By Sheryl Smolkin

Whether you live in Saskatchewan, Alberta, Manitoba or Ontario you have either been the victim of extreme weather or know someone who has. We have experienced recent power outages in both Toronto and Muskoka.

In case you  ever lose of power for a prolonged period, keep the link to this blog by Hollie Pollard, the Common Sense Mom. She explains what to throw out after a power outage and when.

Blogger Victoria Gazely writes in Modern Homesteading about Disaster Prep and Emergency Preparedness in 7 Simple Steps. There are some great ideas that range from putting together a 72-hour kit to making sure you are equipped for medical emergencies.

Robert on Canadian Dream Free at 45 recently came back from helping with cleanup in High River, Alberta. Although at first blush so many people have lost everything, he says education/skills, work ethic and optimism are things they can take anywhere to help them build a new life.

Due to recent hail damage, Rob Engen’s car has a roadmap of new dents and dings. He explains on boomer & echo why it makes good financial sense to take a cash settlement for the damages instead of paying the deductible and getting the vehicle fixed.

And finally, the big news this week is that Kerry K. Taylor aka Squawkfox has moved from her charming rural farm to the big, bad city of Toronto. It seems there are better business opportunities for her and Carl (a computer science grad.) Kerry is looking forward to all the city stuff she wants to do with her daughter and we can look forward to a whole new series of witty blogs about frugal urban living.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere.” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

I have worked from home for over eight years – first as a magazine editor and now as a freelance workplace journalist. I certainly don’t miss the daily commute and my co-workers Simba (the cat) and Rufus (the dog) are great companions.

Telecommuting saves me time and transportation costs plus I don’t need a business wardrobe. But don’t just take my word for it.

In April 2011 the Telework Research Network in collaboration with Calgary Economic Development released a study that revealed twice weekly telecommuting could save Canadian companies, employees and the community over $53 billion dollars a year, reduce greenhouse gasses by the equivalent of taking 385 thousand cars off the roads and save approximately 390 million litres of gas

That means Canadian employers can see savings of $10,000 per two-day-a-week telecommuter annually. Employees who telework can also expect savings between $600 – $3,500 per year through reduced commuting and work-related expenses.

A 2013 BMO poll reveals that 23% of Saskatchewan employers offer telecommuting. Companies that offer telecommuting by sector are:

• 28%: Business/finance
• 14%: Manufacturing
• 14%: Retail
• 13%: Services
• 3%:  Agri-business

However, not every job lends itself to working remotely either full or part-time. For example, job tasks that that have been identified as appropriate for telecommuting include writing and editing; data entry and transcription; online research; data analysis; and inbound and outbound telephoning. A chef, waitress, construction worker or police officer certainly does not have the same latitude to work offsite.

It also takes self-discipline and commitment to work effectively from home. Many telecommuting advocates say they are more productive when they are not distracted by the hustle and bustle of an office. Nevertheless, there are definitely people for whom the negative aspects of telecommuting outweigh the advantages.

If you don’t have a separate home office where you can comfortably work away from kids, dogs and the doorbell, you may feel like you are always at work or always at home. I know I find it hard to resist checking my email at 10:30 PM when I pass my office on the way to the bedroom.

Another reason for decreased productivity at home may occur if you need the structure of the office environment to work efficiently or if an office is your major source of social interaction. Informal interactions with co-workers can also be an important source of information about the needs of your internal and external clients.

So if you think the “pros” of occasional or regular teleworking outweigh the “cons,” how can you make the business case to your boss?

