Author Topic: Reduce the number of transactions you make  (Read 1001 times)

FausseBourgeoise

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Reduce the number of transactions you make
« on: July 03, 2016, 11:44:14 PM »
So about 8 months ago, I was hit with a bank fee for the first --and last-- time. The clerk noted that I tend to make quite a few small transactions. Since I still save 50-60% on a monthly basis with a solid pension, I didn't worry about it too much.
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But I have been using YNAB for about 10 months now and I just looked at June and it turns out I made 58 transactions in 30 days, including transfers and bill payments. I'm not paying any bank fees, but I will surely cut down on spending money, grocery bills, and spontaneous treats if I do this.

I walk almost everywhere, with a couple of bus trips, and often a grocery run includes 1-7 items (fresh produce and maybe 1-2 pantry items). I am in a transitional phase with my dietary habits so I'm getting the pantry established. I also get a couple of things per month as I am slowly turning the apartment into a home - e.g. herbs and planters for the patio. I also help friends who are living under the poverty line (a lot of spending money and gifts go there).

For June, my breakdown was:
Bills - 5
Transfers - 5
Personal Care - 1
Gifts - 5
Groceries, food - 17
Spending money - Clothing, hobbies, household items, all kindsa treats - 25

This month, I'm going to shoot for 31 transactions or fewer in 31 days, which represents a sweeping reduction, but I think I can handle it given that my pantry is already fairly stocked. I will be making a few planned purchases for the patio garden and a birthday.

I'm already at 5, eep!
Rent, gift, clothes, groceries x2

For the purposes of this experiment, I'm going to say that transfers and recurring bill payments are waived as transactions and I am mostly referring to daily transactions on my debit card. But, counting those in as well will be my stretch goal :)

And you?

Frankies Girl

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Re: Reduce the number of transactions you make
« Reply #1 on: July 03, 2016, 11:52:26 PM »
I tend to only have about 6 or less bank transactions a month to pay bills. I have a debit card, but can't remember the last time I used it since Aldi now accepts credit cards.

You shouldn't be using your debit card for anything other than withdrawing cash at a safe bank location. Debit cards do not have the same protections as credit cards, usually don't offer any rewards for usage like credit cards, and in the event someone hacks your card, you lose money out of your bank account rather than from a credit line - meaning you might end up with some bouncey stuff happening (and fees!) if they clean you out. And you're screwed for the few weeks it will take for the bank to get around to making you whole again. A credit card company usually will overnight you a new card and you'll spend about 30 minutes getting stuff straightened out if you had automatic payments linked to that card, but that's the extent of the hassle if it is compromised.

You can get the money back eventually in that event, but why on earth take the risks when using credit cards is safer, better for rewards/points and enables you to transact virtually every way the same as a debit card... but without the linkage to your actual money.

Never will understand the allure of using a debit card for basic shopping/transactions since they have no advantages that I can think of over a credit card that is paid off monthly.

FausseBourgeoise

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Re: Reduce the number of transactions you make
« Reply #2 on: July 04, 2016, 12:13:49 AM »
I tend to only have about 6 or less bank transactions a month to pay bills. I have a debit card, but can't remember the last time I used it since Aldi now accepts credit cards.

You shouldn't be using your debit card for anything other than withdrawing cash at a safe bank location. Debit cards do not have the same protections as credit cards, usually don't offer any rewards for usage like credit cards, and in the event someone hacks your card, you lose money out of your bank account rather than from a credit line - meaning you might end up with some bouncey stuff happening (and fees!) if they clean you out. And you're screwed for the few weeks it will take for the bank to get around to making you whole again. A credit card company usually will overnight you a new card and you'll spend about 30 minutes getting stuff straightened out if you had automatic payments linked to that card, but that's the extent of the hassle if it is compromised.

You can get the money back eventually in that event, but why on earth take the risks when using credit cards is safer, better for rewards/points and enables you to transact virtually every way the same as a debit card... but without the linkage to your actual money.

Never will understand the allure of using a debit card for basic shopping/transactions since they have no advantages that I can think of over a credit card that is paid off monthly.

My debit card actually does have the same protections as my VISA (which I've let expire actually as I wasn't using it) but it's true that using credit cards has an added distancing from my account.

I suppose the practice of using debit has to do with a) seeing my parents doing it; b) not liking the 2-3 day posting delay for transactions on my account (OCD: why is my available credit not in line with the transactions displayed?); c) general hatred of credit cards and the fact that I have to pay them off, even if I am in control of my spending, irrational fear of messing up and having to pay interest. Oh, and there are a number of places I frequent that charge fees for using credit cards to pay.

It is a good point about the payment method, but either way, this is about transactions in general.
« Last Edit: July 04, 2016, 12:22:26 AM by FausseBourgeoise »