Hacker News new | ask | show | jobs
by sawthat 3631 days ago
Don't use credit cards. I also recommend YNAB: https://www.youneedabudget.com
2 comments

More precisely: Don't use credit cards to carry a balance.

By not using credit cards, you're giving away 1–5% free reward money from cash back programs. Not to mention the additional purchase protection you receive from shoddy vendors, like bars padding tips.

Best way to not carry a balance is to not have a credit card. It's very easy to say "don't carry a balance" but most people do. When I used credit cards I often carried a balance, despite my best efforts. If you have the discipline to NEVER carry a balance, more power to you. But most people don't and the points just aren't worth it.
That's fair.

I've never felt like it's taken much discipline for me personally, and I've never carried a balance on any credit card. I try to live far under my means and mostly just spend money on food, coffee, travel, and a laptop. Most of the rest of my "things" are hand-me-downs.

One "hack" that works for me is reviewing each transaction and paying the card in full every week. If I see it especially high one week then I spend more conservatively the next. I don't do any explicit budgeting, but being conscious of the big picture helps me.

Definitely use credit cards. If you know how to manage your finances (i.e. spend about 40-50% of what you make and save the rest), it shaves off 1~2% off of all your purchases.

This is even before mileage, hotel stay, etc. rewards come in.