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Avatar photo About Kristina Tahnyak

Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.

Money Doesn’t Grow On Trees!?!?

money tree, where money comes from, money tips

As a kid when I would ask my parents for a new CD, money to go to the mall, or a new piece of clothing my mother would always tell me that “Money Doesn’t Grow on Trees” It wasn’t until later in life that I would come to fully question, and even later in life fully understand, this money tree statement.

Money Doesn’t Grow On Trees?

Money was just always around when I was a kid growing up.  I thought that money was always available because it grew on a tree in our backyard.  As we picked the money off our tree it would replace itself just like the flowers and vegetables in our garden.

If we cut fresh tulips for our dining room table they would always grow back.  When we picked cherry tomatoes or snow peas from our vegetable garden they would always be available again a few days later, I thought the same rules applied for our Money Tree.  When my parents would tell us that we had to wait until next week to buy something I assumed it was because we had to give the money time to grow back on the tree branches.

Money is green like the leaves on trees; money even has a crumbled fragile texture just like the leaves on trees; so you can understand how a child could find the analogy confusing.  Money and trees have many similarities.  I always thought that our family Money Tree was located in our back yard near the Lilac Bush because that is where my Mom spent most of her time.

Every time I would ask my Mother for something she would pick up her laundry basket and walk outside to the backyard near the Lilac Bush.  I learned in fact that this was just a coincidence.  My Mother spent a lot of time in the backyard near the Lilac Bush because that is also where our outdoor clothes line was located.  My mother was going outside in the backyard to hang our freshly washed clothes.

Money Doesn’t Grow on Trees!

As an adult I have grown up to learn that my Mothers phrase “Money Doesn’t Grow on Trees” was in fact a statement, and not a question.

Money, in fact, doesn’t grow on trees.  We actually have to work for our money, and if we can’t afford something we have to wait until our next pay check to buy it or until we have saved enough money to afford it.  Money cannot be replenished as an asset without hard work and proper money management.

I have grown up to learn that money is a privilege and not a right.  I hope to always have a cash inflow of money and therefore I work hard and save as much as possible.  However, I also like to spend my money.  As a child I always bought everything I wanted.  Now as an adult I have learned the value of money and I am selective about how I spend my money and the purchases I make.

I currently have a money tree in my house but it doesn’t actually produce bills of money as leaves, it is supposed to bring good luck and wealth.  Although trees do not actually grow money, the two have many similarities and they require the same tender loving care. I love Trees for their beautiful colour and their fresh smell; I love money for the exact same reasons.  Money is like a Tree, we have to learn how to take care of it, we have to nurture it over the years, and then (and only then) can we fully benefit from its beauty.

(Photo by Wonderlane)

The 2 G’s of Investing: Girls and Grover

investing, investing like a girl, investment strategies

Good Morning DINKS! Every day we choose to read personal financial blogs, watch CNN, or talk with our friends about money in hopes of learning about personal finance.  Today we are going to get great financial advice from two (possibly) unlikely sources.  The Globe and Mail advises that if we want to be rich we should learn to invest like a girl.  CNN Money says that we can learn a lot about money basics from Grover on Sesame Street.

Here are some quick tips to help you invest with a Girly flare and a la Grover style:

Invest Like a Girl

Don’t be Emotional. Investing is not about our ego or winning.  This is often the problem with male investors; they think that investing a game they have to win. Make one move, one investment purchase and ride it out over the long term.  Successful Investing is not a series of short term moves.

Stay Invested For The Long Term.  Women are into commitment, we are into long term relationships whether it is with our retirement savings account or with our husbands.  We are in it for the long term through both the ups and downs, richer or poorer. It is important to commit to the long term when investing.

Research Your Investments Before You Buy.  Everyone may make impulse purchases but men make them more than women.  Women (usually) take our time to research and learn about a product before we choose to buy it, whether that product is a razor, a new shampoo, or an investment.

