March 11, 2007
Credit Card Rewards
Does you budget not allow for travel?
Are you spending with no thought to earning travel miles?
It's time to get control and review your spending habits and it's time to do it now.
You see, I too am out of control with my spending and I have to say that it's not so bad because I have accumulated so many travel rewards with my credit card spending that I have earned free travel.
By using my credit card to make all my purchases I have earned enough for free trips to Las Vegas. I just flew there on my points a few weeks ago.
While I don't endorse spending more than you can afford on your credit card in order to get free trips, I do endorse making purchases that you can afford on your credit card to take advantage of the reward points offered by several credit card companies.
I highly recommend checking out the top airline rewards credit cards to start taking advantage of free travel rewards now. You will be happy you did.
January 11, 2007
Was A Sony Bravia TV In My Budget
OK, I goofed! I preach a lot about avoiding unneccessary spending and what did I do tonight?
I just bought a 40 inch Sony Bravia flat panel LCD TV!
Why?
I just bought a new house and my 52 inch Sony Grand Vega TV doesn't fit into the livingroom.
The big Sony had to be put in the unfinished basement, which is fine as I have a couch and love seat here along with my beer fridge so all will work out fine.
I do have a 28 inch TV but the slot alloted for a television in my living room isn't big enough for the TV and stand. I couldn't find a stand short enough to fit into the designated TV area
I could have built a stand for the television to fit but that's not fun. Buying new televisions is fun though.
This goes against everything I preach and the money would have been better spent on growing my business. Oh well, I guess I will never learn.
My only saving grace now is the fact that I didn't buy another home theater system.
I better get online and pay the Visa bill now. At least I earned some travel rewards points with my $2000 television.
Tomorrow it's back to budgeting so that I use my money properly.
Posted by Colin at 11:43 PM | Permalink | Comments (0) | TrackBacks (0)December 25, 2006
Saved my Credit Card
Rolling the clock back to late November when my wife asked what I wanted for Christmas and my response was:
"Peace, love and world harmony"
Other than that I have everything I need.
Most of all I wanted to prevent the burden of heavy credit card debt in the new year.
Good news, my wife complied with my request of "nothing for Christmas".
Best of all I paid off my credit card in full a few weeks ago and I will be starting my new year off with a 0 balance owing.
Oh what a feeling - Starting the new year off without owing a dime on a credit card. Even better all my department store cards are paid in full and to resist any spending temptation on post-Christmas sales, the department store charge card accounts have not only been paid off I have canceled the accounts.
If you haven't listened to my advice about credit card debt then stay tuned throughout 2007 as I will be working on a plan for you to follow to get out of debt before the end of '07.
Have a very Merry Christmas Day!
Posted by Colin at 01:05 PM | Permalink | Comments (0) | TrackBacks (0)December 23, 2006
The Spending Season Winding Down
The season of frantic shopping is almost over! It's time now to enjoy the people who are important to you and stop fretting over whether or not you found the perfect gift.
If you didn't find what you think is the perfect gift, try simply giving the gift of time.
With Christmas only a day away you will likely receive a last minute onslaught of flyers in the mail advertising super sales for the last minute shopper. It might be wise to ignore the super sales and save yourself from racking up more credit card debt and consider what I mentioned above, that sometimes the best gifts don't cost money.
Consider making a card and giving the gift of quality time to sit and catch-up on life.
Have a great Christmas!
Posted by Colin at 10:42 PM | Permalink | Comments (0) | TrackBacks (0)December 21, 2006
Budgeting - Spousal Support Imperative
Cripes! I thought I went over the Christmas spending budget with my wife and thought we had agreed upon a set limit for this year's spending.
Seems my words hit an invisible brick wall somewhere between my mouth and her ears.
I just checked my online bank statements and over the last few days there seems to have been a "there's a super-sale, mega, uncontrolled spending spree".
I was sure I had made it clear on what was reasonable spending this holiday season but I guess, when looking back, I didn't really have her full attention.
Next "don't spend anymore money" rant with my wife, I will have to make sure it is at a time when there are no distractions. I will make sure to snap her out of whatever state she happens to be in and have her repeat back to me everything I said.
And I won't stop there, I am going to make her write down everything I said too.
Yeah, I do well with my business but lessons learned from the past:
Money is easy come, easy go.
I also know that January can be a slow time in my business and I really just want to focus on growing my business and net worth rather than constantly paying off more and bigger stuff.
Life ain't about stuff!
Posted by Colin at 01:47 PM | Permalink | Comments (0) | TrackBacks (0)December 11, 2006
Christmas Credit Card Bills Are Visiting My House
Alright, I have been preaching about not using your credit cards during this holiday shopping madness and I seem to have neglected to tell my wife to put the cards away.
I thought our holiday shopping was done yet somehow are kids need more stuff. How is this possible? Where is all this stuff going to go? Better yet, where is the money going to magically appear from in January when that darned bill shows up.
Could it be that my wife is hoping to capitalize on the Visa Win What You Buy contest they run every holiday season? I sure hope so...
Maybe next year, I will learn a lesson from this and educate my household first before sharing with you :)
Oh well...I guess my kids will at least have an extra great Christmas.
Now I better get some extra work done to pay the new year bills!
