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May 02, 2005


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I disagree that you should spend cash. First of all I know that when I have cash I tend to blow through it quick. I nickel and dime myself by buying little knick knacks here and there. I know some studies have shown different but that doesn't hold true with either me or my wife.

Second of all with all the great cash back credit cards on the market now it's foolish not to take advantage of them. I get 5% cash back on all my gas and grocery purchases and 1% on everything else. Also credit cards allow you to float your money for up to a month and half and draw interest on it long after it's been spent. The only people who should use cash only are people that are not able to use credit responsibly. I know there are a lot of people like that and that is probably what produces the stats cited above. If you have disipline then you can save a 1,000 bucks a year easy by putting all your expenses on a credit card. Also for large ticket items credit cards offer protection that cash doesn't. If something goes wrong with the product your credit card company will stand behind you and they always take your side against a vendor.

That's just not true. I've had a creditor take the side of the vendor before. Bargaining with cash is irrefutable. I was able to buy a brand new bass rig for $500 under wholesale simply because I had $2,000 in my pocket.

I'm was like Rich. If I had cash, it used to drip through my fingers. Now I seriously begrudge spending any of it if I do have it.

My life is still run on plastic for the most part (but mostly debit rather than credit). I like being able to check my spend via my statements and online for years to come... you just don't get that flexibility with cash unless you religiously itemise your purchases in some fashion.

Plastic has its place. It's the mindset that needs changing, not the payment method.

And I apologise for the exceptionally poor grammar in the first line of my last comment. In my defense it's nearly 2am here in the UK ;)

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