Once upon a time I would never have set foot in a dollar store. I thought, “Why would I waste my money on their cheap, shoddy merchandise when I can buy a better quality brand name?”
Then about ten years ago dollar store giant Dollarama came to my Calgary neighbourhood. I don’t know what impulse made me go into that store, but once I did, I was hooked. Now, if I want to buy something I don’t particularly want to spend much money on, that’s the first place I will check.
I’m always surprised at the products they have every time I go.
With revenue reaching $1.5 billion annually for Dollarama, it’s not surprising that the selection of merchandise is growing too.
What to buy at the dollar store
A dollar store is the best place to buy greeting cards, gift bags, wrapping paper and tissue, which normally get tossed as soon as they are received by the giftee.
Related: Will the gifts you give end up at the thrift store?
I’ve bought miscellaneous household and kitchen supplies such as sponges, spray bottles, microfiber cloths, a 1.9L bottle of liquid soap that I use at my kitchen sink, and a huge non-stick spatula that’s perfect for flipping pancakes. My husband picks up sponge paintbrushes, masking tape and twine.
Here are some other things you’ve probably been paying too much for:
- Kid’s birthday party decorations and supplies.
- Kid’s books and colouring books, craft materials and hair accessories.
- Seasonal and holiday decorations.
- Storage containers.
- HDMI cables, adapters, phone and tech accessories
- Household accessories – candles, picture frames, albums and vases.
- Cleaning supplies may be a bit diluted, but they still work just fine.
- Clothing – socks, hats, T-shirts and baby clothes. (I once saw a customer at the checkout with a couple of men’s button down shirts.)
A dollar store is a great place to buy decent quality cooking and dining accessories such as glassware, dinnerware and flatware, especially for students or someone just starting out in a place of their own.
The reason Dollarama can offer quality products at competitive prices is that it deals directly with brand name manufacturers rather than through a distributer. The money saved trickles down to the consumer.
Alas, dollar stores don’t live up to their name any more. Dollarama items are priced up to $3 and some other stores can have products as high as $10 – $20.
Cheap doesn’t always mean best
I’m still a bit iffy on dollar store food, especially generic imported items, but I do see other shoppers buying packaged and canned goods, spices, and candy. Be sure to check expiration dates on food items.
Avoid buying:
- Toys with small parts, or kid’s jewelry.
- Batteries.
- Tools can be flimsy and break on first use.
- Decorative food storage containers may contain lead.
The trick to saving money sometimes is not to spend money. Be sure to make a list before you go. Just because an item costs a dollar doesn’t mean it’s a bargain if you didn’t need it in the first place.
Related: Are store brands as good as name brands?
I’ve seen shoppers with carts piled high with what has to be impulse buys. It’s easy to buy extra things when everything seems like a good deal.
Final thoughts
The next time you go shopping, don’t underestimate the dollar store. It can be a great way to save some money.
With all that extra dough you’re not spending, consider putting those dollars you’ve saved to work. You might even want to invest in a publicly traded dollar store. Dollarama (DOL) shares have risen nearly 30% in the past twelve months.
What’s your take on dollar store shopping?
Our mortgage came up for renewal this month and, even though interest rates remain historically low, I knew we’d have to renew at a higher rate than our current 1.90 percent variable rate mortgage. Last week I met with an advisor at TD, where our mortgage is held, to see what options were available. I ended up renewing with a 2-year fixed rate mortgage term. Here’s why:
Mortgage Shopping
Shortly before our meeting the bank sent out a mortgage renewal package that listed all of the fixed and variable interest rate options that were available. This time around I was most interested in either remaining in a 5-year variable rate, or locking into a 2-year fixed rate term.
The variable rate offer in the package was listed at 2.45 percent, a quarter-percent discount off of prime rate. Meanwhile, the 2-year fixed rate offer was listed at 2.29 percent.
I immediately checked out a couple of rate comparison websites, namely RateSpy.com, to look for comparable offers from other lenders.
I found a handful of monoline lenders (i.e. mortgage-only, non-deposit-taking lenders) offering 2-year fixed rates and 5-year variable rates under 2 percent, but using a lender I’ve never heard of has always made me uncomfortable. Sure enough when I checked the fine print I saw caveats such as; minimum mortgage amounts of $400,000 and up, offer only applies to new mortgages – no renewals, and no double-up payments allowed.
What I discovered from RateSpy was that TD might be offering 2-year fixed rates as low as 2.19 percent to well qualified borrowers. This was not an advertised rate, but the information was gathered through intelligence from readers and mortgage advisors in the field.
Armed with this information I was ready to meet with TD and negotiate a new mortgage term.
Fixed vs. Variable
Many Canadians find comfort in fixed rate mortgages. According to the Canadian Association of Accredited Mortgage Professionals (CAAMP), 51 percent of Canadian homeowners chose a 5-year fixed rate mortgage when they purchased their home.
We pay a premium for that peace of mind, as 5-year fixed rates are generally higher than fixed rate terms of 1-4 years. Even though that premium has shrunk considerably in recent years – you can get a 5-year fixed rate today for under 2.50 percent – borrowers still pay more interest with a 5-year fixed rate.
A 5-year variable rate mortgage term has served me well for the last 10 years as prime rate has fallen from around 6 percent down to 2.70 percent. But that was when banks were keen to pass along the savings to borrowers, moving in lock-step with the Bank of Canada as it cut prime rate several times during the financial crisis.
