A reason to use cash occasionally

[dungoofed]

http://bits.blogs.nytimes.com/2015/01/29/with-a-few-bits-of-data-researchers-identify-anonymous-people/?_r=1

I know a lot of people around here love the creditcard-mint.com-points stack. Indeed MMM's latest blog recommends these automated methods:

Do all your spending on a credit card and let some financial software like Mint, YNAB, or Personal Capital grab all your transactions and sort them out (this is what I prefer).

In either case, you’ll probably spend at least some cash which you pull out of ATMs. You will see this in your automated spending report as well – I suggest assigning your cash spending to a category called “the decadent throwing around of unnecessary $20 bills.”

Depending on how much you value your privacy you might want to reconsider, and occasionally decadently throw some $20 bills at store clerks for your purchases. From the article:

In the study, titled “Unique in the Shopping Mall: On the Reidentifiability of Credit Card Metadata,” a group of data scientists analyzed credit card transactions made by 1.1 million people in 10,000 stores over a three-month period. The data set contained details including the date of each transaction, amount charged and name of the store.

Although the information had been “anonymized” by removing personal details like names and account numbers, the uniqueness of people’s behavior made it easy to single them out.

In fact, knowing just four random pieces of information was enough to reidentify 90 percent of the shoppers as unique individuals and to uncover their records, researchers calculated. And that uniqueness of behavior — or “unicity,” as the researchers termed it — combined with publicly available information, like Instagram or Twitter posts, could make it possible to reidentify people’s records by name.

I was actually reading this thread here:

http://forum.mrmoneymustache.com/welcome-to-the-forum/so-tired-of-being-sold-to/

and realised that I very rarely get sold to, and was wondering whether it's because I purchase so much stuff with cash. Food for thought.

[Shor]

Costco
Costco Gas
LBS
Here are my top 3 purchase places, they can throw ads at me all they want,
do they have an algorithm to figure out when it's just wasted resources for my 'type' of person?

Seriously though, you have huge amounts of data, and companies will pay gobs of money for the 'marketing analysis'?  And you say more and more big data is coming out all the time? And we can just keep making more and more algorithms to analyze that data? Heck yes we're going to take their money- I mean.... provide valuable data points to optimize their customer selection schemes!

At least now I might get recommended something I actually want..
Sometimes I feel like this world is simply not selling the sort of things I'm willing to pay money for... I wish I knew what it was though :(

[TheBuddha]

The anonymity of cash is great. Every time I use cash I feel like I'm "off-grid".

[morning owl]

Do all your spending on a credit card and let some financial software like Mint, YNAB, or Personal Capital grab all your transactions and sort them out (this is what I prefer).

YNAB doesn't automatically track purchases. This is what makes it so different -- it's designed so that you have to manually input transactions and be fully conscious of what you're doing, where you're planning to spend your money. I love it for this reason. I also love using cash because I find it less mindless than pulling out the CC. And, perhaps not coincidentally, I don't receive much marketing in my inbox.

For me the key to spending less is to institute methods that make spending as mindful as possible. YNAB and using cash are two such methods.

[jmusic]

One great reason to use cash:  Spend less (what advertisers call "saving!") money by buying stuff used on Craigslist instead of new! 

[MoneyCat]

It's hard for companies to throw ads at me, because I use ad-blocking software, listen to commercial-free satellite radio, use a DVR for over-the-air TV, and a proxy.  I'm not really concerned about this stuff.

[Retired To Win]

The anonymity of cash is great. Every time I use cash I feel like I'm "off-grid".

Which is why we buy all our ammo with cash.

[Sid888]

http://bits.blogs.nytimes.com/2015/01/29/with-a-few-bits-of-data-researchers-identify-anonymous-people/?_r=1

I know a lot of people around here love the creditcard-mint.com-points stack. Indeed MMM's latest blog recommends these automated methods:

Do all your spending on a credit card and let some financial software like Mint, YNAB, or Personal Capital grab all your transactions and sort them out (this is what I prefer).

In either case, you’ll probably spend at least some cash which you pull out of ATMs. You will see this in your automated spending report as well – I suggest assigning your cash spending to a category called “the decadent throwing around of unnecessary $20 bills.”

