Saving Money as Prices Increase

[YanmarFever]

That's fine with me, love living out in the country.

I have done the same as you have, credit cards are a ticket to financial ruin...
If we don't have the money, we don't buy it, period. I like sleeping at night in peace...

 

[RickB]

I have done the same as you have, credit cards are a ticket to financial ruin...

For those lacking self discipline. You either have it or or you don't. People were going broke a long time before the first credit card was conceived.

 

[Hay Dude]

I fear the choices on using paper currency are going by the wayside. “Credit” or ”credit cards” may be the only way in the near future as some are pushing hard for digitized currency.

 

[Snobdds]

I once walked into my Polaris dealer to buy some oil and ended up buying a ranger. It was a Saturday and didn't feel like messing with my bank until Monday. Paid for the thing on my card. I guess I was the first person to ever do that. I get 3% cash back so I figured it would cover some of the taxes.

One month later I get a call from the dealership saying they didn't realize they had to pay 2.5% for the transaction through their card processor. They asked if I would come in to talk. I did and I paid them the $500 and they gave me 3 years of fluid changes.

The place only accepts credit cards now if you pay the processing fee.

Credit does have a price even if you pay it off right away.

 

[Diggin It]

I have done the same as you have, credit cards are a ticket to financial ruin...
If we don't have the money, we don't buy it, period. I like sleeping at night in peace...

I don't either. But when I need something, I get it. I could pay for it with a check, but why? I leave the money in the bank earning interest and use a CC that pay rewards. I end up being farther ahead after making the purchase.

But as I noted in the post above, it takes planning. And self discipline.

I take one other step too. I opened another account at a different bank. When I get a deal like this, or some other larger sale, discount, credit or reward, I put the money I saved into that other account. This $200 + reward will go there, coming out of my primary account just as if I'd spent it on the appliance. That keeps these things separate and I can track how much I've saved/earned. As of now, that account is close to $1,000 and i've only been using it for a few months. By the end of this year, I'll be able to pull enough out of there to pay off the tractor loan saving me another several month's interest on it.

Yes, it's paper shuffling, but it's a form of me paying me first.


A business that takes credit cards without knowing the fees involved isn't much of a business. They sign contracts that explain all that, and it shows on their monthly statements.

 

[Mtsoxfan]

I understand all of that. Yet I've had this discussion online and in person many times.... My electric heat only runs when I'm not there to feed the wood stove. It costs me around 13$/month during the heating season, usually from November to April.
How long will it take to break even on a heat pump? (Not including incentives... I don't use government subsidies.)

$13 per month? Boy, you must not run it at all. It'll take a looking time to break even there. I guess it's not about breaking even at this point, more about convenience.

 

[SouthernSky]

When I bought my truck from Enterprise a couple years ago, they had a limit of $5000 that I could buy on a credit card.

When I bought my son a car four years ago, the Ford dealer also limited me to $5000 on a credit card, the rest had to be cash (if not financed).

I’m guessing many dealers of all types also have card limits.

 

[ultrarunner]

I bought my Dozer from the Deere dealer on a credit card... Sales had no way to accept so I was walked across the road to parts and I guess I was their first...

They wanted to set me up on credit but Monday afternoon would have been the soonest and I had worked lined up Saturday...

 

[Torvy]

Tried to buy a car for my kids with a card...dealership wasn't playing that. As it was, we got a good deal as the online guy had published a wrong price.

In general, we buy everything on credit and pay in full every month. No extra charges for us. Plus, we get points that go to kid's education.

 

[Root Cause]

Having a couple of credit cards will help your credit score. That can save thousands of dollars on big items like cars or homes. I am not promoting people go into debt but that is a fact and in fact, has helped me get a better rate in times past.

 

[sandman2234]

Having a couple of credit cards will help your credit score. That can save thousands of dollars on big items like cars or homes. I am not promoting people go into debt but that is a fact and in fact, has helped me get a better rate in times past.

So, never heard of Dave Ramsey???
I personally could care less what my credit score is...because I have no intention of borrowing money! We are closing on another house next week!
David from jax

 

[Mtsoxfan]

But for those of us who choose to borrow money, unlike the 1%ers, credit effects our lives.
I am disciplined enough to save money and pay in full for all but major buys like a car.
Good on you for being able to be in the situation you are. I'd love to be there too.

 

[Diggin It]

So, never heard of Dave Ramsey???

Yes, but considering what I've heard about the way he mistreats people, I can't comment further here.

 

[Root Cause]

So, never heard of Dave Ramsey???
I personally could care less what my credit score is...because I have no intention of borrowing money! We are closing on another house next week!
David from jax

Yes, I am familiar with his views. It is a good way to live if that suits you.
Any decent financial advisor can show you both paths to see which builds more wealth over time.
If you do the math, we wouldn't disagree.
The difference is age (amount of risk you can take) and whether it just makes you feel better knowing it is paid for in full.
My goal is to be debt-free and have more in my IRA. Maybe you have enough. If so, good for you.

Credit is a tool. Some people know how to use it and some fear it.
You can dig with a shovel and I will use an auger. We both end up with a hole.

 

[Hay Dude]

What Dave Ramsey says has some truth, although I disagree with him on gold and some other views on money.
Always struck me as a “holier than thou” type.
You can always tell them when the first things out of their mouth are an attempt to make people feel bad or shameful about themselves.
In Ramseys case, having a loan for something.

 

[ultrarunner]

Work uses age based retirement investment allocation...

Never privately owned Bonds but about half my work plan allocated to bonds... seems counter intuitive last year straight 10% gain...

Question... Are Bonds a good way to save?

 

[Hay Dude]

Work uses age based retirement investment allocation...

Never privately owned Bonds but about half my work plan allocated to bonds... seems counter intuitive last year straight 10% gain...

Question... Are Bonds a good way to save?

Tax free munis!!

 

[Oaktree]

Our monthly CC bill is anywhere from $3k to $6k.

Eek!!! What do you buy that runs up a bill like that? I average maybe $500, probably 3/4 of that gas.

 

[daugen]

just about all retail pricing is already increased to factor in 3 percent credit card fees, so why pay inflated
prices when you don't have to, assuming you get cash back. I get one and two percent back on everything and yes everything goes on
my one high limit zero balanced card, so I can dispute the transaction if necessary. Pretty hard to order online without a credit card.

 

[Hay Dude]

just about all retail pricing is already increased to factor in 3 percent credit card fees, so why pay inflated
prices when you don't have to, assuming you get cash back. I get one and two percent back on everything and yes everything goes on
my one high limit zero balanced card, so I can dispute the transaction if necessary. Pretty hard to order online without a credit card.

Yes the buyer protection gives some peace of mind-good point.
If you own a business and CC all purchases you get a monthly statement, too. On average I’m spending $5-$10,000/mo on fuel, materials, parts, etc. so the cash back on that is nice to have.
Why turn down free money?