1. Analyze your job: Review the components of your job on a daily or a weekly basis. Be prepared to explain how you can do research, writing and telephone work from home, but come to the office for scheduled client and internal meetings.
2. Your home office: Reassure your boss that you have a suitable, private working space with an internet hookup and telephone. More and more people are opting to get rid of their landlines, but if you will be handling a large volume of local and long distance customer service calls, a landline with a headset may still be preferable.
3. Technology: Most companies now allow employees to dial into the office network and/or their own desktop machine so they can work seamlessly, regardless of where they are on any particular day. Nevertheless, check with your IT department to find out if they can recommend solutions for backing up your computer and any potential security issues.
4. Stay in touch: Teleconferences, Skype and live chats with your group are all ways to stay in touch, even when informal meetings are scheduled on days when you are working from home.
5. Performance measures: Make sure out of sight is not out of mind. Clearly establish with your supervisor how your performance will be evaluated. Performance measures should be based not solely on input (the number of hours you work) but on output (work done, projects completed and contributions to the organization’s goals and objectives).
6. Pilot project: Set some goals, try out the proposed arrangement for a few months and then reassess. This will ensure both you and the company have an exit strategy if telecommuting turns out to be a less than optimum arrangement.

Do you have tips for telecommuters or teleworkers? Share your tips with us at http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card. And remember to put a dollar in the retirement savings jar every time you use one of our money-saving ideas.

If you would like to send us other money saving ideas, here are the themes for the next three weeks:

1-Aug	Vacation	Staycation ideas that can save you money
8-Aug	Garage sales	How to make money on your garage sale
15-Aug	Back to school	Back to school shopping: A teachable moment

SPP posted a return of -1.13 to the balanced fund (BF) and 0.05 to the short-term fund (STF). The year to date return in the BF is 5.38% and in the STF is 0.27%.

Market index returns for June 2013 were:

Index	Jun 2013 return (%)
S&P/TSX Composite (Canadian equities)	-3.76
S&P 500 (C$) (US equities)	0.70
MSCI EAFE (C$) (Non-north American equities)	-1.56
DEX Universe Bond (Canadian bonds)	-2.03
DEX 91 day T-bill	0.08

Click here for a complete list of returns.

By Sheryl Smolkin

In this week’s Best from the Blogosphere, we highlight blogs and blog posts that can help you plan frugal vacations.

On Boomer & Echo, read money saving tips from a budget savvy traveler. For example, take a look at Skyscanner.ca when searching for cheap flights between cities.  They list all carriers including budget airlines which normally don’t show up on sites such as Expedia and Kayak.

In an archived blog on Frugal Wanderer, Krystal Yee reviews AirBnB, a peer-to-peer website for people to list, discover, and book unique accommodation around the world at any price point. From a spare room in someone’s house to a oceanside villa, she says there is something for everyone and there are listings in more than 19,000 cities and 192 different countries.

Perhaps you have been contemplating buying a summer cottage. Retire happy blogger Jim Yee says buying vacation property is something that should be well thought out because of the financial impact it can have on your retirement planning. Do the math and consider how much time you will actually spend there.

Spending money you don’t have on even a frugal vacation can blow your annual budget. That’s why Gail Vaz Oxlade says if you’re worried about how much your summer trip is going to cost, you probably shouldn’t take it. Instead, consider a staycation.

Finally, if you think following your travel dreams is impossible, then Myscha Theriault  says you haven’t checked out these eleven Canadian bloggers. They’ve travelled the country, and the world. What’s more, they’ve chronicled all of it for your inspiration.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

There are many excellent articles about the pros and cons of mortgage insurance vs. term life insurance. But every year a new crop of first-time buyers begins their search for a perfect new home, so it seems like a subject worth revisiting.

The purpose of mortgage insurance (also known as mortgage life insurance or creditor insurance) is to pay off the mortgage when you die so your spouse and dependents are mortgage-free and have one less major expense to worry about. If both you and your spouse are working and want to protect each other, both of you need to be insured.

The first major advantage of term life insurance is that it is much less expensive than mortgage insurance.

I obtained quotes on the Cowan Financial Solutions website for standard non-smoker term life insurance for both a man and a woman aged 36 for $400,000 of life insurance for a term of 25 years. The lowest annual quotes were $556 for the man (Assumption Life) and $420 for the woman (Foresters Life), or $976 in total for both. Of course, if you plan to pay your mortgage off more quickly, you can request quotes for a shorter term.

