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Managing my money this way prevents frivolous spending in the same way that using a grocery list prevents wasteful purchases. It keeps me focused on my goal in an economic environment that works very hard to distract me. Frankly, I'm confused about why you can't understand this, unless you're just playing obtuse for the fun of it.
Perhaps I should clarify that I use cash much more frequently than I use a debit card. I like knowing exactly where my account stands at all times. I know you think this is not possible, but it really is when you schedule all of your payments for the same day.
I am glad that you have found a system that works for you, and, once again, I acknowledge that there is at least one good reason to use a credit card: credit score. which is essential for most people to function in our economy.
But there are legitimate reasons to opt out, too, and they don't involve evil gemlins or irresponsible behavior, including
* I like to keep my spending and my identity as private as possible, which means minimizing debit card use, too;
* I don't like paying in arrears; and
* I find using on-line bill pay and cash more convenient and simpler.
You may find my logic nonsensical, and I'm perfectly okay with that. But you asked for those of us who eschew credit cards to explain our choices, and I've obliged. In exchange I would appreciate it if you would refrain from portraying the lot of us as irresponsible and/or stupid.
Last edited by formercalifornian; 04-03-2011 at 07:21 AM..
Managing my money this way prevents frivolous spending in the same way that using a grocery list prevents wasteful purchases. It keeps me focused on my goal in an economic environment that works very hard to distract me. Frankly, I'm confused about why you can't understand this, unless you're just playing obtuse for the fun of it.
I never suggested that having a "spending plan" is a bad thing, but I don't get how such a thing would be effected by your choice of payment method. Personally, I find "spending plans" a lot like diets, they are just too rigid. I'd much rather focus on generally do the right sorts of things and not worry about the details. In the case of spending, that would include only purchasing the things you really need, will use, etc. Perhaps if I was strapped for cash a spending plan would make sense, but I'm not and I'd have to buy a lot of junk to over-spend.
Quote:
Originally Posted by formercalifornian
I know you think this is not possible, but it really is when you schedule all of your payments for the same day.
That isn't what I suggested, rather, I suggested that you can't use online banking in itself to appropriately manage a checking account. Paying all your bills at once and making sure they are covered isn't much different than maintaining a ledger. I just prefer having a ledger, I'm not suggesting that is the only way to manage a checking account.
Anyhow, if you want to forgo the rewards that is your business, your reasons still don't make much sense to me.
Its not so much about finding computer error, but rather it forces you to look at your translations in detail. Looking up your balance online doesn't do that. Regardless, as I said, the main reason I maintain a ledger is to keep track of pending payments. If someone wants to do that mentally, alright, but I don't see how online banking does it for you.
My balances are easy.
Everything that's not a handwritten check (which there will be a copy of on the statement) is WRONG and FRAUD.
I get paid once a month.
Anything else going in or out is WRONG AND FRAUD.
My balances are easy.
Everything that's not a handwritten check (which there will be a copy of on the statement) is WRONG and FRAUD.
I get paid once a month.
Anything else going in or out is WRONG AND FRAUD.
Sure, the only think I use my debit card for is cash withdraws at the ATM, so all my transactions are either checks, ATM or deposits. In terms of "keeping track of transactions", I was thinking of someone that uses their debit/check card for purchases instead of a credit card.
I don't know, perhaps I'm just getting old, but I find the trust in banks and online banking to be a bit weird.
I never suggested that having a "spending plan" is a bad thing, but I don't get how such a thing would be effected by your choice of payment method. Personally, I find "spending plans" a lot like diets, they are just too rigid. I'd much rather focus on generally do the right sorts of things and not worry about the details. In the case of spending, that would include only purchasing the things you really need, will use, etc. Perhaps if I was strapped for cash a spending plan would make sense, but I'm not and I'd have to buy a lot of junk to over-spend.
That isn't what I suggested, rather, I suggested that you can't use online banking in itself to appropriately manage a checking account. Paying all your bills at once and making sure they are covered isn't much different than maintaining a ledger. I just prefer having a ledger, I'm not suggesting that is the only way to manage a checking account.
Anyhow, if you want to forgo the rewards that is your business, your reasons still don't make much sense to me.
On the subject of fiscal discipline, I agree wholeheartedly. That said, I do not manage my accounts this way to enforce good spending habits. I'm very capable of controlling myself.
As to the ledger, I think there may have been a misunderstanding along the way. I use Excel to create my monthly spending plan, and I reconcile against it a few days into the month after all checks have cleared. At that point, I revert to cash spending for the most part. If there is a large unexpected expense that I cannot cover with my checking reserve, I hand-write a check and transfer the money to cover it and add the expense to my monthly spreadsheet.
I do not track my cash spending closely. After many years of handling my money this way, I generally know how much I need to get through the month.
As to my reasons for avoiding credit, perhaps it really boils down to my desire for privacy. I'm simply not interested in selling access to my purchasing habits to corporate America.
How does one keep track if pending transactions online? Online you can only view the transactions that have posted to your account, any transfers, online-payments, checks, etc will not show up until they post.
The day my check is deposited, I know how much it is. That's what I have available to spend. By next payday, my account will have less than $5 in it. I keep a running balance in my head of what I can spend. After I pay out for regular monthly bills, there's not much left for anything else. It's not hard.
The day my check is deposited, I know how much it is. That's what I have available to spend. By next payday, my account will have less than $5 in it. I keep a running balance in my head of what I can spend. After I pay out for regular monthly bills, there's not much left for anything else. It's not hard.
So you keep a mental ledger... I have too many transactions to do that, nor do I really have a desire to keep track of things mentally.
I'm fantastic with numbers...I also keep track of what my grocery bill will be before I make it to the register. I've never understood people who get up there and then say, "Oh, I have to put something back, I don't have enough."
I don't follow. Yes, I have a good number of bills, what does that have to do with my use of rewards cards? There are around 12~15 bills, 4 deposits, and a few ATM withdraws every month. That is more than I'd want to balance mentally...
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