I bet some of you were wondering when I decided to switch to a cash only life…after I talk so much about using my credit cards for the cash back. Well have no fear…I have NOT gone over to the dark side.
I am still using credit cards for everything and paying them off in full every month so that I don’t get fees but I earn cash back on my spending.
I am referring to a conversation I recently had with a friend who believes credit cards are tools of the devil and uses cash or debit cards only. I said to this person if that is what works for you then fine, but I choose to use my credit cards because I have FINALLY gotten a system where I can use them responsibly.
My friend drives a very expensive car and was frantically searching for a debit card in order to buy gas. This is because his car runs into some serious problems if it runs out of gas BUT because he only uses his debit card he tends to drive on Empty and buy gas at the last possible minute. He lives and works close to gas stations so he figures he can go a couple of miles once the tank reads empty before filling up.
In this case he was frantic because it was time to fill up and he had misplaced his debit card. He did not have a back up card because he only had one account because he did not trust credit cards.
I pointed out that he really did not trust himself..because the cards did not make him do anything…but that is another discussion.
Anyway I said why not use the emergency cash and run out to get gas since you cannot find the card. There was a moment of awkward silence and then my friend asked WHAT emergency cash.
I said…you know the cash you keep in a drawer at home for cases like this. I figured if you used cash for everything then you would at least carry $20 in your wallet or have something at home. This person said he did not need to carry cash because he never had an emergency. And in any case if he needs cash he could just use his card in the ATM.
I was trying not to be sarcastic but I could not help but blurt out the fact that right now looked like an emergency situation to me and he did not have cash on hand to run out to get some gas and prevent breaking down the next day on the way to work.
I do not understand how someone who lives on a cash basis would NOT have any cash on hand and rely solely on there being a working ATM around. I use only credit cards and I still have at least $20 in the house somewhere and between $10 and $20 in my wallet in case an emergency comes up. That just seems like common sense to me.
It’s really advisable to keep cash for emergency purposes, regardless if you have credit or debit card. I highly agree with you that it’s common sense to keep things like this. We never know what will come up and it’s good to have a back up plan. Perhaps, this time you’re friend learned from his mistake.
You are certainly a good friend since I would have been more harsh. First, misplacing the debit card plus not having any cash if that is all you live off. Of course, I would have had to comment on the ATM and losing your debit card. Like I said, you are a good friend.
I use cash and credit/debit cards and I still carry a spare $5 that’s just “blow money” and I have a minimum of $20 in the house.
Did he ever find that debit card or did he have to order a new one?
I found out today that he had to order a new card. He drove to the bank early in the morning and got cash…ordered a new card…bought gas and then drove to work.
He STILL is NOT keeping a spare $20 in the house…because he says something like that will not happen again..so I give up.
People like him crack me up sometimes. They think something will never happen so they don’t prepare for it, and then it happens. But they won’t prepare for it to happen again, they just assume it won’t happen again. They were wrong the first time, can’t they get a clue the second time??
Agreed! I wonder if there is a correlation between those who stick by the cash only and those who don’t have an emergency fund. I know a lot of responsible people who prefer cash (mainly bloggers), but it seems like those who don’t use credit cards are afraid of themselves not paying back the money. If you are responsible, credit cards save you tons of extra money.
Hi LuLuGal,
Many banks charge $ 5 monthly fee to have a credit card, there is not a good idea to spend your money on to the banks.
It depends where you live and what bank you use because most banks in US and Europe pray for giving you a free credit card…
About 4 months ago we stopped using our credit cards. Now we only pay with cash and of course use the debit card that is linked to our checking account. If no cash on hand or in bank – then no purchase. We are just getting by but have no debit anymore. It is scary when you are used to reaching for your credit card to pay for something and you panic b/c your debit card is not in the slot in your billfold where it is supposed to be. Instead it is sitting in the bottom of my purse – thank god! Anyway, my husband and I figured our parents didn’t use credit cards so we are going to be that way too. The future is too scary for us to rack up credit debt.
Having cash which you can use for any emergencies is a must. It’s not really advisable to be dependent on credit cards alone, yet having 2-3 credit cards on your wallet maybe the more convenient way.
Wow, that is really unusual to not carry ANY cash around. I hope he was able to get his car filled before running out completely but really, he should carry atleast a few tens on him whenever he goes out. You can never tell when he might be needing it. The ATM could be out of order for example. I always carry a few coins in the small pocket of my jeans and only take them out before washing, otherwise they are always there in case I forget to carry any bills with me.
-Jean
I too don’t carry any cash at all. I never need it. I don’t want to keep cash on hand because it is easier to spend that way for me! Bad habit, so I only use my atm card for just about everything.
Well it depends on the country (state) that ones lives in.
I have most of my money in cash, due to the fact I am in the internet marketing business which our country doesnt even acknowladge and puts us in the same basket as bettors and poker players, so we are some sort of … “criminals” in their eyes.
I ve grown accustomed to having cash and have no “spending feever” I used t have as a kid (student) when 50€ didnt stay there for long.
Oh and our cities are almost crime free and I am in no way concerned about getting robbed etc.
I use credit cards only for online purchases.
Sincerely, Buyseech