Posted by Colin at 12:38 AM | Permalink | Comments (0) | TrackBacks (0)December 05, 2006
Remember January Credit Card Bills Will Come
My wife just got home from a holiday shopping spree. When I asked her how much she spent, I got a big smile and a lot of excuses. You know the ones:
Well, I had to buy for Sally and Jane. Then I felt bad that I didn't get Laura anything, but then Laura's gift didn't cost as much as the other gifts so I bought more.
Yikes! Put on the brakes! I thought this was the year that we were going to control our spending and somewhere along the line I think my wife forgot about our agreement that we would enjoy the holidays by spending time with the people we care about.
Hmm...so much for that...
So it seems my January credit card bills are going to higher than expected!
Now, I hope to save you from the same expenses.
It seems there was a break-down in communication in my house.
Tip: When you set holiday spending guidelines with your spouse, don't just agree on a budget and part ways.
Spend the time to write down your agreement and then before every trip to the mall, pull out the written "holiday spending agreement" and review it once again. Repeat for every trip, even if it's to the grocery store. This will help keep the emotional spending to a minimum and hopefully save you from some post-holiday credit card grief.
December 01, 2006
Saving Money on Your Move
If you are moving to a new home, here are a few things you can to do save money on your moving expenses:
1. Purge: Make some space in your garage for everything you haven't used in over a year. Then take it to the dump or better yet, have a garage sale.
2. Be Prepared: Make sure you have everything boxed up and packed to reduce the cost of the move. Most moving companies charge on an hourly basis. Do things to reduce labor time.
A. Lots of stuff in your basment?
After you have got rid of all the stuff in your garage, take as many items as possible from your basement and bring them to the garage. This will save time of expensive movers from going up and down stairs.
The same applies for second floor items. The idea is to get as much stuff as close to where the moving truck will be to save their time. Remember time is money and the movers are charging for every minute.
B. Disassemble furniture: Remove table legs, remove headboards from beds. Look for all furniture that can be taken apart and do it yourself. This will shave almost an hour off the move time in some cases.
More to come as I think of it. Yup, I just met with my movers as we are moving back to the city.
November 28, 2006
Watch Your Budget - Christmas is Coming
With the holiday shopping season well under way it is crucial for year round financial success that you keep a close eye on your budget.
Keep in mind the holidays should not be about "out gifting friends and family", the holidays are about spending time and enjoying the people that are important to you.
There is always the temptation to throw caution to the wind and spend up a storm.
It is far to easy to max out your credit cards at this time of year but remember that your free wheeling holiday shopping frenzy will result in a January credit card bill.
Did you know that January is the highest month for banks issuing debt consolidation loans?
It's true. Because of uncontrolled spending on credit cards during the holidays, consumers are faced with problems of paying minimum payments on bills in the new year and the only option to make ends meet is to take out a debt consolidation loan to allow for making minimum payments.
This can be the beginning of what may result in bankruptcy.
Here is how the scenario plays out:
1. Credit cards are maxed out during the holidays
2. January bills come in
3. You realize you can't make it
4. You call the bank to come up with a solution
5. The bank offers you a debt consolidation loan
6. You pay off your credit card debt and other bills with the consolidation loan
7. You breathe a brief sigh of relief because you feel you can now make it
The problem with this:
Now your credit card debt is rolled under a consoldiation loan which sometimes includes your mortgage.
You feel good because you have one easy to make payment.
But...
You still have that credit card in your wallet. Something comes up. Maybe a car repair.
You pay for your vehicle repair on your credit card and the story starts all over. You can't pay off the credit card balance and more stuff happens, your credit card bill rises until next year's holiday season and BANG, your financial ruined.
Moral of the story:
You don't need to buy lots of stuff during the holiday season.
Simply enjoy those around you to live a debt free life through the rest of the year.
Posted by Colin at 10:59 AM | Permalink | Comments (0) | TrackBacks (0)November 12, 2006
Basics of Getting Out of Debt
The basics of becoming free of credit card and credit line debt starts with you getting organized.
To get out of debt you must start by taking an inventory of your existing debt. This can be done with an excel spreadsheet or even a pen and paper.
It is a good idea to call your bank to make sure you are taking into account all amounts owing or better yet order a credit bureau report to get a view of everything you owe.
Once you have your entire debt load written down make note of the highest interest debts and the debts where you owe the least amount of money.
The first strategy to becoming debt free is to start making higher than minimum payments on the highest interest debts.
If two debts owing are roughly bearing the same interest rate, you are best to start paying off the debt with the least amount owing. By paying off the debt where you owe less you will be able to pay it off faster and this will give you a sense of accomplishment.
When you have one debt paid off, take what you where paying to eliminate that debt and begin paying that amount plus what you were paying initially, this will accelerate the pay-off of your larger debt.
When you do this, you get on an upward spiral of debt pay-off versus the downward spiral of accruing more interest charges.
I will provide you with more information on how to accelerate your debt freedom over the next few weeks and months.
One note before I sign-off for the day, with Christmas and holiday shopping upon us, keep your gift purchasing under control. Quite often it is the holiday season that causes consumers to begin the debt downward spiral. When you are out shopping keep your spending to a minimum and find creative and personal gifts to give. Maybe consider making gifts yourself. After all the holiday season is more about getting together with loved ones than spending a fortune.
October 01, 2006
Get Control of Your Budget-The Bottom Line
Every family should have a budget. There is no way to control your finances without one. Gaining control of your money is essential to reigning in your family budget expenses.
Posted by Colin at 01:37 PM | 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 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.
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”.