Cash vs Debit

[z31maniac]

So you dont think you'd ever want to buy a house, a car new enough you might not have 100% cash for it or might run into a situation where you might require a loan?

No, it's much better to speak in absolutes so that you can be condescending.

[Ryan Stewart]

I don't want to do either of those things.

So you dont think you'd ever want to buy a house, a car new enough you might not have 100% cash for it or might run into a situation where you might require a loan?

[Turf1600]

What if you want to start a business, buy a house etc. Yes you can save for these things but trying to run a business without credit is going to be a real pain.

I don't want to do either of those things.

[Ryan Stewart]

Here is what I've been doing lately:

[

Using this method allows me to maintain a budget, have a regular savings schedule, earn points for money spent, and as a bonus I'm always carrying cash just in case.

It probably sounds excessive doing it this way, but it takes 2 minutes at the end of the day to figure out what you've spent and set aside cash accordingly.

I basically do the same thing, leave just enough in checking to cover any specific expenses after paying bills and shift everything else over savings.

I use my CC as a debit card, just a debit card that only is "balanced" at the end of the month. All of my transactions are "Cash backed" meaning that I always have the liquid assets to cover the debt. Obviously this is impractical for things like houses but its easy to delay gratification on some toy long enough to save up the cash, then buy it on credit and pay it off before interest hits.

Also, I will admit that, like you, I am salary and that helps. I know I get the same check every two weeks (not counting bonus but I never budgeted for bonus, that was always "fun money").

[tonerrrr]

Someone who mismanaged money while in college and learned a lesson:

"Credit is a good servant but a terrible master."

Definitely agree with you, just yanking your chain haha.

[Jorgen]

Credit isn't necessary, though. I haven't used it in 4 years.

The argument for credit is circular logic. You need to borrow money to build a credit score so that you can... borrow money. Just don't borrow money and live below your means and you'll be in good shape.

What if you want to start a business, buy a house etc. Yes you can save for these things but trying to run a business without credit is going to be a real pain.

[F34R]

Debit

[Wh33lhop]

Haha, last time I deposited any cash at an ATM it was 2 grand, I was just thinking how much it would suck if it ate the money and froze up. Sure enough it froze on the please wait screen. Eventually got the money but at first I got the runaround since I was using a different CU's ATM. Brix were shat, now I just take a long lunch and go inside if I want to deposit cash.

[Rsully70sev]

Hahaha. Banks have a proof department that fix things like that over the next business day. Even if you didn't inquire about the problem, your account would of been credited appropriately.

The ATM I was using once was flipping out and wasn't dispensing my money. So I tried a few more times to withdraw around $200 to no avail. Said whatever, and used the ATM next to it. "It said lolno, you reached your ATM limit." WTF. Log onto my mobile app and it says I withdrew $200 five times ahaha. Freaked out, Saturday afternoon, nothing I can really do. My account was credited the next business day.

Hahaha I figured such. I literally parked in the drive-thru and blocked the lane till I got on the phone with a rep. They said "don't worry about it, we'll take care of it" but I just imagined leaving and having $5k spit out the ATM to the next customer haha.

[ak-]

As mentioned, debit card's do not build credit.

I pay for everything on my credit card. Lunch, friend's lunch, parent's/brother's air plane tickets, etc. simply pocket the cash they give me, and pay off my credit card. That way it has frequent use- building trust with the bank, increasing my limit, and I have the means to pay it off. Working well for me so far.

I don't carry cash except when conducting business, but that money goes straight to Wells Fargo afterwards. Fun fact, although WF ATM's say they can handle 50 bills, they cannot. I put in 50x $100's (bad area of San Diego so I wanted to be quick) and it jammed the ATM, ate my money and spit out my card. LUCKILY someone was on top of their shit and it cleared the next day. I was nervous though lol, no receipt or anything.

Hahaha. Banks have a proof department that fix things like that over the next business day. Even if you didn't inquire about the problem, your account would of been credited appropriately.

The ATM I was using once was flipping out and wasn't dispensing my money. So I tried a few more times to withdraw around $200 to no avail. Said whatever, and used the ATM next to it. "It said lolno, you reached your ATM limit." WTF. Log onto my mobile app and it says I withdrew $200 five times ahaha. Freaked out, Saturday afternoon, nothing I can really do. My account was credited the next business day.

[Rsully70sev]

As mentioned, debit card's do not build credit.

I pay for everything on my credit card. Lunch, friend's lunch, parent's/brother's air plane tickets, etc. simply pocket the cash they give me, and pay off my credit card. That way it has frequent use- building trust with the bank, increasing my limit, and I have the means to pay it off. Working well for me so far.

I don't carry cash except when conducting business, but that money goes straight to Wells Fargo afterwards. Fun fact, although WF ATM's say they can handle 50 bills, they cannot. I put in 50x $100's (bad area of San Diego so I wanted to be quick) and it jammed the ATM, ate my money and spit out my card. LUCKILY someone was on top of their shit and it cleared the next day. I was nervous though lol, no receipt or anything.

[ak-]

C.R.E.A.M.

Just kidding, lol.

I budget myself bi-monthly(twice a month) and use my credit card for literally everything. I use my credit card as a debit card though, or at least pretend to. If I can't afford it, I won't buy it.

I track my expenses through my bank's mobile app and pay it off by transferring funds from my checking account to the credit card. If my checking account doesn't have funds to purchase what I want, I won't swipe my credit card. Or if it's out of my budget, knowing I need gasoline in a couple days, I won't swipe. So basically my CC ledger balance never exceeds what is in my CHK account. Always pay in full. Fuck interest.

I get paid every 2 weeks directly deposited to my checking account. I transfer a chunk that I will not touch into my savings and leave the rest in my checking account that is considered my spending money.

Mobil app ftw.

My CC is a cash rewards type of card. Since May, I've cashed out $140 in rewards from what my online statement says. Free money, haven't paid a dime of interest yet. Let the CC dance to your music, not the other way around!

Sometimes I get offers in the mail for new CC's that I'm pre-approved for like, "use $1000 in the first 3 months and get $100 in a promotional reward back."
I open/sign-up for the CC, swipe it at my dad's business a few times to accumulate $1000, he gives me back my $1000(minus the merchant service fee I owe him), and in about a month I get the $100 promotion. Then just don't use the card/close it later.

lawllll @ the system.

Debit cards suck because you have no protection from any theft.
Banks wont reimburse your empty checking account.

Your bank sucks then? Of course they protect you.

open up a college checking account with wells fargo.
no bs fees, and it's a clutch way to build credit when you a youngin w/ no scrilla. my credit score is on point and I'm still a teen

Checking accounts don't build credit

My bank has a phone app so whenever I'm curious on where my cash level is at I give it a check to see what other e30 parts I buy.

:up:

[Turf1600]

For those who don't care to (or can't) read, I said invest towards future income by borrowing to fund required education for that income... but a college degree isn't something you believe in either.

How are you going to buy the other half of the house?

A house is the only thing I'd consider financing part of - but like I said, I'd have to put at least half down.

[BobombETA]

Wut are you.

Someone who mismanaged money while in college and learned a lesson:

"Credit is a good servant but a terrible master."

[rwh11385]

I knew you were waiting for me to post here. Buying something that you don't have the money for is just a bad idea. The next time I buy a house I will pay at least half down - if I ever buy a house again. As for investing - I invest regularly. I'll be in good shape come retirement.

For those who don't care to (or can't) read, I said invest towards future income by borrowing to fund required education for that income... but a college degree isn't something you believe in either.

How are you going to buy the other half of the house?