These days keeping your cash out of the hands of criminals can be more challenging than balancing your budget. There’s always a new twist on an old con or a new scam ready to catch people unaware. Fraud is a multi-billion dollar business in North America, and many people are unknowingly tricked into parting with their cash.

However, the best way to avoid a trap is to learn how to spot it. To keep people in the know, many organizations like Scambusters, the Better Business Bureau and Canadian Anti-Fraud Call Centre track the most commonly reported scams. While everyone’s list is a little (different depending on demographics and how schemes are classified), it’s not hard to spot the common tactics and perennial problems.

Want to stay ahead of the crooks? Watch out for these common scams that targeted North Americans last year.

Top Scams to avoid

Fraudulent services. The most commonly-reported scam in Canada, they can include any misleading offer or promotion of services, from medical supplies and insurance to extended warranties and long distance phone plans. It could be a contractor who requests a large down payment and never completes the work, an energy contract that’s too good to be true or an offer to lower your interest rate. High pressure tactics keep you from looking too closely at the deal.

Prize/lottery scams. You know the drill: You receive notice that you’ve won a prize — but there’s a catch. First you have to send cash in order to claim your money, free trip or fabulous prize. Alternatively, you could be asked to pay the taxes on the prize or make a purchase. Either way, the winnings never arrive.

These scams aren’t new, but they are branching out. Many sweepstakes scams start with an entry box at the mall or an entry form in the mail. Not only do scammers have your personal information, they’ve also got more credibility when they call you up.

Sales or merchandise scams. Buyer and seller beware: If fake e-commerce sites and online auction scams weren’t enough to contend with, scammers are happy to play both sides of this equation. As a buyer, you could end up paying for less than you bargained… that is, if you receive an item at all. As a seller, you could face fraud and theft — or be lured by a predator through a classified ad. The latest versions of these scams offer the latest tech toys and sought-after items, so it pays to avoid the “too good to be true” offers.

Phishing and identity theft. Your personal and financial information is a valuable asset — and it’s easy to use against you. To dodge this crime, you’ll have to do more than get out the paper shredder, keep tabs on your financial statements and avoid phishing emails. Scammers could catch you with a survey or online quiz, or collect your details through a fraudulent sweepstakes at a trade show or convention. Soon, your information will be shared and sold to other crooks, and you’ll be on the receiving end of spam and unsolicited calls.

Emergency or Grandparent Scam. Stranded, in jail or in the hospital — the stories change, but the crime is the same. Crooks call pretending to be a grandchild or relative who is in trouble abroad and needs money wired to them right away. This scam is once again gaining in popularity in North America and usually targets seniors. (One Ontario woman even lost $3000 to this scam, according to an article from Goldhawk Fights Back.) Scammers can even mine social media sites and blogs for details to add credibility to their story.

Fake cheque or over-payment scams. Oops! Your interested buyer or potential tenant mistakenly wrote you a cheque for too much money — and they want you to deposit it and wire them the difference. Unfortunately, your money will be long gone by the time you realize the cheque is a fake. These scams have topped the list for a couple of years now, and will continue to hit business owners, landlords and people wanting to rent out rooms for extra income. (Read more about suspicious cheques.)

Employment scams. In today’s tough market, finding a new job isn’t as easy as it used to be — especially for people who don’t have a lot of skills or experience. Phony job offers, questionable business opportunities and work-at-home scams continued to be popular in 2010. They can take many forms, from application fees to equipment or training costs “required” for the position. Cash isn’t the only thing at stake: many job hunters have been asked to submit confidential financial information like a credit report or social insurance number during the process.

Economy-related scams. Not surprisingly, the newest scams target people who were hurt by the recession. Phony debt-relief services, unscrupulous collection agencies, advanced fee loans and credit arrangers are among the many crooks pretending to help people in financial distress. However, they’re really helping themselves to people’s cash as victims paid for help they never received. Experts warn to research companies carefully before buying into their services — or falling for their threats, in the case of collection agencies.

Free trial offers. While technically not illegal, many free trial offers end up costing consumers thanks to tight deadlines and unclear terms and conditions. In fact, these offers have become such a problem in the U.S. that both the Better Business Bureau and Federal Trade Commission have issued warnings. Before you try that teeth whitening, anti-aging or acai berry product, make sure you know what you’re getting in to. Once you’ve given out your payment information, these deals can be notoriously tricky to cancel and have cost consumers hundreds of dollars.

Advanced fee scams. Often called the Nigerian Scam or 4-1-9 Scam (thanks to the country of origin), many people still fall for this questionable offer. You’ve likely seen the emails — you’ve been singled out by some foreign employee trying to get millions of dollars out of the country. You’re promised a hefty percentage of the funds for helping, but instead you’ll end up paying for supposed fees or taxes to keep the venture going.

While the scam may seem obvious, experts warn it’s constantly evolving. Scammers can now fake government contacts and related documents to make the scheme seem like a legitimate venture — and some victims have even been lured to Nigeria to take part, according to Scambusters. Experts warn this scam can be physically and financially dangerous, so it’s best to ignore it. (Scambusters has a good example of this scheme here.)

While this list includes the most common scams of 2010, the list of culprits is far longer. Investment scams and vacation scams are also increasingly popular, not to mention mortgage scams, “sweetheart” scams, business listings scams and social media scams.

What’s next?
Some studies suggest that we’re getting savvier about fraud — but don’t expect things to be better, experts warn. Despite the attempts of law enforcement to stop fraudsters, crooks are getting more creative and finding new ways to exploit technology — and vulnerable people.

Ultimately, the best way to avoid scams is to be aware of the tricks and cons. Experts advise the best thing you can do is to say no and dodge those “too good to be true” offers, no matter how high the pressure. Avoid giving money to anyone you don’t know no matter how they approach you — at least until you’ve done your research first.

For more information on scams and other cons, visit our Fight Fraud section.

Improving your credit score can lower your cost of borrowing.

This is a weekly column by Dale Goldhawk, Canada’s best-known consumer advocate. A journalist, author and broadcaster, Dale hosts Goldhawk Fights Back For You, on AM 740 or at AM740 ZoomerRadio, Monday through Friday from 11 am to 1 pm, in the eastern time zone. Visit his website at www.goldhawk.com.

Here’s how the numbers break down: If you have a credit score of 800 or more, you are a blue-ribbon borrower and anybody will lean you money at the best rates. If your score is 700 or 750, you are still a good risk but maybe not at the very best rate. If you are below 700, you still might be able to borrow money — maybe not as much as you want and likely not at the interest rate you would prefer.

Here are a few of the factors that will determine your credit score:

How are you paying your accounts?

How much money you currently owe?

How long your accounts have been open?

What different types of credit you use?

How much credit you use compared to the amount of credit you have available?

How often and how recently you have applied for credit?

The first thing you need to know, says Tom Reid, the Director of Consumer Solutions at TransUnion Canada, is your credit score. You can get it online or in person or by mail from TransUnion or Equifax, the other Credit Bureau in Canada. It will cost you a few bucks to get the actual score. But you can get your full credit report for free. It’s the law.

At TransUnion, it’s called a consumer disclosure — a complete account of all the information on your credit report. Unlike the version supplied to a business that buys TransUnion services, a Consumer Disclosure lists all inquiries made to your credit information, including account management inquiries, non-credit-related inquiries and your own inquiries.

The Business Version is a shorter edition of the Consumer Disclosure. And you can get your consumer disclosure by mail or in person.

Here are a few additional pointers that I got from Tom Reid during a recent conversation:

1. Remember that bill collectors will start hounding you if you fall 90 days behind in your credit payments.

2. Credit grantors report on your payments or your lack of payments, to the credit bureaus, every month.

3. The number of credit cards you have is important. Keep them to a minimum. Your total credit limit on all cards can be used against you.

4. Bankruptcies were up 25 per cent from 2009 to 2010.

5. Negative credit information stays on your record for seven years. After that, the credit bureaus figure you have been rehabilitated and the negative stuff disappears.

6. If you got through a second bankruptcy, that one stays on your record for 15 years.

7. All the positive credit information stays on your record forever. So an older borrower has a better chance of impressing a credit grantor with her record.

This is a weekly column by Dale Goldhawk, Canada’s best-known consumer advocate. A journalist, author and broadcaster, Dale hosts Goldhawk Fights Back For You, on AM 740 or at AM740 ZoomerRadio, Monday through Friday from 11 am to 1 pm, in the eastern time zone. Visit his website at www.goldhawk.com.

The Paris-based Organization for Economic Cooperation and Development has issued the kind words it usually has for Canada. Sound fundamentals. Solid banking system. The economy appears to be recovering. We have heard it all before.

But the OECD does says it is worried about the amount of household debt carried by Canadians. The total of all mortgages and consumer credit is a staggering 1.41 trillion dollars.

Said the OECD report: “the high rate of household indebtedness is a source of risk to the outlook.”

Canada ranks first among 20 wealthier countries in the world, including the United States, in its debt to financial assets ratio. We’re number one. Our households are more in hock than anywhere in the world.

The OECD is advising Bank of Canada Governor Mark Carney to raise interest rates sooner rather than later. Do it, said the OECD, “without delay.”

Just a few weeks earlier, the Certified General Accountants Association of Canada rang the same alarm bell.

The trillion-dollar-figure works out to 41,740 dollars worth of debt for every man, woman and child in Canada. By comparison, that figure is two and a half time higher than it was just 21 years ago. And the Certified General Accountants presented a survey that shows Canadians are not at all worried about taking on additional debt.

Other studies have shown that many Zoomers are entering retirement still carrying substantial mortgages and will acquire new debt in those retirement years.

The rise in interest rates, say the experts, will cool the demand for borrowed money — at least a bit. But for families already in debt, the rise in interest rates will make it tougher to keep up with payments. Families on the edge will hurt the most.

10 tips for smart shopping — and eating healthy — even if you’re on a budget.

Stretching your food dollars doesn’t mean you have to sacrifice on flavourful or healthy foods.

10 tips for saving at the grocery store

Buy local. You can save money on fruits and vegetables by buying local as much as possible. Planning your menus around food that is in season means fresher ingredients and that you won’t be incurring expensive food transportation costs.

Comparison shop. Look around for the best bargains, and not only in grocery stores. Pharmacies and hardware stores often offer good deals on staple items. If you find a good price, consider stocking up.

Shop smart. Make a grocery list and a weekly spend limit – and stick to it. Even small impulse items can add up – as much as 10 per cent of your yearly grocery bill, according to some experts. Utilize store circulars and coupons. And be sure to check your receipts for accuracy. Accidental overcharges can add up to a hundreds of dollars over the course of a year. Note: In Canada, if you’re overcharged because of a scanning error, you could be eligible to receive the item for free (or $10 off if the item is more than $10).

Go green. Concerned about the high prices of organic foods? Target your spending and go organic for foods where conventional pesticide use is high. These foods include apples, bell peppers, celery, cherries, imported grapes, nectarines, peaches, pears, potatoes, red raspberries, spinach, and strawberries.

Get out the slow cooker. Buying inexpensive (and tougher) cuts of meats won’t be a sacrifice if you slow cook them to mouth-watering tenderness. Slow cookers also make great use of leftover vegetables.

Make your own cleaning products. A trip down the cleaning supplies aisle can add big bucks to your grocery bill. Instead consider making natural and less expensive cleaning solutions from items in your pantry.

Know your food costs facts. A few rules of thumb: white eggs are generally cheaper than brown; skim milk is cheaper than 2 per cent milk; and bacon is usually less expensive than sausage. A rotisserie chicken is not only a convenient way to prepare dinner, but it can go a long way toward leftovers, soups, etc. – and it is often cheaper than buying, say, boneless chicken breasts.

Think generic. Cereal, canned and frozen foods can be cheaper when sold through the store brand name – and in most cases, the quality isn’t that much different.

Engage in stealthy stock-up. Stocking up, particularly on reduced items, can help to save on fuel costs from that extra trip to the store as well as multiple-shop impulse buying. In many areas, bread prices have skyrocketed, so if your favourite multi-grain is on sale, buy a couple loaves to store in the freezer.

Choose your shopping companion wisely. We’ve all heard the old adage, ‘don’t go to the grocery store when you’re hungry’, but you might also want to consider whom you bring with you. Children or grandchildren, for example, have ways of persuading you to buy items you hadn’t planned for.

Best budget-friendly foods

No need to sacrifice on nutritious foods even if you’re on a budget. Load up on foods that are healthy, yet still wallet-friendly. These include: Kale, potatoes, beets, broccoli, butternut squash, Garbanzo beans, wild rice, oats, whole grain pasta, nuts, bananas, apples, watermelon, eggs and sardines. For more ideas, see What’s in your cart?

Photo ©iStockphoto.com/ iofoto.com

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But con artists, hackers and scammers work 12 months of the year to steal our money…

This is a weekly column by Dale Goldhawk, Canada’s best-known consumer advocate. A journalist, author and broadcaster, Dale hosts Goldhawk Fights Back For You, on AM 740 or at AM740 ZoomerRadio, Monday through Friday from 11 am to 1 pm, in the eastern time zone. Visit his website at www.goldhawk.com.

During the month of March, we will be getting a steady stream of tips from banks and consumer organizations, telling us how to hang onto our money.

TD Canada Trust is first off the mark with a fraud prevention quiz. It contains several good questions and some tricky situations, to be sure.

But with apologies to Andrea Phillips, Vice President of Payments for TD Canada Trust, I’m going to use her tips as a starting point for my own advice, based on my 42 years of chasing bad guys and fighting back on behalf of us mere mortals.

1. What does a bad guy need to copy your credit or debit card? Well, the crook needs both the information on your card and your PIN. And he can only get the PIN if you have been careless with it or some shoulder surfer has watched you key in your PIN, in partnership with the store clerk who is using a special machine to skim the information from your card. In more sophisticated operations, a hidden camera, the size of a button, recorded your PIN being entered. CHIP cards, now being phased in by Canadian banks, might combat some of the fraud but remember hat in Britain, where CHIP cards have been in use for ten years, fraud has hardly subsided at all Bad guys have just found other ways to get at your money

2. Bad guys want, essentially, two things from us. They want our money or they want our personal information so they can steal our identity and get more of our money by charging up phony credit cards, in our name. That leaves us to clean up the mess. The banks will probably cover the fraudulent loss but getting your life back in order after someone has stolen your ID is a mammoth task that can take years.

