Cash, credit , or combination?

[SeansMom]

No surprise I'm on the budget board because I'm trying to save money, BUT, I'm wondering who people decide when and how CASH saves you money vs. using a credit/debit card, and when using a credit card is smart?

For example: I think I'd save money using cash for groceries, Target, etc because I'd have to stick to my budget.

On the other hand, I used my CC for a big payment, because I got 111 disney dollars (and hey, going to Disney IS part of my budget!) It's a no fee credit card and I pay it off in full every month.

So what do you do, and why?

 

[eliza61]

I pretty much use my american express card for every thing simply to get the rewards point. I generally do pretty good with staying on budget because I tend to make list and use circulars and coupons which helps.

rarely do I have more than 10 bucks in my pocket. I jsut don't walk around with a lot of cash.

 

[Marionnette]

No surprise I'm on the budget board because I'm trying to save money, BUT, I'm wondering who people decide when and how CASH saves you money vs. using a credit/debit card, and when using a credit card is smart?

For example: I think I'd save money using cash for groceries, Target, etc because I'd have to stick to my budget.

On the other hand, I used my CC for a big payment, because I got 111 disney dollars (and hey, going to Disney IS part of my budget!) It's a no fee credit card and I pay it off in full every month.

So what do you do, and why?

I put all my recurring payments on a credit card. For one thing, they are always the same amount and so I don't overspend just because I am using the credit card. For another thing, it means only paying one bill and one payment due date to keep track of.

I use the credit card for all of my groceries, Target, Petsmart, etc. When I get home I schedule a credit card payment to be made from my checking account for the amount of those purchases. Since I shop from a list and really don't deviate from it, I rarely spend more than I planned.

I always use a credit card when I fill up my gas tank or when I go to the doctor's office or pay medical bills. When the kids buy text books, they use one of my credit cards to make their purchase. And I schedule a payment for those things when I get home.

I use cash at the farmer's market, the convenience store and whenever I buy less than $10 worth of stuff. That's about it. I think I spend less than $25 a week using cash.

 

[indimom]

In the past I lived on cash. Why? Because I had proven myself unreliable with a credit card.

Now, I use my CC for nearly everything. We have learned to live on a budget, it is payed in full every month, and I'm earning a good number of rewards toward my next vacation.
(I shop with a list and rarely deviate from it.)

I am not a fan of the debit card. It's just me, I just prefer to use the CC. I feel more secure carrying it. I'd be much more worried if I lost my debit card or if it was stolen because it leads back to my bank and all my accounts. The CC does not. Plus I'm building rewards with it.

 

[Jeff_G]

Cash for everything as I no longer own any credit cards.

Statics show people spend more when using a credit card vs using cash. You have a tangible and emotional response when handing someone cash.

Every when you carry a zero balance each month you still tend to spend more when you whip out the credit card…

 

[amylevan]

I never carry much cash on me. It disappears on little things (oh, I'll get a cup of coffee or a candy bar from the machine...)

We use a credit card for pretty much everything. We have a "gas only" card that all gas purchases go on. That card ALWAYS gets paid off each month. I'm not paying interest on gas. Everything else go on a different card that usually gets paid off each month. If it doesn't, for whatever reason, I curb spending the next month so that it can be paid off then. We never carry a balance more than a month.

We use a debit card rarely. There are no rewards for using ours, so I just prefer the credit cards.

 

[weHEARTmickey]

We use cash for everything except our bills (mortgage, utilities...) We pay for our WDW trips w/a debit card. We live "Dave Ramsey style" with the envelope system. Keeps us from over-spending & makes me hunt down coupons so I can get a bigger bang for my buck.

 

[mistysue]

I actually have been taking out my weekly budget in cash and carrying that around. When I use my credit card, I set apart that money so I can't spend it. Then every week before I go to the ATM, I take out the "spent" cash, count it and take out that much less. I do most of my shopping at Target and now save 5% if I put it on the card. Then at the end of the month the money to pay the card is sitting there waiting.

 

[ceemys]

I just don't trust myself with a CC. I cut them up 3 years ago and they are ALL paid off. I have one loan and it will be paid off in 2.5 years. I put myself on a strict budget and I really work on it every day. I had to sell my house last year because of the stupid financial wreck I put myself into. No ones fault but my own! I learned the hard way and now I pay cash for everything. I am doing my best to teach my two young kids at better financial planning.

Once I sat down and reviewed all my expenses, I realized I bought "stuff". I would go to Meijer and at the end of the month, had no idea where my money went. We now go to the grocery side only and I go with a list and stick to it!

I am now saving for a down payment on a house and with my budget, I will have about $9000 next summer.

 

[QVCshopper]

We charge everything, from $2 at Dunkin Donuts to expensive plumping repairs and everything in between. We once charged a $5K car down payment. For me and my DH, I don't think the "spend less if you carry cash" is true. I have been doing the no-buy for months now, and have a lot of control over my spending, credit card or not. I often just carry $1.06 in my purse, in case I buy anything for $1 (plus tax). I also use cash at the farmer's market, but only because they don't take credit cards. I get about $30-40 a month back from my card into a 529 plan for my kids (IMHO that's free money). My credit card offers 2% back on everything you buy, no exceptions, no fees.