Depending on how much you value your privacy you might want to reconsider, and occasionally decadently throw some $20 bills at store clerks for your purchases. From the article:

In the study, titled “Unique in the Shopping Mall: On the Reidentifiability of Credit Card Metadata,” a group of data scientists analyzed credit card transactions made by 1.1 million people in 10,000 stores over a three-month period. The data set contained details including the date of each transaction, amount charged and name of the store.

Although the information had been “anonymized” by removing personal details like names and account numbers, the uniqueness of people’s behavior made it easy to single them out.

In fact, knowing just four random pieces of information was enough to reidentify 90 percent of the shoppers as unique individuals and to uncover their records, researchers calculated. And that uniqueness of behavior — or “unicity,” as the researchers termed it — combined with publicly available information, like Instagram or Twitter posts, could make it possible to reidentify people’s records by name.

I was actually reading this thread here:

http://forum.mrmoneymustache.com/welcome-to-the-forum/so-tired-of-being-sold-to/

and realised that I very rarely get sold to, and was wondering whether it's because I purchase so much stuff with cash. Food for thought.

You should also improperly "tag" photos of yourself on facebook - big brother is watching.

[pipercat]

Do all your spending on a credit card and let some financial software like Mint, YNAB, or Personal Capital grab all your transactions and sort them out (this is what I prefer).

YNAB doesn't automatically track purchases. This is what makes it so different -- it's designed so that you have to manually input transactions and be fully conscious of what you're doing, where you're planning to spend your money. I love it for this reason. I also love using cash because I find it less mindless than pulling out the CC. And, perhaps not coincidentally, I don't receive much marketing in my inbox.

For me the key to spending less is to institute methods that make spending as mindful as possible. YNAB and using cash are two such methods.

Well, I am actually quite lazy, and I don't manually input my transactions.  I download them from the bank about once or twice per week.  It is still more "manual" than sites such as Mint, though, because it only downloads when I tell it to do so, and it isn't web-based.

[Jouer]

I'm a data scientist. This line of thinking is funny to me. A reputable company would never release data, even with personal information removed. Why would they release their data? It's for them to analyze. Only them. Hell, even if they are immoral, why would they release client data? So competitors can analyze it, too? I don't think so.

I have access to all kinds of sensitive data at my work but I could give two shits about individual records. With millions of clients/non-client records, we only report/model on the aggregate.

[oinkette]

I use cash for EVERYTHING except recurring automatic expenses. My #1 reason is, it's easier for me to stay on "budget" with cash.  With credit cards, I'm less congnizant of what I'm forking over than when I have to count out and hand over dollar bills. I give myself a weekly allownce of money and if/when it's gone, it's gone...so I keep it in check!  With credit cards, it was too easy for me to go over each week..even if only a little (it adds up!).

The whole Target/Home Depot hacking scandals didn't help either and made me glad I do use cash.

I also love building my little piggy bank with leftover change.  :)

[dungoofed]

I'm a data scientist. This line of thinking is funny to me. A reputable company would never release data, even with personal information removed. Why would they release their data? It's for them to analyze. Only them. Hell, even if they are immoral, why would they release client data? So competitors can analyze it, too? I don't think so.

I have access to all kinds of sensitive data at my work but I could give two shits about individual records. With millions of clients/non-client records, we only report/model on the aggregate.

Fair point. I'd argue that 1) the data, once created, lasts forever, and 2) just because governments aren't interested in the data today doesn't meant they won't be in the future.

http://money.cnn.com/2015/01/13/technology/uber-boston-traffic-data/index.html

I know this is anonymized data but I was going for a balance of "government wanting corporation's data" and "not conspiracy theory" because lets face it a lot of this stuff gets people making fun of tin foil hat wearing strawmen (despite the Snowden revelations).

[Zikoris]

I don't see a problem with companies tracking what I buy. My grocery store started doing that about a year ago, and only giving me offers for stuff I actually get, and it's been great. My boyfriend and I are vegans and make everything from scratch, so it would be rare before now to have more than one or two relevant items from the weekly sales. Now we get a ton, and accumulate points for free groceries like crazy.

