of the "character" of local business and small business is that they are mostly good at what they do, not at customer service. I patronize them anyway, but the level of rudeness and general crazy from our local used bookstores, farm supply stores, and corner stores would *never* fly in Corporate America. On the other hand, they return more of their dollars to the local economy and make our neighborhood safer just by existing. It's a tradeoff.
I agree being able to start a business without worrying how to pay the rent is a great feeling. In addition, to those who don't want to quit their job and start their own company, having no debt, or minimal debt is amazing for your relationship with your employer.
I always make sure to have an FU fund. Employers know when you need them because your expenses are so high you can never afford to quit your job. The minute you buy that new car or expensive house, they always seem to know, and the relationship changes.
When you have an FU, or if we want to be more family oriented, SU fund, you are in a position to say, "Screw You". It is a lovely thing not working through fear!
Great job on being debt free. Does anyone notice your credit rating gets screwed when you have no debt? Ughh!
Sounds like some real good sense. If you can't afford something right now you wouldn't go down the pub and borrow the money off your mate. I think people should have the same attitude with the banks - you're still cap in hand borrowing however it is dressed up.
So, there's two factors. One is how often you bake bread. We generally bake a fresh loaf a little more often than once a week--every five or six days, maybe--because that's how much bread we eat. But the books seem to suggest that once a week is fine. I've read that you shouldn't go more than two weeks without feeding your starter.
The other factor is how long you let the yeast sit after taking it out of the fridge and feeding it. We generally go four or five hours--from right after breakfast until right after lunch--but anything from 20 minutes to overnight will also work.
But, yes: Feed your starter, let it sit for a while, pour some back into a jar, and put it right back in the fridge. There's no reason your starter can't live like that forever. We've had ours going for at least five years now, maybe longer than that. (I don't remember when we got it, but I remember having to freeze it in 2005 when we took a vacation in Scotland that had us away from home more than two weeks.)
On the other hand, starters do die sometimes. We had one die on us some years earlier. It's sad, like losing any pet.
One other way to get a starter besides the ones I mention at the beginning of the post is to get some from a friend who bakes sourdough bread. Sharing your starter is easy--just feed the starter, let it sit for a while, and then pour the starter into two jars and give one to your friend. Do that with any friends who are interested. Then, if your starter dies, maybe you can get a fresh culture of your own starter back again.
If you are smart with your money and don't have a problem with spending too much, this is a great way to make yourself more money while you're spending. :)
While I see the added discipline of using cash to budget yourself, I think there is the added issue of keeping track of what you're actually buying.
I prefer to use cards, be it dept or credit, and simply keep track by using financial agregate sites like www.mint.com to track everything. The site allows you to keep budgets as well as see your expenses in terms of percentages. Very handy.
So while cash might keep you from going overboard, it can be like putting your thumb into a leaky dam. Money is not the enemy and making it work for you instead of you working for it is the best approach in my opinion. But rationing your money might be a good start.
Everything that you listed can be accomplished using credit cards as well. I am 4 years debt free (except for my mortgage, which is only 26% of my income). I use a credit card for everything and pay it off at the end of every month. I know exactly when I can afford to spend, and I have worked hard to resist impulse purchases. If I want to make a large purchase I save, and when I have enough money I buy the item on the credit card and pay the card off at the end of the month. The difference is that I both get cash back and more importantly buyer's protection with the credit card. I have only had to use the chargeback option on my credit card once (after I exhausted all other options but the seller still refused to refund my money) but it was well worth it and I got my money back. I also average about $400 a year with cash back, which is free money to stick right in my savings account. The key is to be responsible with your budget in general, not to use a specific form of currency.
What was the purpose of this article? To use mint.com? To point out a good idea?
You would really be showing them if you actually canceled it.
You are still paying 129 for useless shite.
congrats to you for being cash only...it's truly anti-cultural to be that way today...your 6 points are great...hats off to you for being almost debt free...my wife and I use the envelope cash system for groceries...when the cash runs out we don't buy anything else until next pay period. Good post!
I know him and have used him with mixed results but I have to ask you, how do we know that you aren’t' in fact M.S.?
You don't sign your name but you expect everyone to chime in and spout off. This is a small industry and I need M.S. more than I need “NWguy”.
Sorry but unless you're willing to man-up and tell us who you are, I can't help you. You could be just a competitor or even him trying to see who says what.