Be Slow and Take Your Time. Women (usually) never rush into anything; we leave that for the menJ. The Globe and Mail advises that we should start slowly and get used to our Online Brokerage Platform before we start actively trading.  Don’t rush into anything especially major purchases and investments.

Just Buy What You Like. I am a living example of this rule.  If I find a shirt I like, if it fits me well, and if the price is right, I will buy it in 3 different colours.  The same rule applies for our investments.  If we like a company we should invest in that company. We should buy stocks of companies whose products we use and recommend to our friends.

Invest Like Grover

Money is not about Addition, it’s about Sense.  Personal finance is not about having money; it’s about what we do with our money. Everyone earns a different amount of money, and everyone has different needs for their money.  When we are deciding how to spend our money common sense must take precedent over dollars and cents.  It’s not about the amount of money we have; it’s about how we use it, and how we invest it.  Successful personal finance is about quality over quantity, and quality of life is different for everyone.

Earn Money and Save Our Money. We may not be able to afford everything that we want in life, but if we work hard we can choose to have nice things.  A strong work ethic and a commitment to learning are the basics of a good financial education.

It is Important to Budget. Our personal budget should be divided into three categories…Saving, Spending, and Sharing.  We can further break down these 3 main categories into smaller sub categories for a more detailed budget.  Some financial professionals work with at 40, 40, 20 budget; this means that we should equally save and spend 40% of our income and we should share 20% of our monthly after tax income.

Depending on our financial life stage the amount of money that we can save or spend will vary.  If we just purchased our first home and are still paying off our student loans we will be spending more than we save.  However as we get older and our debts get paid off, we can afford to save a little more and spend a little less. Sharing 20% of our salary can be different for everyone.  As DINKS the percentage of our salary that we share can be allocated to joint expenses with our spouse, or it can be donated to various charities.

(Photo by Jim Brayton)

Friday Roundup: Giving Young People a Financial Education

Happy Friday DINKS!

Today we are discussing our pre DINK lives. Before we were DINKS we were young adults, and before that we were teenagers.  What was your financial education as a teenager? I grew up in a family that had everything because our parents grew up with without any things. I wouldn’t say that my parents lived their childhood through my sister and I, but they definitely worked hard to give us all of the material things and experiences that they could not have.

I am lucky to have both street smarts as well as book smarts when it comes to personal finance. I learned about finance both from my own experiences as well as a University Graduate with a BA in Economics.  However, my formal financial education came later in life; my real financial education came in my teenage years as I learned from my own money mistakes.

I am a firm believer that it is ok to make mistakes as long as we learn from the experience. It may be a different financial world today for teenagers and young adults.  Maybe teenagers are learning about money management in high school, and maybe they are reading financial blogs after school.  I wish that I learned about money management, personal savings, investments, and the dangers of debt in my teenage years.

Here are some great posts from around the web about young people and money:

  • Money Crashers lists the 15 Best Part Time Jobs for High School Students just in case the teenagers are reading.  It is very important to learn valuable money management at an early age in life.
  • Money Crush discusses installing good financial values at a young age in the post Teaching Kids About Money. She emphasizes the fact that parents should apply everyday situations to their Childs financial education.  Parents shouldn’t just tell their kids about money, they should show them…in detail.
  • Financial Samurai warns us Don’t Have Children If You Can’t Take Care of Yourself.  I couldn’t agree more!!!!  This is the exact reason why I do not have kids.  This post discusses the job security that comes along with having children, and how emotions play a role in both our money management as well as our careers.
  • Yes I Am Cheap emphasizes the role of a parent in a Childs upbringing in the post Don’t Be An Absentee Father Like Mine. The financial contribution of a parent towards a Childs upbringing is important, but it is not as important as spending quality time together.  As angry as I am at my Dad right now because he is letting his new wife tear our family apart, I am glad that I didn’t have to grow up without him.
  • Man vs. Debt tells his personal story about the recent loss of their second child in the post Thoughts on Losing an Unborn Child.  My heart goes out to Adam and Courtney Baker.  I am not sure what someone should say to a parent who lost their child but the Baker Family has my prayers, sympathies, and condolences.  Xoxo Adam and Courtney from Kristina @ DINKS.

