Let me paint you a picture. You have plans to go out to a nice dinner. So you find yourself a hot date, grab a crisp $100 bill, and head for your local Red Lobster. Your date is cool, so he knows that the hundo has to cover the whole dinner. So you order an app, a couple of entrees and a drink each. As you add up the cost in your head you know you’re getting close to your limit after tax and tip so you call it good. It was an awesome night, you bring home a crisp $10 and your date shags the hell out of you for being so fiscally responsible.
Now, let’s imagine the same night, but this time you bring the plastic. When the waiter asks if you want the second round of drinks? WHY NOT, it’s a special night. Oh and that snow crab add-on that’s only $9.99? Well, at that price you can’t afford NOT TO. And since you’re getting the crab it’s only fair your date adds the lobster tail. The bill comes, you hand the card and it swipes nice and easy like a hot knife through a cheddar biscuit. Final bill: $162.50. And you gotta tip 20% on that so you don’t look like a cheap skate. And no nookie for you because you’re too full and drunk to get down to business.
I’m certainly guilty of overspending on a credit card. Man that thing swipes easy. These days you usually don’t even sign. Just swipe… no wait put the chip in. Now take it out. Ah no, not yet, put it back on. Oh wait, is this is a tap one? Yeah try tapping. Did it work? You moved it too soon. Ok. Yeah, there we go. AND BOOM. Just like that, the money’s gone and you barely even noticed.
And I know, I know. You were gonna spend the money ANYWAY, so you might as well get the points. But let me ask you this: Do you think you’re beating the credit card companies? This is a game THEY set up to make THEM money. And they’re making billions and you’re broke.
I use a credit card, but I always try to remember this: You’ll ALWAYS come out ahead if you spend less money rather than letting the points game seep into your subconscious and cause you to spend more money.