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September 28, 2006
Door to Door Charitable Donations
While doing some clean up around the outside of my home today, I was approached by a door to door charitable donations "salesman".
Stepping down from my ladder the charity representative introduced himself to me stating that he was here from "We help needy children in foreign countries foundation" (not the real name he used).
The sales pitch started with mentioning that we have so much in this country and that helping children around the world is a rewarding cause, and that I agree, it is a rewarding and noble cause.
I actually sponsor children around the world currently through WorldVision.
Now, back to the door to door charity collector guy. I told him that helping needy children is important but I never donate "on the spot, at my front door".
I asked, "Can you leave an information package or is there a number I can call after talking to my wife about this?"
He said, "No, I don't have any information packages and I don't know the number to call to make your donation"
Hmmm, Could it be a scam? It is possible, which is why I recommend before donating your hard-earned money that you verify that you are donating to a legitimate organization.
Posted by Colin at 04:46 PM | Permalink | Comments (0) | TrackBacks (0)September 26, 2006
How to Save Money When Buying a Car
If you feel you absolutely must have your own car and are prepared to foot the bill, look for the least costly way to do it.Your budget will thank you.
Buying a car can be a highly stressful experience and getting the best deal is never easy. Most car salespeople are commission-driven, which means their goal is to get you to pay the highest amount possible without losing the sale. That means you run the risk of encountering some aggressive and occasionally even unscrupulous sales techniques.
There are ways to protect yourself. You could avoid commission-driven dealers completely. About a decade ago, a new philosophy began to emerge in the car sales industry. Called One-Price-Shopping, it uses a no-negotiation approach. The price on the sticker is the price you pay. A one-price shop won't give you the best deal in town, but it will give you a reasonable discount without all the stress involved with negotiating. And one-price shops pay their sales staff a salary, which eliminates a lot of the greed that can plague commission-only dealers. Many dealers have been adopting this approach independently, so check in your area for a one-price shop that carries the car you want to buy. Only Saturn practises this sales philosophy on a national level every Saturn dealer in the country sells its cars for the same price.
If you want to compare prices, use the telephone. Speak directly to the new car sales manager at several competing dealers in your area. Get them to bid against each other for your business.You'll need to assure them that you're serious about your intention to buy a car if a deal is reached and you may encounter some resistance, but it's worth a try.
You should check out sources online to ensure you are getting a fair price on your vehicle:
If you are considering a used vehicle then consult the Lemon Aid guides for problems with the make and model you are looking at. Lemon Aid will help you get a feel for how much you can expect to pay in repairs.
Should you have more time, call or go to a local repair shop and talk to mechanics about the vehicle you might purchase.
Posted by Colin at 12:07 AM | Permalink | Comments (0) | TrackBacks (0)September 19, 2006
Hone Your Negotiation Skills for Budget Savings
How to Negotiate
Good negotiating skills can save you thousands of dollars over the years. Many of the biggest expenses in your budget are negotiable—your car, your furniture, and your house are all examples. But you must understand how to go about it. Here are some tips.
1. Do your homework. You'll get your best results if you arm yourself with information. Magazines like Consumer Reports and similar publications are very useful. There are also books devoted to specific products, such as the Lemon-Aid Guides for cars. Visit sites such as ConsumerReports.org.
2. Research the seller's profit range for the product or service you're negotiating for. This will give you an idea of a reasonable discount to shoot for. The dealer's cost price of a new car can be found online at www.carcostcanada. corn, but be prepared to pay a small fee for this information. If you're buying a house, have your agent find out the original purchase price and any previous offers made. Most big-ticket items carry a negotiating range of 8 to 15 percent but regular retail items have a much lower range, around 3 to 5 percent. And always find out what price the competitor is willing to sell for.
3. Be realistic. A negotiation is not an argument. Nothing gets a seller's back up more than a buyer who becomes overly aggressive. To keep yourself calm and the pressure under control, make your offer high enough to be taken seriously but low enough so there's room to move. A good rule of thumb is for your first offer to be about 10 percent less than the price you're aiming for.
