http://finance.yahoo.com/ba...ney?mod=bb-budgeting

The Treasury may be printing fewer dollars, but I'm going all cash.

The dollar bill needs you.

A growing number of merchants won't accept cash anymore. That includes a lot of airlines, which insist you pay by credit card if you want to buy a drink or a sandwich on board. And now comes news that the U.S. Treasury is printing fewer dollars, as we move towards an all-plastic economy.

Great news for the banks. Great news for the card companies. Great news for the marketing establishment, which can now pore through our transactions and our personal lives in greater and greater detail.

Me? Call me a contrarian, or just call me ornery, but I view this with gloom. This not a step forward. It's a step backwards. Personally, I've been moving the other way. I've cut down on my use of credit cards and debit cards. The latest news is the final push I needed to get them out of my life completely. I'm going all cash.

Here are 10 reasons why:

1. I'll spend less. A variety of scientific studies, such as this one at the Massachusetts Institute of Technology, have found that people are simply willing to spend more when they use credit cards than they do when they use cash. It's common sense. No wonder our national obsession with shopping really took off when credit cards came on the scene. And I've found it personally. Last fall and winter, when I went for an extended period without carrying any plastic at all, my day-to-day spending rate absolutely collapsed.

2. The card bonuses aren't worth it. A lot of people use their credit cards for the frequent flyer miles or other bonuses. But many of these deals are getting less valuable. Airlines are cutting back on flyer programs. And how good were these programs anyway? Schwark Satyavolu, co-founder of BillShrink, says that if you are really smart, dedicated and targeted about getting and using your bonuses, you can sometimes get very good deals. But overall, he says, deals are getting less valuable, and are increasingly focused on cards with annual fees. Most of us are doing very well if we manage to get back 2% on our cards. Compared to the extra amount you spend, that's chicken feed.

3. Cash makes budgeting easy. Personal financial planners encourage clients to draw up budgets. It's great advice, in theory anyway. But I have a confession: I'm just not that organized. Nor, I suspect, are lots of people. But if I go to the bank once a week and draw out a certain amount of cash, it makes the budgeting automatic. Easy.

4. Less worry about identity theft. Do you worry about handing out your card or details every time you make a purchase? I do. The banks and online merchants work hard to maintain security, but the crooks are just as inventive. And there are plenty of them. People suffer identity theft all the time. Using cash cuts down on the risk.

5. Fewer impulse purchases. One way credit cards let us spend more is that they make it easier to buy things that we don't need, and may not even want, on the spur of the moment. And the stores are set up to encourage it they rely on sophisticated marketing science to manipulate you into reaching into your wallet. If you don't have the money on you, you can't splurge. If you really want the item in question, you can come back and buy it tomorrow. Chances are you won't.

6. I can still shop online. Just because I'm using cash doesn't bar me completely from getting online deals. Yes, I'll have to bend a principle, but I won't have to break it: I can buy a prepaid card in a store and charge it up with cash. Okay, so it's plastic, but I have to pay for it in advance, with cash, and it will have a limit. (On the same principle, I can also use a prepaid card as an emergency backup if I travel).

7. Say goodbye to debt. I pay my cards off in full every month, but a lot of people don't. They use their cards to borrow, and it's a financial disaster. We've seen what the overuse of debt has done to our economy. According to Bankrate.com, the average card charges you 14% interest. Many charge a lot more. And you're paying with after-tax dollars. As an illustration, you'd have to earn at least 16.5% on the stock market (before long-term capital gains tax of 15%) just to keep up. Good luck with that. Says New York University's Stern School of Business, since 1928, U.S. stocks have produced an average compound return of just 9.7%. And Bankrate calculates that someone who buys a $1,000 item on a credit card charging 14% interest, and merely pays 2% of the balance each month, will end up paying $1,750 for that item. It will take 110 months to pay off the bill.

8. Privacy. Credit cards are great for tracking people. They tell you exactly what you bought, where and when. (Throw in all the data tracked by your smartphone, your iPad and so on, and we're basically rats scurrying around in a Perspex cage while marketing strategists study our every move). I have to confess I hate it. And I love the privacy and anonymity of cash. Last week I meet my wife for lunch. But I stopped by my bank first to take out cash. It's none of American Express' business.

9. Cash rebuilds the link between what I earn and what I spend. I remember back when I got my first job: I started calculating how much everything I spent cost in terms of hours worked. That new CD cost two hours of my time, and so on. It was a good discipline. Credit cards weaken the link. It's no wonder that the rise in plastic has resulted in an explosion in the numbers living beyond their means. (Is it also a coincidence that the rise of the credit card has also coincided with the collapse in unions? Before VISA, if you wanted a fancier car or vacation next year, you needed a pay raise).

10. Cash helps people I want to help. The money goes to the merchant and his suppliers. When I go into my local credit union to cash a check, I'm keeping a couple of local tellers in work. Credit cards? I'm helping finance bank executives, marketing teams and call centers in India. I am sure they are all fine people, and I wish them well. But if I had to choose, and I do, I would rather help my local merchants and credit union staff.