I compared this quote to mortgage insurance information on the TD Canada Trust website. Mortgage insurance premiums are calculated based on your age and the value of your mortgage. There is no discount for non-smokers or women. With a monthly premium of 21 cents per $1,000 for each borrower 36-40 years old, the annual bill for both spouses would be $1,512 (including a 25 per cent discount for two or more borrowers).

But the cost differential is only the tip of the iceberg. After viewing a YouTube video in which Cowan Financial Solutions advisor Rita Harris explains some of the other reasons why term life insurance is a better deal than mortgage protection offered by the banks, I gave her a call to get some additional details.

Here’s what she said:

Protection: When you die, your mortgage insurance is payable directly to the bank. Term life insurance protects more than just your mortgage. Your spouse (or other beneficiary) can use the money as is most appropriate in the circumstances.

Premium Guarantee: The term life insurance premiums and benefits are guaranteed for the life of the policy. Your coverage amount is constant but can be reduced at your request. Premium levels for mortgage insurance can be unilaterally changed by carrier. As your mortgage reduces your coverage goes down but your premiums do not.

Portability: If you take your mortgage to another company, you may lose your existing mortgage insurance and have to re-qualify for new mortgage insurance coverage. In contrast, individual term life insurance is fully portable even if you move your mortgage.

Repayment: You lose all your mortgage insurance coverage when your mortgage is re-paid, assumed or in default. As long as your term life insurance premiums are paid, you can convert your insurance to a permanent plan.

Underwriting: If you buy term life insurance, the insurance company will assess the risk and establish the premiums based on your health at the time the policy is purchased. In the absence of any fraudulent activity, you know your claim will be paid out when needed in accordance with the terms of your contract. Mortgage insurance is subject to post-claim underwriting, which means technically you could be declared uninsurable when you submit a claim.

Moneyville blogger Ellen Roseman’s story about the Feldmans is only one example of a case where a bank initially denied coverage after the fact for medical reasons. CBC marketplace also did a brilliant report called The Mortgage Insurance Game.

So caveat emptor! Remember, mortgage insurance is sold by bank employees who may not be trained to explain the legal intricacies of those insurance products. You could pay premiums and think you are covered, only to realize later you are not.

Do you have tips for people shopping for life insurance in order to protect their mortgages? Share your tips with us at http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card. And remember to put a dollar in the retirement savings jar every time you use one of our money-saving ideas.

If you would like to send us other money saving ideas, here are the themes for the next three weeks:

25-Jul	Telecommuting	Jobs where you can work from home
1-Aug	Vacation	Staycation ideas that can save you money
8-Aug	Garage sales	How to make money on your garage sale

By Sheryl Smolkin

This week’s “Best from the Blogosphere” has financial tips of interest to both young and older readers.

On Boomer and Echo, Robb Engen does some financial dreaming about how to be financially free by age 40. He acknowledges it’s a stretch and life may get in the way, but says doing the calculations has given him the inspiration to try and attain this goal.

Retire Happy blogger Jim Yih explores the withholding tax you can expect to pay when you withdraw money from your RRSPs and RRIFs. He says it may not always be in your best interest to withdraw small amounts instead of a larger lump sum to minimize withholding tax. That’s because you must pay income tax on your full earnings so you may have to pay more when you file your income tax return.

Actuary Promod Sharma questions on Riscario Insider how Mike Holmes would fix the financial sector. He says Mike’s prescription for home renovation which is get educated; get an independent inspection; and get things fixed can apply equally to your retirement savings portfolio.

Meanwhile, if paying for an expensive college education is in you or your child’s future, you may be intrigued by Oregon’s “Pay it Forward, Pay it Back” pilot tuition plan. Students will be allowed to go to a public university or community college tuition-free, in exchange for a binding contract that they will pay a small, fixed percentage of their annual gross income for 20 years after they graduate.

But on Give me back my five bucks, blogger Krystal Yee says the proposal is just another student loan plan which may cost way more than the degree would cost if you finance it over a shorter period.