Last month, I spent only $675 total (not including gas, bills, and unexpected repairs). Considering that's food and everything else for 4 people and 3 cats, I don't see how much better I could be doing carrying cash. To each their own, though... everyone is different. Credit cards take discipline.

 

[cglaura]

For me, it is a matter of disciplining myself. If I only have $100 at the store, I'm only getting $100 dollars worth of groceries or clothes or whatever. I know my weak points so I do what I can to work around/avoid them.

I don't carry the actual cash though, it is on my debit card. I get points/rewards from my bank MasterCard same as a credit card. You just have to sign instead of putting in your pin.

 

[msmama]

I'm another one that uses the CC for everything and pays it off every month. I have a USAA debit card that I use for shopping online sometimes (if I click through the USSA website they have specials for % back). And occasionally I decide that gas goes on the debit but I don't know why I sometimes do that because the gas stations I frequent don't charge more for credit (though I know some do).

Cash is for fast food and anything under $10 usually.

I actually tend to buy MORE if I'm spending cash. I guess because it's a novelty to me.

 

[StitchandPooh'sMom]

I use the Disney Visa for almost everything and pay it off each month. I use my debit card at Costco since they don't take Visa, and I use my Target card at Target because I get an additional 5% off - it's better than 1% from Disney Visa. I pay any bills online through checking if I can't set them up to charge to my Visa. I write checks to the school, my hair stylist, the church and my DD's music teacher.

I very rarely use any cash - sometimes if I am buying something less than $5, or to leave a tip if I have already paid for the meal when ordering (for places that you order at a counter but they bring your food).

 

[eyor44]

We use CCs for almost everything for the cash back and pay it off each month. If I have cash I spend it and then can't remember where. I won't use debit cause it is tied to the checking account and that makes me uncomfortable.

 

[momof2gr8kids]

I try and use my credit card for most things. I have a budget for groceries, gas, etc. I save my receipts and every couple of days I make an online payment.

I can't trust myself to pay it all off at the end of the month, so I do it this way so I can get the points.

 

[Sagginit]

CC! i used to use a mix of debit and cash until i got my CC. trust me, when you look at your CC balance and see how high you have run it up, you still get an emotional reaction! i can track my spending way better than with cash. plus the whole hassle of taking out cash putting it in envelopes, carrying the cash around, and then taking the extra and having to put it back into the bank to transfer to savings or student loans is way too much stress for me. i have some of my smaller bills going to my credit card and as stated i don't have to worry when each bill is due, i pay my card every 2 weeks or so and this works out better. Since I am younger it has also helped me build my credit, which came in handy recently.

 

[SeansMom]

Cash for everything as I no longer own any credit cards.

Statics show people spend more when using a credit card vs using cash. You have a tangible and emotional response when handing someone cash.

Every when you carry a zero balance each month you still tend to spend more when you whip out the credit card…

I think this would be me. I think having a CC allows me to "add" things to a purchase that I wouldn't add if I didn't have a CC. Especially on sites like Amazon or Ebay. I'm considering going to cash only...BUT...for things like monthly bills, use the CC.

 

[SeansMom]

We use cash for everything except our bills (mortgage, utilities...) We pay for our WDW trips w/a debit card. We live "Dave Ramsey style" with the envelope system. Keeps us from over-spending & makes me hunt down coupons so I can get a bigger bang for my buck.

I think I need to look into Dave Ramsey. Do you suppose I could find those books/DVD's at the library?

 

[SeansMom]

I just don't trust myself with a CC. I cut them up 3 years ago and they are ALL paid off. I have one loan and it will be paid off in 2.5 years. I put myself on a strict budget and I really work on it every day. I had to sell my house last year because of the stupid financial wreck I put myself into. No ones fault but my own! I learned the hard way and now I pay cash for everything. I am doing my best to teach my two young kids at better financial planning.

Once I sat down and reviewed all my expenses, I realized I bought "stuff". I would go to Meijer and at the end of the month, had no idea where my money went. We now go to the grocery side only and I go with a list and stick to it!

I am now saving for a down payment on a house and with my budget, I will have about $9000 next summer.

Congrats! That's quite an accomplishment

 

[Macgyver91]

When DH and I were on a tight, TIGHT budget I would get envelopes and put cash in them each week. Each envelope was different for ex. church, groceries, gas, etc. At the end of the month we would pay the bills out of the envelopes, buy groceries, donate to the church, but of course gas came out as needed. We had our gas money down to the penny. If the money wasn't in the envelope then we had to think long and hard about whether we "needed" it or not. It was hard at first but it kept us from over spending. We still have a tight budget just not as tight...thank goodness. Now I keep a calendar with the bills written on each Thurs. so that I can keep up and know exactly what I can and can't spend in that week. We had serious trouble with CC when we first got married so the only CC we have is the Disney Visa. I pay the bills with it to get the points and then pay it off each week.