Money Saving Tip - Credit Card

Credit Card Annual Fee

It pays to go through your credit card bill. I don't know about you but I don't believe in paying for my credit card annual fee. It may come in the form of dollar amount listed as a debit in your bill or you do not see any dollar amount but they have already deducted it through your rewards points.

My credit card renewal fees for the different cards range from $180 to $300. I just don't see why I should be paying it when new applicants for the credit card get fee waivers. ALWAYS call in to request they waive it off. Don't have to be embarrassed about doing it. I think it is shocking if you haven't done it before. I think it is SO common, they even have it as an option in their automated recorded messages. If you have say 3 credit cards, that will save you about $600!

Of course, the more often you use the card and the higher the amount you usually use, the higher the chance for them to accede to your request. If you hardly ever use the card, I doubt they will agree to the waiver.

Late Payment Charges

If you are as careless as I am or living in the stone age like I am (I still prefer to pay through AXS machines, makes me feel the pain!), there may be instances where you would have forgotten or missed the payment deadline. Late payment charge of $50 + interest is the norm.

Again, CALL and request for the charges to be waived off. That's too much to pay for forgetfulness.

Again, the more business you have with them the higher the chance. However, that is also provided it doesn't happen often!

In any case, no harm trying..

Happy Saving! =)

Money Saving Tip - Parking Coupon

Another totally painless money saving tip:
What do you do if you make a mistake tearing the tabs of a parking coupon?


Stop tearing any more tabs from the parking coupon but you don't have to throw it away.
You can actually bring the parking coupon back to HDB office for a refund.
Of course, it may not be so wise to bring a 50cents coupon there specially to get a refund but if there's a HDB office around where you work or stay, why not?


Did you know this?

About Timeshare Companies and Timeshare Packages Scams

It is unfortunate that the Timeshare industry is getting all the negative publicity with its hard-sell tactics, false promises, unfair practices and misrepresentations. Timeshare, from what I understand, is supposed to be a good thing.  You pay for packages which gives you discounts and a certain number of days of free stays at selected places. It is a win-win situation, you get your discounted travel packages, and accommodation providers fill their capacities. 


As in most cases such as land banking blogged about previously Land Banking- Land International (Far East) and Land Banking in the spotlight again? - Profitable Group, it is the unscrupulous people who give the industry the negative publicity. Timshare firms have topped Consumers Association of Singapore’s (Case) complaints list for the past five years with more than 2,000 complaints annually because of its hard-sell tactics.


It was reported in two articles last month – Travel Agency warns against timeshare firms (The Straits Times, June 18 2010) and Timeshare firm told to stop tactics (The Straits Times, June 19 2010).
In the latter article, the subordinate courts of Singapore actually ordered Garraway Enterprises to “stop making false promises to customers”. For the court to order that, that really says something. Victims paid between $2,998 and $80,000 for the fake packages with the total claims made by the customers against Garraway Enterprises amounting to $887,000. Who knows how much more went unreported?


How did the ploy work?
• People were approached on the streets with Scratch-and-Win cards, prizes include $1,000 cash and digital camcorder. (Not sure if they still operate the same way now, but in the past I always see these people at the pavement walk near Ngee Ann City. Anybody who stopped to do the Scratch-and-Win cards ALWAYS seem to win something! Then comes part 2, the representative will jump up-and-down and proclaim “Oh my, you are so lucky!” and another “supervisor” comes along and does the same thing.)
• For Garraway Enterprises, people who “won” prizes have to collect them in Ngee Ann City where their office is located. (Which may explain why they used to operate on Ngee Ann City pavement walk?)
• There have also been cases as reported in Travel Agency warns against timeshare firms of companies posing as subsidiaries or affiliates of reputable travel companies offering free or discounted travel packages as baits.
• In both cases, when they reach the offices, they will be asked to sit through hours of presentations where they will be hard-sold and in some cases even barred from leaving till they succumb to the hard-sell tactics.
• After signing for packages, that is where they realize the discounted packages may cost the same or even more than those booked from travel agencies and unfulfilled promises.


The good news?
• Companies who have been ordered by the court to stop such practices will be in contempt of court if they continue to do so.


The bad news?
• The unscrupulous people behind the scams can just close the company down and continue under a different company.


The scary news?
There have been reports in the past where the cruelty of some devious people can be really scary. After some people fall for the scams and are cheated of their money to buy timeshare packages which they never got the chance to utilize due to the false promises, they would receive calls from companies who express sympathy to their plight. These scammers will then promise the victims that they can help them sell their timeshare packages or get refunds from the timeshare companies. Of course, these offers came with a fee. After paying the fees, the victims realize they are still stuck with the same timeshare packages and are now even poorer for it. That’s really double whammy and a demonstration of cross-selling in marketing terms in a negative way!


Precaution?
As usual, before parting ways with your hard-earned money, always do your own checks.
For people who claim to represent, is affiliated to or is a subsidiary of any company, contact the company to verify.  

Another Scam with Singaporeans among the Victims

Singaporeans among HK scam victims – The Straits Times, Monday June 28 2010. HK$21 million (SGD$3.75 million) from 160 victims with one victim reported as paying to the Hong Kong gang scammers HK$3 million which is about SGD$536,000! Victims were ethnic Chinese from countries living in Australia, New Zealand, China, Taiwan, Malaysia and Singapore.


How did the scam work? 
Phone calls or E-mails were made to the victims either promoting investments that promised high guaranteed returns or congratulating the victims on winning the top prize of a lottery or lucky draw.


The catch? 
To receive the winnings or investment returns, victims have to pay an “administrative fee” to a bank account. 


