I just booked a flight to Australia to visit some close friends that moved there, and I wanted to share my tricks of the trade on how to get the best and cheapest flight.  The more money I save on the flight and hotels the more I can scuba dive, horseback ride, or visit other cities.  I always aim to have the best trip I can by saving on travel and hotel costs, then spending on the things that will make the trip truly memorable.  

Flights:
1. First, go see a travel agent and ask for the best rate from your city to the destination.  They’ll give you a price to start with.  Get quotes directly from your city and also quotes from smaller cities that are nearby.  I’m flying from Buffalo to Sydney, which is only a 1.5 hour drive from Toronto but saves me over $300!  There is a cheap bus from Toronto right to the Buffalo airport but I’m hooking a ride with my brother who wants to check out the Brooks Brothers outlet, which is a win win for both of us.  
2. Second, open a window with every cheap flight website you can find, such as expedia, travelzoo, selloffvacations, travelocity, priceline, etc.  There are even sites that will check all of the cheap flight sites for you, like cheapflights.ca, bookingbuddy.com, or farecompare.com.  Search all of them, slightly changing the departure and arrival dates until you’ve found the best price.  But you don’t book!  Call up Flight Centre with the flight still on your screen and they’ll beat the price by $10, and in my case they got my Australian Visa for me. I love my money and time!  
3. Travelling to Europe is a bit different.  Find the best rate into a hub like Amsterdam, London or Frankfurt.  Then try to get a Ryan Air, German Wind, or Easy Jet flight from the hub to your destination.  You’ll save literally thousands if you’re flying to a remote destination like I did when I flew to Malta.  That trip cost $800 to London and then $90 to Malta on Ryan Air.  That saved me more than $1,000!  

Hotels:
1. Hotels work the same way.  Open nine hundred windows on your computer and find the best price.  Google for a “promo code” for the hotel that you want and see if you can bring the price down even more.  Make sure you watch for any service fees or taxes before you book.  Click through to the page where you enter your credit card info and compare prices from the total sum. 
2. If you have a company like I do, ask to register for their corporate rate. This will guarantee you savings during the busy months when deals are scarce.  They treat their corporate clients like gold, which is a hidden plus. 
3. Whenever I travel I always aim to stay at the trendiest boutique hotels or historic hotels for less than a discount hotel.  I’ve done this in Greece, Sweden, Germany, Egypt, Malta, LA, and NYC. Why not stay at the best places in the best locations? You deserve it!
4. Get a US$ Credit Card if you stay in the US for long periods of time.  Credit card companies charge 2.5% on top of the exchange rate, so if you are in the US enough to charge $2,000 in hotel and travel expenses it will save you $50 from that 2.5% fee!  

Find the best foreign exchange rate place and pay off the card when you get home.  In my experience the ULTIMATE place in Toronto to exchange money is Foreign Exchange under the Sheridan Centre Hotel.  123 Queen St W. 416 364-3004. Tell Razia that Dave sent you.  

I’ll we away for two weeks putting shrimps on the barbie so I’ll write about all the ways I saved money down under styles!

Dave

After the Holidays it is easy to feel a bit down because of the amount that you spent. When you’re falling asleep isn’t it always the thought of credit card debt that comes to mind? The best way to deal with that anxiety is with a plan. A plan to stop the bleeding, set spending thresholds and eliminate that debt! Below I’ve outlined my best strategies to flex your money muscle and live in the black.

Step 1:
Figure out where you want to be. It is crucial to envision yourself debt free on a particular date in the future. Day dream of yourself looking at your financial statements and knowing that you are master of your own house. You don’t owe anyone anything. Bask in that feeling of complete freedom and then remember that joy when you’re about to charge more crap you don’t need.  

Step 2:
Map out where you are. Take an evening, open a bottle of wine or drink of your choice and make a list of every debt you owe and the interest rate. Include overdraft, credit cards, department store cards, bank of Mom and Dad or Auntie Gertrude, student lines of credit, personal lines of credit, home owner’s lines of credit, auto loans, rrsp loans and mortgages. Make sure to include if you have a don’t pay now until later loan too. Just because you aren’t spending money on it right now doesn’t mean it isn’t debt.

Step 3:
Which of your debt products have the highest interest rate. This can be emotional interest too. If Auntie Gertrude makes you feel like jumping out the window every time you’re at a family event then prioritize that she needs to be paid off first. The killer interest rates come with department store cards and credit cards. Department store cards have up to 30% interest and credit cards are around 20% interest. If you buy a $1000 sofa on a department store card and only make minimum payments you’ll have paid $1,000 MORE in just over three years at 30% compounding interest. You could have had two sofas if you paid cash.  Crazy, right?

Step 4:
How you are going to bust that debt? Everything is on the table now. Remember how AMAZING you felt owing no one anything? First, holster the cards. Put them in the freezer or bury them in the living room fern. Next, figure out how much you need each month to pay all essential bills, eat and minimum payments on all of your cards. If you don’t need it don’t spend it. Deduct that from your monthly after tax salary. With the extra income throw it on your debt — highest interest first. Make it a game. We all love games! Try to live on as little as possible for one month. Brown bag lunch, drink office coffee, eat at home, watch TV, play board games or have a “nookie” night with your love monkey instead of going out. Use your imagination and cheap out for only 30 days and make a huge dent in your debt. It’ll feel incredible.