3. Phishing is a con operation where some sleazy crook tries to get your personal information by talking you out of it, on the telephone or on line. It is the modern version of dumpster diving, where crooks rummaged through dumpsters out behind businesses, looking for your personal information. Car rental agencies were favourite locations; they photocopy your driver’s licence, the mother lode of useful information, containing your all-important date of birth.

4. How often should you check your bank statements or credit card bills? All the time and right away. Report discrepancies immediately. Generally, banks and credit card companies only give you 30 days or so to correct any mistakes, otherwise, you could be stuck. While you’re at it, you should consider paying a few bucks to have a credit bureau monitor your credit rating on a monthly basis and report any activity. That’s essential if you have lost a wallet or a credit card. It’s the best way to discover if a crook has stolen your identity and is now apply for credit using your good name.

5. Be careful with your personal information. Every time somebody asks for your telephone number, address, date of birth or other personal information, say no. Have the person or company explain why they need it and then, 90 percent of the time, say no again. Then find somebody who will deal with you as a consumer without being quite so nosy.

Photo ©iStockphoto.com/ Feng Yu

Find out the latest tactics criminals are using — and who they’re targeting.

The tactics may be different but the goal of scams is the same: Make money, no matter who gets hurt. Every year, Canadians lose millions of dollars to con artists, hackers and scammers, and they always seem to have a new set of tricks to catch the unwary.

However, our cash isn’t the only thing we can lose. Criminals are also after our personal and financial information, which they can use to commit identity fraud or sell to other criminals. They can ruin people’s reputation and credit scores, and leave them feeling vulnerable, gullible and ashamed.

It takes a lot of effort to stay a step ahead of the criminals, but awareness is a tool we should all have in our arsenal. Here’s a “heads-up” on the state of scam in Canada in the past year.

Top scams affecting Canadians

According to the latest report from the Canadian Anti-Fraud Centre (CAFC), here are the top scams reported by Canadians in the past year:

Service: Want a lower interest rate on a credit card? An extended warranty for your car, a new service plan, or a deal on long distance calling? Service-related schemes are at the top of the list of scams that Canadians reported in 2009, so it pays to be sceptical of the deals you’re offered.

Another no-no — paying big fees or deposits upfront for services like home renovations. (See Big cash renovation deposits are big mistakes for details.)

Merchandise: These scams can take many forms, but they all involve paying for items and services that aren’t what you bargained for (if you receive them at all). Scams often involve the latest tech gizmos (like Apple’s new iPad) or sought-after items. Watch out for fake e-commerce sites and online auction scams, and be suspicious if you’re offered payment options like money order, cash or wire transfer. Phoney escrow sites are even popping up to fool buyers of big ticket items.

Another common tactic — “free trials” that end up costing customers big bucks.

Sale of merchandise (by complainant): Selling items online? Beware: online classifieds and services like eBay are rife with con artists, and sellers are caught as well as buyers. The RCMP warns the best way to avoid these scams is to understand (and follow!) the terms of service, polices, procedures and precautions suggested by the service itself — like meeting the people you’re doing business with in person if possible.

Prize: You’ve won an exclusive prize like a car, cash or a free trip in a contest you don’t remember entering — but you have to pay a fee, fork over “taxes” or make a purchase. In Canada, consumers don’t have to pay up when they win a prize, so the only real winner here is the crooks.

Personal information: Sometimes your personal information is worth more than your cash. Scammers may ask you to fill out a survey or online quiz, or collect your details through a fraudulent prize entry form at the mall or at a convention. You’ll soon find your information shared and misused, and you’ll be on the receiving end of spam and phone calls. The RCMP warns that the crooks can even analyze your handwriting.

Job: Given the state of the economy, it’s not surprising that online employment scams and work-at-home scams continue to be popular. You might be asked to pay a fee to apply for a job, or purchase a “kit” or list of employers. Often the real purpose of these schemes is to get your personal information — like your social insurance number — which you shouldn’t have to provide until you are actually hired.

Phishing : The hallmark of the phishing scam is that it looks like a real email from a company you deal with — like your bank or an online payment service. However, it could contain a virus or coax you into entering your personal information at a lookalike website. (See Email: what’s safe and what isn’t for details.)

The latest in phishing scams involving “SMiSing” (phishing attacks via text messaging) and “vishing” (where readers are directed to call a fraudulent phone number instead of clicking on a link).

Vacation : The scammers know we’re looking for deals — that’s why travel-related scams continue to be a big problem. Fraudulent companies may disappear with your money, or give you sub-standard services and accommodations. (Read our tips for avoiding vacation scams)

Collection agency : You receive a call or notification that a payment is past due. It could be a fake debt collector, or an agency that refuses to play by the rules. Proceed with caution: check with your provincial government about rules and policies governing collection agencies in your province, and report any suspicious behaviour. Avoid giving out any information until you’re sure you know with whom you are dealing, and check your credit reports to see if you’ve been the victim of identity fraud.

Directory : Scammers attack businesses too, and directory cons are a popular tactic. Your business may offered a chance to advertise or be listed in a local directory (which doesn’t actually exist). You might also receive a legitimate-looking invoice for a listing you never accepted, or get a phone call asking you pay up or to confirm your payment information. (The Competition Bureau has more information about business-related scams.)

Many of these scams originate in Canada — from places like Toronto, Montreal and Ottawa — as well as from abroad. Other popular cons include phoney inheritances, fake emergencies and romance (not to mention the infamous Nigerian letter scam). Charity scams also continue to prey on people’s generous nature, especially in the wake of disasters like the earthquakes in Haiti and Chile. (See Good cause or costly scam? and the Holy con artist for tips on avoiding these scams.)

Top solicitation methods

How are the scams being perpetrated? You might be surprised that con artists don’t always hide behind anonymous emails or phone calls. In fact, the most costly solicitation method was “in person” — the CAFC received only 344 complaints, but victims lost over $5.8 million.

Criminals are certainly taking advantage of the growth of online media — and it’s a cheap and quick way to reach a broad audience. Scams that were based in text messaging, email and the Internet netted the most money and the most victims — a whopping $14.4 million in losses and about 10,600 complaints.

The most popular method? It’s still the phone and fax machine that earned the most complaints. The good news is that people aren’t so quick to fall for these scams. The percentage of victims was smaller than for other methods, and their losses were less at $3.1 million.

While traditional methods like print, mail, radio and television aren’t as popular, they haven’t disappeared. This category of media had the fewest complaints and the smallest cash losses — but it’s still important to not believe everything you hear or read.

Top targets?

We’re well aware that scammers often target seniors, but experts warn that anyone can be a victim regardless of age, income or location.

Who are some of the top targets? Children and teens appear on the latest fraud warning lists. Experts warn that younger generations aren’t as web-savvy we think. They can be tricked into giving out information online, or they can be involved in scams themselves. (See Keep kids safe on social networks and Stop scammers from targeting your teens for more information.)

Even web-wary baby boomers aren’t immune. According to the CAFC report, people between the ages of 50-59 had the highest rate of complaints and reported higher financial losses than any other group — a whopping $6.2 million. Next in line are people ages 40-49 (approximately $4.2 million in losses) and people ages 60-69 ($3.8 million).

Should the numbers worry you? Statistics only show what people report, so actual numbers could be higher because people may be too embarrassed to admit they were affected. It’s also possible that the large number of Zoomers affected is simply due to demographics — after all, they’re the largest age group in Canada and they control a significant chunk of the country’s wealth.

What can you do to prevent becoming a victim? There’s no sure-fire way to avoid all the scams out there, but being aware of the latest tactics and warning signs can go a long way to preventing these crimes.

ON THE WEB

Read the latest reports from the CAFC .

For more information on fraud prevention, visit the Fight Fraud section on 50Plus.com and check out these sources:

Canadian Anti-Fraud Centre (PhoneBusters)

Competition Bureau: Fraud Prevention

RCMP: Personal Information and Scams Protection – A Canadian Practical Guide

RCMP: Scams and Fraud

Scambusters.org

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Money is a hot button in many relationships. Here are 8 tips to avoid clashes over cash.

Still fighting about money? You’re not alone – money is one of the hot buttons in many relationships. Here are 8 tips for talking cash – without getting into bashing.

1. Set the date
Don’t talk about money “on the fly” – one person may be distracted or having a bad day, which can lead to communication breakdown. At the same time, failing to talk about money can not only lead to arguments about financial surprises, but also to financial issues. So treat your “family corporation” seriously and set a date and time to sit down and go over things. Some couples make this a monthly take-out date and sit over spreadsheets or in front of a laptop with a glass of wine.

2. Do your homework
It’s hard to talk without clear information. Designate one person to provide the information about the month’s cash flow and any changes in family spending. Make sure each of you takes a few moments – maybe at the beginning of your money talk – to jot down a list of any unplanned expenses, expenses coming up, changes in income or payments, concerns, and of course goals and dreams.

3. Go one at a time, and repeat back
If your money discussion is going well, it’s probably not necessary to be too formal about it. But if you and your partner are deadlocked on some financial issues, it is very important to structure your discussion so that each person spends time listening, ensuring that they have understood, and being heard. Try going through one person’s list first. The designated listener should occasionally repeat back what she or he has heard, to be sure that there are no misunderstandings – but not to argue. Then that person reads his or her list, before any back-and-forth discussion takes place.

4. Consider the real issue
Money represents different things at different times – freedom, security, power, and love. If you find a discussion is becoming heated, ask your partner what their goal is – is it to save more or pay down debt to be secure? Is it a sudden need to spend money in order to feel more connected to a hobby? Likely most of the conflict comes from competing views on what the money represents.

5. Focus on your partner’s strengths
This can be a hard thing to do if you’re aware that the house insurance is coming due, the air conditioner may need to be replaced, and your partner wants to put a deposit down on an extra vacation rental for the summer. But each financial style has benefits – in the hypothetical case above, prioritizing rest and relaxation can be a real asset in a marriage over the long haul. It’s just fine to acknowledge those strengths, even if you ultimately don’t want to save or spend the money in that way. Express your appreciation of your partner’s approach before you explain why whatever he or she wants to do is a bad idea.

6. Take the opposite point of view
If you can’t agree on whether to save or spend, try reversing roles, so that you each “defend” the other’s point of view. It may help you find a compromise, or at least get a good laugh as you listen to the other person struggling to address his or her original concerns.

7. Agree when something does not have to be discussed
As adults we all have our spending foibles – and we should each have some independence in our decision making. Divvy up extra disposable income or give each other a “mad money” allowance, and don’t discuss it further than that. You really don’t need to know if that hundred bucks went for yet another power tool or pair of shoes.

8. Check in with your hopes and dreams
Money management can seem like a chore or even hopeless at times. But remember that money is a means to an end, and take the time to reconnect about the values that you shared when you joined households in the first place. Don’t leave your aspirations out of the equation. Even if a world cruise never actually materializes, talking about it together can remind you that you are a team.

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Want to land a new job? Lighten your credit card debt? Scamsters continue to prey on consumer vulnerability in tough economic times.

The Better Business Bureau (BBB) has released its list of top 10 scams and rip-offs from 2009. The list, which is produced annually, is based on the number of times people requested information, made inquiries or reported complaints to the BBB.

Not surprisingly, many of the scams targeted people who were unemployed or suffering under tough economic circumstances. Free trial offers to lock consumers into recurring credit and debit card charges were also widespread on the Internet.

“While many of the scams on the list are perennial problems, some scams were distinct in 2009 because of the economic climate and scammers’ penchant for taking advantage of the top headlines,” said Steve Cox, Council of Better Business Bureaus President and CEO.

Top scams of 2009

So how were we ripped off last year? Here’s a look at the top 10 scams of 2009.

Work-at-home schemes. Last year countless web sites cropped up offering ways to make money from home using Google or Twitter — after ordering a free trial of learning materials. These sites often included the Google or Twitter moniker and logo, leading many people to believe they were getting a job with Google or Twitter — when in, fact, they were being lured into a misleading free-trial offer. The result? They were billed every month for the materials (as well as other mystery charges) that added up to hundreds of dollars. (See Don’t get burned by work-at-home scams.)

More not so “free” trials. Ads offering “free trials” for products such as teeth whiteners, acai anti-aging pills and other miracle supplements were all over the Internet (including on many trusted web sites). Many of these offers falsely claimed to be endorsed by celebrities such as Oprah, Rachel Ray and Doctor Oz. The BBB said that thousands of consumers complained that the ‘free trial’ actually ended up costing them hundreds of dollars, month after month, in recurring credit and debit card charges. (Read more on misleading offers.)

Mortgage foreclosure rescue/debt assistant deals. As many struggled in the downward economy, hucksters offered services to help people save their house from foreclosure or to get them out of credit card debt. Unfortunately, after paying hundreds of dollars up front for the assistance, many did not receive the aid that was promised.

Job hunter scams. Scams targeting job hunters included attempts to gain access to personal financial information (such as bank account number) and even requirements to pay a fee in order to be considered for the job. Another common scam reported to BBB: Job hunters were told to produce a credit report before being considered for a job. But the ‘job offer’ was actually a marketing ploy for online credit monitoring that costs the victim every month until they cancel.

Over-payment scams. These scams targeted small business owners, landlords or individuals with rooms to rent as well as sellers on classifieds or sites like Craigslist. The way it worked: the victim received a cheque, but for more than the amount requested, from a scammer pretending to be a customer, potential renter or interested buyer. The victim was asked to deposit the cheque and wire the extra amount elsewhere. Ultimately though, the cheque was revealed to be a fake — and the victim was really wiring money back to the scammers. (Read more about suspicious cheques.)

Lottery/sweepstakes scam. It’s a scam that has been around for awhile: A letter arrives in the mail pretending to be from Reader’s Digest, Publisher’s Clearing House or a phony foreign lottery claiming the recipient has won millions of dollars. Enclosed with the letter is a cheque — but it represents only a portion of the total winnings. To get the rest, the recipient is asked to wire hundreds of dollars back to the scammers supposedly to cover taxes or some other bogus fee. You know the rest: the victim wires the money, but the prize never arrives.

Mystery shopper offers. In this scheme, people were led to believe they can make extra money by becoming a secret shopper and evaluating the customer service of various stores — as well as a money wiring service such as Western Union or MoneyGram by wiring money back to the scammers. A seemingly real looking check was supposed to cover the costs, but ended up being a fake. As a result, the BBB says that many unwitting victims were out of hundreds, if not thousands, of dollars. (See Secret shoppers left holding the bag.)

