Hi....I would love to spend less. I am not a compulsive shoppers and we are relitively debt free. But I a a cc that I put everything on and then pay off every month....to get the points. I may end up with $150 worth of goodies at the end of the year...but I am now wondering if I would be better to cash shop? Any thoughts???? So if there is no cash in the envelope...then I can't buy it ...even if we do have the money.

I think as longas you pay off that CC each moneth, then you are actually benifitting. Paying with cash helps you from overspending, but at the same time, if you can get something extra by putting everything on the CC and then paying it off each time it's due, I don't see how that's a bad thing.

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I have found that I spend much less since I have stopped using credit cards. It's so much harder to part with cash. I never realized how much money I was wasting every month. I find I buy less clothes, go out much less often, and spend much less at the grocery store. I'm learning that it's much nicer to have money in the bank. Maybe you should try it for a few months and see how it goes.

It sounds as though your system is really working for you. A lot of the reason that people use the cash envelope system is because they don't pay off their balance each month. Then you start paying interest and fees and digging yourself into a hole.

As long as you have enough willpower to stay on top of it, it seems like your system works well for you.

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You sound a lot like me. We pay our CC in full each month but use it to get cash rewards. So basically I can float most purchases up to a month while my money is gaining interest and I get a reward. That being said, we have a lot of willpower and don't go shopping a lot. Most of our purchases on the CC are gas, groceries, and other bills (of course to get extra rewards). I would look at your bill and see if there are many things 'purchased' that you would've forgone if you only had cash. If there is not a lot, cc may be the way to go.

I use a credit card for almost everything; groceries, gas, consumer purchases, etc. We have a card in which we get rewards as well. I believe that if you're disciplined with your spending and pay off the balance each month, it's OK to use a credit card. Lately with my "simple living" kick I've been staying out of the stores as much as possible anyway, so I don't know if it would be possible to buy much less than I already am!

I think people get into trouble when they view credit card spending as "free money" because they don't have the visual of cash right there in front of them. If you're not making impulse purchases, aren't overspending, and are paying off your balances each month you're probably fine; but only you can answer that question honestly.

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I agree with the others, if you are paying it off each month and not carring a balance then use your system. However, you might want to start recording what you are using it for, or really look closely at the statement each month. Are you making a lot of impluse purchases?

Me, I'm not that crazy about cash. I don't really "do" purses and am always a bit paranoid with having lots of cash around. Likewise, it seems like it goes so much faster than using my debit card for everything.

good luck

Using cash is MUCH better for me personally! I spend a lot less money! And although the $150 or so of goodies at the end of the year sounds good, I'll bet I save that much in 2-3 months by using cash instead!

Of course if you have no debt, and can pay off the bills each month then I don't see a problem in using cards, although all it takes is 1 hard month where something big pops up, or you get a little crazy with your spending... by the time you get the huge cc bill and realize it you've already spent more in the next month... it just starts to add up!

Overall though I think it depends on what works best for your personally!

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