Shane's Common $ense

Price Match Savings - Guaranteed!

Thu, 01 Sep 2011 08:48:00 GMT

We have all seen advertising about price match guarantees!

Price Matching local stores against online stores?

I'm sure your saying: "I tried that and my store said they only match pricing against local competitors ads."

Mostly True!

Today I received the syllabus for my finance class which told me that I had to purchase a specific "financial" calculator. Of course my TI-84 (which is required for most other college math classes) was not on the list of allowed choices. So now I'm off to do some shopping for the best deal (read: CHEAPEST) priced calculator from the list.

I start with my online shopping tools like Amazon and PriceGrabber. I find, like most college required items, nobody can sell those calculators for a deal. The best price I found at a brick-and-mortar store was for the TI-BA II PLUS PROFESSIONAL selling for $52.99 at OfficeMax.com. So, off to the store I go.

After walking up and down two aisles, I am quickly greeted with the line: "Is there something I can help you find?" I said, "Sure, where are the financial calculators?" She quickly gets me to that section of the store and I spot the one I want, but with a pause as I pick it up. The price tag on the hook above the calculator reads $59.99 (which is $7 more than their online price). I mention the price difference and get the blank stare and silence while the sales person processes what I said. Finally, she says that she will walk up to the register with me where they have access to the online store to verify the price difference.

Success!

After she overrides the price to the lower price offered online, I walk out of the store happy to have saved over 11%.

Today's lesson: "Never assume that the price a store has in the store or in a recent ad is their best price!" If they have a web store, check it too!

More Bank Fees Coming!

Fri, 24 Sep 2010 09:00:00 GMT

Now that the CARD Act of 2010 has been implemented, banks are back at work replacing the lost revenue!

(Not so) Free Checking:

Be sure you open those envelopes that you receive that mention "updated account rules" or something to that effect. More banks are adding rules about how your overdraft works and also how linked lines of credit work for overdraft protection.

For example:

HSBC is charging a $19 annual fee for customers who open a line of credit beginning July 1 and an additional $10 every day they use the credit line as protection from overdrawing their checking account.

HSBC’s reply when questioned about the added fees: "This is not unusual in the industry and our competitors have been charging similar such fees for some time," an HSBC spokesman said. "The change aligns us with our competitors."

Basically, their saying that everyone's doing it, so we can too! Well, I don't have to take that. I always have the option to take my business elsewhere if they choose not to flex to my pressure. Also, I recommend checking with a smaller local bank or credit union as they are more customer oriented than the large banks.

No Annual Fee Credit Cards:

Here I can make the same recommendation: Keep your eyes on the information you receive in those deceptively plain envelopes!

Credit card terms and conditions can be changed at any time as long as they give you the option to decline the new terms. The caveat is that if you want to decline, you are also saying that you want to stop using the card.

For example:

American Express cards that have a perks program have some fine print worth reading. If you make a single late payment, you immediately forfeit your rewards program earnings. The good news that is for the low, low price of $29, they will give you back your rewards.

In closing, be sure to stay on top of all of your agreements with any financial institution. What was once a great deal, may slowly change over time. (and usually NOT in your favor!)

Debit Card Education - That movie cost me how much!?

Fri, 06 Aug 2010 13:34:00 GMT

Here comes more news based on changes implemented by the CARD Act of 2010.

Before the change:

The banks used to automatically treat your debit card transactions like checks. What this means is that if you used your debit card and didn't have enough money in your account, the bank would "cover" the payment. Their incentive was to charge you a standard overdraft fee that (for most banks) is around $29 per transaction.

After the change:

Banks must ask you if you WANT them to cover the debit card transaction (option 1) or simply decline the transactions that overdraw your account (option 2).

What this means to you...

Option 1 - Cover Me

Please cover my $12 movie ticket and charge me $29 for saving me the embarrassment in front of my friends. Remember, that they will charge you another $29 for the $6 bucket of popcorn you will be buying about 3 minutes later. In the end, that will probably be the most expensive movie you have ever seen. Be sure, their notices will try to convince you to continue letting them "help you out".

