Brand Names Not Worth The Money?

Is Brand Name Losing Its Cool?

First Published Date: Aug 25, 2009

That brand names cost more than own-brand or budget ranges is not news to anyone. That this discrepancy can sometimes be quite marked is no more of a shock to anyone who is paying attention. And yet there still seems to be a thirst for the big names among shoppers. However it seems that in the new world which has been born out of the global financial crisis, the numbers of people voting with their wallets and choosing the cheaper option are increasing. Are we finally coming to terms with the idea that all those brand names amount to very little in terms of tangible quality? Or are people simply deciding to tighten their belts temporarily?

Go to any supermarket today and you will see that people are spending longer in the aisles looking for the extra few cents’ saving than ever before. These same people two years ago may well have instantly picked up the recognisable brand name and dropped it in their trolley without so much as looking. What is going on? Obviously we are in a recession, but this time it feels very different. Almost without noticing, we have suddenly become thrifty. It seems strange to say it, but it has almost become cool to be careful.

It must be said that there are some cases where compromising on quality for the sake of price is less well-advised than in others. We can all think of a few ourselves, but suffice it to say that thrifty shopping can become a false economy when we buy the cheapest line possible and end up throwing it out because it was inedible or made us need to go to the bathroom non-stop for a day. Such a strategy is almost doomed to fail and can sour a person on the whole concept of economising. However, there are cases where dropping from top-of-the-range to mid-range constitutes very little difference.

It is no myth that in blind taste tests we will often see a mid-price item out-performing its more illustrious rivals. Perhaps more often the big name will win out, but this is to be expected. After all, reputations are built over time. The better ingredients cost more, and in cases where the mid price item is more or less copied from the bigger name, they can never get it absolutely right. As a result, the consumer will often pay for the name.

If, however, you are making a concerted effort to leave aside the added expense of buying brand names all the time, it cannot have escaped your attention that sometimes the supposed “lesser brands” can be a bargain. Sometimes too, there is so little difference between the big brand and the little one in terms of taste that it is only social conditioning making us buy the big names. It may not be for everyone, but next time you are at the supermarket throwing in the brands you have always bought, why not go downmarket? You might find that sometimes the bargain buys are very much to your taste.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Aug 25, 2009.

How to Pick the Best Rewards Credit Cards in Canada

Understand Different Kinds of Credit Card Rewards

First Published Date: October 29, 2015

Long gone are those days when credit cards were a luxury, not a necessity. We live in a time now where credit cards are intertwined from waking up to going to sleep at night – at every stage of modern lives. And why not? The protection, benefits, and rewards credit cards offer you are hard to ignore. If we are to use credit cards on a daily basis anyway, why not take advantage of it by maximizing our credit card rewards?

To get the most out of your credit cards, you need to understand how different kinds of rewards work. Today, I will go over the rewards basics you need to know before making your rewards selections. One important note I would like to point out is that this article is not about How to Pick Travel Rewards Credit Cards. I will write a separate article on travel rewards cards, as you need to understand first how different kinds of rewards work before moving to picking a travel rewards credit card.

Three Types of Rewards Cards

There might be 100s of different rewards credit cards, but if you break them down into categories, all of them will fall within these three categories:

Cash-Back Rewards Credit Cards

Travel Rewards Credit Cards

Other Rewards Credit Cards

Let’s decipher these three one by one.

Cash-Back Rewards Credit Cards

As simple as it sounds, you will receive cash back for each dollar you spend on your credit card. Credit card companies will give you direct cash amount or points (that represents cash amount) for your spending. The rate of return is usually 1 to 2 percent. However, there are credit cards that offer 3 to 4 percent cash back on selected categories such as grocery, drug store purchases, etc. Example: Scotia Momentum Visa Infinite card.

Cash-Back rewards are easy to understand and unlike travel rewards cards, you don’t need to master the ins and outs of various airline or hotel loyalty programs. Pick Cash-Back rewards if you don’t travel or don’t want to deal with travel rewards. However, keep in mind that Cash-Back rewards do not offer the most value you can get out of your credit cards like travel rewards credit cards do and one type of travel rewards card does offer simple rewards that are easy to understand (and can still provide more value than cash rewards) – which I will discuss below.

Travel Rewards Credit Cards

The travel rewards category is where you can get maximum return for your dollars that you spend on credit cards, but it can be quite complicated based on what kind of travel rewards you are dealing with. Let’s talk about the simplest travel rewards cards first.

Proprietary Rewards Points – These cards offer points (that offer fixed value, usually 1 cent =1 point) which can be redeemed through the credit card company for any flights, hotels, or travel-related matters. The beauty of proprietary rewards points is that you don’t need to spend time mastering various loyalty programs. However, your returns are usually the lowest among other types of travel rewards because you are always getting a fixed value for each point. Still, proprietary rewards points are a good option for those who want to avoid cash-back rewards cards and want a simple travel rewards credit card. Example: BMO World Elite MasterCard.

Cobranded or Loyalty Program Rewards Points – Credit cards that offer these kinds of rewards points are hotel travel credit cards, airline travel credit cards, etc. These types of cards can be cobranded with specific hotels, airlines, or their loyalty or frequent-flier programs. As these cards offer a variety of programs you can pick from, this is where you can make the most money. If you are knowledgeable about the loyalty program rewards credit cards offering, your return can be easily 2-4 percent. If you are extremely knowledgeable about the loyalty program rewards points, you can make lucrative returns such 4 to 8 percent return on your credit card spending. Example: TD Aeroplan Visa Infinite Card, Starwood Preferred Guest Card.

Hybrid Rewards Points – This is a combination of the two types of travel rewards discussed above. Credit cards offering hybrid points offer tremendous flexibility because you can use these rewards points to offset your travel costs through credit card company or you can transfer your points to various other hotel or flight points if you require. So these types of credit cards can work for both novice and expert users. Keep in mind that you will get more value for your dollar when you transfer to loyalty programs, rather than using points to offset travel expenses through a credit card company. Example: American Express Gold Rewards Card.

Other Rewards Credit Cards

Coffee shop and supermarket cards, gas station and automaker cards, and any other bizarre credit cards you can possibly think of that do not fall under cash and travel category fall under the other rewards category. These credit cards are only good when you want to shop and use your rewards at specific stores or for specific reasons. The rewards are not that great and options and features are limited for these types of cards. Example: Tim Hortons Double Double Visa Card.

Conclusions

So now you know the basics of different types of rewards credit cards. I will summarize everything in brief.

Cash-Back Rewards: Easy and simple to understand, but returns may not be that great. Go with this if you don’t travel and want hassle-free rewards from credit cards.

Travel Rewards: Can be complicated, but offers excellent returns. Go with this if you travel and want to get maximum rewards out of your credit cards.

Other Rewards: If you want to stick to specific stores or products and don’t mind whatever returns you get, this is for you.

What’s Next

After reading this article, if you would like to know more on Travel Rewards Credit Cards, you can read my next article How to Pick a Travel Rewards Credit Card. I will elaborate further on how to pick travel credit cards. I am still working on this article and will provide a link once completed.

Toronto Real Estate – A World Class City Is Still Surprisingly Affordable

Real Estate in Toronto

First Published Date : April 24, 2010

In a study done in 2010 by the Economist to find the most liveable cities in the world, Toronto ranked in at number four, joining Calgary and Vancouver as the three Canadian cities in the top 10. Toronto joined places like Sidney, Australia and Vienna as places where it is great to live. However, unlike most of the cities on the list, Toronto is not far out of the reach of many individuals. Vancouver is one of the most expensive places in the world to live, but Toronto still has real estate, in prime places like downtown and North York, that is affordable. This means that you can live in a world class city, without having to go into deep debt in order to pay for your new home.

Buying a condo in New York or Paris will cost you a small fortune, but you can get the same type of condo, with an amazing view, in a world-class city like Toronto, for as much as you would pay for a home in the country. That is amazing to think about because you can live in what many consider to be the premier city of Canada (although Vancouver is close on the list) for a decent price.

As of January 2010, Toronto had an average home price of $409,000, only $18,000 more than Calgary but a whopping $229,000 below the highest priced city in Canada; Vancouver.

In terms of the entire world, Toronto has a comparable amount of services, culture and population to many of the greatest cities on the planet, but it ranks 31st in terms of the most expensive cities to live in. So, you have a city that ranks fourth in terms of being the best place on Earth to live, but 31st in terms of price. That is an amazing combination that you should take advantage of if you are going to move anywhere in Canada.

One big plus for Toronto is its surging real estate market. Toronto has out-performed nearly every Canadian city, and most of the American cities, in terms of real estate market recovery. Since April 2008, the average home sales have gone up over 100 percent a month for several months in a row. This not only shows that Toronto is a popular place to live, but that it is weathering the storm of the economic crisis that swept around the world quite nicely.

In terms of neighbourhoods, where you live will depend on how much you end up paying. The most popular neighbourhood in Toronto is Riverdale, which comes with an average home price of just $480,000, quite reasonable for where you are within the city. Riverdale is considered to be one of the trendiest and most artful neighbourhoods in all of Toronto. This just shows how you can get a home in one of the best, if not the best neighbourhood in Toronto, without having to pay more than $500,000. Riverdale itself features several art galleries, film studios and some beautiful homes that are built in the style of Georgian and Victorian architectural style.

Now, if you want to live in what may be the most beautiful part of Toronto, as well as one of the hottest areas for real estate, then you could think about The Beaches. Sitting on the shores of Lake Ontario, you get a lake view property in within the limits of Canada’s biggest city. That is pretty amazing, especially considering that the property price within this area is only around $571,921, more expensive than Riverdale but very reasonable considering the high-class style of this neighbourhood. The beaches has a very colourful history with its residents, which have included from time to time Academy-award winning director Norman Jewison, pianist Glenn Gould, Miley Cyrus, John Candy, Keanu Reeves, Kiefer and Donald Sutherland, as well as Alex Trebek. It is like living in an affordable Beverly Hills within a beautiful city.

The most expensive area of Toronto to live is Leaside, which is where many local celebrities live, and the home prices in this area fall around $650,000. That may seem expensive but it is important to remember that this high price is only slightly higher than the average price of homes in Vancouver. Try buying prime real estate in Paris, London or New York for only $650,000. You will be lucky to get a condo in a rough neighbourhood for that price anywhere but Toronto!

Toronto is a beautiful city to live in. In Toronto, what many call the Center of the Universe, you can live in a world class city for prices that you will not find anywhere. Hong Kong, Tokyo, New York, Vancouver, London, or Paris would never be affordable to the tune of $650,000 in the best neighbourhood in the city. The argument may be made that it’s cheap because it is not a good place to live, but then explain how Toronto can rank fourth in the world for the best places to live? A young family can buy a home in the best neighbourhoods of Toronto, while at the same time being in an area where there are plenty of services, cultural hotspots and more.

If you are going to buy a home in Toronto, look to some of the neighbourhoods that we have mentioned here. They are the best neighbourhoods in the city, yet highly affordable. They feature everything you could want, including some amazing people who call the neighbourhoods home. Not to mention the beautiful homes, the history and the views you get in these neighbourhoods are a bargain at the price you are paying. Anywhere else in the world and you would be paying over $1 million for the homes you get in Toronto for half of that.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the realestateexpedition.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Apr 24, 2010.

How to Pick the Best Travel Rewards Credit Cards in Canada

Choosing the Best Canadian Travel Rewards Credit Cards

First Published Date : November 5, 2015

Last week I talked about How to Pick Rewards Credit Cards. Today, I will go into further detail for those who are interested in picking travel credit cards.