P.S. I know him better than you or anybody else. I started at the same company as a rookie with him about 15 years ago.
you can contact me at sueweetdeals@yahoo.com
Glad that you have found a system that works for you. I charge everything on my CC and pay it off each month--the cash back is worth it to me. But no fancy spending--I have a tiny house and my car is 22 years old with more than 250,000 miles (odometer stopped working, so who knows?). As long as you keep the frugal frame of mind, you'll find the system that works for you.
I left my job back in October because of a hostile work environment. Most of my upper mgmt. friends told me I would get my unemployment. Well needless to say my final hearing was back in February and I was just notified via email last week that I was denied my unemployment. I learned a very hard lesson that I should have just called the police and had her charged (she physically removed me from a meeting). Most interesting is I called the hearing department last Monday to find out where they were at on the results. The lady on the phone told me there were 300 hearings ahead of me and it would be another four weeks. Well three hours later I went online and there were the results from the hearing...
Hmmmmmmmmmmmm can you say strange?
I agree with your post. In the past, I thought I was being smart using credit cards so I could get the rewards. I always paid in full so I wasn't in debt; but I also wasn't saving what I wanted. When I switched to cash/debit card only, I realized I simply didn't spend as much. I would buy clothes, but return them later because I realized that I didn't really need them, and that the money would be much better in my account. However, with a credit card, by the time I got the bill, even if I realized I had spent WAY too much, it was usually too late to return anything.
If some people TRULY don't spend a penny more using CC than cash, awesome! However, I think at least some of us will spend more. Maybe not much more; but 10-20% more.
But what about all that cash back for purchases that credit cards give you? If you can force yourself to pay the credit card(s) off each month then credit cards are much better than cash. They're cash + about 2%.
We tried this tonite--20 lbs of pink and 20 lbs of blue play sand for $1.00 a bag, and 3 boxes of cornstarch for 82 cents a piece. We ended up adding more sand than called for and its like wet beach sand. For under $5.00, it will work for a fun outsde activity.
Lots of articles on the internet refer to how playing poker can help you to learn how to invest.
But I think that poker can be even more effective as a tool to tell people if they even have the capability to invest.
As we all know, one of the most effective methods to save money when investing is to cut losses. But unfortunately for some people the best way to cut losses is not to invest at all (or invest in index funds with some sort of stop loss).
If you can't play poker for a significant time period (say at least 6 months), playing thousands of hands, and come out at breakeven or profitable, then you probably don't have the mentality to be a successful investor.
If you can't make money in a game where the rules and probabilities are well defined, how will you make money in the big bad world of investing.
@Neal - the documented studies range from 18% to 22% in increased spending with magnetic strip credit cards. However, the newer cards using 'pay pass' have increased spending from consumers another 5% to 7%.
The Anti-Cash Crowd - my wife and I get a lot of flack for living 'strangely' on cash, driving old cars with 250k miles+ and not upsizing our house after having two boys. Seemingly everytime I have a conversation about getting rid of the plastic, there is an incredible amount of pushback. From where I sit, I'm happy to have zero car payments, a mortgage payment less than half that of the people that think we're strange, and know that it's physically impossible for us to pile up any more debt. Cash is a beautiful thing...heck, have you seen the engraving jobs these guys do at Treasury? Damn they're good.
I've totally had this problem more than once when paying via Paypal. Specifically, my shipping address is different than my billing address because I cannot receive UPS and FedEx at my home. So click, click, and suddenly I realize that something's going to the wrong address. The last time, I *immediately* sent an email to Moo - which they replied to after they'd already shipped my business cards to my home address. Luckily, they were coming via the US Postal Service, so I lucked out and received them just fine.
I have tried to train myself to be extra vigilant when paying via Paypal, but it's just really easy to miss that you need to make sure Paypal is sending the correct shipping address - And yes, it's because you think that the vendor is going to ask for your shipping address and then after you complete the order you're like, Hey! Wait a minute...
ha ha dave! you caught me...
glad I can aid in your frugal lifestyle. your comment struck me so funny that I was going to not to change the numbers and continue to offer the bargain deal for all readers! but alas, I must edit the line to read 6 instead of 8 ...
I could really use this book.
From reading the review, I see that networking know-how can help me with a lot of the file-sharing issues my husband I currently have.
My only concern with a credit card-less lifestyle is the need for a credit history to get financing for big purchases like a home or car. It's not impossible without credit cards but it does seem to help.
However, I do recognize that you can get a car without financing by saving up, and getting a house is certainly not a necessity.