Have a great weekend all!

Photo by SCA

 

3 Things We Need To Know About Our Health Spending Account

health spending account, health advice, health account

It is very important to fully understand the options in our Employee Benefits Package to make sure that we are taking full advantage of our benefits.  These options usually include Medical and Dental benefits, as well as various personal insurance options.  One of the major assets in our Employee Benefits Package is the Health Spending Account.

Here are 3 things that we need to know about our Health Spending Account:

Our Credits Are Based on Our Personal Family Situation

When choosing our Medical and Dental benefits each employee is given a fixed number of dollar credits which is determined by their family situation.  A single employee will receive fewer credits than an employee with a spouse or an employee with a spouse and dependants.  However, every employee with a spouse will receive the same amount of credits, and every employee with a spouse and dependants will receive the same amount of credits etc.

A Health Spending Account is a Free Benefit to Employees

Employers usually offer 3 or 4 different medical and dental options which each offer a different percentage of coverage at a different price.  The cost of our chosen medical and dental coverage is deducted from our total dollar credits.

Once we choose our medical and dental coverage as well as our personal insurance options all unused credits are deposited into our Health Spending Account.  Personal insurance options usually include disability insurance, travel insurance, as well as accidental death and dismemberment insurance.

Health Spending Account Credits Can Pay for Uncovered Expenses

Depending on the amount of coverage that we choose our medical and dental insurance may cover 50% to 90% of our expenses.  Most of the time Dentists and Pharmacists are able to directly submit our claims to the insurance company; therefore we are only responsible for paying the difference.

Medical expenses such as Doctor Visits are not able to be directly submitted to the insurance company.  Therefore we must pay the total medical bill upfront and later submit our total claim to the insurance company for reimbursement.  As an example, if our medical bill is $300 and our coverage is 80% we will need to pay $300 at the Doctors office; we can later submit a claim to be reimbursed $240.

The amount of our claim that is not directly covered by the insurance company can be submitted for reimbursement under our Health Spending Account.   Using the previous example, we can submit the $60 (20%) that we had to pay as an expense under our Health Spending Account.

We can also submit all claims that are not covered as an eligible expense under our Medical or Dental benefits to our Health Spending Account for full reimbursement.  We can submit an unlimited number of expenses per year up to the total dollar value of our Health Spending Account.

(Photo by Cristiano Betta)

It Keeps Going and Going…Or Does It?

duracell, stock market showdown, stock market

duracell

Good Morning DINKS! It’s time for another post in our Stock Market Showdown series.  We will examine two companies that offer very similar products and who appear to be each other’s direct competition. After reading about the different companies history and product line up we have to make a decision which stock to buy.

Investing in the stock market can be a very emotional experience.  Some of us may invest in Blue Chip stocks of big companies that have a proven history of constant growth.  Some of us may choose to buy stocks using a value investment strategy.  A value strategy invests in the under-valued underdog in hopes that it will have substantial growth in the future.  Whether you want to invest in “sure thing” growth stocks or you are a gambler and want to take a risk investing in value stocks, investing is definitely a personal choice.



Stock Market Showdown: Duracell vs. Energizer

The Duracell home page opens up with a client satisfaction survey.  Although I am not a fan of surveys I appreciate the fact that Duracell values my opinion as a client.  The layout of the Duracell home page is very well organized and shows their product line up very well. Common household items that use batteries, as well as their charitable efforts with Power Those Who Protect US are displayed.

Duracell offers a comparison tool as well as a product finder on their homepage.  The comparison tool will tell clients which Duracell product is best suited for their particular battery powered item.  The Product Finder allows clients to search for a type of battery based on the category such as all purpose batteries, rechargeable, or specialty batteries. Duracell also offers coupons for discounts on Duracell products…on their homepage.