4. Build a relationship. Most of a negotiation's success is dependent on the relationship between the negotiators. Salespeople understand this, and the tactic works just as well for buyers. This approach works best with people you see regularly, such as your personal banker or your mechanic. Ask about their families, their hobbies, or their vacation plans. And remember the answers for the next visit.
5. Just say no. In every circumstance, the seller needs your money. Without you, there's no deal. This is the ultimate power in negotiating. If you find that you've lost control or gotten in over your head, use your feet to just walk away.
6. Practice makes perfect. The best way to be a good negotiator is to use the skills whenever you buy something, as long as the situation is appropriate. After a while, it becomes second nature.
Posted by Colin at 12:11 AM | Permalink | Comments (0) | TrackBacks (0)September 16, 2006
Credit Card Offer Flood Gates Open
Does it seem to you that the credit card companies have you targeted?
They do! At least once a week you likely get a few credit card applications flooding your mail box (and email box) offering 0% APR and fabulous rewards programs with bonus "sign-up now" points.
So, what are you to do? Get lured into another credit card? Place temptation in your wallet? Go further into the debt trap?
It is hard to ignore some of the offers I have to admit but it is usually wise to shread the applications and I mean shread them. I mention this because there are people that have tested this, ripping up the application and then taping it back together. Then proceeded to fill out the application with false information just to see if they would receive the card. And...they did! Even with a false name, wrong address and telephone number (they used a relatives address to have the card sent to)
OK, getting back on track now. Take those offers and shread the living you know what out of them to protect yourself against fraud. Unless....The offer truly will benefit you and then your best move is to transfer your existing balance to the new card and cancel the old account. Just a little advice to help keep you from the debt trap you might set for yourself by having too much available credit.
For most people, ignoring these offers completely will serve you well!
Posted by Colin at 11:55 PM | Permalink | Comments (0) | TrackBacks (0)Obsession with Luxury, The Demise of Humanity
What is it about our attitude today?
We want it all and we want it now! Whatever happened to waiting and working hard for the luxury items we want?
It is this obsession of luxury that is changing the definition of the pursuit of happiness.
Let’s all stop and ponder what luxury is for a moment:
For some that means a big house packed with “toys” and others it is a luxury vehicle.
Well, my friend, all those things you crave in life will do this:
1. De-Humanize you – The pursuit of happiness has become more like the pursuit of stuff. The obsession of chasing down “stuff” has deteriorated personal connection. Whatever happened to people connecting with each other and trying to make the world a better place?
2. Break the bank – The pursuit of stuff will not only de-humanize you it will sink you into a debt hole so deep that your great-grandchildren will be left trying to dig you out of debt.
Folks, you need to know that stuff will not make you happy, people will. If you are pursuing stuff, you are missing out on something much more important, connections with people.
Maybe, just maybe, if we all stopped trying to buy more stuff we could all be a little happier and the world might just follow us on this and become a place of harmony, co-existence and acceptance.
Perhaps if we all stopped our obession to acquire more stuff, we could all achieve our dreams!
September 13, 2006
Simple Strategies To Save Money
Here are a number of money-saving ideas that my family and I have collected over the years.You may already be using many of these in your own home, but at least a few may be new to you.
Parents should shop alone
Don't take the kids to the grocery store.You will be pestered to buy cookies, candy, cakes, soft drinks, snack foods, ice cream, and just about anything else that catches a child's eye. Unless you can say no to everything and don't mind risking a temper tantrum on the supermarket floor, you'll probably give in to at least some of the requests. Result:You'll spend more than you would have otherwise and your healthy eating plans will go right out the window. Obvious exception to this rule: babies who are too young to be interested in anything except another baby in a passing cart.
Buy in bulk
If you have a large family, bulk buying can save a lot of money. That's why stores like Costco have become so popular: they offer bulk food and household products at bargain prices. But if you buy in bulk, you must plan carefully. If you're purchasing perishable food, be sure your family can finish it off before it goes bad. Spoiled food that has to be thrown into the garbage is no bargain. If you are buying packaged or canned goods, see if there is an expiration date on the container before you lay in a large quantity.