Phishing emails/H1N1 spam. Phishing continued to be a problem in 2009, as inventive scamsters attempted to trick people into divulging sensitive financial information or to infect their computers with viruses and malware. Phishing emails typically appear to be from a business, a government agency or official or even a friend. This year spam emails selling wares to prevent the spread of the H1N1 virus were particularly rampant. (See The state of scam.)

Robocalls. Having their phone number on the do-not-call list did not help thousands of people put a stop to harassing automated telemarketing calls. The robocalls often claimed that their auto warranty was about to expire — which wasn’t true — or offered help in reducing their interest rate on their credit card.

Stimulus/government grant scams. Hucksters began targeting US residents even before President Obama announced the stimulus plan in February. The scam involved offers for worthless assistance and advice on how to get government grants, bombarding consumers online, over the phone and via mail and email.

To learn more, visit the BBB website.

Photo ©iStockphoto.com/ DN-Group

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Article By: Elizabeth Rogers

How would a job loss or health issue affect your budget? Put your emergency plans to the test with a financial fire drill.

What happens to your finances when part or all of your household income disappears? Unfortunately, many people found out the hard way in 2009. Now, more experts are recommending that everyone should have some clear answers to this question.

Enter the financial or fiscal fire drill. The concept isn’t new — Dr. Elizabeth Warren, a Harvard law professor, and businesswoman Amelia Warren Tyagi recommended it in their 2003 book The Two Income Trap — but it has been gaining a lot of attention in the media over the past year.

The idea is simple: Conduct a practice run of your emergency plans so you can spot weaknesses and make changes. While many people have emergency funds or savings to fall back on, they often don’t know how long the money will actually last. They might also be missing key pieces of information — like any benefits or insurance policy pay-outs to which they are entitled.

Financial fire drills tend to focus on job loss, but there are many factors that could affect income — like a pay cut or shrinking income from investments. We also can’t ignore the impact of the loss of a partner, whether it’s due to death or divorce, or the long-term consequences resulting from an injury or disability. Health emergencies (like a heart attack or stroke) and chronic diseases can also affect our ability to work, whether we’re directly affected or need to take time off work to care for someone who is.

How safe are your plans? Here are the steps experts recommend for running a financial fire drill:

Review your resources

It’s good financial advice to keep tabs on your household’s monthly income, but most emergencies involve losing part or all of this income (at least temporarily). Now is the time to look at what other resources you have to fall back on, including:

- Your emergency fund. How much is in your emergency reserve, and what is the cash earmarked for? If your fund includes things like car or house repairs, you’ll need a larger cushion. You may want to adapt your plan depending on your life circumstances, including dependents (parents and children) and changing risks (like an increased risk of disease or falls).

- Additional sources of money. You’d rather not touch them, but what resources could you draw on if absolutely necessary? Are you comfortable touching your investments and RRSPs, or borrowing from credit cards or lines of credit?

- Insurance policies for accidental death or disability (if applicable). What do you have, how much are the benefits worth, when do they start and how long do they last?

- Government benefits to which you may be entitled, like unemployment insurance or disability benefits. If you’re close to retirement age, you may want to consider the implications of taking CPP and OAS sooner rather than later.

What about severance pay and “banked” sick days or vacation days? Find out your employer’s policies before you count on these resources, and beware that in the case of bankruptcy or company failure you might not get anything.

Consider your expenses

How long your money will last will depend on how quickly you spend it. Obviously, when there’s a loss of income some things can be immediately slashed from the budget — like new clothes, saving for a vacation and entertainment. What you need to know is how little you can live on by calculating your necessary expenses — like housing, transportation, food, utilities, medications, etc. (These expenses cover the things you need to survive and work.)

Naturally, there’s some middle ground between what you’re spending right now and your basic needs. It’s unrealistic to expect you can cancel your services and subscriptions without penalty, instantly downsize to a smaller home or sell off your assets or investments for a fair price. (Though these steps may factor into your long-term emergency plan.)

What about debts? An emergency doesn’t excuse you from paying your bills or your mortgage, but you may be able to negotiate with creditors to reduce your payments, or resort to only making the minimum payments instead of paying off extra.

The good news is that you can deduct any employment insurance premiums or remaining income from your expenses. If you’re part of a two-income household, experts recommend running the numbers for the loss of each income as well as for the loss of both at once.

Do the math

Once you have your key figures — how much money you have now and how much you expect to spend — it’s time to get out the calculator and play with some numbers. Basically, you want to divide your emergency fund by your monthly expenses total.

For instance, if you have an emergency fund of $10,000 and you estimate your household’s monthly expenses to be $1500, then your savings will last roughly six months if there’s no income coming in. If you have an additional $9000 available in a line of credit, that can buy you another six months — but you’ll be left dealing with the debt in the long run.

What if you cut back your monthly expenses by another $200? Your emergency fund will last over eight months.

And if you only lose one income, but still have one to fall back on, you might be able to break even or come close to it — but other financial goals like debt repayment and retirement savings will take a hit. An emergency may change your long-term plans, like retiring at a certain age.

Try some variables

Still have the calculator handy? Try running the numbers for a couple of different scenarios. Emergencies tend to generate additional costs, depending on the situation. For instance, finding a new job may require travel, networking, updating your portfolio and buying some new attire. A health-related emergency may require medications, equipment, travel and hotel costs, home modifications and health care not covered by your provincial plan. That $10,000 fund won’t go as far if you have to spend a couple of thousand on unexpected expenses.

It doesn’t hurt to consider a few “what-ifs” here as well — like “What if we had one car instead of two?” or “What if the stay-at-home spouse returned to work?”

Your fire drill can include more than just the numbers. What if the person who handles the investments or pays all the bills is incapacitated? Will another person have the resources and know-how to step in?

Target the weaknesses

Now that you’ve seen the worst case scenarios, you’re either happy with your current plans or looking to “tweak” them to address any weaknesses. The financial fire drill can serve as motivation to trim your spending and boost your emergency savings. It might be a prompt to ensure you’re comfortable with your insurance coverage and investment strategies.

It can also inspire some new goals when it comes to managing your career. If health issues take you away from full time work, could you adapt your career to part time hours instead? Are there opportunities to freelance, consult or pursue other career opportunities?

Of course, the financial fire drill is just an estimate of what could happen. There are no guarantees. As with a fire, the full impact often isn’t evident until after the crisis ends (or is well under way, at least). However, knowing what resources you have versus what your expenses will be can give you a rough idea of where you stand — and what you can do now to make things less stressful later on.

Sources: DrPhil.com, MSNMoney.com, The Consumerist

Photo ©iStockphoto.com/ Vicki Reid

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Women have come a long way over the past century, but many still face challenges when it comes to finances. Read these tips on planning for a more financially sound future.

In previous generations, many women didn’t learn how to write a cheque until they became widows. Men weren’t just the primary wage-earners, they also handled the financial matters as well. And when the circumstances changed, it could be difficult to keep up.

We’ve come a long way over the past century, but women today still face many challenges when it comes to finances. Despite the fact that more women are in the workforce, they still aren’t earning the equivalent of their male counterparts. According to some estimates, this dollar-per-dollar difference can amount to as much as half a million dollars over a lifetime of working. Women are also more likely to be in low-paying jobs or working part time where they have no collective bargaining power.

In addition, other factors also aren’t working in our favour: women are more likely to take time off to raise children and care for aging parents, meaning they are losing wages as well as benefits and pension income. Women also live longer than men, and are at higher risk for disabling ailments like depression and musculoskeletal disorders. Worse yet, women are more affected by divorce and single parenthood than men — especially in families that adhere to traditional gender roles. (See carp.ca for details.)

The bottom line: despite these risks to their financial insecurity, most women will find themselves being the sole manager of the household finances at some time during their lifetimes. A little financial savvy now can make a big difference for your future financial security.

Whether you’re reviewing your own finances or helping your parents, here are some things you can do to help ensure a financially-sound future.

Learn the basic skills. Many people still don’t know how to balance a cheque book, create a budget, use online banking or how to invest. Even if it’s the job of one partner to manage the money, the other should know how to perform these basic skills in the event of an emergency.

If you’re looking for a little help in this area, there are a variety of resources — both offline and online — including financial literacy centres, personal finance websites and blogs, courses at local colleges and workshops or seminars in the community.

Understand and organize important documentation. Many people don’t think about important documents like insurance policies and financial statements until they need them under duress. Do you know what insurance you have, what it does or does not cover and who is the beneficiary of any policies? Do you know where your significant other’s will is, and what it contains? Are you aware of any pensions or benefits? You’ll want to know this information long before you need it.

Know what’s coming in. Even if your finances are separate in a common-law relationship, it’s important to have an idea of what the financial “big picture” looks like — including income and spending. Consider what is coming in and from which sources (e.g. employment income, drawing on retirement savings, etc). What is the status of savings accounts and investments, and what assets should you include in your considerations?

In light of the current economic downturn, experts warn that now is the time for everyone to review their financial plans to make sure they’re still on track.

…And going out. The economy has many people re-thinking their habits, and knowing how much is going out towards debt and expenses is a big piece of the puzzle. Make sure you know what bills need to be paid (e.g. utilities, insurance, etc), when do they get paid (first of the month, etc.) and how they are paid (cheque, automatic debit, etc.)

Also, what debts do both partners have? What are the interest rates and payment schedules, and what plan is in place to pay down those debts? In a common-law relationship where finances are kept separate, what happens if one spouse can’t make the payments?

Budget together. Research suggests that women are better at creating and sticking to budgets than men, so here’s one area where the ladies can particularly help out. Budgets work better when both partners are involved in their creation and implementation. It sometimes happens that one partner is the spender while the other is a thrift, so it’s important to acknowledge these differences and work together for a cohesive plan.

Once you’ve got an idea of what is going in and out, it’s time to refine those numbers and plan for expenses, whether they’re recurring ones like groceries or one-time expenses like a new roof.

It sounds like common sense, but it never hurts to review your spending and make sure everyone is working together towards the same financial goals.

Set aside emergency cash. Even before the recession hit, financial experts were singing the praises of establishing an emergency fund. It’s not part of your retirement savings, but instead is an easily accessible stash of cash to see you through dire situations like a job loss, critical illness or accident. You won’t be forced to cash out investments at a penalty, or sell stocks at a loss.

How much should it be? Experts vary on their estimates, depending on your assets versus debts, expenses, risk tolerance, insurance coverage, health and what you plan to use the funds for (like unforeseen repairs). Many financial gurus recommend starting with six months of expenses and continuing to build this reserve throughout your lifetime.

Have some funds in your name. While there have been cases of one spouse wiping out the other’s accounts and leaving them without resources, the real worry is not being able to pay the bills if your partner is indisposed. It’s important for both spouses to have access to cash (emergency funds or otherwise) in case something happens.

Discuss contingency plans. Having available resources goes hand-in-hand with having a plan to spend them. If you have an emergency fund, decide as a couple when and how the money should be used. For instance, is the fund for expenses only or can it be used to cover a sudden car or home repair? When is it okay or not okay to use the funds?

If you don’t have an emergency fund or need to go beyond it, consider what other resources you can tap like credit cards, lines of credit or investments that can be cashed in.

Work with your style. What about investment? When it comes to differences between the sexes, the research is controversial — some studies suggest that women are more conservative investors than men and take fewer risks. However, critics say it’s not about sex — it’s about an individual’s risk tolerance, knowledge and investment style.

When it comes to investing, two heads can be better than one when different styles work together. Investing doesn’t have to be the “job” of one partner or another — both can work together or have their own separate plans. If women aren’t currently involved, they can learn about investment vehicles and strategies by working with their spouse and a financial planner.

Ask some tough questions. Too many people leave important decisions about their future (like where they will live) until something bad happens. No one wants to think about death or divorce, but it’s important to plan for these possibilities. For instance, if your spouse moved into a long-term care facility, would you move to an apartment close by? If your partner passes away, would you continue to keep up the home? And if you’re common-law, can you continue to live in the home you shared?

Ultimately, a wise goal to aim for is “no surprises”: no secret debts, no hidden information, no surprise bills and no struggles to make ends meet in an emergency. If necessary, seek the help of a financial advisor or debt counsellor to make sure your plans are financially viable now and for years to come.

Sources: UK Reuters, The Wall Street Journal, Yahoo Finance

Photo ©iStockphoto.com/ MorganLane studios

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Article By: Elizabeth Rogers

Cash or credit card? What some financial experts now recommend may surprise you.

Paper or plastic? No, we’re not talking about how to package your groceries. With continuing financial woes, growing consumer debt and new credit card company policies, more people are embracing cash and leaving the credit cards at home.

In fact, more people paid cash this past holiday season to keep spending on track and reduce (or avoid) post-holiday debt, according to recent surveys. In major markets like the U.S. and Australia, people are spending less on their plastic.

“Consumers are looking for discipline in their spending levels that they can achieve from using cash,” said Bryan Eshelman, managing director at AlixPartners (a consulting company) in an article from the Associated Press.

While “cut up the credit cards and pay cash” is traditional advice for people struggling with serious consumer debt, the strategy is becoming more widespread. The “credit card versus cash” debate has been a popular topic in the media and personal finance blogosphere. Self-help financial experts like Dave Ramsey and Gail Vazo-xlade often recommend a more tactile method of budgeting using envelops or jars so people can literally see what they are spending.

Now, Suze Orman is the latest financial guru adding her voice to the trend with the launch of her “Back to Cash Movement”. On her television show, she urged viewers to only pay cash (for a week, a month or more) and get “connected” with their finances again. (Watch her announcement here.)

The advantages of cash

Why the outcry? The thinking behind the strategy is simple: living beyond our means is a recipe for financial disaster, and credit cards make it too easy to spend. After all, research has shown than parting with cold, hard cash in our hands is harder to do, and this visual reminder makes us think about our purchases more carefully. Though many people still report the “burning a hole in my pocket” syndrome, the general consensus is that people spend more when they use credit. Besides, debt doesn’t seem so bad when it’s spread across numerous accounts.

And the situation in the U.S. (where a lot of the financial advice and news comes from) has become a little more complicated. Lately, credit card companies there have been accused of some questionable tactics ahead of new legislation coming into effect this winter. Many people have seen their credit card limits slashed — or their accounts cancelled — or their fees increase. According to a quiz on Orman’s website, more than half of Americans in a recent survey reported seeing their rates and fees rise. Even long-standing customers who always pay their bills on time have seen their single-digit interest rates jump. For people carrying large balances, these extra costs simply pile on the debt.