Option 2 - Decline Me

Please tell me that I don't have the money in my account and give me the chance to use a credit card instead. The $29 charge is a high rate of interest to cover a $12 movie ticket for a day or two when your next paycheck is deposited. This could even save you in the case you simply forgot to transfer some money from your savings account to your checking account.

There are only a couple of tips I can offer:

You should decline their generous offer.... and ONLY use your debit card when you know you have enough money in the account to cover discretionary transactions!
If you are NOT sure, use a credit card which won't cost you.

Fuel Perks Unwrapped
(Part 2 of 2)

Sat, 17 Apr 2010 07:55:00 GMT

(or insert the name of your shopping perks program here)

"My grocery store is giving away gasoline discounts just for buying the things I already buy. They are such a great place to shop."

If you read Part 1, you probably want to know how to win at this game? And I'm going to tell you!

Gift Cards!

If your store program works like mine, you can earn fuel discounts by buying gift cards.

This turns the game into a simple money exchange while earning you a discount AND earning a true benefit. The store still earns a small marginal profit on the sale of the card, but you don't contribute to that profit!

Now that is a true WIN - WIN !

Here is a short list of the most common gift cards I have purchased:

Marriott Hotels
Best Buy
Applebee's Restaurants
Regal Cinemas
Red Robin Restaurants
Pizza Hut
Staples (office supplies)
iTunes Cards
Barnes and Noble Bookstores

And my favorite... Home Depot (think about how fast the perks add up when you do a $5,000 bathroom remodel!)

For a full listing of what my store (Giant Eagle) carries, click here

As always,
Thanks for listening and stay tuned for more upcoming insight!

Fuel Perks Unwrapped
(Part 1 of 2)

Fri, 09 Apr 2010 08:50:00 GMT

(or insert the name of your shopping perks program here)

"My grocery store is giving away gasoline discounts just for buying the things I already buy. They are such a great place to shop."

You'll probably want to file this issue under: "If it sounds to good to be true, it probably is..."

If you've lived long enough, you know that businesses have to make a profit and if they give things away, they must make up for it somewhere else. Frequent shopper programs are no different than any other discount. The "perks" program is only giving you back a portion of the profit from the over priced items that you are buying in their store.

At first glance, it appears to be a win-win proposition. For them, you are over paying for everyday items you could buy cheaper in the discount store down the street (they win). You earn a few cents off per gallon of gas (you feel like you win).

Everyone is happy!

IMPORTANT: For those who like that last statement, stop here as there are spoilers after this point!

Here's the math to help understand the customer side of the "win" scenario:

I'm going to use a fairly short shopping list, but you can multiply it to approximate your own weekly grocery bill.

Example Grocery List

Item	"Perks" Store	Discount Store
Milk	$2.99	$2.49
Eggs	$1.99	$1.69
Cheerios	$4.29	$3.69
Ground Beef	$4.89	$4.59
Laundry Soap	$12.99	$10.99
Dryer Sheets	$3.99	$3.59
12 pack Pepsi	$3.49	$2.99
Vanilla Ice Cream	$5.49	$4.69
Total Bill	$40.12	$34.72

So, now we need to know if the $0.10 per gallon "fuel perk" on my next fill-up is worth more than the savings by shopping at a discount store?

Value of "fuel perk" (for 25 gallon fill-up) = $0.10 x 25 gallons = $2.50 savings on gas
Value of discount store (versus "fuel perk" store) = $40.12 - $34.72 = $5.40 savings

Final Result: It looks like the discount store had a $2.90 better deal at the end of the week.

My opinion:

I saved an extra $2.90 this week by shopping the discount store and paying the regular price for gas. Over the course of 1 year, this weekly savings adds up to a little over $150 on a grocery bill of $40 per week.

If you spend more than me...

If your average grocery bill is 4 times my example ($160 per week), you would save more on both calculations and the final result would be a little over $600 per year (probably more than 1 monthly car payment)

It may look like this is all just a win for the stores. Stop by next week and check out Part 2 of this article. I'll show you how to actually "win" at this game. Thanks for listening.

Budget vs Value .... What's the difference?