Although the company information was not located on the Duracell homepage it was easy to find under Tools and Information.  Smart Power is listed as the first topic under Company Information followed by Battery Care and Disposal.  Actual information on the Duracell Company is listed at the bottom of the page, which I found very interesting.

Did you know that Duracell was founded in 1920? Did you know that Duracell was the creator of the AAA battery? Did you know that neither of the two men who founded Duracell were actually named Duracell? The company history page links back to the Smart Power page which proves that Duracell is committed to a sustainable healthy environment.

The Energizer homepage has a different (and brighter) layout than the Duracell homepage.  The Energizer homepage also focuses on their product line up as well as current product promotions.  If I didn’t know any better I would think that these two major players are owned by the same team.  The way to have a majority market share without actually creating a monopoly is to be the owner of both major competitors on the market.

Energizer batteries are very often, if not always, associated with the pink energizer bunny that keeps going and going.  Energizer focuses on brand recognition based on their marketing mascot, whereas Duracell focuses on brand marketing based on their brand name.  Duracell is a house hold name, but so is the energizer bunny.

The About Energizer page was very easy to find on the website.  Energizer currently has a partnership with both Shick and Playtex, although I don’t understand why feminine hygiene products need batteries.  The page talks about Energizers Mission as well as their Strategy.  The company history is listed as the first point on the page followed by information about their corporate headquarters and global offices.

Energizer Holdings Inc also lists their stock symbol (ENR) on the About Energizer page.  Charitable efforts such as Positivenergy and Sustainable Development are at the bottom of the list.  Energizers website is definitely more focused on their company and business.  Both websites do successfully display their products and brand image.

If you are deciding between two competitors and all other variables are equal would you buy stock based on a personal preference? I feel that batteries are extremely overpriced and therefore I always buy either Energizer or Duracell depending on which ones are on sale.

Here is a previous post in our Stock Market Showdown series:
Coke vs. Pepsi

(Photo by Paper Tygre)

I Quit… No Wait I’m Pregnant!

pregnancy, maternity leave options, job advice

bow on pregnant belly

There is a new trend among young women who are unhappy at their jobs to get pregnant and go on maternity leave, rather than quit their job or transfer out of their current position.  Yesterday I was talking with my friend and co-worker who is extremely unhappy at our bank branch.  She has been working at our bank branch for 5 years and feels that the new management strategies are unfair to employees.  I asked her why doesn’t she just quit; with her experience and education she could easily find a new position with another financial institution.  My co worker replied “I don’t want to quit, I just want to get married and get pregnant.”

Going on maternity leave is an option that allows women to get a break from their current position while still receiving an income, which is usually a percentage of our previous salary.  Upon return from maternity leave we are guaranteed to return to our job level, but not necessarily to our exact same position.  Using Maternity Leave as a strategy to get out of our current position (rather than quitting our job) only works if our position is replaced permanently, and not just temporarily during our maternity leave.  Women go on maternity leave hoping that they are replaced with a permanent employee, this way their position is not available to come back to after maternity leave and they must be transferred to a different department or location.

I had a former co-worker who was unhappy in her position but she was so valuable to our branch that the bank manager would not approve her transfer request.  So she got pregnant and went on a 12 month maternity leave.  However, the branch manager valued her so much as an employee that her position was only replaced temporarily during her maternity leave.  Upon her return from maternity leave she was placed back in the same position at the same branch.  She promptly applied for another job in a different bank branch, but once again her transfer request was declined.  4 months after returning to work from her first maternity leave my co-worker once again found herself pregnant and only months away from her 2nd maternity leave.  Hopefully the branch manager will be inconvenienced by her repeated leaves and this time she will replace her permanently.

