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Or as someone suggested upthread, have two accounts: a small one linked to a debit card, and a large one that is not linked to the debit card, and transfer money between them as needed.
Isn't that more work and time-involved than just using the CC?
For example I have a friend ho keeps next to nothing in her checking account, so every time she pays the mortgage, or a few bills she transfers money over into that account. Maybe it's just me but I can't be bothered with that. It's just the way my thought process or aggravation level works, I guess. But there's now way I could deal with transferring money two and three times a month. I think that's crazy. Just something ELSE to keep track off. But I've heard of people who do that…..More power to them.
Keep in mind that the people that participate in forums on investing and personal finance are the more diligent in this area and are not the norm. Look at the recent thread where a large number of people can't even cover a $400 surprise expense. These are the people that are calling Dave Ramsey for help in getting out of debt. Listen to the callers. Most of them should not have credit cards because they just run them up and get further into debt.
People may or may not agree with all of Dave Ramsey's advice. However, if people did follow his advice, it is easy to see how a large number of people would have significantly better financial situations.
I just really don't understand the argument of having to use a DEBIT CARD (an inferior form of payment option compared to credit) because it's going to somehow make the person more "responsible".
How EXACTLY does it make the person more responsible?
A lot of people find it easier to keep track of their spending if they use a debit card, since each transaction posts almost immediately to their account. Plus, it's hard to find a credit card with a truly low limit, and some people simply can't handle having a line of credit at all. Better to go cash-only in that case.
My local radio station FINALLY dropped DR. 4at least 4 years to late (his total run). The guy is a scam, out for himself. No different than Tony Robbins or rich dad poor dad. Clark Howard replaced him, nerdy but, at least he links you to legitimate websites, companies that can help you.
A lot of people find it easier to keep track of their spending if they use a debit card, since each transaction posts almost immediately to their account.
You don't track your spending AFTER you spend it, you track your spending BEFORE you spend it. This helps to better manage procedures related to IF you need to spend or not, as well as how you should spend as buying at certain times or in certain quantities could reduce overall costs.
It's called having a written budget and having the DISCIPLINE to stick to it. The financially ignorant don't have a written budget that they stick to, they buy on emotion, and that's what the problem is.
Quote:
Originally Posted by Aredhel
Plus, it's hard to find a credit card with a truly low limit, and some people simply can't handle having a line of credit at all. Better to go cash-only in that case.
This argument just makes no sense, you are blaming a payment option for someone spending recklessly.
- Credit Card
- Debit Card
- Pay Pal
- Digital Wallet
- Bitcoin
- Checks
- Cash
These are nothing but OPTIONS to make a payment, none of these options initiate payment themselves, it's the person in control of the payment option that initiates the payment.
A person financially stupid and without discipline, will burn through their CASH on JUNK, just like they would run up their credit line on JUNK.
Why people blame the payment option and not the PAYER, is beyond me. It's like blaming your car because you received a ticket for parking in a handicap spot with no sticker....rather than blaming the OPERATOR of the car (yourself) for parking the car illegally.
Last edited by jotucker99; 05-18-2016 at 09:08 PM..
My local radio station FINALLY dropped DR. 4at least 4 years to late (his total run). The guy is a scam, out for himself. No different than Tony Robbins or rich dad poor dad. Clark Howard replaced him, nerdy but, at least he links you to legitimate websites, companies that can help you.
You don't track your spending AFTER you spend it, you track your spending BEFORE you spend it.
Well, you need something to set the bar on what is reasonable. Without knowing how much I have spent on what in past months, setting a realistic budget would be very tough. It is important to be able to look at previous months' spending to see where to adjust and where not to. Everyone needs a bit of feedback too - did you meet your spending goal, or not?
You don't track your spending AFTER you spend it, you track your spending BEFORE you spend it. This helps to better manage procedures related to IF you need to spend or not, as well as how you should spend as buying at certain times or in certain quantities could reduce overall costs.
Budgeting and spending are two different things, and using a debit card (or credit card) to better track spending doesn't preclude budgeting. Someone might have a monthly budget with a category "Eating out - $200" but having an electronic record showing they spent $5.73 at Burger King on May 8 can certainly help organize tracking their spending habits against the budget.
Quote:
Originally Posted by jotucker99
The financially ignorant don't have a written budget that they stick to, they buy on emotion, and that's what the problem is.
Meh there are plenty of people who don't have a written budget yet are financially responsible not making emotional purchases and living under their means. Having a written budget is always good, but not everyone needs one and everyone without one doesn't have a personal finance or debt problem.
Well, you need something to set the bar on what is reasonable. Without knowing how much I have spent on what in past months, setting a realistic budget would be very tough. It is important to be able to look at previous months' spending to see where to adjust and where not to. Everyone needs a bit of feedback too - did you meet your spending goal, or not?
To begin, you sit down and list out all liability categories and provide an estimated spend amount. After a quarter of spending, you now have a record of said spending to adjust higher or lower, as well as formulate strategies on buying in bulk to reduce overall price.
In terms of spending, you can use any payment option you prefer....cash, checks, bitcoin, credit, debit....you still need to ACCOUNT for where every single PENNY went.
Quote:
Originally Posted by lieqiang
Budgeting and spending are two different things, and using a debit card (or credit card) to better track spending doesn't preclude budgeting.
This has 0% logic to it. The reason people spend MORE than they should as well as spend without knowing where the hell the money WENT, is because there's NO written budget that's outlined that they are financially discipline to sticking to.
Quote:
Originally Posted by lieqiang
Someone might have a monthly budget with a category "Eating out - $200" but having an electronic record showing they spent $5.73 at Burger King on May 8 can certainly help organize tracking their spending habits against the budget.
Which you can get on a credit card, you can get on a debit card, you can use a check for that $5.73 and just make an immediate side record of it, you can use cash for the $5.73 and make an immediate side record of it.
Quote:
Originally Posted by lieqiang
Meh there are plenty of people who don't have a written budget yet are financially responsible not making emotional purchases and living under their means.
Plenty of people? So there's PLENTY of people who run around without a written budget, don't know where the hell their money is going every month, can't account for where it goes....but that makes them financially responsible?
0% logic.
Quote:
Originally Posted by lieqiang
Having a written budget is always good, but not everyone needs one and everyone without one doesn't have a personal finance or debt problem.
The core of the vast majority of financial problems is not knowing how much is going OUT, and not knowing how much is coming IN. Argue all damn day (like I know you and ncole 1 will for the next 5 pages, because you really don't disagree with me, you just can't bring yourselves to admitting you AGREE with something Tucker99 says)....a written budget is the foundational CORE of financial responsibility. You can't manage what you can't measure.
You two HATE to agree with anything I say that much, to where you are literally arguing about my recommendation of having a written damn budget. Sickening.
What's next? I'm going to say it's GOOD that people do routine physical exams every year, and you are going to respond with, "Well, not everybody needs to do one because a lot of people have good health status."
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