How to Save Money on Your Cable / Phone / Internet

After 4 years, I finally entered the 21st Century with Digital Cable. Having never watched a lot of TV, I do realize I'm now paying a premium for a few channels. Some (including my conscience) might also suggest my disposable income would be better invested in a tax-free savings account or RRSP's. For now, I'm enjoying the luxary that is HGTV, Food Network and Discovery. That works for me.

I'm actually considering my digital as a free upgrade. Hence, the subject of this post.

My July bill was $30 more expensive with no service change. I was annoyed because I thought it was HST, then annoyed when I wasn't. What can I say? I wanted to blame HST.


Customer Service explained the promotional pricing I had expired. Oh right. I thought, A year ago, I called to cancel my TV and they discounted my rates so it was essentially free.

Coincidentally, Bell has been calling harassing me for several weeks. If you're not a Bell customer, you know what I'm talking about. They want me to 'come back to Bell' . My interest was piqued... except they failed to notice I never left. Not only have I never been a residential customer, but to this day, I am still a corporate wireless customer. I was never there, and yet, I have never left. Confused? I guess they are too.

Anyway, I managed to copy down the details of their deal and use some aggressive tactics of my own to buy some 'thinking time'. I relayed the offer back to my current company and noted that I expect the same pricing, if not better, if I keep my services and upgrade my cable. The rest is history. My bill is still higher than it was, but I had essentially been getting cable for free, so I am okay with the increase. Not to mention, I don't have to switch companies.

So, I've seen several bloggers cover this topic, and there are lots of good tips out there if you do a quick google search. Here's my advice:

1) JUST CALL.
Call Customer Service and explain your situation or what you want. Suggest you'll have to cancel your service(s) or you may switch to X Company. In my experience, providers can't stand the thought to lose you. Casually threatening to cancel or switching providers seems to open the doors for negotiation. What's the worse thing that can happen? They say no. If you have a better deal elsewhere, then say 'see ya'!

2) Don't get angry. Be nice. Avoid calling when the unexpected, hippo-sized bill comes. Wait a few days, so you can cool down and collect your thoughts. Then you can also decide what you actually want from the provider.

3) Do your research. What is everyone else offering? Are there other features you could use, which they may be able to add into your service for free. Again, it's about knowing what you want, before you call.

4) Pay attention to the fine print. How long is the contract? Is there a cancellation fee? If you switch companies, sometimes there are hidden installation costs or fees to keep your old number. Ask about these, and ask for them to be waived. Switching can be enough hassle; why pay for it?

5) Password protect your wireless router! This will ensure you pay just for YOUR use. A neighbour was using my wireless connection and the data charges were delayed by almost 2 months. By the time it showed up on my bill, I was on the third month of exceeding my bandwidth limit. I called my provider, and this was the first thing she suggested. I set up a password that evening, and I haven't had a problem since.

Good luck!

An Update on my Jar-Budget Method

I've now been doing the jars for over a month, so I thought it was only fair to update my progress.

In my opinion, I have not done well. Even if I'm extra hard on myself, I know there is room for improvement. I can point to one main reason for this shortcoming thus far - the money needs to go in the jar! It sounds so simple, it's silly!

Seriously, if I do not actually put the cash in the jar, then I find myself saving receipts to keep track of where I'm at. It just doesn't work! The week is over before I know it, I tally the receipts up and I'm over, I've spent the money, and I can't remember what my original budget was. Now, I think I understand why this budget method really works, because even if you think you know your finances, it is a surefire plan.

Why is this so challenging? Beyond a doubt, it's because it requires such a change of habit. I have been accustomed to using plastic (debit and credit) for so long, physically going to the bank for cash is difficult. It takes time! It takes time to plan my needs at the start of the week and time to get the cash. I can't 'carry over' on my credit card until the next pay cheque either as I have foolishly told myself in the past. I have to confess though, I did resort to my credit card for a few 'extraneous' expenses last month. My passport renewal, for example, was one expense I overlooked and could not longer delay.

So, today is Monday and its a new week. I put gas in my car on the weekend, so my only expenses for the week were 'going out' and groceries. The groceries were picked up tonight, and I plan to go to a movie tomorrow night (Julia & Julia looks SO cute!) That will pretty well empty the jars, so I'll be keeping a low profile out on my work trip later this week. Hopefully, I'll be able to give a full report come the end of the month, complete with some numbers!

To Refinance or Not?

I will be the first to admit, that I have been a very irresponsible blogger this week. No post since Tuesday (and I actually wrote it Monday). Geez!

I have reasons though, and I think they are good ones! First, this week turned out to be insanely busy. We wrapped up Brownies and I went to my info night for rowing (that will be a rant for another day). I talked with my mortgage broker and met with a realtor, and I also went on a date (!! Pretty uneventful so not much to share even if this were THAT kind of blog)

I have spent a lot of time with my variable-rate-mortgage friends lately, and after hearing about their 3.25% rate for the umpteenth (I think that is a word that should only be said, not written), I was more than a little envious. My 5.76% rate doesn't look so hot, in comparison, so I called my broker this week to see what we could do about it. With prime below 2.5%, in some cases there is more merit in paying the penalty and getting the low rate.

Turns out, I am not one of these cases. Since I took a 5 year fixed rate, I am locked in for another 3 1/2 years (approximately), so I have not paid off enough of my mortgage (and therefore "own" enough) of it yet to justify the penalty. Also, since my rate is quite a bit higher than today's interest rates, the difference in lost interest to ING (yes, I have an "unmortgage") is pretty substantial. When it is all said and done, it would cost me $12,000 to payout my current mortgage. YIKES!

The good news I got this week? I don't have to upgrade my electrical right away!! This is something I have worried and thought about since I moved in. My neighbour and I got together with a realtor she knows one evening for a couple of drinks, and I asked him some questions about the value of upgrades, in terms of resale. I was also pleased to hear that the curb appeal of my house is great. Maybe it has become so familiar to me, I think it's blah? I am also going to hold off paving my driveway for now. It was extra exciting to hear that I can focus my energy (and finances) on finishing my basement and the little things inside my house!! Pink, striped office, here we come!

Have a safe and happy long weekend!

Graduation, 3 Years Ago.. Debt, Still Here

On May 1, I will have my 3 year anniversary in my current job. 3 YEARS! I don't know why it evokes some fear within me, because I never doubted that I would be in this job for less than five years. Yet, it seems like I only just graduated from University and that it really can't be 3 years ago!

Maybe this fear has to do with the massive weight that sits at the bottom of my online-banking screen - Mastercard Line of Credit  !! <Enter terrifying horror movie sound effect here>

Wait, let me clarify. The scary part is not the LOC itself. Debt is healthy, correct? What scares me to no end is the fact that the number has not moved down in the past three years. In fact, it is actually bigger now than it was when I graduated (due to a poor self-directed decision that it was better to use LOC to pay down government student loan due to LOC low interest rate - bad decision because interest on government student loans is tax deductible).

SO, in the past 3 years, I have managed to get away with only paying the interest. Not only did I get away with this, but I took advantage of it and made zero effort to pay it down. To say that this weighs me down enormously now, would be a gross understatement.

So I am considering putting all this out here in the public, which I know my mom is completely disapproving of as she reads this. However, I have reached the conclusion that debt is like any addiction; the first step to recovery is admitting you have a problem. Furthermore, the "Smart Cookies" always rave about money clubs and the importance of talking through our financial woes to find solutions, rather than viewing finances as taboo conversation. My final reason? Accountability. Fabulously Broke in the City has inspired me to track my repayment progress through my blog. Hopefully, this will serve as a regular reminder to stick to my plan and my budget, so I can achieve my goal.

That being said, I am still absorbing some of the numbers that I just calculated, and I think this is going to take some time to get comfortable with.  Plus, I need to find a really cool tracking meter or something for my sidebar. Stay tuned... 

Only 2 Things are Certain - Death and.... Taxes!

Tax time always seems to serve as a lesson in what "should have" - as in, what I should have done last year with my money.

Last year, it was "you should have borrowed from your RRSP for your house down-payment". The net result? A barely existent return that was only positive because I super-contributed to my RRSP for the last few weeks of the year. This uber-contribution proved to be a benefit in the long run, because the investments I cashed in for my down-payment would've left me paying the tax man on the healthy gain I'd made. 

This year, it was almost the opposite. I didn't contribute enough- or any, would be a better approximation. Having pulled all my money out to buy stocks (which makes logical sense to me - buy low, right), I had no contributions to report this year. So, as it turns out, I will be paying additional taxes this year. 

Does it really yank anyone else's chain when you're told "it looks like you are making too much money and should be in a higher tax bracket." Too much money??!  If I was making more money, maybe I would have some additional to put into RRSPs!  OK, that is perhaps a little unfair, since I did drop a little cash at IKEA last weekend! 

In truth, I really realized that I still don't understand very much about financial planning and personal wealth. I thought I understood my company's retirement options, but if this were the case, then I wouldn't have left H & R Block feeling steamrolled today. Maybe it's time I consider hiring a financial planner, rather than just trying to piece together tidbits of advice here and there. Does anyone else have a financial planner or have you found any really good sites or advice that you feel confident in?

Its almost February - Resolutions Update

Okay, its not quite one month yet, but with February just around the corner, and possibly 2 of the most busiest weeks I've EVER had behind me, I feel like it is a good time for an update on my New Year's Resolutions. Kind of a status scorecard, I guess.

If you remember, I had three

1. Get in control of my finances.
   
2. Have the electrical service changed over to 100 amp (this will require saving $ and so will depend on #1).
   
3. Develop a plan for my basement.
   

So, here's where I stand.

1. Finances. I have done something. I am counting that as a small victory. I have updated my budget and spend worksheet to keep track of what I'm spending and try to cut where I am being a little too lavish. I also got the book "The Wealthy Barber" by David Chilton. We read this in university and friend suggested I re-read it, and actually try to apply what I learn. Not a bad idea. Where did I fall down on this resolution? A Nine West sale was too tempting to pass up! With new shoes on foot, now I'm set to keep the spending down and get the finances in control!


2. Electrical. Okay, really, this one is somewhat dependant on #1. I have a contractor in mind, but I've had the name for four months now and not done anything with it. In February, I will call him and get a quote. In the meantime, my savings account is reserved for this task and my recent, second income will fund this.


3. The basement. This is more longterm, but I did find this really cute design idea last fall, that I still think would work.