Get a chest freezer
If you have the space, consider buying a chest freezer to store bulk purchases of meat, frozen foods, etc. Many families put it in the garage or the basement. A second-hand freezer will probably work just fine; these appliances tend to have a long lifespan. Danger: You'll eat the food at the top of the chest and never get to the stuff stored at the bottom. By the time you do, it will be ruined by freezer burn. Solution: When you add to the chest, take a few minutes to lift out food already there and put the new purchases underneath. The rule should be first in, first out. That means the food that went in first should be eaten before the food you just bought.
Swap kids' clothes with friends, family members
Children usually outgrow their clothes long before they wear out, especially while they're young. Many people routinely give away outgrown clothes and buy new as the child gets bigger. Instead, talk to neighbours and family members about setting up a swap arrangement. This will work as long as the participants have children of different ages. Example: Your baby can no longer wear her newborn outfits. Give them to an expectant mother in your group. She may have an older child whose outgrown clothes will be perfect for your baby's next growth spurt.
Buy children's clothes out of season
You'll get the best prices on winter clothes when the stores are clearing them out to make room for the spring lines. Caution: Make sure that you buy a size or two larger than the child currently needs so that the clothes will fit in the fall.
Don't spend a lot of money on new books
Children's books are expensive and voracious readers can devour several of them in a week. To nurture their expanding minds, make maximum use of the school library and your local library. However, keep careful track of the books your child is taking out. They have a way of getting lost and you could end up paying a small fortune in fines. Watch your library for old book sales. You can often pick up some great bargains. Another option: Arrange for a book-swapping club with other parents with children of a similar age.
Plan carefully for Christmas and holidays
It's easy to overspend for special occasions and end up paying for the extravagance for the rest of the year. Allocate a budget for each family member and stick to it. For the children, you'll need to do a balancing act between things they want and things they need. Very few youngsters get a big thrill out of opening a package and finding a new sweater inside, desperately needed though it may be. But if the next present is that special doll or game they've been wanting, the look of disappointment will quickly disappear. Special tip: If you take your family on a lot of outings, buy a membership to some of their favourite places. A year-long family pass to the local zoo, aquarium, or science centre might be a big hit, especially if it's accompanied by a little gift from the attraction's store.
Conserve energy
We all know it's good for the environment. But it's also good for your budget. Turn down the heat an extra degree at night. Turn down the water heater when you go out of town for the weekend. Turn off lights that aren't in use. Turn off the TV when you leave the room for dinner. Disconnect unused major appliances—we saved several dollars a month by turning off the freezer after the children left home and it was no longer needed. Add to your insulation to reduce heating bills. There are dozens of possibilities for savings here.
Ask for a reduced price
Of course, you're not going to haggle with the clerk at the supermarket check-out counter. But there are times when asking for a price reduction makes sense, especially in smaller stores. As I mentioned in Chapter 1, some merchants will give you a discount if you pay cash instead of using a credit card. You should also ask for a price break if you are buying more than one big-ticket item (say a TV set and a VCR) or if your purchase is for a large amount. If you find a defect in an item (perhaps a small chip in the corner of a desk you're considering), ask for a reduction.Your best chance of getting an unadvertised discount is at small, independent stores; clerks in the chains don't have this discretion. Remember, the more upscale the store, the greater its profit margins and the more negotiating room there is for a discount.
Think carefully before buying a pet
If you have children, at some point they are going to beg you for a pet. It's often hard for parents to resist these pleas, but make sure that you understand the costs involved and whether your budget can handle them. Even pets as modest as goldfish and hamsters can end up being more expensive than most people realize when all the costs are factored in. Dogs can be a real strain on a family budget, especially if the animal requires frequent veterinary attention. Routine tests can cost several hundred dollars, which would be difficult for most family budgets to handle. Pet insurance is a possible solution, but it's not cheap and there are numerous exclusions. Check out all the details before you commit to anything.
Saving Money Made Easy
You may find all kinds of extra expenses that appear small but that add up over a year. For example, do you really need three cable outlets?
