I forget the exact number, but Ramsey was talking about people generally spending some odd percent more when using plastic as opposed to peeling off $20s.
He goes on to describe the trade mentality. We learn from a young age that we hand something over, and get something in return. A blue marble for a red marble, for example.
We hand over a Hamilton or Franklin... and don't see it again. We get whatever item back (plus a few stray less valuable bills maybe). But we traded something.
If we hand plastic over, we get the item and the plastic card back. Neat! Like free!
Wondering what y'all frugalers do. I feel like if we really embrace a life of trading as few dollars as possible for items, we are better off getting a couple percent off by using big name cards... but maybe not.
Ramsey was basically saying to this guy "you aren't pulling one over on these big banks, they have much math and many studies saying you are spending more on plastic than you would otherwise...they are ahead."
Do you peel of $20s for stuff? Or hand over plastic?
April 08, 2017 at 01:29PM