Congrats on becoming debt-free and cash-only! It's always interesting to see what techniques people use to take control of their finances and get out of debt.
Thanks for your advice. I don't know if I will be able to give up my card just yet but I can see now How to use the cash I get back from it.
Good post, I completely agree that going green is the right approach. Using cash requires discipine but inspires confidence in both your ability to self regulate as well as knowing that there is not a pending backlash when the monthly statements roll in.
Thanks for sharing these great reasons for using cash... I also like that I clicked for 6 and got 8... what a bargan!
Dave
"Don't call people names" is pretty basic manners. Other people are in charge of whether they're rude, you're in charge of your response, is how we explain it to our preschooler.
Unfortunately, part of the "character" of local business and small business is that they are mostly good at what they do, not at customer service. I patronize them anyway, but the level of rudeness and general crazy from our local used bookstores, farm supply stores, and corner stores would *never* fly in Corporate America. On the other hand, they return more of their dollars to the local economy and make our neighborhood safer just by existing. It's a tradeoff.
I agree being able to start a business without worrying how to pay the rent is a great feeling. In addition, to those who don't want to quit their job and start their own company, having no debt, or minimal debt is amazing for your relationship with your employer.
I always make sure to have an FU fund. Employers know when you need them because your expenses are so high you can never afford to quit your job. The minute you buy that new car or expensive house, they always seem to know, and the relationship changes.
When you have an FU, or if we want to be more family oriented, SU fund, you are in a position to say, "Screw You". It is a lovely thing not working through fear!
Great job on being debt free. Does anyone notice your credit rating gets screwed when you have no debt? Ughh!
I think the cooling-off period is key in big item purchases. Paying with cash forces you to avoid impulse buys. Nice post.
Sounds like some real good sense. If you can't afford something right now you wouldn't go down the pub and borrow the money off your mate. I think people should have the same attitude with the banks - you're still cap in hand borrowing however it is dressed up.
So, there's two factors. One is how often you bake bread. We generally bake a fresh loaf a little more often than once a week--every five or six days, maybe--because that's how much bread we eat. But the books seem to suggest that once a week is fine. I've read that you shouldn't go more than two weeks without feeding your starter.
The other factor is how long you let the yeast sit after taking it out of the fridge and feeding it. We generally go four or five hours--from right after breakfast until right after lunch--but anything from 20 minutes to overnight will also work.
But, yes: Feed your starter, let it sit for a while, pour some back into a jar, and put it right back in the fridge. There's no reason your starter can't live like that forever. We've had ours going for at least five years now, maybe longer than that. (I don't remember when we got it, but I remember having to freeze it in 2005 when we took a vacation in Scotland that had us away from home more than two weeks.)
On the other hand, starters do die sometimes. We had one die on us some years earlier. It's sad, like losing any pet.
One other way to get a starter besides the ones I mention at the beginning of the post is to get some from a friend who bakes sourdough bread. Sharing your starter is easy--just feed the starter, let it sit for a while, and then pour the starter into two jars and give one to your friend. Do that with any friends who are interested. Then, if your starter dies, maybe you can get a fresh culture of your own starter back again.
If you are smart with your money and don't have a problem with spending too much, this is a great way to make yourself more money while you're spending. :)
While I see the added discipline of using cash to budget yourself, I think there is the added issue of keeping track of what you're actually buying.
I prefer to use cards, be it dept or credit, and simply keep track by using financial agregate sites like www.mint.com to track everything. The site allows you to keep budgets as well as see your expenses in terms of percentages. Very handy.
So while cash might keep you from going overboard, it can be like putting your thumb into a leaky dam. Money is not the enemy and making it work for you instead of you working for it is the best approach in my opinion. But rationing your money might be a good start.
Everything that you listed can be accomplished using credit cards as well. I am 4 years debt free (except for my mortgage, which is only 26% of my income). I use a credit card for everything and pay it off at the end of every month. I know exactly when I can afford to spend, and I have worked hard to resist impulse purchases. If I want to make a large purchase I save, and when I have enough money I buy the item on the credit card and pay the card off at the end of the month. The difference is that I both get cash back and more importantly buyer's protection with the credit card. I have only had to use the chargeback option on my credit card once (after I exhausted all other options but the seller still refused to refund my money) but it was well worth it and I got my money back. I also average about $400 a year with cash back, which is free money to stick right in my savings account. The key is to be responsible with your budget in general, not to use a specific form of currency.