How often do you use the call-forwarding feature on your phone?
Is that extra line that was installed when the kids were in their teens now redundant?
I'd be surprised if you didn't find something you can cut.
I recommend that you gather up every bill that comes in, grab a highlighter and start reviewing every small expense such as the ones I have already mentioned. Call your service providers and start cancelling those "convenience" expenses you were sold and start banking the money or better yet take that money to start chipping away at credit card debt.
It will amaze you how much you can save, not to mention the added savings if you take that money and apply it to your debts.
September 12, 2006
Desire for independence creates massive debt
I was just watching some of my favorite online newswire services and stumbled across a very interesting, yet very important message about students over-zealous desire for credit.
The story can be viewed at http://www.da.wvu.edu/XMLParser/printstory.phtml?id=23635
It pleases me to see Darin Kordyak's attitude towards student credit. Darin writes from the point of view of a responsible student who has recognized that obtaining a credit card at a young age will lead a student down the road to excess financial burdens at far too early an age.
Darin discusses where student credit cards are usually found - Behind a bar to pay an increasing drink tab. I do admire his take on students swarming to the booths that are set-up at every college early on in the school year.
I personally can speak from experience and tell you that what Darin writes is very true. Students will, in most cases, abuse their credit cards. Using the usual excuses of "I need credit for emergencies" - NO YOU DON'T, call your parents, call a friend or a relative or consider contacting the bank for a personal loan (at a much lower interest rate).
Better yet, get a prepaid Visa or MasterCard and use that for emergencies. Hmmm, wouldn't that be a good idea. If you were truly concerned about having cash for emergencies a prepaid emergency fund would serve to be of great value.
Now head off and read Darin's post, what he says is some incredibly sound advice that everybody should read, not just students!
Posted by Colin at 11:04 PM | Permalink | Comments (0) | TrackBacks (0)September 07, 2006
Dangers in Coupon Clipping
Saving money by clipping coupons is a great way to save money but those same coupons that save you money can cost you big time!
The above statement may seem contradictory when you first read it but lets run through how the scenario pans out:
You rise from bed in the morning and venture off to the kitchen to make a pot of coffee. Next stop, the front door to grab today’s newspaper.
Your coffee has finished brewing, you rub your eyes, add your cream and sugar to your coffee then sit down to peruse the morning paper. You start your morning read by pulling the coupons and promotional stuffers to check out the deals of the day.
You notice that the local grocery store has 2 for 1 deals on your favorite breakfast cereal, bread is 20 cents off the regular price and you think “wow, look at all this great stuff they have on sale”. You begin by clipping the coupons on the items you regularly buy but you haven’t eaten your breakfast yet and you begin to salivate over the “homemade egg muffins” and other yummy treats. Next you are clipping those coupons too because why not treat yourself to these delectable treats you have never placed in your grocery cart before. Hey, why not? It’s only $4.00 for that egg muffin sandwich and wouldn’t that be convenient right now if only you could pop that in the microwave right now. The same egg muffin sandwich would cost you 75 cents to make yourself so why not buy the ready made breakfast, after all who would want to spend 5 minutes making your own?
You notice many great convenience foods like the egg muffin and clip those coupons and before you know it you have added an extra $100 to your grocery bill, sure you would have paid $120 for those same items without the coupon but you never would have bought those groceries had you not seen the coupons. You will still buy all the regular groceries but now you have added the extra expense.
Did you actually save money by clipping coupons in this story? No! You played into the promotional material from the store. Keep in mind the only reason stores send out promotional discounts is to increase their sales.
The lesson to take away from this is something you have been told for years but always need a friendly reminder, clip coupons for items you normally buy and ignore the rest. Your good intentions can cost you more. Remember this phrase that my grandmother always used, “The road to hell is paved with good intentions”.
September 05, 2006
A Bank Reimbursing ATM Fees, Could it be?
It seems that PNC bank is striving to capture customer loyalty be provided selected customers with reversals on ATM fees. The move makes sense. What do consumers want after all? They want more money in their accounts. The national banks might want to take notice of PNC, with their approach I think they could be a viable national competitor.