Before I start, I would like to clarify that this is NOT an article about any particular travel credit cards to pick. I cannot tell you what frequent-flier credit cards, hotel credit cards, proprietary credit cards, or hybrid rewards credit cards you should be using. It’s up to you to decide what cards suit your needs and lifestyle. However, I do have resources in the A Dawn Journal credit card section that you can use to come up with the best options. And don’t just use one site or one top credit card rating article to research. Spend a good amount of time and use various sites before making your decisions.

What I am going to discuss today is what features and options you need to be aware of before committing to any travel rewards cards. It might look simple on the surface, but there many things you need to be aware of and credit card companies will not provide you this information in black and white, unless you know what to look for and how to look for it.

Travel Rewards Credit Cards for Initial Sign-Up Bonuses

When you want travel credit cards solely for the hefty initial sign-up bonuses for free flights, free hotel nights, and so on, you don’t need to worry about what features the cards are missing because it’s likely you will cancel these cards in a year before the annual fee kicks in. Don’t forget to meet all the requirements for free flights or nights; usually certain amounts have to be spent in 3 months.

Travel Rewards Credit Cards for Ongoing Benefits

If you are holding on to travel credit cards for the benefits they are providing year after year and not using them for daily transactions, you don’t need to worry about missing any features because you use these cards for only one benefit.

Example: I don’t mind keeping the Marriott Rewards Visa Card and paying the $120 annual fee (although I don’t charge anything on this) because this card gives me a free night at Marriott every year, which I value more than $120. Another example: I don’t use my WestJet World Elite MasterCard, but I don’t mind paying the $99 annual fee because it gives me a companion flight (and free checked baggage) anywhere in Canada and the US for $100 every year, which I value at about $500 to $700.

Travel Rewards Credit Cards for Daily Transactions

Regardless of what kinds of travel cards you use, make sure you are getting maximum returns on each dollar and never settle for any credit cards that only give you 1 point (1% return) per dollar. For example, some credit cards will give you 4 points (or 4% return) on grocery, gas, and pharmacy purchases, but will only give you 1 point on all other purchases, including travel. Example: Scotiabank Gold American Express Card.

So what you can do is use one credit card for grocery shopping and another credit card (that gives you more than 1 point) on everything else. Example: BMO World Elite MasterCard gives 2 points on everything. If you do not want more than one card for daily transactions, pick one card that provides 2 (or more) points for everything. So avoid any cards that offer only one point for daily uses.

Also, make sure the cards you are picking for day-to-day needs give you a hefty sign-up bonus as well.

Travel Rewards Credit Cards for Travel Purchases

You have to be extra careful when you are using credit cards to buy plane tickets or hotels, as your trip should have full insurance coverage. Here is my list of coverage that I must have for my trip and I will only use a credit card that provides all these.

– Emergency Medical Insurance

– Travel Accident Insurance

– Trip Cancellation Insurance

– Trip Interruption Insurance

– Flight Delay Insurance

– Lost Luggage

– Hotel/Motel Burglary

– Auto Rental Theft and Collision/Loss Damage Insurance

I don’t mind if I don’t have Lost Luggage and Hotel/Motel Burglary insurance, but everything else is a must for my trip.

Another thing you need to be aware of is your card’s insurance provider. Stick to a credit card where the insurance provider is a reputable one and there are not many complaints when it comes to obtaining insurance benefits. Lots of credit cards offer a full suite of insurances, but the providers make it very difficult to claim and collect benefits when the time comes to do so. I discussed more on this here.

Travel Rewards Cards that Come With Personal Assistant

Do not settle for a travel credit card that does not provide you concierge service. Visa Infinite cards come with Visa’s own concierge service. Other cards usually provide concierge service through a third party or the card company’s own concierge service team.

Concierge service is a free service that is like having your own personal assistant at your disposal 24/7. Concierge service can do basically anything you can think of that you might need help with. Some of them are:

– finding and booking air, hotel, cruise, and restaurant reservations

– finding that hard-to-find concert ticket

– research for you something you need to find out

– help you when you are lost or in trouble in a foreign country

– sending flowers to someone on your behalf

– and much more

I use concierge service vigorously. In the last 6 months I used them to make me a list of all hotels with rates facing ocean in Myrtle Beach, providing me with a report on Las Vegas (what to see + do), and I even called them when I was in Niagara Falls to find me the closest movie theatre. The point is that this is a unique feature your credit card offers and you should take advantage of it.