Worse yet, some companies now are interpreting a customer’s spending habits — like shopping at discount stores — as a sign of financial trouble and using that as the basis to make cuts on spending limits. It’s not surprising that many consumers want to boycott their banks and credit card companies.

Canadians may not be subject to the same problems — after all, our financial system is different — but we certainly aren’t immune to some questionable practices. New regulations, in force as of January 1, 2010 will prohibit practices like raising a customer’s credit limit without their consent, and require better transparency — such as informing customers how long it will take to pay off a balance if only the minimum payment is made. (Read the press release here.)

Add in the worries about having your credit card number or identity stolen, and it’s not hard to see some distinct advantages of using cash. After all, if you really want to keep your purchases private, cash is the only way to go.

Is cash-only the way to go?

So should we swear off plastic and return to the payment options that previous generations relied on? Not so fast, say advocates on the other wise of the debate. For example, it’s hard to make an online purchase with that wad of bills in your pocket (not all retailers accept debit cards or PayPal) — so credit cards get the nod for convenience.

And credit cards offer other advantages — like rewards points or cash back, consumer protection and perks like extended warranties and rental car insurance. They’re helpful for large purchases where cash wouldn’t be practical and debit cards have daily limits.

In addition, many people use their credit card statements as a way to track their spending. Keeping track of the cash in your hand requires a little more organization and vigilance because it isn’t automatic.

And while identity theft is a threat for plastic, old-fashioned theft is a risk for people who carry cash. You can cancel a stolen credit card and not be responsible for someone else’s spending — but when cash disappears, it’s gone.

Another point on the pro-credit card side of the debate: credit cards help build a credit history — which is especially important for people just starting out.

However, many of these advantages only apply if you don’t pay annual fees and you don’t carry a balance. Even credit card proponents note that they’re helpful IF they are used responsibly.

The bottom line

Neither experts nor consumers are going to unanimously agree that either cash or credit cards are better — especially when some people include debit cards under the “cash” category while others lump them in with “plastic”. (Cheques are often left out of the debate altogether.) The best advice? If your current strategies are working for you, there’s no need to change simply because it’s “the” thing to do. If, on the other hand, your approach hasn’t been successful, you may want to try something new. For example, if plastic invites higher spending and impulse purchases, give the cash-only trick a try — even for a short period of time.

It isn’t necessary to adopt one strategy over the other in every circumstance. For example, many find that the “envelop system” is a great way to control spending on vacation — especially if your destination is a cash-only economy and you have to handle local currency. And automatic billing to credit cards or debit cards can save money for people prone to missing or late payments.

Regardless of how people choose to pay, the tried-and-true advice still remains: if you don’t have the money in the bank, you can’t afford it.

Your take: Is cash better than credit cards? Tell us in the comments.

Photo ©iStockphoto.com/ Denis Pepin

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Stretch the money you have by avoiding these 7 common money mistakes.

In the long run, bad money habits can cost you more than you might think. Here are 7 of the most common money blunders, according to experts.

MISTAKE #1: Not setting a specific financial goal. Whether you’re saving for retirement, a dream holiday or a vacation home, determine the minimum amount you’ll need. Work backward from your goal to discover how much you need to save (or cut back) on a monthly basis.

MISTAKE #2: Not paying yourself first. Make savings a priority – not just a matter of whatever is left over at the end of the month. Consider setting up a regular savings plan that will automatically deposit a set amount into your account on a monthly basis. The easiest way to save is when you never see the money in the first place!

MISTAKE #3: Taking out a payday loan. People struggling to juggle bills and expenses sometimes fall into the pattern of relying on a payday loan. A payday loan – where you cover your loan with a cheque dated to your next payday – allows you to borrow up to $1,000, usually without a credit check. However, if done on a regular basis, this nasty little habit can be costly indeed. Experts say you could end up paying an annualized interest rate in excess of 60 per cent, the highest lending rate allowable under Canadian law. This is because many shops allow or even encourage rollovers, allowing borrowers to stay current on an outstanding loan by paying a fee instead of paying in full.

MISTAKE #4: Not paying enough attention to credit cards. Pay attention to what your interest rates are for each card. (Department stores and gasoline cards are typically the worst.) Obviously, it’s better to pay off the card in full each month, but if this isn’t possible, be sure to pay on time to avoid hefty late fees. To ensure that at least your minimum payment is paid on a timely basis, set up an automatic debit with the credit card issuer or use the regular payment feature of your online bill-pay system. Be sure to compare credit card companies to see who charges what. (Check out these credit card rates.)

MISTAKE #5: Not having enough disability insurance. If an injury or illness prevents you from working for a few weeks or months, make sure you have adequate coverage either through your employer or privately held plans. (Read more.)

MISTAKE #6: Neglecting the budget-busters. Even seemingly insignificant purchases can add up, so keep a daily record of what you buy. To reduce impulse buying, avoid shopping when you’re feeling bored or down-hearted.

MISTAKE #7: Not doing your research. The more you learn about financial products, the less likely you are to end up overpaying for them. Read free advice on independent sites like www.360financialliteracy.org.

Photo ©iStockphoto.com/Brad Killer

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Debts out of control?

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Online budgeting tools

One story of how a woman moves in on an aging father, keeps him from his family and inherits a half-million dollars.

This is a weekly column by Dale Goldhawk, Canada’s best-known consumer advocate. A journalist, author and broadcaster, Dale hosts Goldhawk Fights Back For You, on AM 740 or at AM740 ZoomerRadio, Monday through Friday from 11 am to 1 pm, in the eastern time zone. Visit his website at www.goldhawk.com.

Robert died in the hospital on May 28, 2008 after a five-year battle with Alzheimer’s disease. He was 83. Several years earlier, his wife had died after suffering from Alzheimer’s for more than a decade. There were few golden years for this loving couple.

When Robert died, he was married to a woman 25 years younger than him but most likely did not know it. The woman had met him while Robert was spending many hours a day in hospital caring for his wife.

After his wife’s death, Robert rented out the basement in his home to the woman. Then she moved quickly.

She took him to his lawyer and had her name added to his will as beneficiary and executor. When his son Ted and his wife Mary found out, they asked Robert about it. Robert had no memory of the visit and only said the woman would never so such a thing.

In his vulnerable state, Robert signed over all banking authority to the woman. She wrote all the cheques and controlled all of Robert’s pension payments and investments. She changed the locks on the house and refused to give keys to Ted and Mary.

Robert’s doctor began treating his for Alzheimer’s disease, and in a note in Robert’s medical file, the doctor said, “Robert has brighter moments when he remembers incidents and locations.” The doctor made a further note that he would increase the dementia medication in Robert’s next visit.

Two days after that notation was made in Robert’s medical file, the woman took Robert to City Hall. The woman and Robert got married.

A year later, documents show that Robert took out a $160,000 mortgage on his debt-free home — a home Robert built with his father’s help, back in the 1950s.

Then Robert was taken from his home, never to return. The woman called the police to report that Robert had been violent. Police took him from his home and he was locked up in a hospital psychiatric ward for a week for assessment. He was later transferred to a nursing home.

Back at the house, the woman’s own family had now moved in. The woman took all of Robert’s family photos and dropped them off at the nursing home. The family home was now off-limits to Robert and any of his family.

Ted and Mary tried to fight the woman every step of the way. But nothing could be done. The woman did all she could to isolate Robert from his own family. Ted and Mary tried to get the police involved but the police said, essentially, they could do nothing. Ted and Mary hired a lawyer, only to discover they could not afford to take the woman to court. They were able to take Robert out of the nursing home for a few family visits. They did have some time with Robert before he died.

Ted at one point managed to talk to Robert’s long-time financial advisor. He estimated that Robert’s estate, with all of the wise investments Robert had made over the years, plus a number of generous pensions, to be worth to close to half a million dollars.

Robert was a quiet man, totally devoted to his family. He spent a lifetime trying to provide for them and their future. But now, the lion’s share of his estate will pass to a woman who invaded his life, not for love, but for money.

The file remains open on this case. I have very little faith that anything can be done for this family. But this family (I have changed their names to protect their privacy) thought you should know what happened.

Photo ©iStockphoto.com

READ OTHER COLUMNS BY DALE GOLDHAWK

Goldhawk Fights Back: Protecting privacy in a high tech world

Fewer Canadians using plastic to pay for renovations

Article By: Cynthia Ross Cravit

10 tips for smart shopping — and eating healthy — even if you’re on a budget.

Stretching your food dollars doesn’t mean you have to sacrifice on flavourful or healthy foods.

10 tips for saving at the grocery store

Buy local. You can save money on fruits and vegetables by buying local as much as possible. Planning your menus around food that is in season means fresher ingredients and that you won’t be incurring expensive food transportation costs.

Comparison shop. Look around for the best bargains, and not only in grocery stores. Pharmacies and hardware stores often offer good deals on staple items. If you find a good price, consider stocking up.

Shop smart. Make a grocery list and a weekly spend limit – and stick to it. Even small impulse items can add up – as much as 10 per cent of your yearly grocery bill, according to some experts. Utilize store circulars and coupons. And be sure to check your receipts for accuracy. Accidental overcharges can add up to a hundreds of dollars over the course of a year. Note: In Canada, if you’re overcharged because of a scanning error, you could be eligible to receive the item for free (or $10 off if the item is more than $10).

Go green. Concerned about the high prices of organic foods? Target your spending and go organic for foods where conventional pesticide use is high. These foods include apples, bell peppers, celery, cherries, imported grapes, nectarines, peaches, pears, potatoes, red raspberries, spinach, and strawberries.

Get out the slow cooker. Buying inexpensive (and tougher) cuts of meats won’t be a sacrifice if you slow cook them to mouth-watering tenderness. Slow cookers also make great use of leftover vegetables.

Make your own cleaning products. A trip down the cleaning supplies aisle can add big bucks to your grocery bill. Instead consider making natural and less expensive cleaning solutions from items in your pantry. (Read more).

Know your food costs facts. A few rules of thumb: white eggs are generally cheaper than brown; skim milk is cheaper than 2 per cent milk; and bacon is usually less expensive than sausage. A rotisserie chicken is not only a convenient way to prepare dinner, but it can go a long way toward leftovers, soups, etc. – and it is often cheaper than buying, say, boneless chicken breasts.

Think generic. Cereal, canned and frozen foods can be cheaper when sold through the store brand name – and in most cases, the quality isn’t that much different.

Engage in stealthy stock-up. Stocking up, particularly on reduced items, can help to save on fuel costs from that extra trip to the store as well as multiple-shop impulse buying. In many areas, bread prices have skyrocketed, so if your favourite multi-grain is on sale, buy a couple loaves to store in the freezer.

Choose your shopping companion wisely. We’ve all heard the old adage, ‘don’t go to the grocery store when you’re hungry’, but you might also want to consider whom you bring with you. Children or grandchildren, for example, have ways of persuading you to buy items you hadn’t planned for.

Best budget-friendly foods

No need to sacrifice on nutritious foods even if you’re on a budget. Load up on foods that are healthy, yet still wallet-friendly. These include: Kale, potatoes, beets, broccoli, butternut squash, Garbanzo beans, wild rice, oats, whole grain pasta, nuts, bananas, apples, watermelon, eggs and sardines. For more ideas, see What’s in your cart?

Photo ©iStockphoto.com/ iofoto.com

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Timing is everything when it comes to landing deals. Here’s what to watch for on sale this season.

Autumn isn’t just shoulder season for travellers. Savvy shoppers are out to take advantage of seasonal sales between the summer and holiday shopping seasons. After all, retailers don’t want to store items until next year, or have to account for them in their annual inventory. It’s also time to move out old items and make way for new fashions and models.

It’s a question of supply and demand — and the odds are in the buyer’s favour. Here are some of fall’s top deals according to author Mark Di Vincenzo on Forbes.com:

Fruits and vegetables. Last chance to stock up before prices go up! Luckily, there’s still lots of fresh fare available, and many great ways to serve it or preserve it. Many foods like cauliflower, broccoli, carrots, spinach and Asian vegetables are still in season through the end of October. Many varieties continue well into November — like apples, pears, garlic, squash, onions, parsnips and potatoes. Lucky British Columbians can find seasonal produce on the shelves well into the winter too. (Check with your local growers’ association for more information.)

And don’t forget the wine! The growing season is almost over for grapes, but Canada’s wine growing regions are gearing up for fall festivals to launch their new vintages.

Cookware. Getting ready for holiday feasts? Sales on pots and pans are common ahead of the busy entertaining season. Not only are retailers offering up the items that people are looking for, they’re trying to entice people who are already in the store to start their holiday shopping too.

Alternatively, you can wait for spring when retailers offer promotions for wedding and graduation season.

Toys. No, it’s not too early to start Christmas shopping. Fall is when new toys hit the stores, and not long afterward the competition starts to heat up. Watch for stores to launch sales to keep in line with their competitors. (Also, if you’re looking to get the hottest toys this year, it’s a good idea to shop early!)
Clothing. Back to school is over, and fall fashions are giving way to winter. Many clothing retailers are still trying to clear out summer stock at clearance prices, and you can also find discounts on fall pieces that will carry you well into the winter season.

One particularly hot item to buy in the fall is a good pair of jeans. They’re a wardrobe staple all year round, but that doesn’t mean you have to pay full price.

Swimwear. We’ve said good-bye to summer and the pools are closed up, but it’s not quite time for those tropical escapes. Whether you’re a year-round swimmer, planning a sunny getaway or gearing up for next year, fall is the best time to find discounts on swimsuits. (And with fewer shoppers in the stores, it may also be a good time to get some expert help finding the right fit.)

Wedding gowns. Know someone who is about to tie the knot? Wedding season may be over, but the dresses are still hanging around the shops. Forbes.com notes that fall is the ideal time to find a bargain with end-of-year sales coming up. The stores will also be quieter — which means more attention for the bride-to-be, and more opportunity to talk down prices. Brides shopping in December will also get in ahead of those Christmas and New Year’s engagements.

Electronics. Looking for the latest tech toys? Some of this year’s top items are the newly-discounted Nintendo Wii, netbooks, Blue-ray players and flat-screen televisions, according to AllBusiness.com.

In addition, Black Friday beckons in the U.S. (this year it’s November 27, 2009) — that’s when stores slash prices to get people to come out and shop. Once again, the Canadian dollar is gaining on the U.S. greenback, and many shoppers may head south of the border this year in search of those Black Friday deals — unless they can find a comparable deal here.

