Shopping

Buy Now & Pay Now

buy now, pay nowI’m sure everyone has heard the phrase, “Buy now, pay later.”  Almost every major furniture and appliance company has this kind of offer.   You can also often purchase electronic devices and all kinds of other gadgets this way.  Well, I want to be a bit contrary here and suggest that when you make purchases, whether they are big or small, pay for them at the time of purchase rather than waiting to pay.  Below are some reasons why I am suggesting this:

1.  Who wants extra debt?  Buy paying later you have taken on yet another debt that you will eventually have to pay.  Wouldn’t you rather just pay for it and get it over with?

2.  If you wait to make your purchase until you save up enough money, you will be more certain that it is really what you want.  You are less likely to impulse buy if you discipline yourself to ensure you have the funds before making purchases.

3.  By paying now you will eliminate the possibility of having to pay interest charges on your purchase.

4.   If you decide to pay later, there is a chance that you may forget about it and not save an adequate amount of money in order to make the payments once they begin.

That being said, there is one situation where I think buying now and paying later could be financially beneficial.  For instance, you buy a washer and dryer for $1000.  The offer is to pay for the appliances in 2010 but you don’t have to pay interest.  You currently have the money available to pay now, but since you won’t have to pay interest, you decide to invest the $1000 instead.  Then, in 2010, you pay for your purchase in full, after having earned interest on your money through your investment.  In my opinion, that would be the only time it would make sense to buy now and pay later when it comes to making small and medium-sized purchases.

September 8, 2009
Money Saving Tips

How to Save Real Money When Buying Nearly Anything at Auction

There are a few tricks you need to learn to make the auction process profitable and enjoyable. Ready to start? Let’s go.

1. Before the Auction Starts:

a) Ensure you have sufficient cash or credit availability before you leave home. Bring a pen.

b) Arrive early. Buy a catalog. You can wander around and look at the items for sale more easily at a more leisurely pace. Mark the items that interest you.

c) Mentally, work out what you think you will spend on those items, or write this down on the catalog against the item number.

d) Ensure you find out what the extra fees and charges are that add to the total bid price.

e) Go back to the items you think you will bid on and check them out closely. Look for defects, authenticity and overall condition. Set your bid limit and stick to it. There will be other bargains.

f) Keep your personal belongings safe at all times. Don’t let your handbag, purse or wallet out of your possession at any time.

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September 6, 2009
General

10 Ways To Prevent Identity Theft

Prevent Identity TheftAfter writing about my experience of losing my credit card, I thought it wouldn’t hurt for me to delve a little deeper into the ways that we can proactively prevent, or at least protect ourselves from identity theft.  Here are some tips below:

1. If you use the Internet, be sure to use antivirus software on your computer and keep it up to date.  You should also enable the firewall on your PC.

2.  Be careful what you send via email.  Limit the amount of sensitive information you send in your emails.  Be very cautious about including account numbers, credit card information, numbers such as Social Security Numbers or Social Insurance Numbers, etc.  Keep in mind that someone else could be reading those emails.

3.  Be creative in choosing passwords.  Don’t use obvious personal info like your address or birthday.  Instead, try to incorporate a variety of numbers and letters that would be difficult for anyone to guess.

4.  Make sure a website is legitimate before entering any credit card information to make purchases.  If you do a quick Google search on the company you will be able to find out right away if they are a scam.  Also, check out the site’s Privacy Policy to ensure that they won’t be selling your information to spammers.

5.  Limit information that you provide to people over the phone as well.  You have no way of telling if they really are who they say they are.  Never give out your credit card information or sensitive identification numbers such as a SIN or SSN over the phone.

6.  Be sure to destroy all sensitive papers before throwing them in the trash.  Using a shredder is an efficient way to ensure all the information is illegible.  Be sure to file away the information you need to keep in a safe place.

7.  Be careful to not let your credit card out of your sight.  When at restaurants, it’s better to pay at the till then to let someone take the credit card from the table.  Although for the most part employees are honest there are a few who take advantage of unsuspecting customers.

8.  Check your online banking or bank statements regularly to look out for suspicious charges.  If you see any unusual transactions, be sure to contact your financial institution.

9.  Always be aware of your surroundings.  If you are making a PIN purchase, do your best to shield your PIN entry from curious eyes from behind or beside you.

10.  Don’t put too much personal information on your checks.  The less you reveal about yourself, the better.

September 4, 2009
Credit Cards

The Day I Lost My Credit Card

I had a bit of a scare recently when my husband and I went camping.  When I went to pull out my credit card to pay for our campsite, my card was missing.  Things like this never happen to me!  I am generally an extremely organized person.  But, sure enough, it can even happen to organized people.

I frantically thought of all the places I’d last shopped using my credit card.  Because we were camping I was limited to using my cell phone.  Oh, and of course I had forgotten to charge the batteries before we left so my battery was dead after one phone call.  (Guess I’m not that organized, after all!)

Fortunately there was a pay phone nearby and I was able to remember the last place I had used the card.  I spoke to an employee who confirmed they had kept my card for me.  Talk about relief!  I was so glad I didn’t have to go through the process of canceling my card.

Unfortunately not everyone has the happy ending that I had after losing a credit card.  If the wrong person finds your card, they can spend a lot of money and cause a lot of hassle.  In the event that this happens to you, here are a few things that you can do:

1.  Contact your credit card company immediately and inform them of the fraudulent charges.  They will close your card to prevent any further charges.  I would recommend closing your card even if you don’t see any fraudulent charges after you have made an attempt to find your card and have called the places where you recently shopped.

2.  The next step is to follow company procedures and fill out any applicable paperwork to ensure that you will not be liable for the charges.  Be prepared to wait a while for the investigation to take place.

3.  Even if you haven’t lost your card, but you notice an unusual charge on your statement or online banking, I would recommend that you follow it up.  Even if the charge is small, it is still worth the time it takes to investigate it as whoever has your credit card number may decide to charge a larger amount next time.

4.  For information on how to protect yourself from credit card fraud and other general information regarding credit cards, click here.

September 2, 2009
Investing

Check out Bloomberg.com For Current Market Info

If you are interested in finding up to date information on how the economy is doing, Bloomberg.com is a great resource to start with.  It’s a reputable financial website that includes loads of information on the current market situation, and much more.  If you are just beginning to learn about investing and finance, you will appreciate the glossary containing explanations for confusing acronyms and other financial lingo.

The site contains information on stocks and bonds, and has well-written articles describing unemployment, the growth or decline of retail sales, and other interesting tidbits that will give you an idea of how the economy is doing.

One of its great features is  a wide variety of financial calculators for savings, loan payments, retirement, mortgages, currencies, and more.  There is also “breaking news” on subjects such as Politics, Law, Arts and Culture, Sports, Science, etc. in addition to the current financial news.

The site is not limited to just one location either.  It contains information on the Americas, Asia, as well as Europe.  I find it very informative and I like the layout of the site a lot.

Bloomberg.com is worth checking out to keep on top of things.  Whether you are a novice or an experienced investor, you will be able to appreciate the information and tools available to you.

August 31, 2009