Thrifty vs. Stingy

wbjones wrote: I still can't figure out why anyone would use a debit card when CC work in all the same places .. your account isn't dinged immediately, there isn't a hold put on your account, the CC company pays me money to use their card, I don't forget that I've spent the money …etc…

Some people use debit cards either because they're easily to qualify for than a credit card, or because they don't trust themselves not to run up huge credit card bills that they can't pay.

Personally I don't use debit cards because the security implications of having one stolen are worse than those for credit cards.

There is a fine line between stingy and flat ass broke. I walk it daily.

DrBoost wrote: You remind me of a guy who's cars I used to service. He paid to keep a 15 year old Baretta on the road because it was cheaper than buying a new one. He drove 65 in the right lane because he got 10-15% better fuel economy. But, when I worked on his car, he only bought new parts, not re-built. He ALWAYS over-paid me because he knew I was charging him way less than anyone else would. When he did go out to eat, he'd tip well as long as service wasn't crappy. He was called "cheap" all the time. I'd correct people and tell them he was thrifty. And because of that thrift, would retire 5 years earlier than anyone else, and live well when he did.

That is what I try to do. It drives my inlaws nuts. Doing this we have gotten to a point where I don't owe on anything but my mortgage and the Fiat. I still spend money where I need to like my wife's drs and meds and have a little left over each month and when I do need something like replacing my porch I was able to get what I want.

I would love to us credit cards all the time but I can't do it. There is a part of my brain that seems to be defective and I screw it up each time. I haven't had one in about five years. Everything is cash or debit.

True to my Scottish heritage, I can squeeze a nickel until Jefferson farts.

I prefer "Frugal."

As Dave Ramsey says: "Play with snakes and you're going to get bit."

I use a debit card. Now, it got released to the wild twice in a year. No cost to me, but inconvenient. My bank, ahh... let's just say it's the largest retailer in the world's bank, is very "on top" of things and ID'ed the bogus charge within minutes of the "test" charge going through. No, I have not bought anything for 87 cents at a motel in North Carolina. That card is dead. So what I do now is I have a separate free debit card (checking) account that I keep two bills in and I use that for all my online/gas, grocery, etc. purchases. I put a couple bills in and spend it, then put a couple more in. If it gets released to the wild, I only have a couple bills that I'm temporarily locked out of. Home Depot got your card number released? I'm not worried.

RX Reven' wrote: Prudent people are thrifty, stingy is what resentful broke people call prudent people.

Love it

In reply to Dr. Hess:

I'm impressed with how quickly my credit union has shut down my card when they suspect something is wrong.

SkinnyG wrote: True to my Scottish heritage, I can squeeze a nickel until Jefferson farts. I prefer "Frugal."

This was probably the word dumbazz lacks in his vocabulary. Or as i heard it said before Use it up, wear it out, make it do, or do without.

""

codrus wrote:

wbjones wrote: I still can't figure out why anyone would use a debit card when CC work in all the same places .. your account isn't dinged immediately, there isn't a hold put on your account, the CC company pays me money to use their card, I don't forget that I've spent the money …etc…

Some people use debit cards either because they're easily to qualify for than a credit card, or because they don't trust themselves not to run up huge credit card bills that they can't pay. Personally I don't use debit cards because the security implications of having one stolen are worse than those for credit cards.

It sounds like your debit cards are significantly different than ours. For what a credit card pays, for me it's not worth using. I use debit or cash for pretty much everything.

I have Scottish and Welsh heritage. I'm used to being called cheap.

I pay mine off completely each month .. so no interest, and these CC's are zero $ per yr …

so far this yr I've gotten back over $300 from them … if a debit card had been used for those same purchases, I'd have run the risk of having my account locked (a hold put on it) and I wouldn't have received those checks

I also am of Scottish and Welsh heritage … and would consider myself thrifty, not cheap or stingy

RX Reven' wrote: ^ This plus as I understand it, you’ve got more recourse in terms of contesting improper charges when you use a CC. I want to help business owners but for everyone such as myself that religiously pays off their balance well before interest is owed, it’s highly advantageous to charge everything you possibly can.

I've never had a problem contesting unauthorized charges on my bank account check card. And that includes 3 different transactions all over $500.00 over the course of a few years.

(always seemed to be charged in London, after we had returned from the Caribbean).

I wonder if the offender is going to own up to doing it?

I try buy quality whilst staying within budget, but I definitely wouldn't call myself thrifty.

I have a life insurance policy that would handle all household debt if something (wife would have no mortgage/car payments/etc).

I think too many people get caught up on pushing everything away for 20 years. I may be in a fatal crash on the way home from work today, so at least I've enjoyed some of the money I'm making while still putting some away for retirement.

We flew to Nashville last week just to see a concert. That's the kind of thing that comes from buying a house you can afford on one spouse's salary, etc.

spitfirebill wrote: I wonder if the offender is going to own up to doing it?

Doubt it. From what I understand, most of the general readership are not forum people.

I like Keith's "stingy" vs "thrifty" comaparison. Sometimes my mother drives me nuts with that. Her kitchen is a combbled mess, but money isn't the issue. Unfortuantely, she's unwilling to go toe-to-toe with her grumpy husband in order to get it fixed.