After selling it’s line-up of credit cards to MNBA in 1999, PNC bank is entering back into the consumer credit card market. The difference this time is not to aim at a national effort rather to focus on a core of 8 states, including Washington DC.
If you reside within the area PNC bank deals in, they are a worthy competitor to the national banks card offers.
Providing you with 0% introductory deals for 12 full months (which is an incredible deal) as well as very low ongoing rates plus rewards points of 1 point per dollar spent (an industry norm).
If you are a customer of PNC bank I would urge you to inquire about receiving cash back on your ATM fees and use take advantage of their 1 year 0% interest offer. Inquire about balance transfers from higher rate cards, PNC’s credit card offers could save you big time!
Save Money on Purchases
Don't buy extended warranties! By now you have been bombarded with those offers of extended warranties on just about every purchase you make. I just bought a telephone for a meager $20 and was asked if I wanted the extended warranty for $5. I declined the offer. I did take the opportunity to fire back on the salesperson who was pushing the offer as a great deal for peace of mind and that it is really worth getting. I said to the salesperson "Is the quality really that bad on this item that I need the warranty and if the quality is so poor, then why does your company sell it". This did lead to a bit of a flustered and red faced salesperson.
Some retailers make a big profit selling extended warranties on the products they offer. You're routinely asked if you want one when the purchase order is being prepared, usually with a warning that the standard manufacturer's warranty expires in 90 days, or one year, or whatever. These extended warranties are usually not good value. In fact, many people forget they even have them if something goes wrong with the product after two or three years. Some credit cards automatically give you an extended warranty if they are used for the purchase. If this added security is important to you, use one of them.
When asked if you want the extended warranty you are best to decline. Remember this is really a fictional product created only to squeeze every dime possible out of your wallet. Why not do what I do and put the sales staff on the spot by questioning the quality of the products they sell and why not use this line of thought to ask for a discount on the item since the company selling the product feels the quality is low enough to warrant the extended protection plan.
September 04, 2006
Are You Getting Tricked Into Credit?
Be weary of those "no money down" and "don't pay for a year" offers.
Typically found at consumer electronics and furniture stores.
The unscrupulous companies have their sites set on you as more than a consumer of goods, they are looking to make a killing off you in the form of interest charges.
Here's how the story unfolds:
You are enjoying your favorite television program or perhaps sipping a coffee while perusing the newspaper and you see it. A phenomenal deal on a home theater system or new living room set.
"What's this", you say to yourself, "no money down, nothing for an entire year". It's off to the store and there the new items are great in your home.
Tick tock, tick tock, BOOOOOOM - Bam, outta the blue there it is a whopper of a bill exactly one year later. That's right, the bill is far more than the sticker price last year on the item. You, my friend, have just incurred a full year of interest charges on the stuff you purchased.
You are now in a bit of a revolving debt trap. The interest rates on store financing deals are usually far more than that of even a credit card. They got you.
You have unwittingly become a customer for life (or a very long time) as you will be paying off your furniture or electronics for many years to come.
Think before you jump on these "no money down" deals. If the sale is really great, go take advantage of it but DO pay cash now for it otherwise you could be doubling or tripling the cost of your purchase.
Posted by Colin at 07:50 PM | Permalink | Comments (0) | TrackBacks (0)September 03, 2006
Saving Money, Are You Making a List?
One thing that is incredibly easy to do to begin saving your hard earned money right now is this:
Make a list!
Yes, that's obvious. Your mother said it, your grandmother said it, and your great-grandmother probably said it. But many people still don't do it. They go into a store with only a general idea of what they want. The usual result is that they overbuy.
I know that in my family, if we head off to the grocery store or WalMart (or any other store for that matter) and we don't have a list there are quite often a couple hundred dollars of extra stuff in our cart that we could live without.
Be careful of "listless shopping", it will cost you!
I should also mention that you should keep a list of things you purchase on a regular basis and when those items go on sale that you should stock up on the savings.