But the last two Bank of Canada rate cuts were met with resistance from the big banks and it seems unlikely that the banks will pass along any future rate decreases to its variable rate and line of credit borrowers (not that rates have much more room to fall anyway).
The 2-year fixed rate solution
Back to the meeting with TD. I went in prepared to ask for a 2-year fixed rate at 2.19 percent, and maybe accept 2.24 percent or at least make them sweat it out and think I was looking elsewhere. After all, I had done my homework and knew what other lenders had out there.
To my surprise, the TD advisor came right out and offered 2.19 percent. All of the original prepayment privileges still applied:
- Each calendar year we can prepay up to 15 percent of the original principal amount without penalty.
- Once each calendar year we may increase the amount of our regular payment by up to 100 percent without penalty.
- Payment pause, payment vacation, and payment reduction features are available to us (although it’s unlikely we use them).
We kept the same amortization schedule. The new mortgage term takes effect September 1st and our monthly payments will go up by $31.
Final thoughts
We saved a bunch of money last term by choosing a 5-year variable rate at prime minus 0.80 percent and riding several rate cuts down to an ultra-low 1.90 percent. Now with variable rate discounts not as attractive this time around, not to mention the banks no longer passing along rate decreases, the 2-year fixed rate mortgage looks to be a clear winner.
We’ll enjoy the savings of the still ridiculously low 2.19 percent interest rate for the next two years and then head back to the bargaining table to see whether those juicy variable rate discounts come back again.
Shattered. Shocked. Spitting glass. We had just dropped off our kids at their grandparents’ house for the weekend and were heading back into town to see a movie when, BOOM, the panoramic sunroof in our 2013 Hyundai Sante Fe exploded. Glass everywhere! It sounded like a gunshot. I wondered if something fell out of the sky and hit us – like a meteor!
I went to the local Hyundai dealership and they took pictures and contacted Hyundai Canada to get further direction. The car is still under warranty, so they said they’d replace the glass at no cost to me. Still, replacing the sunroof with the same factory glass doesn’t exactly give me peace of mind about the long-term safety of the vehicle.
I did some research online and apparently spontaneously shattering sunroofs is a known issue in Hyundais, along with other manufacturers, yet no recalls have been issued for these vehicles. So, why we weren’t informed when we purchased the vehicle about the possibility of panoramic sunroofs spontaneously exploding?
In the meantime, I’ve reached out to Hyundai Canada and Transport Canada for comments. Stay tuned.
Nice Segue: Air Miles Potential Class Action
A Calgary law firm that specializes in class action lawsuits recently contacted me about the Air Miles program. The firm is interested in speaking with Air Miles collectors, ideally based in Alberta, about how the loyalty program and its new expiry policy has impacted their ability to redeem reward miles. Details below:
“JSS Barristers is currently evaluating a potential class action against Air Miles and its parent company LoyaltyOne. If you have any concerns or complaints regarding your use of or experience with the Air Miles program, please contact Andrew Wilson (wilsona@jssbarristers.ca) or Kajal Ervin (ervink@jssbarristers.ca).”
This Week’s Recap:
On Monday I shared my biggest investing mistakes.
On Wednesday Marie wrote a thoughtful post about charitable giving and asked if it’s part of your financial plan.
And on Friday Marie listed five things you shouldn’t put off until retirement.
Over on Rewards Cards Canada I explained the difference between Cash Miles and Dream Miles.
Finally, I renewed my mortgage on Friday! Find out next week why choosing an unconventional mortgage term will save me money.
Weekend Reading:
The Investment Funds Institute of Canada says that RESP rules need an overhaul:
“The RESP contribution limit and CESG limit have not changed since their inception in 1998, but average tuition fees in Canada increased from $1,464 in 1990-91 to $6,348 in 2012-13.”
An incredible story of how one family is sending 13 kids to college, living debt free, and still planning on retiring early.
Sentinel Financial, a mutual fund dealer in Saskatchewan, has shamefully refused to pay almost $450,000 in compensation to investors whom they’ve caused financial harm.
Canadian Couch Potato Dan Bortolotti was featured in an AMA (ask me anything) on the discussion forum Reddit. Well worth your time.
“Do I need to save as aggressively with a defined benefit pension plan?” PWL Capital advisor Ben Felix has the answer.
Mark Seed is targeting financial freedom in seven years – at the young age of 50. Good luck, Mark!
Now that CRM2 has been implemented, Michael James has some amusing possible answers to the question, “do you pay investing fees?”
Behaviour Gap’s Carl Richards has a secret to cutting spending: Wait 72 hours before buying anything.
Have you ever bought an item of clothing with the hopes that “one day” you’ll be able to fit into it?
Rob Carrick and Leslie Scorgie explain why you should put a 20% down payment on a house:
Everyone has an opinion about real estate. Just ask Barry Choi, who felt judged after buying a condo in Toronto.
Financial Uproar on how to “win” a multiple offer situation.
Sorry boomers, your days as the financial industry’s target market are numbered.
You only live once is a motto for a generation and a decent starting point for personal finance philosophy.
Frugal Trader shares some tips on how his family saves money on vacations.
Budget travel expert Barry Choi shares some common booking mistakes.
Finally, Walmart vows that its Canada-wide Visa card ban is coming soon, but is there more to this financial game of chicken?
Have a great weekend, everyone!