No. of Recommendations: 3
Going back to the study in question, for example, that 15% increase in spending is an average. Not an across the board number. So if 3/4 of the people spend 20% more but 1/4 of the people do not spend one cent more, then we get an average of 15%. Clearly that looks like an argument for putting the plastic away even if you pay in full, but that also means that 1/4 of the people are leaving points, miles and cash back on the table unnecessarily if they follow his advice as inviolable gospel.

I agree with this totally. Looking at the average behavior is fine when you are talking about groups of people as a whole.

But, when deciding on personal behaviors what is important is to look at your individual behavior.

To put it another way...if we look at median household income...there is information to be gained from doing that. However, if we each planned our budget based upon median household income there would likely be problems since it would be specific enough to our situation!

I do use a cash back card for expenditures (Amex Blue Cash) and do pay it monthly. Even though I've been in credit card debt (and still am) I feel OK about doing this.

Having said that ...I do think Dave Ramsey makes a valid point which is that people don't get rich because of getting back cash on credit card purchases or doing 90 days same as cash purchases. At the end of the day, those are little things that have no significant impact on wealth building. I think he would think that focusing on them is focusing on the wrong things and distracts from the main ways to make money. I tend to think he is right and while I may continue to use a credit card (since I don't like debit cards and don't like paying with cash/check) I am not going to kid myself that it is something that will make me huge amounts of money.
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