I like to use cash as well, but I think cards are very convenient. I check my balance at the end of every day, so I'm usually conscious of exactly how much money I have.

I generally use cash too.

What happens if the computer networks are down? Can't use debit or credit cards...

Nolan

I always deal in cash whenever possible. Previous CC troubles cured me of that bad habit.

I will always "mattress" some cash out of every paycheck... and tips, those are cash anyway.

I’ve joined the cash club recently too. Much simpler for small purchases but I still pay repetitive bills by fund transfer on line. Seldom use a credit card anymore and keep it paid off.

I'd like to see a much lighter $1 coin which I think would be more popular and do away with the paper dollar.

quote Originally posted by Sourmug: I generally use cash too. What happens if the computer networks are down? Can't use debit or credit cards... Nolan

silly argument imho unless you keep ALL your cash assets at home in a safe. the computers go down, you can go to the bank and get money when you cant use your card. if the banks entire system is down, you wont have access to you money no matter if you use cash or card. your argument only works in an argument on whether or not to use a bank.

quote Originally posted by faaaaq: silly argument imho unless you keep ALL your cash assets at home in a safe. the computers go down, you can go to the bank and get money when you cant use your card. if the banks entire system is down, you wont have access to you money no matter if you use cash or card. your argument only works in an argument on whether or not to use a bank.

Not neccessarily. Depends on one's relationship with their bank and their account status. I've gotten cash from my bank when they didn't have electricity for over 2 weeks, and have never not been able to just walk in and hand a teller my withdrawl slip or check that she didn't just open the drawer and count out my cash. I'm sure they enter the transaction after I leave, but lots of people have a personal enough relationship with their bank that if it's open, they can get cash, no matter what the status of their system is.

quote Originally posted by maryjane: Not neccessarily. Depends on one's relationship with their bank and their account status. I've gotten cash from my bank when they didn't have electricity for over 2 weeks, and have never not been able to just walk in and hand a teller my withdrawl slip or check that she didn't just open the drawer and count out my cash. I'm sure they enter the transaction after I leave, but lots of people have a personal enough relationship with their bank that if it's open, they can get cash, no matter what the status of their system is.

what bank do you have, tho? is it a big one? ie Chase, Associated, American, US, etc etc. i have chase, and use to have Associated, and im nearly positive if they even were down for 20 minutes and KNEW they were coming back on soon, theyd still make me wait (and at my old Associated location they were real cool and nice, knew me by face and i never really went in very often). and even so, my point is still valid. With or without using cash or a card, you have the same amount of access, or lack of, to cash money (unless you use credit and no debit somehow)

With the prices of every thing so high, you need a big wad of cash to buy anything. I'm on a road trip (non Fiero) and it is more than $40 to fill the tank of late. My wallet just ain't that fat to hold lots of bills. The ATM's only dump out $20s. Then if I don't use my bank's machines, I'll get hit with a $2-5 charge from the ATM machine and my bank to withdraw more funds.

quote Originally posted by faaaaq: what bank do you have, tho? is it a big one? ie Chase, Associated, American, US, etc etc. i have chase, and use to have Associated, and im nearly positive if they even were down for 20 minutes and KNEW they were coming back on soon, theyd still make me wait (and at my old Associated location they were real cool and nice, knew me by face and i never really went in very often). and even so, my point is still valid. With or without using cash or a card, you have the same amount of access, or lack of, to cash money (unless you use credit and no debit somehow)

It used to be Wachovia, it's now Wells Fargo. Yes you are correct. 100% access 100% of the time the bank's doors are physically open--no matter what else is happening.

[This message has been edited by maryjane (edited 07-11-2011).]

I like using cards. I still carry & keep cash "on hand" - but - given choice - prefer plastic.
plastic creates a reciept. is easy to keep track. the only thing I regularly use cash for is for "other things".

fear not - as long as there are "charges" imposed by banks for the uses of "plastic" - it can never become a "standard"

and - tough call on which is "safer" in regards to theft.

quote Originally posted by spark1: I'd like to see a much lighter $1 coin which I think would be more popular and do away with the paper dollar.

The 'Sacagewa" and "Susan B. Anthony" dollars were both flops. Most seem to prefer paper money at the dollar and higher level.

quote Originally posted by htexans1: The 'Sacagewa" and "Susan B. Anthony" dollars were both flops. Most seem to prefer paper money at the dollar and higher level.

I like the dollar coins. It's a whole lot easier to just drop a coin in a vending machine than try to find that pristine paper bill that the machine will accept.
It's much more convenient.

It's also fun to pay for a $1 item at McDonald's with a Susan B and have the kid at the register ask for another 75 cents.

quote Originally posted by htexans1: The 'Sacagewa" and "Susan B. Anthony" dollars were both flops. Most seem to prefer paper money at the dollar and higher level.

mostly, yes
people hate "change"
likely 'cause it is heavy, and pulls down on the stretchy pants they gotta wear....

but, they are widely used for vending machines & gambling machines

quote Originally posted by Pyrthian: but, they are widely used for vending machines

many of which are switching over to card scanners... and the only reason i put coins in vending machines is because i always end up with coins and i want the gone asap, so i use them in vending machines till they are gone. i keep almost zero change. if it isnt a quarter or a bunch of dimes, ill either toss it in the road or give it to whoever is standing nearest me.

I use mostly cash with a couple exceptions. The first is the gas station. Since they all went to pre-pay, I find it easier to swipe the card. I also use the card online, or when making a major purchase (expensive) when I do not really want to carry that much cash on me.

I never put more on the card than I have cash to pay it back the next day, thus avoiding getting into debt trouble or paying interest.

quote Originally posted by Fformula88: I use mostly cash with a couple exceptions. The first is the gas station. Since they all went to pre-pay, I find it easier to swipe the card. I also use the card online, or when making a major purchase (expensive) when I do not really want to carry that much cash on me. I never put more on the card than I have cash to pay it back the next day, thus avoiding getting into debt trouble or paying interest.

people who use cards like you described should just use a debit card... i see no reason for getting a credit card unless you need to build credit or need money you dont have atm but cant get a real loan.

I use cash except for online purchases or rare cases. I like paying cash for gas. If station wont take it, i go down the street. I dont do the prepay crap either unless the attendant is going to bring my cash change out to me. I dont go stand in line twice for gasoline.


"silly argument imho unless you keep ALL your cash assets at home in a safe. the computers go down, you can go to the bank and get money when you cant use your card. if the banks entire system is down, you wont have access to you money no matter if you use cash or card. your argument only works in an argument on whether or not to use a bank."

EXACTLY....Keep all your cash at home except your daily operating capital for my business. What little interest you might get if any, in a checking account is gone when you pay the taxes on it. If I got $75,000 at home, Ill always have $75,000 till I want to spend it.....and I can spend it whenever I please. Thats not to mention the huge savings you CAN get buying with cash. Cars are a great example....you can save at least 20% right off the top. Last I looked banks dont pay 20% interest anywhere.

[This message has been edited by rogergarrison (edited 07-12-2011).]

I only use cash, even if I hold a room or car with a CC they have to let me pay in cash when its time to pay or I wont use their service.

The recent 1 dollar coins were so similiar to a quarter in size. The old Eisenhower dollar was a good sized coin and easily decenable as being different than a quarter. I got the new dollar coins as quarter change.

Instead of going away from cash they need to bring back higher denominations again. Bring back the $500 and $1000 bill!!!

quote Originally posted by faaaaq: people who use cards like you described should just use a debit card... i see no reason for getting a credit card unless you need to build credit or need money you dont have atm but cant get a real loan.

That could be so, but there is little benefit to me doing so. I like the card I have (rebates towards car purchase), and have no cost involved. No monthly or yearly fee for the card and I do not pay any interest costs because I pay it off every month. So in essenice, it is like a debit card, except it isn't directly linked to my bank account (which is a feature I do like).

quote Originally posted by Old Lar: The ATM's only dump out $20s. Then if I don't use my bank's machines, I'll get hit with a $2-5 charge from the ATM machine and my bank to withdraw more funds.

Wow! I am super surprised that any bank is still getting away with charging customs for ATM withdraws at non branch ATM’s. I personally would change banks; I haven’t had to pay an ATM fee since 1998… “I LOVE MY BANK”… LOL

quote Originally posted by BlackThunderGT: Wow! I am super surprised that any bank is still getting away with charging customs for ATM withdraws at non branch ATM’s. I personally would change banks; I haven’t had to pay an ATM fee since 1998… “I LOVE MY BANK”… LOL

i even get charged for balance inquiries at non branch atms. so, if i check my balance to see how much i have, and then i make my withdrawal, all in the same transaction, i actually get charged TWICE.

It's getting more and more difficult for many to get by without a credit card. Many businesses just won't accept a debit card, car rentals among them. It is because of what happens if there is a dispute in billing. Most banks tend to back the debit card holder where most CC companies are more likely to come down on the side of the vendor or business billing the card holder--according to the bank employee I was speaking to tody while doing a wire transfer.

I prefer cash, but most children don't have much of a choice. If we went to an all plastic system, how would little Johnny buy a pack of baseball cards?

quote Originally posted by Xyster: I prefer cash, but most children don't have much of a choice. If we went to an all plastic system, how would little Johnny buy a pack of baseball cards?

or cigarettes?


edit. meant that as a joke but that made me think...if we went to an ALL electronic system, how would drug dealers and criminals handle money transactions..?

[This message has been edited by faaaaq (edited 07-12-2011).]

Don't forget the hookers, I mean strippers.

[This message has been edited by Xyster (edited 07-12-2011).]

quote Originally posted by Xyster: Don't forget the hookers, I mean strippers.

havent you seen that controversial music video that was all over the news a few years back? females have a convenient card swiper down their backsides http://www.contactmusic.com...rill-video-criticism