Jesse and Mark return to their credit card debate from episode #69 (recorded last year in 2022) and discuss how business is going with using a credit card. Jesse went cold turkey and stopped all use of credit cards, while Mark kept a card for just a couple recurring transactions, but greatly reduced his usage.

The consensus? Even though YNAB attempts to treat credit card spending the same as cash, because you have to set aside cash to cover the credit balance, it's NOT the same as cash. Even if you diligently set aside cash to cover your credit card expenses, until you actually pay off the card... well, the card isn't paid off! There's mental overhead in having to set aside cash for purchases as they occur, while also remembering to pay off the card. And while it may seem small, Mark and Jesse were surprised at the impact it had on their thinking and emotions around money.

Mark Butler, Virtual CFO

The Money School: https://moneyschool.works

https://markbutler.com

https://letsdothebooks.com

YNAB

https://www.youneedabudget.com