If we are unhappy with our job, the odds are that our employer knows that we are unhappy too; or they at least they should have an idea. Employers can also change or eliminate our role while we are on maternity leave, since only our job level is guaranteed and not our specific position. This strategy is used by Employers who do not want us to return to the same position after maternity leave.  They change our current role in hopes that we may not want to come back to a different role. This ensures that the bad relationship stays broken and a fresh face (and attitude) is placed into our (former) position.

I am not sure if I want to have kids, and I admit that the strategy of having children to get out of a job that we hate seems a little bit dramatic.  However, if you are a person who wants kids, I guess that there is no time like the present.

Photo by Lina

Book Review & GIVEAWAY: Debt Free For Life by David Bach

Debt Free For Life: The Finish Rich Plan for Financial FreedomDebt Free For Life by David Bach is a very helpful financial planning book that can easily have us waving good bye to debt and hello to financial freedom.  David Bach writes for an audience with all different levels of financial knowledge.  Whether you have never had any experience in personal finance, or if you are very well educated on the markets and the economy, the strategies in Debt Free For Life are easy to understand and even easier to follow.

David Bach’s various chapters in Debt Free For Life can help real people who are living in real less than ideal financial situations.  His chapters such as How Lenders Keep You Broke, and If You’re in a Hole, Stop Digging really speak to a mass audience.  I am not sure if David Bach was in debt during a previous stage of his life, but he definitely writes like he was. David Bach has previously helped thousands of people better their personal financial situation.

Who can benefit from Debt Free For Life

Many people, readers just like you and I, who have the personal financial goal to pay off our personal debts and become debt free.  It is great to have a goal, but what we really need is a plan; Debt Free For Life provides a step by step plan to get our finances in order. Anyone who has any type of debt that they want to pay off can benefit from Debt Free for Life by David Bach. Although Debt Free For Life focuses primarily on consumer credit card debt, it also discusses several successful strategies to help pay off our mortgage and line of credit.  Whether we are overwhelmed with debt or we just have one credit card balance that we can’t seem to pay off, David Bach has solid financial strategies to help us.

Why I Love Debt Free For Life

David Bach combines financial strategies with individual personal action plans to get readers out of debt and into financial freedom.  It has several chapters where readers enter their personal facts and make their own personal action plan to start paying off their debts immediately.

As a professional who works in personal finance on a daily basis I rarely read personal finance books.  However, I enjoyed reading Debt Free For Life by David Bach.  Although I could have lived without all of the self boasting and celebrity name dropping.  It doesn’t matter what we have learned about personal finance in the past, or how we have been living our financial lives to date; Debt Free For Life offers an easy to follow step by step manual to help us start paying off our debt efficiently.  Debt Free For Life is complete with personal questions to answer and charts to fill out that are related to our personal financial situation.

As I read Debt Free For Life I felt like I was listening to David Bach speak to me personally, as if he was standing in my living room.  If you are in debt don’t worry, David Bach is here to help.  His easy to follow Debt Free For Life plan will get you started towards paying off your debts faster.  You are only one book away from saying Goodbye to Debt and Hello to Financial Freedom.

What is the Debt Free For Life Plan

The main strategy to become Debt Free For Life is the DOLP plan.  The Done on the Last Payment Plan is a strategy that ranks our credit cards by balance owing, interest rate, and minimum payment.  After calculating the DOLP ranking of each credit card we can determine their payment priority.  Debt Free For Life starts with being honest about our current financial situation and ends in financial freedom.

Debt Wise is a website that sets our debt free financial plan into action.  David Bach discovered Debt Wise a few years ago and instantly became a fan.  Now David Bach has partnered with Debt Wise to bring every reader of Debt Free For Life a Free 30 Day Trial.  Debt Wise will help us set, implement, and track our personal progress towards becoming Debt Free For Life

Now it’s time to Give Away Debt Free For Life by David Bach

To enter our contest to win a copy of Debt Free For Life by David Bach complete with the FREE 30 Day Trial to Debt Wise leave a comment on this post and tell us the biggest purchase you ever made on a credit card and how long it took you to pay it off.  The winner will be announced next week.