Step 5:
Make more money to throw on the debt. Put everything you don’t want on e-bay, craig’s list, take to a pawn broker or have a garage sale. Old comics, jewellery, coins, toys and collectibles can make you a tidy sum. Old furniture, cars, boats or trailers that you never use can get you a quick cash hit too. Ask for a raise or try to get extra cash doing something that you love to do anyway. Whatever you’re awesome at — try to sell it for some coin. Collect as much money as you can from selling your services or items that you don’t need and put it right on that debt. Be sure to celebrate your success every time you see that balance drop. Hard work deserves a pat on the back. Make sure you know how much you owe at all times to keep your eye on the prize.

Step 6:
What can you live without after your cheap-o month? Commit to an amount that you want to allocate to the debt and every pay transfer the money in chunks to pay down the most expensive debt first. Use cash for everyday variable spending and limit it by taking a tiny set amount out each week for the entire week.  When it is gone it is gone.  Calculate based on your payments when you’ll be debt free and mark your “liberation” day on a calendar. Write the date on your day timer or on the back of a card and carry it around in your wallet. It will motivate you every time you look at that date so post it everywhere. Tell your closest friends and family to crystallize how important the date is for you.

Step 7:

Dream how you’re going to reward yourself for that hard work.  When you’re debt free of all of your consumer debt (not including investment loans or a mortgages) you’ve turned the tables.  The consumer shackles are off and you need to be treated well for your discipline and industriousness.  Think of a “carrot” that will get you through your weak moments and think of how sweet that prize will be when you’re there!

Money is that one subject that everyone dances around when dating.  We politely try not to talk directly about it but it is woven into the fabric of our conversation.  Let’s throw it right out there into the middle of the table, by the flowers, and address it shall we?  What are always the two very first questions someone asks on a date?  “What do you do?” and “Where do you live?” Which is the money talk equivalent of  “How much money do you make and how much real estate can you afford?”  Keeping your eye out for money problems will be the first sign of hidden people problems.  Remember money problems have nothing to do with dollars and cents and everything to do with emotions and fears. 

When dating look for someone who respects their money and is in control of it. It is the surest sign that they also respect themselves and are in control of their lives.  Someone doesn’t necessarily have to make gobs and gobs of money.  That isn’t what I’m saying but they should at least be strong in the following areas.  It’ll reflect positively in how they will manage your relationship moving forward. 

Money balance – do they balance their cheque book?  If they make more than they spend and always have money in the bank it shows that the person in mature and confident with themselves.  They don’t need to blow every dollar they make each month.  They live within their means and have cheque book and personal life in balance. 

Savers – do they save or spend like drunken sailors?  If they have money when the month runs out then that is a great sign.  Your potential “Snookums” needs to have a “saver” mentality.It shows that they are responsible, grounded, committed, and planning for the long term. 

Asset lover – do they appreciate big assets?  If your date has proven that they are interested in building assets over the long haul it speaks volumes that they are ambitious and driven.  It shows that they want to increase their financial position and has thought out and implemented a plan to get it.   If the asset is a home it shows that they are interested in “planting roots” which shows stability. 

Debt free – do they only have healthy debt?  Does your date have baggage aka consumer debt? If you’re date is debt free it means that they don’t have the emotional baggage that comes with the debt.  People overspend because they’re unhappy or trying to keep up with the Joneses and if they are free of credit card or personal debt then you know that they are self-assured.  A lot of people who make tons of money spend tons more money.  This race to always have the best and most of everything when they can’t afford it always leaves people coming last. 

Just after a few dates you’ll be able to tell if someone loves their money or not.  By seeing some of these money problems up front it could be a window to other issues lurching behind the unpaid bill.  If you know your date is cheque book balanced, is a saver, is an asset lover and is bad debt free, you will hopefully save yourself some grief down the road.

Count right now how many points cards you have  clogging up your wallet? When was the last time you actually went on a free trip or got some sort of reward from them? Have you ever thought how much more money you spend travelling across town to use that store or extra dollars you put on your credit cards to get a few more points?  
 
Due to the fact that I’m always trying to get the best “bang for my buck,” I’ve crunched all of the numbers and my chosen points system is the one that is the longest running. It’s called cash. I can use it to buy luggage, or gift certifcates, or travel on any airlines and my wallet is free of any cards of any kind.  It can be used everywhere and I can even save the tax or get a better price at some places when I use it. I’ve crunched the numbers and using cash for everyday spending saves you money.   
 
I recently tried to redeem two different points systems to get a trip to Calgary. A ticket that would have cost me $371, including tax, to buy with cash would have taken $45,000 worth of spending with one credit card and $25,000 with another card. Then on top of that they would have charged $187 or $114.80 respectively on top of my points for taxes and extra charges. I really don’t see how these point programs add up.  Here is my logic:
 
1. Using cash saves people up to 20% compared to using cards. You simply spend less money when you have to actually plop it down. Using cash puts a ceiling on your spending; if you’re spending virtue is in question–if you’re being naughty with your money–it’s very helpful. What I do is take $400 out of the ABM every Monday and that is my discretionary spending for the week. It has to cover everything from clothing and coffee to eating out for the whole week. If I drop it all on a crazy Monday night bender, then it is gone. I have to wait a week to get another $400 of play money.  
 
2. The average yearly fee for points credit cards is around $120 a year. To build the points to fly to Calgary it would take me two to three years to charge $25,000 on my card, plus two or three years of fees. Remember, the flight only costs $371. Yikes!
 
3. “”Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away.”  – Antoine de Saint-Exupery.  
 
Using a simple money clip is so refreshing. And elegant. Seriously, look through your wallet and see all the tacky crap the retailers get us to carry around. If they were not making money off the card, they wouldn’t offer them, so therefore we’re paying extra to use them.  
 
Cash really is king.  It keeps a ceiling on my spending, simplifies and streamlines my wallet, and gets me a better price on many things.  Now that’s a points system I can love!
 
Dave