Currently 3 of my credit cards offer concierge services from 3 different providers. However, Visa’s concierge is very reputable and possibly the best on earth. This is simply their wide coverage across the globe and they know how to deal with a situation in any country. I would not mind paying a $120 annual fee on one credit card just to have Visa concierge, if I don’t use that card for anything else.

How About Annual Fees

If you are looking for all the benefits and features a credit card offers, the fees are indispensable. A no-fee card is not going to offer you anything we talked about so far. So the way you approach fees is that you need to make sure your benefits surpass the total of all the fees you are paying.

My total spending on fees from all credit cards comes to about $700 – $800 annually. However, my benefits exceed well beyond $800. So this $800 is not actually a spending, but it’s an investment that provides me more returns.

Last Word

Before making your selections on your travel credit cards, spend time researching all the features and benefits. It’s likely you will not find everything you need in one card. But the good thing is you can have as many cards as you like. And there is nothing wrong with paying fees on premium credit cards as long as you can justify the fees for the features, services, and benefits you are receiving from your cards.

Bonus Tip – Same banks have several travel rewards credit cards providing different types of rewards. If you are on good terms with your banks, they will gladly transfer your account from one type to another type without hesitation. This serves you both ways because you don’t need to apply for the other credit card you want from your bank (which saves you one hard credit check) and still can get the sign-up bonus. I always have had success doing this with my banks. You have a better chance if you ask your bank after 2-3 years of using one card. If you ask them every year, there is a good chance they will decline

A Record Number Of Canadians Now Own Their Own Homes

A Nation of Homeowners – Canada

First Published Date : June 23, 2009

In the middle of a worldwide recession, would it surprise you to hear that a record number of Canadians now own their own homes? It would surprise just about anyone, surely? But that is the conclusion from a report by the Bank of Nova Scotia, details of which were reported this week. The caveat to this is that the figures refer to households that owned their own home in 2006 (with the belief that the number increased yet further in 2007) and that the full figures for 2008 will not be known for a couple of years. What is indisputable, however, is that there has been a significant increase in ownership compared with the same figures a decade earlier.

The Scotiabank report states that in 2006  a record high 68.4% of Canadian households were owned by the householder, and that there was reason to believe that the percentage increased in 2007. This was in comparison with figures for 1996 that showed a total of 63.6% of householders owning their own homes. How the figures will be effected by the recession still remains to be seen, as the compilation of the figures from a wide range of sources in a wide range of different jurisdictions takes time. It may well be that there has been some fall-off in the last couple of years as people have sought to cash in the capital locked up in their house and begun renting. However, there is little likelihood that this will have taken the numbers beneath those set a decade ago.

Reasons for this rise in the figures must include the fact that “baby boomers” now make up almost the entirety of the 45-64 age group which is considered the prime house-buying section of society. With the birth numbers having been so elevated in the last 60 years, and the improvements in medical science that have been seen in the intervening period, there are now more people than ever who are ready, willing and financially able to buy a house. Aside from this, however, the numbers have increased for those in other demographics buying houses. this can be put down in large part to the desire for owning assets for the purpose of having something to subsidize a pension. People are saving for their retirement earlier and earlier these days, and using more methods than ever before.

In addition to the headline story of the report, there was also some interesting data to be found in that 9% of Canadian households now own a second property, typically used for the purposes of a holiday, compared to 7% in 1999. How this will have been affected by individuals cashing in on their properties in order to ride out the current recession remains to be seen, and certainly it is unlikely that the numbers will rise as quickly over the next few years. Nonetheless, the changing trend towards home ownership seems to suggest that those who rent their homes will stay in the minority for some time yet.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on June 23, 2009.