Of course, I'm not much better (if any). My own house needs tons of work and I keep dragging my feet about working on it. But I agree about needing a balance of remembering the past, planning for the future and living for today. I essentially have no debt, but also no family dependants so should something happen to me all that would happen is my mother would end up with even more money (my 401k and default life insurance through work) she doesn't need.

I use credit cards all the time. I have three for various reasons. All get paid off each month. It took me 10 painful years to learn how to use them properly, but now they are simply a tool and like any tool they are only as dangerous as the user.

Credit vs. debit cards - I make at least 3x (more like 5x) as much income from my credit card's 1% cash back as I would with interest from having that money in my savings account. Plus, I don't have to pay for any purchase until a minimum of 30 days after I make it, so I actually get both. There's absolutely zero advantage for me to use my debit card.

Duke said it better than I could

I used to get " But,you make more than me" all the time at work when we would be talking cars. I've driven used cars all my life and the folks saying it had a new shiny new car, likely on lease. I'm retired (at 56 years old) and they're still working. I don't care whether they call me stingy,thrifty, or cheap when I'm sitting at home today, in my jeans from the thrift shop.

I'm thrifty, and sometimes succeed at being frugal.

Some people think I am cheap.

I occasionally get a little too close to being stingy.

On the credit card debate, I was always also against paying for a card when others would give me them "free," until I did the math... I have an Amex "cash blue preferred" card which costs ~80 a year to have. This card has gotten me ~$750 profit this year and last by using it. I put all of my day-to-day expenses on it (groceries, gas, car parts, etc) and it gives 3% back on groceries, 2% on gas and 1% on anything else. My checking account has given me ~$30 in interest this year, and if all of my (paid off every month) expenses went on it, it'd be less. It's not a hard choice.

Edit: But yes, don't do this unless you can trust yourself, it's a hard training to go through (as Ian F mentioned), and it does take some constant discipline when you walk around with enough credit every day to buy all of the cars you've ever owned at once...

my problem with have an Amex card (as my only card) is how many places don't accept it

I've never understood why some people would choose to pay for something that is widely available for free. Why would I carry an AMEX card??

I do not understand the debit card thing. I use credit for everything, get the cashback, and pay the balance in full every month. I do not have a debit card. I can understand their value to addicts who cannot control their spending urges.

Thrifty, stingy, cheap, whatever. I'll admit to any of 'em!

1988RedT2 wrote: I've never understood why some people would choose to pay for something that is widely available for free. Why would I carry an AMEX card??

See Wonko's post 2 above.

1988RedT2 wrote: ...Why would I carry an AMEX card??

I believe there are some advantages for businesses (e.g. have their salespeople use them) to use them. Another reason to use one is if you are a Costco member. It's the only card that Costco (aka the $200 store) accepts and if you get it through Costco, you don't pay a yearly fee for the card. You also can get the various benefits that AE offers.

Regarding the "free" money you are "saving" with the cash back bonuses. I suspect that most are aware that they are just giving you back some of the hidden fee that is tacked onto every credit card purchase. Of course, you are "saving" in relation to a card without the cash back, but the implication in their commercials that they are somehow giving you some sort of free benefit is absurd.

The real sad part though is that although these fees are only charged to businesses, they of course pass them down to the consumer, but almost always ALSO charge cash users the fee! I believe at one point (may still be true) the CC companies would discontinue an account if a retailer was caught giving cash discounts.

So, essentially the use of CC is a self perpetuating situation. You are generally screwing yourself (paying for a benefit you don't get) by paying for cash. Still MUCH easier to get a concept of how much you spending when using cash though. Also having to go get cash (from an ATM etc.) to spend it acts as a bit of buffer to large spending.

aircooled wrote: ... Regarding the "free" money you are "saving" with the cash back bonuses. I suspect that most are aware that they are just giving you back some of the hidden fee that is tacked onto every credit card purchase. Of course, you are "saving" in relation to a card without the cash back, but the implication in their commercials that they are somehow giving you some sort of free benefit is absurd. The real sad part though is that although these fees are only charged to businesses, they of course pass them down to the consumer, but almost always ALSO charge cash users the fee! I believe at one point (may still be true) the CC companies would discontinue an account if a retailer was caught giving cash discounts. ...

You're right, prices across the board have risen because of supporting credit cards in general, that's just common sense... You're also correct that you won't receive a cash discount anywhere other than (possibly) a gas station.

Taking both points into account, I have about 1500 reasons to pay $160 in the past two years for my card.

aircooled wrote: Regarding the "free" money you are "saving" with the cash back bonuses. I suspect that most are aware that they are just giving you back some of the hidden fee that is tacked onto every credit card purchase. Of course, you are "saving" in relation to a card without the cash back, but the implication in their commercials that they are somehow giving you some sort of free benefit is absurd.

If gas stations (let alone other stores) still charged differing cash/credit prices, I'd rethink the decision to use the credit card. But as it is, there's no cash discount at anything but the smallest of mom-and-pop retailers. I tend to pay cash there. But, in general, there's still no advantage to paying with folding green stuff at 98% of the places I shop.