Based on past scams reported, usually these victims had not even entered into any lottery or lucky draw when they were informed of winning such prizes. Variations to these scams include having to pay for “taxes”, “release fees” or even “identification verification”. Pay an “administrative fee” and it will be followed by some issue of “taxes” where more payment is needed. More often than not, it involves a few of such payments which may explain why some victims can be duped of SGD$536,000. 


My main concern when reading this article?
They have now made it more believable by adding a step to their modus operandi. 
For lotteries or lucky draws, they will now send emails or call victims to participate in a survey. To thank them for participating in the survey, they will be informed if they win a prize.
For Investments, the scammers actually befriend the victims online on social networking websites and building the friendship before persuading them to make the “investments”! 


As usual, before you part with any of your hard-earned money, always do your own checks. Anything that sounds too good to be true, probably is.
Help share this to avoid having loved ones fall victim to the scams.

S$409,000 to lunch with "the most well-known loser"

Another inspiring story to remind ourselves... NEVER EVER GIVE UP! You may have to suffer some setbacks, you may have to take a different path, you may even have to do something totally different but if you can keep on fighting, you can still get the success you deserve.


Shi Yuzhu was known as "the most well-known loser" in China when he ended up in debt to the tune of 200million yuan (thats currently about SGD$41,217,243.80!!!!) after his company collapsed in 1997. I am sure there would have been many nay-sayers and people who shunned him. How easy it would have been to give up then and I am sure nobody would have blamed him. How many of us would have given up then?


Well, luckily he didn't give up. It took him seven years from his "loser" status to going on to found Giant Interactive a online game developer and operator in China in 2004. Giant Interactive got listed in New York in 2007! Not bad for a "most well-know loser"!


Now? A Warren Buffett style power lunch auction with Mr Shi Yuzhu was won with a bid of 2 million yuan (S$409,000)! The proceeds from the winning bid goes to Charity, of course. At number 616 in Forbes World's Billionaires List in 2010 with US$1.6Billion net worth, he doesn't need it! I'm cheap, you can have lunch with me for $409! Proceeds will naturally.. go to me!!.. I'm not on any list just yet...

Buffett-style lunch with Chinese Billionaire - Sunday Times 20 Jun 2010

Independent Financial Adviser - Really Independent?

Are Independent Financial Advisers (IFAs) really independent in Singapore? "A financial adviser who claims to be so may not be telling you everything" as reported by Lorna Tan in The Straits Times Saturday, June 26 2010 article - Excuse me, are you an independent adviser?

So, what is so special with the word "independent" before a Financial Adviser? With the word "independent", firms market themselves as champions of the consumers by recommending financial products based on consumers' financial needs and not by pushing or hard-selling financial products because of commissions. Is that really the case?


The next time a Financial Adviser tells you he is Independent or from IFA, you may want to rethink what it really means. As defined in Singapore's Financial Advisers Act (FAA), "only financial advisers who can demonstrate that they do not have financial or commercial links with product providers that could influence their recommendations should use the term "independent". Just like perfect competition in  Economics, is it really possible in the real world? The only way IFAs can be truly independent is IF they have access to all the products in the market and that is not the current situation.


Most financial advisory firms actually do not qualify as independent if the definition from FAA is strictly adhered to. So some firms skirt the issue by only saying so to their customers verbally and being smart enough not to label "independent" even on their stationery for fear of being revoked of their licenses.


The main issue as highlighted in the article? Volume Bonuses - which can be in the millions, given to financial advisory firms as bonuses for hitting quota of sales or renewals of specific products. The even more shocking thing? Volume Bonuses may be paid in advance when financial advisory firms make commitment to the quotas they will be hitting. Failure to hit the targets will result in financial advisory firms having to repay these volume bonuses. 


As the article rightly pointed out, these financial incentives may result in not so independent advice as financial advisory firms may skew their remuneration structures to fulfill their commitment to avoid returning bonuses. What makes these firms' pro-consumers and independence stance even more questionable is that often times, these volume bonuses or commissions are not transparent and are hidden from customers.Which makes it a greater hidden danger.


Instead of basing your judgement and decision when selecting a Financial Adviser on whether they are independent or tied-company's Financial Consultant, judge them on their merits and professional advice.

Suze Orman - for the Young, Fabulous and Broke

Suze Orman - Young Fabulous and Broke

I have read about and seen Suze Orman on TV giving financial education a couple of times. Whenever I am in the library, I have seen her books, audio CDs and DVDs as well. After such a long time, I finally decided to borrow her Young Fabulouse & Broke DVD. I believe the DVD and the book is different.


The DVD shows her at a talk she was giving at a University. She is of the opinion that times and circumstances have changed, many graduates if they are not careful end up Young, Fabulous and Broke with lack of financial education.


Although some of her talk was specific to US, I will highlight some pointers she gave to the Undergraduates that I think we can all learn from:

• Now is not the time to work for money. Now is the time to do what you love without financial and family obligations. (for fresh graduates)
• Don't be dependent on the cheques coming in, make the people paying cheques to you dependent on you - Make yourself indispensable
• Bankrupt - Don't look at them as a bad person. Oftentimes they are people who managed money poorly due to lack of financial education.

I think one point to note was there was this person who became bankrupt after joining a Multi-Level Marketing (MLM) or Network Marketing organization. Sold by the potential success and payoffs, she used her credit cards to buy products and it just did not work out. It is not about MLM networks, I think it is true for any business in general. To use a credit card to start a business, you really have to take into consideration the high interest rate. Jump in with your eyes wide open!

Repeatedly, the issue of pre-approved credit cards and individuals owning tens of credit cards also came up. Which is quite shocking for these are students! Which is also why I am concerned like I blogged previously, if we are note careful, Singapore may go down the slippery road of Banks Irresponsibly Promoting Credit.

I think the book should be much better but the DVD was concise and easy to understand as well. Perfect for beginners and Visual people.