Fri, 02 Apr 2010 07:10:00 GMT

We have all heard about the iPhone, but is all the hype and "WOW" factor worth it and can you afford it? Here is some insight that can be applied to any purchase, but it applies even more to anything that has an on-going monthly cost.

First we need a couple definitions:

Budget - "can I afford this?"
Value - "will I use this?"

Budget is the easier question because it is pretty objective. If the cost is a one-time payment, then you question is "do I have the money in the bank to pay for this?". These days it is not a good idea to just put it on the plastic.

Value is the tricky question. Will I use this item today, next week and maybe even next month? This question is important if you are buying something with a monthly cost (like a cell phone, gym membership or HBO).

My advice is more about the "next month" portion of the value question. As a habit, I try to look at all of my "elective" monthly bills at least 3-4 times a year. Be honest and ask yourself "Have I used the product, service or item in the last two weeks?" If you haven't, you need to consider cancelling the monthly service part of that item.

It is a simple process, but we sometimes avoid it for some reason or another. For me, I used to avoid it because I might have to admit that I made an impulse purchase without thinking it through. Today, I think it is better to admit the initial error than to continue to pay for that mistake each month.

I hope you consider using this philosophy too! Thanks for listening.

UPDATED: Checking your credit card statements every month? (of course you do!)

Fri, 26 Mar 2010 17:32:00 GMT

You have all heard the stories about how credit card companies are thinking up new ways to get $ from you. Well here is a latest story directly from my own experience. I call it the "paper statement fee". Yes, your credit card company may have already implemented this or at least warned you of it coming soon.

Here is how it works:

You get your monthly statement as usual.
Take a look at the minimum payment and current APR % (don't want them to sneak a rate increase through).
Write out your check for your payment amount of choice.
Mail it off like any good customer would do.

Now comes the subtle part that I found by reading all the way to the last page of the statement.

"We are waiving this month's one-dollar processing fee to give you more time to register for paperless statements. Act now to save..."

First question: How long will they waive it before they start charging it?

Second question: When they do start charging it, how much will it cost? Answer: $1 per month

More details to follow after I call the 800 customer service phone number....

Shane's Common $ense

Price Match Savings - Guaranteed!

We have all seen advertising about price match guarantees!

Price Matching local stores against online stores?

Success!

Today's lesson: "Never assume that the price a store has in the store or in a recent ad is their best price!" If they have a web store, check it too!

More Bank Fees Coming!

Now that the CARD Act of 2010 has been implemented, banks are back at work replacing the lost revenue!

(Not so) Free Checking:

No Annual Fee Credit Cards:

In closing, be sure to stay on top of all of your agreements with any financial institution. What was once a great deal, may slowly change over time. (and usually NOT in your favor!)

Debit Card Education - That movie cost me how much!?

Here comes more news based on changes implemented by the CARD Act of 2010.

Before the change:

After the change:

What this means to you...

Option 1 - Cover Me

Option 2 - Decline Me

There are only a couple of tips I can offer:

Fuel Perks Unwrapped (Part 2 of 2)

(or insert the name of your shopping perks program here)

If you read Part 1, you probably want to know how to win at this game? And I'm going to tell you!

Now that is a true WIN - WIN !

And my favorite... Home Depot (think about how fast the perks add up when you do a $5,000 bathroom remodel!)

Fuel Perks Unwrapped (Part 1 of 2)

(or insert the name of your shopping perks program here)

IMPORTANT: For those who like that last statement, stop here as there are spoilers after this point!

My opinion:

I saved an extra $2.90 this week by shopping the discount store and paying the regular price for gas. Over the course of 1 year, this weekly savings adds up to a little over $150 on a grocery bill of $40 per week.

If you spend more than me...

If your average grocery bill is 4 times my example ($160 per week), you would save more on both calculations and the final result would be a little over $600 per year (probably more than 1 monthly car payment)

Budget vs Value .... What's the difference?

UPDATED: Checking your credit card statements every month? (of course you do!)

Fuel Perks Unwrapped
(Part 2 of 2)

Fuel Perks Unwrapped
(Part 1 of 2)