If you do plan to head south, you’ll need to hit the stores as early as possible before items sell out. Be prepared for long line-ups at the border, and don’t forget to pack your passport.

Charcoal grills. Most people shop for a new grill with the intention of using it for the summer. It’s not surprising that after Labour Day, prices start to drop and continue to go down as December approaches. Retailers don’t want to store these items for the year or count them in their annual inventory.

Lawn mowers. Admittedly, the majority of Canadians don’t have much to mow when the snow flies. If you don’t mind waiting until spring to use your new equipment, help stores make room for snow shovels and snow blowers by taking a lawnmower off their hands (for a discount, of course).

Like grills, patio furniture and other seasonal items, stores would rather sell to you at a discount than to clearance outlets at a loss.

New vehicles. Just in case the new car deals weren’t already tempting enough, the 2010 models are showing up in show rooms. Further into the season, dealers will be getting more anxious to move old inventory. A word of warning — the longer you wait, the fewer the choices for colours and options. If you’re feeling daring, wait until December for a deal on less popular colours — like orange and purple cars, according to Di Vincenzo.

RVers take note too — dealers would rather the vehicles sit in your driveway for the winter than on their lot.

Naturally, there are many more items available on sale this season, so it pays to keep an eye on flyers and sales. If you’re hunting for a particular item — and you have room in your budget — timing your purchases according to the seasons can lead to big savings.

Sources: Forbes.com, AllBusiness.com

Photo ©iStockphoto.com/ Scott Leigh

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Article By: Elizabeth Rogers

Tired of annoying phone calls? Here’s what you need to know to hang up on telemarketers — permanently.

You’re sitting down to dinner and the phone rings. You rush in from the garden to answer what you think is an important long distance call. Your fax machine spouts out unwanted communications. You even resort to screening your phone calls — leaving your family and friends to talk to your answering machine.

Sounds lot a lot of hassle, but what else you can do?

Relief is on the way: In fact, it started September 30, 2008. That’s when the long-awaited Canadian Radio-television and Telecommunications Commission (CRTC) National Do Not Call List (DNCL) came into effect.

But how does it work, and what does it mean? Up until now, each company had its own do-not-call list, and the Canadian Marketing Association (CMA) had its own service. It seems that no matter how many times you asked to be put on these lists, there are always more companies wanting your attention. Worse yet, it’s impossible to keep track of who you have requested not contact you, and therefore difficult to make a complaint.

However, with the DNCL you simply have to register your phone number in one place — a master list that telemarketers will be required to use. Bell Canada, the DNCL operator, will be responsible for registering phone numbers, and compiling that information to provide telemarketers with up-to-date lists. The DNCL also has a complaints process to make sure companies are following the rules.

How to register

Update January 2009: before you register, take a look at our follow up article Did the Do Not Call List make things worse?

There are two ways to register starting September 30 (or take your name off the list if you change your mind):

- Call 1-866-580-DNCL (1-866-580-3625) or 1-888-DNCL-TTY (1-888-362-5889) from any phone number you want to add whether it’s your home, business, cell phone or fax machine number.

- Register online at the National Do Not Call List website. You will be able to register up to three numbers at one time.

What else do you need to know?

- Registration is free. Telemarketers will be footing the bill for operation costs through subscription services.

- Once you register, your number will stay on the list for three years. Keep track of the date you register, because you will be automatically taken off the list if you don’t renew. The DNCL website warns that it won’t be sending out reminders.

- You’ll still need to sign-up for the DNCL even if you are registered on the CMA’s Do Not Contact Service. The CMA’s list will be phased out when the DNCL comes into place. (More information).

- You should contact the DNCL yourself. Beware of anyone contacting you by phone or email and offering to help. In the U.S., there have been scams where con-artists have collected personal information or even a fee for this non-existent “service”.

Exemptions

Wondering what the catch is? Well, not everyone has to play by the new rules. Certain organizations are exempt from using the DNCL, including:

- Registered charities
- Political parties
- Opinion polling or market research firms (when the call doesn’t involve a sale)
- “General-circulation” newspapers who are selling subscriptions
- Companies you deal with and businesses with whom you have a relationship (like your bank, phone company, etc).
- Any organization to whom you have given consent to call you.

According to the CRTC, telemarketers must:

- Identify who they are and, when asked, give you a fax or telephone number where you can speak to someone about the telemarketing call.

- Display the telephone number from which they are calling or that you can call to reach them.

- Call or send faxes between certain hours only: 9:00 a.m. and 9:30 p.m. on weekdays and between 10:00 a.m. and 6:00 p.m. on weekends. In other words, you shouldn’t be receiving calls or faxes overnight.

How can you stop these calls? The “old rules” still apply — these organizations are required to keep their own do-not-call lists. You can ask to be put on that list when they call you, or contact them directly to register.

There’s another potential solution: According to recent news from the CBC, the CRTC has endorsed third-party opt-out sites like iOptOut.ca. In other words, requests made through these sites will have to be honoured. iOptOut, set up by internet law professor Michael Geist, allows people to remove their information from the lists managed by DNCL-exempt companies and organizations. However, critics argue that these websites could pave the way for abuse from criminals and unscrupulous rivals. More investigation into the process is needed. (Read the article here)

How to file a complaint

You’ve signed up… But don’t expect immediate changes. There’s a 31-day “grace period” for telemarketers to get used to the new system. In other words, you’re likely to receive calls until November. Also, how soon you stop experiencing calls will depend on how often the master list is updated and distributed to telemarketers.

If organizations who are not exempt continue to pester you after the 31-days is up, or break any of the other rules set out by the CRTC, you can fight back. Keep a pen and paper handy and write down name of the telemarketer and the phone number (if possible), the date and time of the call and the nature of the complaint. You’ll also be asked to provide your phone number and a copy of the fax received (if fax communication is involved).

To file a complaint, call 1-866-580-DNCL (1-866-580-3625) or 1-888-DNCL-TTY (1-888-362-5889). But remember: you have to complain within 14 days of the call. Any organizations who are found to have violated the rules could face a fine — up to $1500 for individuals and up to $15 000 for corporations.

The DNCL also won’t stop telephone fraud. If you suspect the call is a scam, take down the same information and report it to Phonebusters at 1-888-495-8501 (see their website for other contact information). For more information about common scams, see Fight fraud.

U.S. Information

If you live in the U.S. part time or full time you likely already know about the Federal Trade Commission’s Do Not Call Registry. However, there are a couple of important differences to note: The U.S. version is for personal phone numbers only, not business numbers. Your number stays on the list indefinitely, unlike in Canada where you have to watch for the three-year expiration.

(Note: This page was updated September 30, 2008 with new information, links and TTY phone numbers).

Sources: National Do Not Call List (Canada), National No Not Call Registry (U.S.)

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Looking to live well on a modest budget, or learn more about investing and saving? These bloggers have got the scoop.

They’re written by experts in wealth management and investing, writers who’ve clawed their way of debt and every-day people sharing their best money-saving tips and strategies. They cover a wide variety of topics from budgeting to credit, retirement savings to getting out of debt.

And if they weren’t already popular enough, there’s nothing like a financial crisis to draw more attention to personal finance blogs (or PF blogs for short). Bloggers put a human face on the facts and figures, and the medium — part journal, part magazine — allows writers to offer personal anecdotes and opinions in addition to useful information and instruction.

There are tens of thousands of PF blogs on the internet, so where’s a good place to start? We’ve picked out a few favourites to point you in the right direction:

Canadian Capitalist. Tired of reading advice geared to U.S. readers? This blog tackles investments, taxes, new policies and a variety of other related topics from a Canadian perspective (and written for Canadians). This blog has caught the attention of many Canadian media outlets, and was even featured on BNN. Watch for the “This and That” posts that point to interesting stories in the news, new research and other articles you may want to check out.

Canadian Financial DIY. This Canadian investor has been managing his own investments for more than a decade, and blogging about it for more than two years. If investing and number crunching are your thing, this blog is also worth a look. Another bonus: this blogger is over the age of 50, adding a fresh perspective to a blogosphere that is often dominated by Generation X.

Canadian Personal Finance Blog. The title says it all: “Personal finances and consumer concerns, essays, stories, and how-to articles written with a Canadian perspective.” Big Cajun Man (as the writer is known on the site) is a baby boomer with four kids, so he’s not afraid to talk about how family life affects the finances. If you like a personal style and sense of humour, he’s worth a read.

Gailvazoxlade.com Gail Vaz-Oxlade, host of TV’s Til Debt Do Us Part, brings the same energy and no-nonsense style to the web. Her blog focuses on our relationships to money — like what we expect from it, how emotion plays into it and how to re-think our approach to it. She’s not reluctant to tell people to “smarten up” and take responsibility for their finances, and she tackle some tough subjects like what happens when your partner dies.

Get Rich Slowly*. You won’t find complicated financial advice or get-rich-quick schemes here — blogger J.D. Roth’s philosophy is that almost anyone can build wealth over time. Not only does Roth tackle subjects like tackling debt, cutting costs and investing, he also looks at our relationship to money as well. His style is approachable and invites interaction from his readers — as evident in the numerous comments and discussion in the GRS Forums. The wide variety of guest bloggers and new staff writers bring additional expertise to the mix.

Million Dollar Journey. This blogger’s personal goal: build a net worth of $1 million by age 35. However, the blog isn’t really about FrugalTrader’s journey (though he does provide regular updates) — his goal is to educate people about investing and personal finance. Don’t let his age or goal turn you away: the topics apply to a broad audience. Contributing writer and volunteer financial coach Kathryn offers opinions and advice too.

The Simple Dollar*. Writer Trent Hamm isn’t shy about his past — a childhood in poverty and early adulthood in overspending and debt. If you’re a new reader, it’s worth dipping into his archives to see how he turned his finances around. Now, this family man tackles all facets of finances from an “everyman” point of view. (After all, his blog’s motto is “financial talk for the rest of us”). Other bonus features include regular reviews of personal finance books, a blog version of a book club and his reader mailbag every Monday.

Squawkfox . Living well on a budget is the forte of blogger Kerry K. Taylor, a writer and organic farmer hailing from British Columbia. Her playful, down-to-earth style earned her blog third place on Globe and Mail’s list of Top Money Blogs. Food is a hot topic, and Taylor often features recipes that are both budget-friendly and healthy. Readers can also download her e-book, The Insider’s Guide to Frugal Fun and Fitness on her website, or check out her recently-published book, 397 Ways to Save Money.

Wealthy Boomer. Many bloggers build and maintain their own websites, but that doesn’t mean you should give mainstream media a pass. The Financial Post’s Jonathan Chevreau writes specifically for Canadian boomers, but many of the issues (like retirement planning) affect younger and older audiences too. It’s a great place to keep tabs on the business world, and to learn about new books, products and policy changes.

WhereDoesAllMyMoneyGo.com. It’s a question many people are asking these days, and this former Canadian financial planner Preet Banerjee is here to offer some insight. Whether you want to have more control over your finances or you’re already financially savvy, this blog runs the gamut from budgeting to investments. (The Globe and Mail readers voted his blog in at #5 in the Top Money Blogs).

(*Note: These blogs are U.S.-based but have international readers and contributors. Much of the advice is universal or can be adapted.)

Naturally, this list is just a fraction of the PF blogs on the internet, but they’re a good entry point to the financial blogosphere. The blogging community is a supportive one, so it’s easy to find connections to other bloggers you might want to follow. Watch for “daily links” or “carnivals” that link to other blogs and websites that may be of interest to you. Also, look for the “blogroll” — usually in the right hand column — for a list of the writer’s favourite blogs and websites.

You can also test out ranking websites, like PF blog Wisebread’s list of 100 Most Popular Personal Finance Blogs which ranks blogs based on a variety of tools. But a word of caution: Popularity isn’t everything. Many Canadian blogs won’t top the charts because the audience is smaller (after all, the U.S. has a much larger population).

If you’d like to test drive a few blogs, try an aggregating site like PFBlogs.org, which streams the latest entries from it’s member blogs.

Tips for new readers

If you’re new to the world of PF blogs, here are some tips to get you started:

Look for quality content. An engaging style and relevant topics are only half the battle. Like all information on the internet credibility is key. Many professionals are clear about their credentials, but that doesn’t mean you shouldn’t listen to people without a bunch of letters after their name. (After all, sharing personal experiences and learning is part of the charm of blogs). Just check to make sure writers are using credible information from reputable sources — like research from well-known organizations — to back up their facts and figures.

Stay current. Due to the timeliness of some financial advice, be sure to check the date on the blog entry to evaluate whether it’s still relevant.

Browse the archives. Some advice may go out of date, but a lot of the content is still relevant and the advice is still good. You won’t see it unless you look for it as bloggers seldom repeat topics unless there is new information to offer. In addition, you can see how some bloggers got their start and how they got out of debt.

Interact. Sometimes the most compelling part of a blog entry is the discussion (and yes, you can subscribe to that too). Readers (many of whom are experts themselves) are eager to share their ideas and offer a contrasting point of view. More blogs are also incorporating user forums where people can discuss ideas at length. In addition, you can follow bloggers on Twitter, or join their pages on Facebook as well. Many writers use these networking sites to ask and answer question from their readers.

Many bloggers also offer contests or giveaways — all you have to do is comment or “tweet”.

Aggregate. Many bloggers offer email newsletters and RSS Feeds to keep you up to date with the latest posts. If you want to get the information immediately (or don’t want to clutter your inbox), opt for RSS rather than the newsletter.

Be prepared to do some sifting. Personal finance content is just that — personal . There are always going to be entries and advice that don’t apply to your situation, so try a blog out for a week or two to see how useful the content is to you.

Go beyond borders. You probably noticed that not all of the blogs listed above are specifically for Canadians. Depending on what you’re looking for, much of the money-saving advice is universal, and the investment advice is somewhat transferable. Sure, different countries have different tax policies and financial vehicles (401Ks instead of RRSPs), but much of the advice translates. Many American blogs have readers from Canada and other countries around the world — and they bring something new to the discussion.

Take it with a grain of salt. Bloggers thrive on their relationship with their readers, so they generally don’t try to annoy them or mislead them. However, most will also warn you that what they post should not be construed as professional financial advice, and you should still talk to an expert. Instead, consider blogs as you would a conversation with a good friend. Trust, but verify.

Overall, there is a lot to learn from personal finance blogs. The personal angles and opinions make them a welcome addition to any financial reading roster.