I think having more relevant marketing would be fantastic - I don't even understand the product or function of half the stuff advertised to me. We were at a movie a while back and an ad came on where they panned around a home, then holes opened up in the walls and ceiling and slimey things came out and started dancing to music. No words as far as I remember. My boyfriend guessed it was an advertisement for some sort of speakers, I thought it might be for some sort of new drink. We never found out if either of us was right.

[lakemom]

Privacy is the only legitimate argument in favour of cash.

Well, no!  As a small business owner I try to always use cash/check when shopping other local business owners (not huge chains/national stores) because it saves them the 1.5-3% fees charged for processing plastic. Its just my little way of helping out my fellow man because I understand how much that darn fee hurts every month when looking at the bank statements.

[dcheesi]

Privacy is the only legitimate argument in favour of cash.

Well, no!  As a small business owner I try to always use cash/check when shopping other local business owners (not huge chains/national stores) because it saves them the 1.5-3% fees charged for processing plastic. Its just my little way of helping out my fellow man because I understand how much that darn fee hurts every month when looking at the bank statements.

Plus wait staft may prefer it for various reasons, especially for their tips.

And if you have the right change, you can skip a step in the payment process at sit-down restaurants.

And you have a visible, visceral reminder of how much is left in your everyday spending budget.

[cjottawa]

Relevant: CBC Radio's "Under the Influence" program, an episode called "Hyper Targeting."

http://www.cbc.ca/player/Radio/Under+the+Influence/ID/2367186765/

Some of the text of it is available here: http://www.cbc.ca/radio/undertheinfluence/hyper-targeting-br-how-brands-track-you-online-1.2801857

It's 27 minutes and a great listen but if you really, really don't want to listen to it, I'll copy and paste a few sections from the text.

He wrote that a math-loving analyst at Canadian Tire began to evaluate every piece of information they had collected from its credit card transactions that year. The analyst determined that the brands we buy were windows to our soul. For example, people who bought cheap, generic motor oil were more likely to miss a credit card payment than those who bought the more expensive, brand-name oil.

People who bought carbon monoxide detectors, premium birdseed, or felt pads for the bottom of furniture legs almost never missed payments.

The reasoning - these people had a sense of responsibility toward the world, and wanted to protect their belongings, be it hardwood floors or credit ratings.

On the other hand, people who bought chrome skull car accessories or "mega thruster exhaust systems" were credit risks.

Instead of using cash, consider "salting" some of your credit card purchases: buy bird seed using a credit card, don't ever buy booze or tobacco on a credit card.

I am not suggesting anyone here is likely to be delinquent. Rather, I'm suggesting you might be able to avoid being lumped in with the deadbeats by doing some social-engineering on the way you pay, without going completely cash.

[CrisAdams]

With all the hacks being perpetuated, I try to use cash when possible.  It helps me to stay on budget by keeping me aware of my spending habits and if I'm going over what I have allotted in each spending category.  I also think twice about buying something---is it something I need or something I want.  I still need to pull the cash out of an ATM, so I'm sure that is tracked but not my spending habits.

[lakemom]

Of course as small business owners we "voluntarily" pay the fee....we'd go bankrupt if we didn't.  I just HATE paying it, so when I don't "need" to when shopping locally from my friends and neighbors I try to use cash...its kind of like giving them a tip by saving them the fee.

[AJ]

The processing fee argument has always been a red herring. Accepting credit cards earns them more total profit than if they didn't. Otherwise, they wouldn't accept credit cards. There is no reason to feel sorry for somebody who voluntarily pays consideration to another party pursuant to a mutually agreed contract that is enriching both parties thereto.

I'm not seeing how that is a red herring. Yes, merchants accept cards because that is how many people pay and they would lose business to competitors if they didn't. But if you, personally, pay with cash then the merchant keeps that 3% fee rather than sending it to the processing company. That may not matter at Target or Walmart, at a small business I'd rather my money went to the owner.

If you have reasons for using a card, that is fine. But that doesn't make lakemom's reasoning incorrect.

[Zikoris]

I've asked some of the local small business owners whose shops we visit what method of payment they prefer, and debit is the overwhelming answer. Apparently around here (not sure for the rest of Canada or the US) they pay a set amount per month rather than a percentage of the transaction, and it's better for them for record keeping than cash. So we use debit at those places, and credit for everything else.