Anyone in marketing can tell you that it costs a company more to acquire a new customer than it does to keep an existing one. That’s because few of us like change, particularly the type of change that can disrupt our day-to-day lives. It’s a hassle to switch banks, or internet and cable providers, so as long as things run relatively smooth then most of us are happy to stay put.
Related: Take a day off to work on your finances
How much is your loyalty worth?
We like to think that our loyalty will count for something when it comes time to upgrade a package, buy a new product, or fix a problem. But in reality all the best deals are reserved for new customers – not existing ones. Has your bank or cable provider ever contacted you about a new promotion that would save you money? Meanwhile, if you’re like me, you probably get flooded with offers from their competitors trying to win your business.
This was made abundantly clear to me over the past week as we switched cable providers for the first time in 14 years. Telus has been aggressively promoting its Optik TV service and making huge in-roads against its main rival, Shaw Cable.
Related: Read this fascinating report on how Shaw bet big on WiFi in their battle for Western Canada
The offer is compelling. Sign up for Optik TV and Internet for three years and get:
- A free 42” LG Smart TV
- A free PVR and two free digital boxes
- Six months free HBO/Movie package
Even though I was a long-time Bell customer I always had an older model receiver or digital box – no PVR or anything fancy. To get the latest HD PVR from Bell would cost $499, or $15 per month for 60 months! With this deal, Telus offered three new boxes for free – plus the 42” Smart TV that was valued at $899. Signing a three-year contract wasn’t a big deal for us – remember we were with Bell for 14 years previously.
Related: How I saved over $300 on my cable and internet
With Optik, I found the number of channels and access to On-Demand programming to be far superior to what we got with Bell TV, and for around the same price. There was just one catch – we were already Telus Internet customers and unable to qualify for this promotion.
However, if I’ve learned anything from writing and researching personal finance articles it’s that you’ll never get anything if you don’t ask. I had nothing to lose – even though I wanted the free TV and upgraded equipment I would have been fine to stay with Bell if Telus had said no.
Eager to get our business, the Telus representative agreed to give us the deal even though we were already Internet customers. They sent a technician to install everything last week and we expect the new TV to arrive in 3-4 weeks.
Final thoughts
Usually it takes a major problem for us to even consider switching service providers. In this case, even though we were reluctant to switch, we’re happy we took advantage of this offer. The hassle factor was minimal, we got a free TV that we had planned to buy within a year anyway, and we’ll save money on our bill for the next six months.
Before I called Telus I went to the Bell website and clicked on the “Promotions” tab just to see if they had any offers available for a long-time, loyal customer. This message sums up how loyal customers get screwed while new customers get all the perks:
Travel is easily the thing I love to do most and last year I talked about Money Savings Tips From A Budget Savvy Traveler where I covered pre-trip planning. This is long overdue but I’m back with more travel saving tips to help you hit the ground running.
Here are 14 ways to save money on travel:
Accommodations
Accommodations will be your biggest expense after airfare so here are some options to save.
Airbnb: This has become my preferred choice when it comes to accommodations. Airbnb allows you to rent rooms, apartments or even entire houses directly from owners. Finding a great apartment is easy and you get to deal directly with the owners.
Related: Airbnb crack down: Short-term landlords beware
I’ve been able to book apartments in prime locations at about 40% of the cost of a hotel.
Hostels: When you’re in your early twenties and backpacking this is an obvious choice, but don’t rule it out as you get older. Many hostels especially in Europe borderline a 2-3 star hotel, locations are usually in great areas and it’s very common now to find rooms with a private washroom.
If you’re travelling with kids or a couple of friends consider renting an entire room even if you have to pay for extra beds. This ensures you will have the entire room to yourself and odds are it’ll still be way cheaper than a hotel.
Priceline / Hotwire: These are sites that allow you to bid for the price of your room at unnamed hotels. You choose the star rating, and the hotels are usually a combination of well known chains and independent ones. Check out betterbidding.com which has detailed forums about how to maximize your bids and what the likely hotels are.
Hotels: If you prefer hotels be sure to sign up with their loyalty program. When it comes time to claim your rewards research and compare the different reward tiers to find out what gives you the best return. Using cash and points might score you a better return compared to getting a free room all on points.
Currency Exchange
Always exchange in advance just enough money for a taxi from the airport to wherever you are staying.
ATM’s: Just like at home, ATM’s are the easiest way to get money abroad. Generally speaking when using ATM’s abroad you’ll pay the spot exchange rate plus a fee that the bank charges which is about $2-$5. Just withdraw the maximum allowed for the day to minimize the fees.
Related: How to save on foreign currency fees when travelling
By getting cash from an ATM as you need it you never have to worry about carrying too much cash around with you or running out of it. Before you go check with your bank to see if they charge you any extra fees and find out which international banks are compatible with yours.
Cash: If you still prefer to bring cash and exchange it as you need it, banks in the city tend to have a better rate than at the airport. Cash is universal these days so there is no need to convert to U.S. Dollars first unless you enjoy paying exchange fees twice.
Food
Eating is one of the best things about travelling. It’s definitely worth trying out some nicer restaurants so here’s some tips to help balance your food budget.
Street Food: Street food is quite possibly the best way to get real authentic local food and it is always cheap. When I was in Thailand you could get a full portion of pad Thai for a dollar. If you’re worried about the cleanliness just look at the line. If the locals are eating there, consider it vetted.
Grocery Stores: Find out where the local super market is once you’ve checked into your location. Picking up staples like water, fruit, and snacks can easily save you from eating out every meal.