What PF blogs do you read? Share your favourites in the comments.

Photo ©iStockphoto.com

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An unclaimed balance can come in many forms: an old savings or chequing account, savings bond, GIC, term deposit, or traveller’s cheque, to name a few.

Where in Canada can you find $245 million dollars just lying around?

Why at the Bank of Canada, of course. And as of December, 2004, the Bank of Canada was serving as the custodian for precisely that – approximately 804,000 unclaimed balances across Canada. Although 88 per cent were under $500, that’s still a considerable chunk of change.

What is an unclaimed balance?
An unclaimed balance can come in many forms: an old savings or chequing account, savings bond, GIC, term deposit, or traveller’s cheque, to name a few. It must be a Canadian dollar deposit, or a negotiated instrument, that is issued or held by a federally regulated bank or trust company.

How do balances become unclaimed?
When there is no owner activity on an account the bank will try to contact the owner at the address they have on record (often these attempts are made at 2 years and 5 years). After 10 years of inactivity they will turn the account over to the government.

The government acts as custodian for unclaimed balanced of $500 or more until they are claimed. Unclaimed balances of under $500 are kept for 20 years (as measured from the last date of owner activity, not from when the government took over as custodian).

Why accounts become lost to their owners is often due either to a move, where the bank can no longer contact its customer and the customer forgets over time, or to death.

How can I check whether I have any?
The Bank of Canada provides a search facility online at http://ucbswww.bank-banque-canada.ca/scripts/search_english.cfm. Just type in your name, and if there is an unclaimed balance being held for you, it will appear in the results.

How do I get my money back?
Once you know you have an unclaimed account, download the claim form available at the website, fill it out, and send it to the bank listed on the form. They will check your signature against the one on file and confirm to the Bank of Canada that you are the rightful owner by forwarding their part of the form to them.

If the branch or institution no longer exists, the process is a bit more complicated. You will have to provide proof that you are the individual in question, either by providing a passbook or statements or proof that you once resided at the residence listed in the bank’s records.

An unclaimed negotiable instrument may be more complicated, so in that case you will have to contact the Bank of Canada for instructions on how to proceed.

It takes 30 to 60 days for a claim to be processed. There is no fee for any of these services, although there may be fees for services such as notarized statements, if any are ultimately required.

Can I make a claim on behalf of anyone else?
If you are heir to an estate, you may be able to claim balances held for the original owner. As the Bank of Canada’s website states, you will need to be prepared to produce the following:

• your name and current address

• your relationship to the deceased owner of the unclaimed balance

• legal documents proving that you are representing the estate, or are an heir to the deceased’s estate (e.g., Power of Attorney, will)

• whether anyone else may have some entitlement to the balance in question

• documentation to prove that the deceased resided at the address provided to the Bank of Canada by the financial institution that transferred the unclaimed balance to us.

You may also be able to claim funds if you are an officer of an organization which owned an unclaimed account. Other than these two possibilities, there is no way to make a claim on someone else’s behalf.

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When it comes to making the smartest decisions, you may want to take a deep breath… and count by ten.

Wrestling with a career or life changing decision? Does your heart tell you one thing, and your brain something else? Did you ’sleep on it’ only to wake up feeling even more unsure?

In this age of information overload and jam-packed schedules, we’re often faced with confusing options and competing priorities, making it even more difficult to make smart life choices. In fact, many of us make decisions based on the demands of the moment, governed by impulse, stress or what seems most expedient. Or conversely, we may defer too many pleasures in the short- or medium-term in hopes for a big payoff later on.

In her book 10-10-10: A Life-Transforming Idea, author Suzy Welch argues for a more disciplined, balanced approach to decision-making whether it pertains to your personal or professional life. The central idea of the book is simple: whenever you’re faced with a dilemma, put your immediate emotional response to the side. Instead think about how you’ll feel about your decision and its consequences from three distinct perspectives: how you’ll feel 10 minutes from now, 10 months from now and finally, 10 years from now.

How does it work?

Welch breaks down her system into three basic steps:

•  Define the question. Every thorny, complicated decision is based on a simple question such as “Should I quit my job to try something new?” or “Should I end this relationship?” Welch says that having a clearly defined question is essential since many problems are complicated by side issues, distractions and red herrings. It’s important to determine exactly what it is you’re trying to resolve.

•  Collect data. Make note of your various options, and then consult resources such as your computer, public library or trusted friends and family members to gather information necessary to answer the following questions: What are the consequences of this option ten minutes from now? Ten months from now? Ten years from now? To make the best choices, Welch argues, we need to take into account the short, medium and long-term implications of any decision.

•  Make your analysis. Take the information you’ve compiled and compare each option to your needs, goals, and values to find the best fit.

Life is complicated, and admittedly, not all solutions are clear cut or easy to implement. Often what is desirable in the short-term may not be so later on; and the same could be true of a decision that seems solid in the long-term, but involves too big of a sacrifice in the present or medium-term. While there may be no perfect answer, Welch says, you can find what is, for you, the best possible one.

After devising the 10-10-10 system and using it in her own life, Welch says, “Much to my surprise, I found that it invariably led me to faster, cleaner, sounder decisions. And as an unexpected bonus, it also gave me a way to explain myself to all the relevant ‘constituents’ — my kids or parents or boss or — with clarity and confidence.”

In her book, she also takes a look at the science on how our brains work when we’re faced with making decisions. Apparently, research has shown that our brains are hard-wired to protect and guide us for short-term situations – but when it comes to the longer-term implications of our decisions, our imaginations often falter. This inclination, known as ‘hyperbolic discounting’, means that people tend to act as if the future doesn’t exist or that it will be ideal.

And while Welch recognizes the value of insights gained from instinct or our gut reaction to a situation — especially when it comes to the small calls — she argues that to make more cogent, self-aware ‘life’ decisions, we need to “10-10-10″ it.

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Beware! These money-saving measures could cost you in the long run.

The doom-and-gloom of the economy still has many people keeping a closer eye on the news and an even closer watch on their budget. However, it’s possible to take budget-trimming measures a little too far — and end up paying for it in the long run. For the sake of your pocket book, not to mention your health, here are a few things you shouldn’t cut out of your spending:

Hot water. Many energy saving resources recommend turning the temperature on your hot water tank down to as low as 49 degrees Celsius (120 degrees Fahrenheit) — but this could be harmful to your health. Hydro Quebec and Safe Kids Canada warn that lower temperatures can lead to the growth and spread of harmful bacteria that causes legionnaires’ disease (a type of severe pneumonia). The bacteria grow in the lower, cooler part of the hot water tank and can be inhaled through water droplets in the air (often from whirlpools or showers). Hydro Quebec notes that it’s not a good idea to turn down the dial, even if you’re away on holidays. Safe Kids warns that electric water heaters should never be set below 60 degrees Celsius due to their design, but gas and oil-fired ones can be safely turned down to the “warm” or “medium” setting (as long as the temperature stays at 49 C or above).

The most important thing is the health of your family: If anyone in your home has a chronic illness or weakened immune system, you’ll want to keep the temperature up.

What can you do instead? Both organizations recommend installing water-mixing or tempering valves that mix hot water with cold. You can also save heat by insulating the tanks, or using less hot water to begin with (such as using a cold water wash).

Maintenance: Your car, appliances, heater and other household items will run better (and cost less) if they’re kept in peak condition. For example, a well-maintained car will use less fuel because it runs more efficiently. A well-maintained home will lose less heat and have fewer drafts — making it less costly to heat. A leaky faucet will drain away your money.

Supportive shoes. Cheap shoes aren’t long on arch support or cushioning, they generally aren’t as sturdy in their construction and they don’t fit as well. The result? Muscle and joint complaints, back aches and a host of other problems like bunions. Good shoes are especially important for those with “high risk feet” like children, women (who have four times as many foot problems as men), people with diabetes, athletes and people over the age of 65 (due to the loss of cushioning fat pads in the feet).

The danger is you might not notice the harm right away. The BC Association of Podiatrists notes that most of the 300 ailments that can affect our feet come from years of neglect and abuse. (See their website for more information).

So how can you save money if you stick to more expensive shoes? Look for classic styles and neutral colours — they can be paired with more outfits. Keep an eye on the sales as last year’s styles often go on clearance. Sometimes a quick fix can save a lot of money as well. It’s usually the soles that wear out first, but if the “uppers” are in good shape you can have your favourite shoes re-soled for about $40 at a shoe repair store.

Travel insurance. A medical emergency or accident when you’re out of the country can be run up bills as high as $10 000 – $100 000 — and your private coverage (from work or your credit card company) might not cover all contingencies. Even if a pre-existing medical condition isn’t included in the policy, you should still be covered for unrelated medical issues and accidents (like a fall or a car crash).

Trip cancellation and trip interruption insurance may keep you from losing the money you’ve invested in your trip if you can’t go or if something disrupts it — an emergency back home or a severe storm.

Shopping around for the best policy is your best chance at saving some money. Otherwise, the UK Foreign and Commonwealth Office says it best: “If you can’t afford travel insurance, you can’t afford to travel”.

Safety measures. If something in your home or car isn’t quite “safe”, it should be looked after regardless of the economy. An accident or injury simply isn’t worth the risk. Preventable falls are one of the top causes of disability in Canada, and something we should be taking more measures to avoid.

Being proactive also makes a huge difference. There are more and more products on the market that support people staying in their homes longer (as well as helping those who support them). Whether it’s something as simple as a non-slip mat or as involved as a monitoring system, many of these measures make day-to-day tasks easier and more convenient. In short, if it will improve the quality of life, then it’s worth a second look.

Gas. There many ways to save on fuel costs, but some can be a waste of money. According to the Better Business Bureau, most gas-saving devices or fuel additives don’t work or offer very little savings at all. Some of the devices tested by the EPA did show a small improvement in fuel efficiency — but installing them is considered illegal tampering. Others actually increased emissions, making cars even less environmentally-friendly. There’s a reason that no government organization endorses or approves the use of these items. Instead, consider how your driving habits contribute to gas mileage. See Suffering from gas pains? for some reliable ways to save money on fuel.

Professional Development. Going to a conference, attending a workshop or taking a college or university course may require an input of cash, but learning some new skills can help keep you in demand (and help you find new opportunties too). In many cases, potential employers aren’t just looking at what you can do , they’re looking for a willingness to learn new technology and skills (and proof you can do it).

You don’t have to spend a lot of money to stay current. Check with your alma mater to see what deals they offer alumni on their continuing education courses. There are also many resources online where you can take courses or brush up on certain topics. Sometimes a good book can do the trick. For instance, a book on HTML and CSS can take the place of a class, but the outcome is the same (i.e. being able to create a website).

Volunteering is also a good way to gain some work experience and pick up some transferable skills. If you’re got skills and expertise to share, offer to teach others (and gain some instructional experience while you’re at it).

Your health. Thinking of putting off dental care or getting your eyes checked? It’s tempting to cut back on the things that our health care system doesn’t pay for, especially if you don’t have a benefits plan to fall back on. However, your body is one thing you should spend money on because small health problems — like a low-grade infection in the gums or blurry vision — can be the first signs of a serious problem developing. Even seemingly small complaints can affect your overall comfort and well-being, and can impact your daily activities and productivity at work.

And if you’ve been ill or suffered an injury or traumatic event, support like physiotherapy, occupational therapy and visiting a psychologist can greatly help the recovery process.

A little prevention is also in order. For instance, a proper desk and computer set up can prevent muscle, tendon and joint problems like carpel tunnel syndrome. It’s easier to prevent these problems than to treat them (and a lot less painful).

Exercise. It may also be tempting to cancel the gym membership, drop out of sports leagues or skip the exercise classes. However, regular exercise had been proven to have many health benefits both in the short and longer term. Unfortunately, it isn’t always easy to find ways to complete a balanced workout without the proper equipment and guidance at hand. Weight-lifting or strength training exercises are getting more attention these days as a way to maintain muscle tone, strength, balance and agility as we age — benefits we’ll continue to reap in the future. But if you’re just starting out, it’s a good idea to have some supervision until the proper form and motions can be achieved.

Where can you cut back? If you can’t get outside for a good walk, balance free activities with paid ones. Walking at a local recreation centre or mall is a good way to get in some cardio, and activities like aqua fit or circuit training that include strength and cardio are a good bet for taking classes. And after you’ve taken a couple of classes in yoga and Pilates, you can turn to the exercise DVDs at the library. Resistance bands and exercise balls are inexpensive alternatives to home gym equipment, and they often come with instructional materials like posters or DVDs.

The bottom line

There are many things you should spend money on even when the budgets are tight. Good quality products that will last are a better investment than cheap products that will break and need replacing — but that doesn’t mean you have to pay full price. The usual money-saving tips still apply: watch for sales, clip coupons and comparison shop. Second-hand and consignment stores also offer some good deals on used items in good condition. It’s also worth asking about discounts if none are offered. After all, businesses want to keep people buying — even if they need to offer some incentive.

Photo ©iStockphoto.com/ TIM MCCAIG

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Make sure your donations go to those who need it — not in the pockets of criminals.

There is no shortage of good causes to support and no end to the requests for donations — but unfortunately, not all of these requests are for good causes. Every year millions of dollars end up in the hands of criminals due to charity fraud.

How can you make sure your money actually goes to worthy recipients?

Spot the scam

Whether you’re approached in person, on the phone or through email, take some time to consider your decision and watch out for these signs:

No identification. If the caller doesn’t give you their name and the name of the organization up front, or someone at your door can’t produce I.D., chances are they have something to hide.

High pressure tactics. There is a fine between being passionate about a cause and pushing too hard. If someone is pressuring you to make an on-the-spot decision, chances are he or she just crossed it. A con-artist wants your money before you ask too questions or check the facts.

Questionable payment options. Do they want you to pay in cash, or make the cheque out to the solicitor rather than the organization? Are they eager to send a courier to pick up your donation right away?

A thank you for a pledge you don’t remember making. This tactic could be used to win your trust by creating a false sense of familiarity. (You donated to them before, why not give again?) The solicitor may be dishonest, but your financial records won’t lie.

They can’t give you a tax receipt. Only legally registered charities can issue a tax receipt under Canada’s Income Tax Act. It may not be a scam, but you’ll want to know why they aren’t registered.

Incomplete information. A reputable organization should have nothing to hide, and should be upfront and honest with you about who they are, what they do and how your money will be used. Is the solicitor impatient or reluctant to answer your questions? Are they dodging your questions or giving incomplete answers? Don’t donate unless you’re satisfied that you have the information you need.

Overly emotional appeals. Resist appeals to your sympathy, patriotism or guilty conscience. Your heart may be moved by a particular cause, but the decision to donate should be based on reason and financial planning.

Email. Many legitimate organizations use email as part of their marketing campaigns. However, due to the large number of hoaxes and scams circulating via the internet, treat any email you didn’t ask for with suspicion. Attachments and links could contain viruses or the email could be a phishing scam. Also, charities don’t pay when you forward the message or click on a link — any email telling you otherwise is usually a prank.

Sketchy details. Scammers may offer a name or contact details that sound “close enough” to a real organization. Ask yourself: does the name of the organization sound familiar, but not quite “right”? Does the phone number have an area code you’ve never heard of? Does the url of their website not match their name or link? If you have reasonable doubt, hold off on giving money until you can verify the details.

100 percent guarantee. While not necessarily indicative of a scam, any promise that 100 per cent of your donation goes directly to a cause is questionable because every organization has some operational expenses. If you see this claim, ask how the organization’s administrative, fundraising and marketing costs are covered.

Remember: The goal is to get victims to part with their money before they have a chance to consider the facts — and see the scam for what it is.

Avoid the traps

Here’s what you should know before you donate:

Get the facts. What do you need to know before you donate? As much as possible if you’re not familiar with the organization. Get information about the charity in writing, and conduct a background check of your own using tools such as the Better Business Bureau’s Check out a Business or Charity and the Canada Revenue Agency’s Charities Listings. Check the charity’s financial information and watch for any complaints, penalties or suspense of their license.

Call the organization. Sometimes criminals pretend to be collecting on behalf of an organization you know and trust. To avoid this trick, call the organization yourself and ask if there is currently a fund-raising drive going on in your area. Look up the information through an independent means such as the phone book or 411.ca rather than relying on information from a questionable source.

Discuss your decision. Sometimes other people see things we miss. Many fraud protection agencies recommend discussing your donation with a trusted family member or friend — especially if it’s a large one. This person can help you clarify your goals and act as a second set of eyes when it comes to spotting problems.

Plan ahead. You may want to take a targeted approach and develop an annual giving plan. Having a strategy in place allows you to work your donations into your budget and make sure the causes you care about don’t get overlooked. See Develop a family giving plan for more information.

Pay wisely. It may sound old fashioned, but the best form of payment for tax and security reasons is still a cheque. Be sure to make it out to the name of the organization, not the solicitor. Avoid giving cash unless they can offer you a tax receipt on the spot.

Many reputable organizations now have options to set up an automatic monthly donation through a credit card or bank account, but make sure you do your homework first rather than responding to a request for financial information over the phone in person.

Say no… at first. It’s hard to say no when someone is asking for money, but it will buy you some time to do a little research. A response such as “I have to discuss it with my spouse/child/parent/financial advisor first” or “I want to learn more about your organization first” will take the sting out of the refusal, and may be enough to discourage scammers.

Signs of trouble

You’ve taken steps to protect yourself, and you watch your financial records for any unexplained transactions. Anti-fraud agency Phonebusters has identified two groups who are particularly at risk: 1) Seniors, who are viewed as more trusting of strangers, and who are often home alone or who may be isolated from family or friends; and 2) Past victims, whose information often gets sold to other scam artists. If you’re concerned about family members or friends, here’s what you should watch out for:

- They need cash or a loan, or have difficulty paying regular bills even though their income hasn’t changed.

- They experience an increase in solicitations, such as “too good to be true” mail offers and phone calls.

- Their bank or credit card statements show cheques or withdrawals to unfamiliar organizations.

- They demonstrate secretive behaviour regarding phone calls.

If you or someone you know is caught, contact your local police’s fraud unit and inform any banking or credit card companies of the situation. You can report cases of fraud or questionable business practices to:

- Phonebusters: online at www.phonebusters.com or by calling 1-888-495-8501

– U.S Federal Trade Commission online form

– Better Business Bureau Complaints

– The RCMP’s Reporting Economic Crime Online (RECOL)

Overall, a little education and preparation can make sure your money goes to helping the many deserving charities out there instead of fraud.

References:

FTC Charity Checklist

CRA Information for Donors

Phonebusters

Photo ©iStockphoto.com/Malcolm Romain

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Thinking of giving for-sale-by-owner a try? Here’s what you need to know to make it a success.

Private sale wasn’t the first strategy that came to mind when Elaine* and her sister helped their father sell his home when he decided to move. However, a lack-lustre response from real estate agents made them think twice about using an agent at all. They figured “why not put up a for-sale sign and see what happens?”

Elaine and her sister aren’t alone in their thinking. Some estimates say that as many as one in four people sell their home privately. For-sale-by-owner (also known by its acronym FSBO) is still a new idea to many people, but the increasing amount of information and services available to help is making the idea more appealing. After all, a real estate brokerage can charge five per cent or more in commission to sell your house. More people are wondering: is it really worth it to use an agent?

If you’re considering a private sale, here’s what you need to know to make it a success:

Think like a sales person

The best place to start is to know your product, and then figure out how to present it to its best advantage. Start by taking notes about the features of your home that a potential buyer might be interested in. Don’t just consider what’s in your house, but also what’s around your house. Are you close to schools, shopping or other amenities? What upgrades have you made to the home, and when were they done?

Once you’ve got a list, it’s time to start formulating your sales tactics. Not only will you need to write ads to sell your home, but you’ll also want to prepare a sales pitch to respond to phone calls or unannounced visitors.

Being ready to respond to unexpected questions is also important, Elaine advises. And the more you know about your home, the better. For instance, prospective buyers might want to know how much it will cost to heat your home in the winter or how much property taxes will be. Utilities bills and tax statements can serve as proof. If you’ve got receipts showing when improvements were made, like a new furnace or new windows — keep them handy as well.

Develop a budget — and know how to spend it

Do you get to keep all of the savings in commission we mentioned before? No — you should expect to spend a portion of that on advertising and other services that would normally be covered by an agent. As with any home sale, expect to spend money to make money.

Doing a little number-crunching before you set out can help you see where money will be well-spent. Remember, you have to pay some expenses, like hiring a lawyer and doing some repairs, whether you use an agent or not. Some services like home-staging consulting can actually add value to your home by making it more attractive to buyers. A home inspection can give you a heads-up as to what needs to be done around your home — you might want to repair them first, or find out what their worth before you enter the bargaining process.

Research your home’s market value

Property listing service PropertySold.ca warns that one of main reasons that private sales fail is that owners overprice their home. How can you get a realistic idea of what your home is worth?

– Talk to your neighbours, particularly anyone who has recently sold a home in your areas.

– Check the listings in the local newspaper or online (online classifieds, MLS.ca, etc) to see what homes in your neighbourhood are selling for. (Many cities now have a real estate advertising television channel such as REtv).

– Have a professional appraisal done.

Many people invite an agent (or a few agents) in to get an opinion. The feedback can certainly be useful, but this isn’t the only number you should rely on. In Elaine’s case, the quoted price was too low so they used other means to estimate the home’s worth.

Develop a marketing plan

Where and how will you get people’s attention? If you’re in a high traffic or well-travelled area, a for-sale sign might be enough to get people looking. However, you should consider a balanced approach that also includes listing your property online and taking out a print advertisement in a local publication. You may also want to consider hosting an open house as part of your plan.

Prepare for negotiation

Now’s the time to dust off those bargaining skills. Are you ready to negotiate the price, or handle a potential bidding war? Also, don’t let the thought of deals and contracts scare you off if you’re not an experienced seller. Here’s where your real estate lawyer can help: They can evaluate the terms of any contract and help you evaluate any offers. They can also advise you on what you need to disclose about your home.

Another thing to consider: Just because you’re not using an agent, doesn’t mean a buyer won’t. That agent will have to be paid somehow — so either advertise “no agents, please” or be prepared to account for his or her commission in the asking price. You might be able to negotiate a flat fee rather than a percentage.

Think about safety

There’s going to be a lot of attention on your home and its contents, and there is some risk involved when inviting strangers into your home. So what can you do to stay safe?

- Enlist help. For their own safety, Elaine and her sister agreed to both be present for appointments with potential buyers. If one or the other (or one of their husbands) wasn’t available, they had a plan to invite a friend instead. Two people can provide better supervision for touring groups or open houses.

- Hide it. Anything that can be broken or stolen shouldn’t be around. When it comes time to sell her own home, Elaine already has plans to find safe, temporary homes for the jewellery, electronics and other valuable items — whether it’s with a trusted friend or the safe deposit box at the bank.

- Go for the lived-in look. If you have to be away from your home for any length of time, use a timer for some lights and ask a neighbour to park their car in the driveway if necessary. Empty homes are the perfect target for thieves — some of who may have been by the home to preview its contents.

- Protect your privacy: Consider using a cell phone or setting up a new email address to handle communications instead of giving out your personal contact information.

Stay impartial

Elaine cautions that having a thick skin is essential for the process as potential buyers won’t be shy when it comes to nit-picking the details of your home — especially when it comes to pointing down flaws that might help bring the price down. Try not to take it personally; a real estate agent wouldn’t get defensive or upset.

“You have to be ready to hear criticism about your home — whether it’s the decorating or layout, or things that need to be fixed,” Elaine warns. “Overall, you have to be impartial and divorce yourself from it.”

Get advice

Just because you decide not to use an agent that doesn’t mean to you have to “go it alone”. There are many services such as, PropertySold.ca, Bytheowner.com and For Sale By Owner that offer listings and sales tools for a modest fee. Other companies like PropertyGuys.com include marketing support and listings as part of an overall consulting package — which is still the fraction of a cost of an agent’s fee.

For more information on getting your home ready for market, the Canadian Home and Mortgage Corporation has a guide about Getting Your House Ready to Sell, as well as current market trends and outlooks.

As previously mentioned, there’s a wealth of information available online, in magazines and even on TV — not to mention the many books written on the subject which you can find at your local library or bookstore.

This method of selling your home isn’t for everyone, but it might be worth a try before you turn to an agent. In Elaine’s case, taking a chance paid off. They were able to sell the house quickly, and for more money than the agent initially predicted — and they didn’t have to pay a commission either.

Photo ©iStockphoto.com/ Milan Klusacek

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Thinking of adding a new member to the household? Here’s how much room you’ll need in your budget.

My “little sister” has four legs that like to run in and out of the house, a tail that’s been known to sweep glasses off the coffee table, and a nose that gets into everything. She’s a faithful companion, a source of entertainment and she keeps her owners young at heart. Her human siblings moved away from home years ago, and, like many pets in her position, she’s a little bit spoiled.

How you can put a price tag on a companion like that? It’s almost unthinkable, yet every year many people are forced to give up pets because they can no longer afford to keep them. An unexpected illness or accident can put a sudden, and potentially damaging, strain on household finances. Talking about the costs may sound harsh to animal lovers, but it makes good financial sense to budget for the care of a beloved pet.

If you’re looking to bring a new cat or dog into the household, here are the numbers you’ll need to factor in:

Initial costs

All new pets require some basic necessities to get them started, including: a carrier or crate, food bowls, a bed, collar, toys, grooming needs, spaying or neutering and microchip or tattoo. Add it all up, and the total can run into hundreds of dollars.

And that doesn’t include the purchase or adoption of a pet:

- A purebred cat or dog can cost between $500 and $1200, depending on the breed.

- Adopting an animal from local shelter cost between $85 to $100 for cats, and $135 to $275 for dogs. There may be an addition $75 deposit which is refunded when you have your pet sterilized.

- “Free” pets offered through the classified often need a veterinary examine, testing and treatment for parasites and vaccinations. According to the Kitchener-Waterloo Humane Society, these costs could amount to hundreds of dollars. (see their Comparison Chart for more details).

So what’s the total? A guide published by the British Columbia Society for the Prevention of Cruelty to Animals (BCSPCA) places one-time costs at $282 for cats and $340 for dogs. These estimates include shelter adoption costs, so you’ll need to add the difference if you go purchase from a breeder.

What this guide doesn’t include is other incidental expenses you might find. For instance, many new puppy parents purchase baby gates to provide safe boundaries, and go to “puppy school” to socialize and train their youngsters. You may want to buy a book about raising your pet, or invest in additional chew toys, scratching posts and other protective measures for your carpet and furniture. Cleaning supplies are also a must, and it never hurts to have some specialty products on hand if your pet gets sprayed by a skunk.

Ongoing costs

What do you need to budget for in a typical year? Include food, routine vet check-ups, vaccinations, flea prevention, grooming and licenses. Your total costs will vary depending on the size and type of your pet. Smaller breeds of dogs and cats cost less to feed, and their smaller-sized accessories are less expensive to buy. If you take a yearly trip, you’ll need to add $15 a day for dogs and $10 for cats to your vacation budget for boarding or pet-sitting costs.

The BCSPCA places ongoing yearly costs at about $700 for a cat and $860 for a medium-sized dog. These estimates are in keeping with official data — Statistics Canada reports that pet owners spent an average of $770 on pet-related expenses in 2006. To put the numbers in perspective, that’s less than one fifth of what the average Canadian household spent on recreation, and half of what was spent on tobacco and alcohol.

There are ways to cut down costs. For example, learning to groom your pet at home will save money. Nail clipping costs $15 each visit — a savings of $90-$180 a year. You can also save money by brushing and bathing your pet at home — as much as $40 per trip.

Be wary of other cost-cutting measure. Cheaper brands of food can lead to health problems later on, and less expensive toys won’t last as long as good quality, durable products. Don’t expect “outdoor” cats to save you money on litter. You’ll need to budget more for veterinary care to deal with parasites and increased health problems, in addition to the risk of injury or death. On average, indoor cats live twice as long as their outdoor counterparts.

Aging pets will also require more medical care, so expect that pet costs won’t be uniform throughout their lives. Veterinary medicine has made numerous advances over the past few years, so there is better disease detection and treatment options available today. It’s important to discuss with your family how far you will go to keep an aging pet happy and healthy.

Emergency care

Pets of all ages are susceptible to serious illnesses and injuries, which can quickly add up to thousands of dollars. These unexpected costs can be hard to absorb without an emergency resource. Preventative measures could be as simple as making more room in your emergency back-up fund or setting aside a lump sum.

