Before everyone goes and grabs their pitchforks and torches and runs me out of YNABville, let me preface the following with a disclaimer:
The following method will probably not work for you, and there is a good chance you will end up in more debt. This method may increase the chance of a heart attack or stroke that can lead to death. Serious skin reactions or stomach and intestine problems, such as bleeding and ulcers, can occur without warning and my cause death. When using this method, hallucinations may occur and sometimes you may feel dizzy, sweaty or nauseated upon standing up. Some patients have reported changes in behavior, agitation, depressed mood, suicidal thoughts or actions when attempting this method.
Now with the legaleze out of the way I want to share with you how I am a good YNABer, AND use credit cards.
We started using YNAB just over a year ago, and it literally changed our lives. The only other thing that has had as much of an overall impact on me was a poorly thought out and executed tattoo of a purple unicorn playing a rainbow colored electric guitar on my forehead...but I digress. Approximately 14 months ago our financial posture was, at best, depressing. We had significant credit card debt, credit line debt, cash flow diarrhea (money just seemed to blow right through our wallets), etc, etc, etc. Now we are basically debt free (except mortgage), have a full buffer, a nearly five digit e-fund, well funded categories, and have a financial "plan". Last week we booked a week long vacation at a five star spa resort for FREE, with airfare. That's right, free money! I love my Amex. Here's why-
We charge everything on our CC (except mortgage). No more multiple accounts to juggle, unaccounted for cash issues, and endless receipt hoarding.
Amex gives us free money (award points) for every dollar we spend. It's like a matching 401K for our vacation category.
Reconciling our expenses takes only a few minutes per week.
Both of our credit scores are now in the 800s (I was in the low 6s not long ago).
Almost all my purchases have buyers protection insurance included.
The "catch" of course is that you need to pay them off monthly, or else the "money" is no longer free but is instead very expensive. That said, I thought I'd share our perspective in case any other lone YNABers are in the same boat and are looking for support. Us pro-CC YNABers are a rare, and lonely, breed. :cry: