Comment by Larrikin | Hacker News Reader

Comment by Larrikin | Hacker News Reader

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Budgeting using a tool like YNAB has allowed me to manage monthly funds more effectively, pay off debts faster, and save up more quickly for the things I want to buy. It's possible to use it by inputting all your receipts in manually but it's such a time sink. Automatic importing let's me see exactly where my funds are and budget quickly in a few minutes at the start of my day. When cards are not importing correctly it's such a difference importing stuff manually.

As another example with online banking switching banks effectively becomes zero friction. When Ally slashed rates it took a couple days to move nearly all funds out to a savings account with a much better rate.

Not to mention nearly all brick and mortar stores have savings account rates that are effectively zero. My first interest payment when I was a new Ally customer was basically what I got the entire ten year period I was at bank of america

That's good for you, but it sounds like you are spending way more time managing finances online, than I do offline ;) I have an average weekly budget that I keep track of in my head, and that's it. That's also the reason why I prefer paying in cash. Easier to keep track of the outgoing money.

> Easier to keep track of the outgoing money.

It definitely is not. How is keeping track of random cash purchases in your head easier than a computer doing it for you automatically and instantly?

Ok, technically I don't keep track of it in my head, but in my pocket. I start with a given amount of Euros in my pocket. Each purchase reduces that amount. If I want to check my current balance I reach into my pocket and see how much money is left. Checking this against the current date gives me a rough idea if I'm over- or under-budget.

But how do you sell your purchase data for a 1% discount this way?

In the US atleast if you're making cash payments you are subsidizing all credit card and debit card transactions. I end up at the end of the year with hundreds of dollars (often times over a thousand if I was awarded a bonus for a new card) returned back to me in cash back. If I convert to miles they are worth even more. I never use cash anywhere that accepts cards.

Online banking also makes it very easy to manage my cards to ensure I'm never paying interest since the first interest payment usually totally eats up any savings from cash back.

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