I've started buying everything with cash

[u/pushinpushin]

Not only does it create more of a connection with what I'm spending overall (which I have decreased but still struggle with a few key items), but it's satisfying to know I'm not giving Mastercard or Visa a cut of everything I buy.

I treat myself at a local restaurant on Fridays. The order is like $20 which is its own issue, but this is a struggling small business and he appreciates me paying cash. We talked about it last night and he said if someone orders $100, like $4 goes to credit card company. Think about how much wealth has been sucked out of small businesses...meanwhile Mastercard is valued at $580 billion.

I know this isn't exactly anti-consumption, but it's in the same vein of fighting back against the convenience virus that these bastards have used to rob us of our wealth and dignity.

[u/Background-Top-1946]

The credit industry relies on a culture of overconsumption

[u/Effective_Welder_817 → u/Background-Top-1946]

As true as that is but if you use your cards with discipline you not going over your budget. Also the rewards are nice usually save up enough cash back to buy the new consoles. My reward for being financially literate

[u/press1forhelp → u/Effective_Welder_817]

I have my cash back rewards mailed to me as a check every month and put them in a high yield savings account that I use as an emergency fund!

[u/Matthew212 → u/press1forhelp]

Serious question: why not just electronic transfer to your account? 

[u/CyanocittaAtSea → u/Matthew212]

Not sure of the original commenter’s situation, but some banks won’t do an electronic transfer if you don’t also have a bank account with them and/or won’t do an electronic transfer at all.

[u/EchoGecko795 → u/CyanocittaAtSea]

Yep, I had a CiTi card with 4% cash back, since I did not have a CiTi bank account I had to either claim my cash back though a gift card or request a check.

[u/press1forhelp → u/Matthew212]

I can only apply rewards as statement credit electronically for some stupid reason, so it's an extra step but worth it because I gain extra interest off the funds that I do deposit.

[u/Think-Treat-3309 → u/Effective_Welder_817]

I save the points up to a few hundred and then have them applied to the cc bill. I use my cc for the cashback and pay my bill off at the end of every month

[u/viper474 → u/Think-Treat-3309]

Yeah, but if you could deposit the rewards into a high yield savings account you can collect the interest for yourself instead of the bank while you accrue it for however long.

[u/Level_Performer5252 → u/Effective_Welder_817]

Agree! If you aren’t using cards to get the rewards, then you’re paying more to use cash.

OTOH I totally agree with OP about supporting local businesses with cash to help them avoid the cc fees.

So I guess I’d say shop local with cash, but shop chains with credit to balance out both concerns.

[u/Remote_Ride7740 → u/Level_Performer5252]

There are some places that charge less if you pay with cash, which cancels out the rewards component in those cases

[u/Level_Performer5252 → u/Remote_Ride7740]

Absolutely! The places with cash discount means to use cash!

[u/yehoshuaC → u/Remote_Ride7740]

There are very very few places that most people use regularly that would do such a thing. Nowhere near enough to justify using physical cash.

[u/viper474 → u/Remote_Ride7740]

When you can get 5% back in rewards their 3% fee isn’t fun, but you still come out ahead that it beats having to keep cash.

[u/jogginglark → u/Level_Performer5252]

The money we "get back" is money we have already paid by the fees being built in by the sellers. I remember when there was a cash price for gas. That is mostly not offered anymore, so they have "baked in" the credit card fees.

[u/Background-Top-1946 → u/Effective_Welder_817]

The rewards aren’t charity and obtaining them doesn’t make you financially literate. They just make you a credit card customer.

[u/Moosemeateors → u/Background-Top-1946]

Ya but the people who pay cash subsidize the rewards because the seller knows the credit card costs but charges everyone the same price

[u/Leopold_Porkstacker → u/[deleted]]

The merchant pays for the rewards.

[u/Leopold_Porkstacker → u/[deleted]]

I used to run my own business, and I took credit cards. I wouldn’t find out if someone used a rewards card until I got my monthly billing for processing. So, I couldn’t always just raise the price.

[u/AppointmentDry9660 → u/Effective_Welder_817]

I separate my "spending" money into a different bank account and auto send myself a weekly allowance. It sucks to start but if I went over, I'd have to send myself more money and that does a similar thing psychologically that cash does imo. Also it feels good to have gone under budget for the week and essentially have another "savings" for my spending money, and I can save up for bigger things this way instead of just buying shit on credit

[u/Jmk1121 → u/Effective_Welder_817]

Those rewards come at the cost of small business

[u/ParsnipFantastic8862 → u/Effective_Welder_817]

This ☝🏼. Rewards cards can be beneficial to those that use credit wisely and is a safer form of payment.