Another option is pet insurance. Premiums range from $120 to over $500 a year, depending on the pet and level of coverage. As with any insurance policy, shop around for the best rates and features, and read the policy very closely for conditions and exclusions. Some policies only cover accidents and illnesses, not bills for routine check-ups and vaccines.

As an alternative, some experts suggest setting up a savings account or cashable investment and making regular deposits. It may not completely cover costs if an accident or illness occurs early in your pet’s life, but it might save you thousands of dollars in premiums in the long run. Your money remains in your control, and even earns a little interest in the process.

The bottom line

It’s difficult to predict the lifetime cost of owning a pet. Multiplying average yearly costs by the expected lifespan doesn’t account for the changing needs of pets as they grow up. Time commitment is also a factor, and adding a second pet doesn’t always translate to double the expenses.

However, there’s another side to this equation: the benefits. You can’t attach a dollar value to things like companionship, decreased stress levels, lower blood pressure, disease prevention and warding off depression. There’s a reason that “pet therapy” programs are popular in hospitals and long-term care facilities: Pets are good for people.

Money shouldn’t be a deterrent, but having an idea of the costs and budgeting accordingly means that neither owner nor pet will meet with any unexpected sacrifices down the road.

Sources: British Columbia SPCA, Statistics Canada: Spending Patterns in Canada 2006

Note: These figures are from Canadian sources and are quoted in Canadian dollars. To see how costs compare in the U.S., see the ASPCA website for details.

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A new trend is to use vacation days from one job to work at another. But is your time worth the extra cash?

Tired of travel buzzwords? Here’s one you might like the sound of: paycation. This year, instead of spending on a trip or sticking close to home some people will use their vacation time from their main job to earn some extra cash at a second one.

Others will keep right on working and give up their holiday time altogether — if their company will pay out for those unused vacation days.

So what’s the scoop? You won’t find a lot of information or statistics about paycations — they’re essentially grouped in with “second jobs”. In the U.S., the number of people who picked up second jobs rose to 5.5 per cent of the population in 2008, according to a post on Consumer Reports. More than one quarter of people working a second job are doing so to pay off debts, while more than a third are doing it for the extra money.

And where are the opportunities? Don’t get your hopes up too high: According to Consumer Reports, most of the secondary jobs are in health and education services, leisure and hospitality, or retail. Many paycation opportunities are likely to be summer camps, working at a local restaurant or hotel or selling goods in a local shop.

However, with a week or two off work there’s an opportunity for professionals to make use of their skills in other arenas, such as:

- Teaching a class or course (whether it’s just a day or a week-long course)

- Picking up some freelance or consulting work in their field.

- Launching a home business, website or blog.

- Working on money-earning hobbies.

But is it worth your time? Here are some things to consider:

Pros

- Build your network. Networking is one of the “must do” activities for professional development, especially in a time when many people find themselves in a precarious job situation. A new position means you’ll come into contact with new people and form new connections that will be mutually beneficial later on.

- Focus on professional development. Develop new skills, learn about another business or industry and beef up your resume. There’s something to learn from any new job or experience, and you can apply job-specific skills and transferable skills to your current job.

- Build your portfolio. Skills are nice, but so is proof of what you can accomplish. Our regular jobs can box us into certain responsibilities and target audiences. In order to have a balanced portfolio of work, you may need to get beyond your regular job to show off other assets.

- Start something big. Picking up some consulting or freelance work can turn into a long-term money-maker as a home business or “on the side” work.

- And perhaps the most obvious benefit: Extra cash. For many people, it means a boost to their savings or an investment in home renovations. It might pay for a vacation later on, and help pay down some debt.

Cons

- Additional job stress. Taking a break from work (whether you travel or not) provides some much needed respite and relaxation which is good for your health. On the other hand, skipping your holidays won’t give you a break from the stress, which can contribute to job burnout. Chances are you’ll also have to deal with learning new skills and working with new people in a short period of time — which can cause tension.

- Fewer opportunities for stress management. In addition, you may find yourself with less time to spend on hobbies, fitness and other activities that are necessary for managing stress and leading a healthy lifestyle.

- Personal sacrifices. More time working means less time with your family and friends. You can’t put a price tag on that time, or “buy it back”.

- The jobs aren’t good enough. Networking and professional development are worthwhile goals, but many paycation opportunities aren’t the high-level positions people are seeking. Often people find greater fulfillment by giving away their time for free — and volunteer and service-oriented vacations are taking off as a result.

- More money for the government, not for you. Who else are you subsidizing with your extra hours? Taxes and other work-related expenses may eat into your earnings.

If you decide to try it

Thinking of giving it a shot? Here are some other steps to weigh in:

- Look at your current income and crunch some numbers. In some cases, that extra cash might alter your tax bracket — meaning you’ll pay more to the government. You might also incur additional costs above and beyond your normal expenses like travel costs. (Though if you’re putting more into your RRSP or TFSA, you’ll see some pay-offs in the future).

- Review your current contract to make sure there aren’t any conflicts. Some companies prohibit their employees from taking on outside work in their field, and working for a competitor is definitely a no-no. Make sure your paycation job doesn’t violate the terms of your current contract, and that there’s no conflict of interest involved.

- Know what you’re getting into. Find out the details of what the time commitment will be, and what duties or projects you’ll be responsible for. Ask what will happen if the position runs over its projected time and you have to go back to work. (And get the details in writing too).

- Watch out for scams. Employment scams are popular in these tough times. Learn as much as you can about the company and the opportunity, and be sceptical of too-good-to-be-true offers. Be very cautious about when and to whom you give out personal information. (For more tips, see Avoid online employment scams).

- Work your network. Finding a paycation position won’t be easy — unless you know where to look. Draw on your usual job search strategies, especially talking to friends and colleagues. Let people know you are open to a temporary opportunity.

Is a paycation worth pursuing or is it just another passing fad? Ignore the buzzword. Instead, weigh the benefits and pitfalls before agreeing to give up your time (or dismissing the idea altogether).

Would you take a “paycation”? Tell us in the comments.

Source: Consumer Reports

Photo ©iStockphoto.com/ Vinko Murko

- Be wary of the word “paycation” : it’s commonly used to promote travel clubs and network marketing businesses (e.g. setting up your own online travel agency). Many of these schemes involve selling travel through a website you pay to set up and maintain, as well as recruiting others and selling the business opportunity to them. (If you’re interested in those offers, do your research and carefully evaluate any opportunities — especially whether or not they’re legal in your area due to travel industry regulations).

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Money you don’t really need to spend: 10 ways to simplify your life.

Number Ten:
Pay in cash – this means you will always know exactly how much money you have. With credit cards, debt can add up quickly and you may not pay them off as fast as you would like to. When you pay in cash, it’s also a great feeling because you know it’s done and paid for and you won’t have any bills piling up.

Number Nine:
Don’t get someone else to do it for you – stop paying extra to get things done for you when you can do them yourself. Instead of automatically taking your shirts to the dry cleaners, wash them by hand and hang them to dry.

Number Eight:
Eat out less – Visit your local supermarket and pick up fresh ingredients to make homemade meals. You can also take your leftovers to work or have them the next day for dinner.

Number Seven:
Shop with a purpose – Whether you’re grocery shopping or attending to other errands, it’s best to shop with a list. A list reminds you of your reason for shopping and to resist impulse items. It is also a good idea to plan your meals in advance, so that when you get to the store you know exactly what you need to make meals throughout the week. Try to avoid shopping when you’re hungry.

Number Six:
Get some fresh air – Walking is good for you, and it’s cheaper than driving. If it’s possible for you to hike or bike to your destination, do it.

Number Five:
Keep your car longer- do you really need that brand new car? Maybe your old one will operate just fine for a few more years. If you maintain the car you have now, you may be able to put off buying a new one for quite awhile.

Number Four:
Give up your car altogether – if you live in a city with well-equipped public transportation, chances are you might not even need a car. When you add up the expenses of car ownership including insurance, maintenance and parking, the costs may outweigh the benefits. Make a detailed list of what you actually need your car for. Try renting a car if you need it for a weekend away, or for the monthly trip to Costco you could take advantage of a car-sharing service such as AutoShare or Zipcar.

Number Three:
Find cheaper ways to entertain yourself – instead of going to the movie theatre, rent a movie, relax and make some popcorn. Movies in the comfort of your own home can be a great way to spend an evening. You can go even further and rent movies from your local library. All you need is a library card and you will have plenty of movies, books and CD’s at your disposal.

Number Two:
Limit the luxuries – do you really need over 500 channels? Most of the time when you order satellite or digital cable, you are paying for a lot of channels that you don’t actually watch. You also pay more depending on the speed of internet you have. If you only use the computer to send emails and read online, you probably don’t need the fastest service available.

Number One:
Skip the little things – make your own coffee in the morning. Instead of spending $5 a day on gourmet coffee, take it with you from home. Make it a special treat to buy a coffee once a week from your favourite coffee shop.

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Can we kick our addiction to carbon? Environmental lawyer and activist Robert F. Kennedy Jr. tells us how — and what it means for our future.

We’re addicted to carbon — and we’re all suffering for it. But it doesn’t have to be this way.

Imagine a world where our vehicles don’t require gasoline to run, and we’re not putting out tons of toxic emissions each year. Instead, you plug your car into an electrical outlet to recharge — but the power doesn’t come from polluting coal-powered plants or nuclear energy. It comes from alternative energy sources like solar power, wind power and geo-thermal power.

But wait, it gets better: Not having to rely on foreign oil addresses some key national security issues, and if countries like the U.S. can “de-carbonize” the economic benefits will far surpass the drawbacks of cutting out fossil fuels.

Sounds too good to be true? This vision is possible, according to experts like Robert F. Kennedy Jr., an environmental lawyer and activist. But getting there? It’s going to be a long and bumpy road.

Challenge 1: Access to clean, inexpensive energy

So what’s going to power our new electric cars, not to mention our homes and businesses? If we’re serious about going green, we have to rethink how we produce and distribute power, and it isn’t as simple as building more turbines. Speaking at this year’s ideaCity conference, Kennedy outlined some of the tough challenges North Americans are facing when it comes to ushering in an era of clean, inexpensive energy:

- Our money is tied up in the wrong industries. As Kennedy notes, our governments pay vast subsidies to the oil industry — both directly through measures like protection and security in the Gulf, and indirectly through health costs thanks to pollution. Subsidies also go to the coal and nuclear power industries which also aren’t environmentally-friendly or sustainable.

The bottom line: there isn’t enough funding for the development of local, safe energy. More money needs to be available for research and innovation into green initiatives like alternative energy.

- The infrastructure isn’t in place. Even if we can harness wind, solar and geothermal energy, the problem then becomes distributing it. At the moment, the U.S. doesn’t have effective ways to transport energy from a remote location to an urban centre. For example, a wind farm built in one area will produce more energy than required for the surrounding area, but that energy can’t be sold to more distant locations.

Within cities it’s impossible to share energy too, but for a different reason. You could put up solar panels on your home, but you couldn’t sell your excess energy to your neighbour because local grids are too tightly controlled. Infrastructure should support (not squash) entrepreneurship and allow people to sell clean energy at market rates. Kennedy argues we need to rethink our distribution, and look at building a national power grid.

- Market rules favour consumption, not conservation. Like it or not, energy companies profit when we use more energy. Kennedy argues that we need to “decouple” profits from sales, and change incentives so that conservation becomes the real money-maker.

And while Kennedy claims that one year without foreign oil would rid the U.S. of its bailout debt, the goal of going carbon-free isn’t just about economics. “We need to figure out how we can use and distribute energy in a way that won’t be harmful for future generations,” he says.

The U.S. is already considering these issues, but can Canada keep up with other nations?

Challenge 2: Is the road open for electric cars?

Bad news for hybrids: they won’t solve the oil dilemma, according to Kennedy. In order to rid ourselves of our addiction we need our vehicles to harness clean, inexpensive energy. That means plugging in, not filling up.

If you’ve been keeping an eye on the trends, there’s good news on the electric car front — at least for other countries. The technology is improving, and we’ll soon see cars that overcome our initial objections to electrics. Thanks to bigger, better batteries, these cars can now travel faster and go farther on a single charge. Nissan recently announced it will begin producing electric cars in Japan later this year and start selling them in Japan and the U.S. by 2010. General Motors also plans to unleash its plug-in Chevy Volt in the same year. Tesla Motors in the U.S. just received federal funding to develop its own fuel-efficient cars.

In the United Kingdom, the world’s largest trial of electric cars is set to get underway later in 2009. Around 340 electric vehicles will be available for trial in major cities like London, Glasgow and Birmingham. Some of the trials will include BMW’s Mini E and electric Smart Cars.

The electric car movement will also get a boost from countries like Norway, which currently plans ban sales of new gasoline-powered cars as of 2015 (hybrids will still be allowed).

But if you’re looking to get in on this new trend, don’t start flocking to the dealerships just yet. While the automotive industry is making headway, it may be a while before Canadians can reap the benefits. We have the technology — we’re just not allowed to use it, according to Evan Clifford, marketing coordinator of Ontario-based ZENN Motor Company.

Also speaking at this year’s ideaCity conference, Clifford gave the audience an update to a presentation made by ZENN’s founder and CEO Ian Clifford at ideaCity 2007. Low-speed electric vehicles (LSVs) like the ones his company produces continue to be illegal in Canada, he said. Instead of being used by commuters to reduce pollution, the vehicles are limited to private roads and gated communities. Why? Government safety regulations won’t let LSVs travel faster than 40km/h, which isn’t fast enough for most roadways. So far, only British Columbia and Quebec are conducting trials and allowing the vehicles on designated roads.

But that isn’t going to stop ZENN. The company just announced a deal with Texas-based EEStor Inc. to develop future cars with ultracapacitors. Other companies are pursuing the use of lithium-ion batteries, which are smaller, lighter and more powerful than their lead-acid cousins.

However, with most major auto makers looking at cleaner fuels and electric cars that rival their combustion-engine counterparts, no one is quite sure what’s going to happen in the future. There are any number of policies, costs and issues involved — more than can be examined here – and the infrastructure to support electric vehicles also has to be in place.

One thing is for certain: Moving towards a clean energy lifestyle that includes electric cars is going to be a long road, and there won’t be any easy solutions. They’re trends worth keeping an eye on because a lot of changes will be happening in coming years, and pressure will be on Canada to keep up.

Sources: ideaCity 2009, BBC News, The Calgary Herald, CBC News

Photo ©iStockphoto.com/ Karen Keczmerski

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