Photo by Amazon

 

Friday Roundup: Going Green Without Spending A Lot of Green!

Happy Friday DINKS! I for one, am loving the warm summer weather. I would prefer to live in warm climate over cold climate any day…despite the fact that I am of Ukrainian/Canadian descent. I enjoy the sunshine and being outside in the fresh air.

The ever growing trend of going green is becoming a lifestyle for more and more people.  We can go green by using eco friendly cleaning products, buying an energy efficient home, or using energy conserving light bulbs.  Going green doesn’t only refer to the products that we buy, it also incorporates other services in our lives such our banking options and the organization of our homes.

Here are some great posts about Going Green that we found around the web:

  1. Sustainable Life Blog says that we can support our local economy and eat fresh in the post Green Your Summer: Shop Locally.  I love shopping at local farmers markets because it lets me spend the day outside in the sunshine while walking around in the lovely smells of fresh fruits, vegetables, and flowers.
  2. Yes I am Cheap discusses 3 easy ways to make small changes in our daily lives to go green in the post How to Go Green in Big Ways Without Breaking the Bank.  Her rules include unplugging unused electronics, taking time to do research on green options for our products, as well as changing our light bulbs.
  3. Boomer and Echo gives us tips on how to keep our house spic and span without using harsh chemicals in the post Cleaning Your House The Eco-Friendly Way.
  4. Credit Karma Blog discusses ways that going green can also be cost efficient in the post Life Choices to Celebrate Earth Day Every Day and Save Money.  Many people think that making major changes in their life such as eating healthier or going green can be very costly, but Credit Karma Blog proves that this is just not true.
  5. Canadian Finance Blog gives us some going green tips to get our homes organized in the post Eco-Friendly Tips For Summer Cleaning On A Budget.  His three step process includes  planning, cleaning one section at a time, as well as getting rid of stuff that we no longer need or use.

Have a Great Weekend Everyone!

Photo by JanTik

Cash, Debit, or Credit? Which Budget is Best for You?

personal finance talk, kinds of budgeting, budget options

personal finance talk, kinds of budgeting, budget options

Last week I met with a client to start a personal financial plan; she asked me if she should live on a cash budget.  As we explored the advantages and disadvantages of living on a cash budget I started to think about my own spending habits. I wondered if a cash budget is a good option for people to control their personal spending habits.

There are several advantages to living on a cash budget which include controlling spending, as well as learning the value of our purchases. If we take out a fixed amount of cash every week and we live off that amount for the entire week it definitely controls our personal spending.  When people say that they live on a cash budget it means their personal miscellaneous spending is controlled by a fix amount of cash that they withdraw per week or per pay check.  Miscellaneous personal spending includes shopping for any personal items that are not related to our household such as hygiene and aesthetics at the pharmacy, eating out in restaurants, as well as snacks at coffee shops.

Women probably spend most of their miscellaneous personal budget on eating out in restaurants as well as on makeup and other beauty items at the pharmacy, am I right ladies?  My boyfriend Nick spends most of his miscellaneous personal spending budget on sporting events, alcohol, and various men’s lifestyle, music, and sports magazines.  Male DINKS do you agree?  I think that we can all agree that personal beauty items and sports magazines etc. are expenses that we can all live without.

The amount of money that everyone should calculate into their miscellaneous personal spending budget is different for each person. Some financial professionals say that it should equal 5% of each pay check and others say that 10% of our pay check is the amount that we should budget for personal spending.  I feel that the amount of personal spending should be less than the amount that we save per pay check. However, some people feel that we should save an amount equal to the amount that we spend, but I feel that is definitely overspending.

Regardless of the amount of our budget that we allocate to personal miscellaneous spending, living on a fixed budget makes us appreciate the items that we buy with our money.  If we only have $100 per week to spend on personal items we will be very picky about which items we buy. For those of us who like “stuff” we may look for the best deal and buy several items.  Some others may buy one quality item with our $100.  Living on a fixed budget definitely makes us appreciate and learn about the value of our money.

