21 min listen
Gaming the Credit Card System... Maybe
FromThe YNAB Podcast
ratings:
Length:
5 minutes
Released:
Mar 25, 2024
Format:
Podcast episode
Description
Jesse answers a question from a listener who argues that becuase he carries enough cash to cover his credit card spending at all times, he is not riding the float and therefore is gaming the credit card companies. Jesse quotes Charlie Munger -- "show me the incentive, and I'll show you the outcome" (he actually said outcome not behavior) -- and observes that financial institutions have big incentives to encourage more spending, because spending increases their fees. So where there's an incentive, there's a behavior they want to encourage, and using credit cards is it. In Jesse's experience, ditching the credit card has made him less likely to impulse spend, and that experience is likely what financial institutions have figured out! Got a question for Jesse? Send him an email: askjesse@ynab.com Sign up for a free 34-day trial of YNAB at www.youneedabudget.com Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial
Released:
Mar 25, 2024
Format:
Podcast episode
Titles in the series (100)
013 - An Interview with Baker from ManVsDebt.com: Baker and his wife had an epiphany the night their daughter was born. With the answer to one simple question, they found freedom. This will get you thinking! by The YNAB Podcast