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About ten years ago, a relative told me that was going to lease cars for the rest of his life so that he didn't have to worry about the cost of repairs.
About ten years ago, a relative told me that was going to lease cars for the rest of his life so that he didn't have to worry about the cost of repairs.
I think that his argument isn't that he is trying to be frugal but that he wants to avoid unexpected cash flow issues. It sounds like he isn't very frugal which is fine if that is his cup of tea.
Personally, I love seeing the types of people who penny pinch every item in a grocery store then proceed to have 20 pairs of shoes they rarely wear. Its like that State Farm commercial which really irks me. She buys a purse because her state farm double check saved her $150. I cringe when I see it...
I did this with travel/lodging expenses recently. I always seemed to get the best rates with Hotwire, but usually did not buy the Cancellation Insurance, because doing so would wipe out the cost savings. Then finally, I WAS forced to cancel a reservation, and since I didn't buy the insurance, lost the money. I had been using Hotwire for years, but I figured out that in one day, I had probably completely negated any money I had saved in the previous years. After that, I just quit using it.
the cancellation insurance is a ripoff
it doesnt cover a life changing amount of money and it's a terrible bet
just beacuse you ended up having to cancle a trip doesnt mean it would have been a smart purchase.over your life you will come out way ahead avoiding such ripoffs.
This I will never agree with, we have no debt and want no debt and find it not practical for us to have credit cards. We do not finance anything and if we cannot pay cash we do not purchase.
If it is right for you though that is your choice but I will never tell you that you are being foolish for doing so, like you are so willing to tell others who do not choose to do the same.
In regards to the original topic of the thread:
I have tried to tell my Mother that driving across town to purchase something at the grocery that is on sale will generally cost her more than picking the item up at the grocery she normally goes to simply because of the gasoline used to drive across town and the time used to drive across town to save $2.00 or even $5.00.
She disagrees with me and continues to drive across town, her choice and I don't say anything about it now.
Then there are my neighbors who will drive 15 miles to get gasoline for $0.05 cheaper than what we pay in our town. What is the point?
i have never carried a credit card balance from one month to the next
i have paid 0 interest and gotten tens of thousands of dollars in cashback over the years
if you're disciplined and buy what you can afford you're lighting money on fire by now using credit cards
And people who carry credit cards tend to spend 15-18% more than cash customers per presentations I have seen from American Express, Chase, and US Bank.
most people are idiots financially
just because other people will make stupid decisions does not mean you or I will.
most people also have credit card debt, pay tons of interest etc but that doesn't mean i do. these people are precisely the reason i can get money back from my credit cards especially with the great sign up offers of the last 2-3 years.
most people are idiots financially
just because other people will make stupid decisions does not mean you or I will.
most people also have credit card debt, pay tons of interest etc but that doesn't mean i do. these people are precisely the reason i can get money back from my credit cards especially with the great sign up offers of the last 2-3 years.
That is NOT correct. The credit card companies are debating a portion of the MERCHANT fees collected from the merchant when you use your credit card somewhere. And of course, who is paying that? You are.
I think that his argument isn't that he is trying to be frugal but that he wants to avoid unexpected cash flow issues. It sounds like he isn't very frugal which is fine if that is his cup of tea.
Personally, I love seeing the types of people who penny pinch every item in a grocery store then proceed to have 20 pairs of shoes they rarely wear. Its like that State Farm commercial which really irks me. She buys a purse because her state farm double check saved her $150. I cringe when I see it...
You've got that right. It's pretty sad, really. He's retired, collects Social Security as well as a very nice pension check monthly, and has to work part time to pay his bills.
People who refuse to use credit cards that come with cash back simply because they want to avoid debt.
If you pay the card off at the end of the month and don't carry a balance along with the finance charge ok fine I would be ok with this arrangement.
Considering most people CANT pay off a CC at the end of the month EVERY month the cash back is nothing compared to the finance charge from a revolving balance.
So you get what? 1-2% cash back? So you run a balance of say 2k you get $20 "cash back" but the interest rate is what? It's not 1-2% I guarantee you that. Average % is 12-22 ( credit cpbased). Not to mention your "rewards" are capped in some cases. To me cash rewards are a gimmick.
The ONLY way you win is by charging and paying off when the bill comes.
People who refuse to use credit cards that come with cash back simply because they want to avoid debt.
How is this pound foolish? They're not wasting money.
Some people don't want the temptation of debt and the ease of spending with a card. Some people are against the credit card system on principle -- I've heard the term "Visa Dollar" used before to refer to what businesses actually make after credit card fees are taken into account. Those costs are passed on to all customers usually.
But really, I think rewards credit cards are good example of penny wise pound foolish for most people. Maybe you get some movie tickets or a check back at the end of the year, but you run the risk of being tempted to spend more, and the risk of messing up and winding up with interest and late fees. I'm with Dave Ramsey on this one: "No millionaire will tell you they got rich off credit card rewards."
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