And finally, if you are still looking for a summer job or a recent graduate looking for a career position, take a look at a classic blog from the Squawkfox archives. Kerry K. Taylor says on the road to making it as a heavenly musician, artist, writer, or whatever, sometimes you have to stop being so fussy and take that horrible job to pay the bills.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

I’ve read so many horror stories about people losing their life savings because they became seriously ill when travelling in the U.S. that I’ve become a bit paranoid about having enough travel insurance.

That’s probably why for many years we have purchased an annual travel policy in addition to coverage available from both of our employers and our credit card company. I figure that if something happens, one or more of the companies will make us whole.

But like many other people, I really never thought about needing travel insurance for trips to other Canadian provinces. A 2012 survey by TD Insurance revealed that 29 per cent of Canadians believe they only need travel insurance if they travel internationally and 35 per cent admit they have travelled out of their home province without it.

However, when I talked to TD Insurance VP Dave Minor, he reminded me that existing provincial plans do not necessarily cover all expenses that may be incurred if a medical emergency occurs in another part of the country.

For example, if you have an accident water skiing in B.C. and you must be transported by air ambulance back to Saskatchewan, your Saskatchewan Medical Care Insurance Plan will not foot the bill. Similarly, if you have a serious heart attack in Halifax when you are travelling alone, flying a family member out to be with you would normally be an out-of-pocket expense.

Because an accident or illness can happen anytime, Minor says travel insurance is also important even if you only cross-border shop in the U.S. a couple of times a year. “For people who travel across the border on a regular basis, we recommend an annual plan. When you look at the per trip cost vs an annual policy, it will pay for itself after three or four trips.”

You can compare prices and features of available travel insurance coverage from a number of carriers here. However, the cheapest policy will not always deliver the best value.

For many years we have purchased the annual TD Meloche Monnex Wide Horizons policy which is available to members of professional and alumni associations. For $187.77/year (at age 63) we are covered for unlimited trips of up to 30 days outside our home province plus hospital and medical expenses up to $5 million. The cost of the policy increases with age and customers over 85 pay $2473.54/year for the same coverage.

If you have any medical conditions or you are on medication when you apply for travel insurance it is very important to fully disclose this information and discuss it with your carrier so you understand whether any potential medical expenses for pre-existing conditions are excluded.

Also, if your vacation plans include engaging in risky activities like para-sailing, bungee jumping, mountain climbing or other extreme sports, be sure to clarify whether or not the policy will pay if you have an accident in these circumstances.

Here are some questions you should ask when you are purchasing travel insurance.

1. What is the maximum each policy will pay above provincial medical insurance limits?
2. Is there an age limit or medical criteria for who can apply?
3. Does age affect the kind of coverage I can expect?
4. How does the policy define a pre-existing condition?
5. Will a pre-existing condition of mine affect my coverage?
6. Are there any medical exclusions that apply to me?
7. Will I have to pay a deductible? If so, how much?
8. Does the policy contain a co-payment clause? What percentage of medical expenses will I have to pay?
9. Will the insurance company pay the hospital or physician directly? Or will I have to pay the full amount myself, and then be reimbursed later by the company?

I also particularly like this Tip Sheet from CBC Marketplace called “What you need to know about (the tricky world of) travel health insurance”

Do you have tips for people shopping for travel insurance? Share your tips with us at http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card. And remember to put a dollar in the retirement savings jar every time you use one of our money-saving ideas.

If you would like to send us other money saving ideas, here are the themes for the next three weeks:

18-Jul	Buying a home	Mortgage insurance vs life insurance
25-Jul	Telecommuting	Jobs where you can work from home
1-Aug	Vacation	Staycation ideas that can save you money

SPP posted a return of 1.17 to the balanced fund (BF) and 0.06 to the short-term fund (STF). The year to date return in the BF is 6.59% and in the STF is 0.22%.