McDonald’s: Just about every McDonald’s in the world you will find clean washrooms, air conditioning, and free wi-fi. The McCafé brand is huge globally. It’s just a place I know where I can catch up with friends online while enjoying a nice drink in a relaxed atmosphere. As an added bonus you can try different menu items you wouldn’t get at home. I’m frugal but I would pay good money to for a McArabia right now.
Getting Around
Public Transportation: This should be a given, taking public transportation is a convenient and cheap way to get around. Instead of buying one-way tickets every time, take a look to see if there are any multi-day passes or electronic cards that offer a discount per ride.
Related: 6 free mobile apps that make travel easier
Don’t be intimidated by some of the metro maps around the world. There hasn’t been a single metro in the world I’ve been to where the stops are not listed in English.
Taxis: Generally speaking I prefer to avoid taxis at all costs since they are expensive, but to be fair in some cities it’s actually quite cheap to take taxis compared to North America. Tripadvisor.ca is a great resource for information, at the minimum find out how much a taxi from the airport to your hotel should cost. I’ve come across cities where running the meter is not the norm.
Rental Cars: When making car reservations make sure you book a rate that is fully refundable. Once you have your reservation number register it with autoslash.com. This site will monitor your rate and as soon as a cheaper rate becomes available they will e-mail you.
Being creative with your car rentals can save you big. Normally when you drop off a car at a different location you’re going to have to pay a pretty healthy drop-off fee, however if you make 2 separate reservations with a break somewhere in the middle, there might not be a fee at all.
This is really dependent on the route and the rental agencies but I was recently able to save $300 when I booked a car from Portland to San Francisco and then San Francisco to LA. Not only did I save on the one-way fees, I was able to drop off my car in San Francisco and use public transportation as it’s more convenient there, and it saved me more.
Attractions
Free Attractions: What’s better than free? Not much especially when travelling. Quite a few attractions around the world are free. Parc Guell in Barcelona, The British Museum in London, A Symphony of Lights in Hong Kong, are just a few great attractions that are free; wherever you’re visiting, be sure to look up what’s free.
Related: Why you should travel for the experience this winter
Passes: Many cities offer attraction passes that will give you big savings if you plan on visiting all the sites included. Be aware that not all passes are worth it so be sure to check out what sites are included and how much you would actually save. It’s usually not worth getting a pass if you only plan to visit two attractions.
I would love to hear about your tips to save when travelling! Tweet me @barrychoi
Barry Choi is a DIY Investor with no formal training. During the day he is a Director for CityNews Toronto. He also blogs about money at moneywehave.com.
Did you know that your chances of living to 100 years old are now better than ever? Living a long and fruitful life may be seen as a great gift.
However, the chances that a 65-year-old will require long term care at some point in life are 49 percent for men and 65 percent for women. Even so, according to the Canadian Life and Health Insurance Association, 74 percent of Canadians have no financial plan in place to pay for long term care.
Related: Talking to your elderly parents about money
Active, middle class seniors with moderate nest eggs can usually afford decent levels of care at home or in a retirement residence. As they need more assistance, and costs for in-home care become more expensive, a nursing home may be more appropriate.
The problem is you don’t know how much care, if any, you’ll need, how long you’ll need it, or when.
What are the costs?
Current costs of care in long-term facilities can easily exceed $5,000 per month.
Personal home care ranges from $12 to $90 an hour.
Independent living costs about $2,200 to $5,000 per month for a small apartment with meals and living costs included.
Should you save up, or insure?
Many seniors who need specialized health care typically pay for it with their own savings or home equity. Do you have the financial resources to pay for the cost? Determine how long your assets would last.
Related: Senior care facilities – What options are available?
Long term care insurance can relieve the financial burden on your family by providing the coverage you may need.
What is long term care insurance?
Long term care insurance is a relatively new offering that is designed to cover these expenses. Services can be provided at home, in a retirement home, assisted living, or long-term care facility.
Policies vary widely. Typically, benefits are paid if you reach a defined level of mental incapacity, or you become unable to care for yourself due to chronic illness or disability, or unable to perform two or more activities of daily living, and/or require continued supervision due to cognitive impairment.
Some plans reimburse you for eligible expenses such as stays in nursing homes or private nursing care – up to a pre-set maximum.
An income plan gives you a monthly payment that can cover any type of service such as a caregiver in your own home – even a relative.
Related: So you’ve been asked to be an executor
See how the policy can be tailored to your individual needs.
When should you apply?
Based on your family history you may feel there is a large possibility that you will need some sort of long-term care. Or, you may be the type who frets about future high costs and how much the government will subsidize your care.
The younger you are, the cheaper the premiums will be. A common starting age is in the late 40’s or 50’s. The state of your health will also determine your rate, so signing up before you have any medical conditions will save you money and ensure you qualify.
At some companies such as Manulife Financial, you are guaranteed renewal for life regardless of changes in health. The policy won’t be cancelled as long as the premiums are paid.
Some insurance policies will return all your premiums if no claims are made.
What about government paid care?
Each province has basic care in its long-term care or residential care system. You’ll always be able to get care somewhere, but it only ensures the basics. Some disadvantages are the long waiting lists and you can’t count on getting into your first choice of residence.
Certain services such as rehabilitation and therapy may not be covered by provincial plans. You need to pay a “companion” yourself for supplemental care that provides extra help.
Related: Drug coverage for seniors
Final thoughts
Which strategy should you use to fund your final years? Save or insure?
Long-term care insurance coverage has a number of benefits but paying large insurance premiums comes at a cost. It may mean less savings, or not being able to enjoy your favorite activities in retirement.
Many people use their savings, put some money into annuities, and use their home equity as a financial reserve. Some government support is available based on income.
Take the time to think about long-term care when you prepare your retirement income plan.