Only recently have I started living off of cash for my personal spending each week. My daily spending on food and snacks was out of control, and it caused me to gain 5 lbs.  I quickly decided to live on a $40 per week cash budget to limit my daily spending output as well as my daily intake of excessive calories.  I hope to eventually cut this weekly budget down to $30.  Although living on a cash budget is effective in controlling our personal spending, the problem with living on a cash budget is that we cannot keep track of our daily spending.  If I use my debit or credit card for all purchases I can track my spending to see exactly where my money goes.  Sometimes I spend my $40 by Thursday and I ask myself…where is all my money?

I would personally rather have no money at all than owe money, therefore I will always use my debit card over my credit card for daily spending on personal items.  It makes more financial sense not to earn potential interest on the money in my checking account than it is to pay 19.9% on my credit card.

Photo by BRH Images

Save Money on Your Cell Phone… Without Changing Providers!

saving money on cellphones, cellphone tips, saving money on your phone

saving money on cellphones, cellphone tips, saving money on your phone

One monthly expense that we all have is our Cell Phone bill.  On the 26th of every month I receive a text message that tells me my new e-bill is ready.  My basic monthly cell phone plan is $10, but with the add-ons, taxes, and service charges my total cell phone bill is usually $35 to $40.  However, this has not always been the case.  I signed up with my cell phone provider in 2003, and for almost 8 years I have used my cell phone when and where I want to, regardless of the fees and service charges .

With my new money mentality to want less in 2011 I have decided to change my spending habits and make cuts to unnecessary daily, weekly, and monthly spending.  My outrageous cell phone was the first monthly bill where I made cuts and really started to watch my usage.

Here are some tips to save money on your monthly cell bill

– Delete the Speed Dials.  I can’t tell you how many times I have received 2-3 minute messages from people who didn’t actually call me and who aren’t actually leaving a message. At least once a week I get a message from someone’s cell phone that automatically dialed my number.

– Sign up for Online Banking. I love having online access to my cell phone account.  It allows us to easily track our usage and view accumulated charges.  I have also signed up for a free service with my cell phone provider that sends me a text when I am close to my monthly long distance, text messaging, or data usage limit.

– Understand the Roaming Charges. It’s summer time and that means that we will all soon be leaving for our summer vacations.  I suggest that you contact your cell phone provider prior to leaving on vacation to inquire on roaming usage and fees.

Apparently we can keep our cell phone on in another country without being charged.  The phone will always be roaming but we aren’t charged roaming fees until we start text messaging, talking, or web browsing.  This is good news for everyone who uses their cell phone as a camera to take pictures or videos.

– Get a Fave 5 Plan. How many of us actually have more than 5 people that we regularly talk and text with? I know that I don’t. Take a look at your last cell phone bill and view the top five numbers that you talked and texted with, was it more than 5?

I think that an all inclusive Fave 5 Plan is great because it is rare that more than 5 people will account for the majority of my talk and text usage.   My cell phone provider even offers a long distance Fave 5 Plan which allows me to unlimitedly call my parents who live in another city.  Whoever invented the Fave 5 Plan is a total genius and deserves a raise!

– Don’t Get a Data Plan, Get Wi-Fi. Why should we pay for something that we can get for free? The answer…We shouldn’t.  Many coffee shops, shopping malls, and business districts offer a free Wi-Fi service.  Most offices offer telephone and internet access to their employees.  If your work doesn’t offer Wi-Fi or Internet service and you really need to send a text or an email just pop into your local Starbucks.

– Don’t Sign Up for Automatic Payments. I don’t have automatic payments for any of my monthly bills.  I like to know the exact total of my bill and where the charges come from before I pay it. If I don’t understand a charge, I call customer service and ask for an explanation. It is easier to dispute a charge when the company is waiting for their payment; I find it is more difficult to get a refund from a company if the bill has already paid.

Photo by Compujeramy

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