Market index returns for May 2013 were:

Index	May 2013 return (%)
S&P/TSX Composite (Canadian equities)	1.77
S&P 500 (C$) (US equities)	5.16
MSCI EAFE (C$) (Non-north American equities)	0.27
DEX Universe Bond (Canadian bonds)	-1.46
DEX 91 day T-bill	0.08

Click here for a complete list of returns.

By Sheryl Smolkin

This week we have a mixed bag of articles and blogs that will help you save more and spend less.

First of all, if you shop online (and who doesn’t), check out RetailMeNot’s new, dedicated Canadian site. Coupon codes from well-known retailers like Aeropostale, Banana Republic, J.Crew, Lowe’s, Roots, Sears and Starbucks can save you a bundle.

In Press Zero: How to get great customer service without losing it , Squawkfox aka Kerry K. Taylor reports that it took her less than ten minutes to cancel her home phone. During this time she spoke with two Telus customer service guys, shared a few laughs, got offered a 40% discount, and hung up victorious without having to wait the required full 30 days to be free of her phone bill.

If you’re willing to plan ahead and step outside your usual routine, you can take that trip of a lifetime and still manage to hold onto a good portion of your money. Dave Bouskill and Debra Corbeil from The Planet D give valuable tips in Summer travel on a budget on brighterlife.ca.

Are you heading off to university for the first time this fall? Don’t forget hidden costs like moving expenses, apartment insurance, laundry costs and stocking the kitchen with basic staples you may take for granted at home. Also check out the book  More money for beer and textbooks.

And finally, on Len Penzo dot com, offbeat personal finance blogger Len Penzo explains why he runs his household like a business (and why you should too) including a humorous but practical organizational chart which splits responsibilities between himself (the CEO) and his wife (the CFO).

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

Even with the sky high price of gas, there are plenty of great reasons to take a road trip with your family. First of all, convenient trains or planes that go directly to your destination may be unavailable. Furthermore, if all you ever do is hop from city to city by air, you miss all the great people and places in between.

But a long car trip can be stressful particularly if you are travelling with young children. Here are some ideas to help you make sure your road trip is an economical vacation to remember, for all the right reasons.

Budget

Make a realistic budget for food, gas, accommodation and entertainment and stick to it. That way the afterglow from your family vacation will not be dimmed by unexpected credit card bills when you get home. 

Your car

Have your car fully checked and serviced before you leave. If you don’t already have Canadian Automobile Association (CAA) or some other form of roadside assistance, now is the time to sign up. Consider the more expensive package that will pay for your car to be towed for a longer distance in case you have a breakdown in the middle of nowhere.

Maps

Get maps and plot out your route. A GPS is useful, but there is nothing like a hard copy where you can see the whole route at the same time. The CAA sells maps and guidebooks. They will also create a TripTik® for you or you can create your own TripTik® travel planner online.

Food

The selection of food at highway stops is limited and expensive. Bring a cooler and pack a picnic and healthy snacks for the road. Most hotels or motels will freeze your ice packs and you can refill the cooler at local grocery stores before you head out each day. Of course ice cream at local dairy bars is a mandatory summer treat.

Packing

Packing a car with car seats, clothes, toys, food and sports equipment for a whole family can be a challenge. Do a dry run before the morning you are leaving to get a realistic idea of what will fit. Then take half out. You may also decide a car roof box is necessary to fit in all the essentials.

Accommodation

Trailer and tent camping can be cost effective accommodation for families. However, if you are not the outdoors type there are hotels and motels to suit every budget. Make a realistic estimate of how far you can safely and sanely drive each day and pre-book. A service like priceline.com allows you to bid on discount hotel rooms and pay for them in advance.

Entertainment

Summer is festival season in Canada. Inexpensive or free concerts under the stars are a treat for the whole family. Coupon books offering discounts for local amusement parks historical sites and sports events can be purchased for many Canadian and U.S. cities. Research local events on the internet before you leave, and where possible plan your stops around the things you want to see and do.

Technology

Bring a car charger for your cell phone and keep your phone, tablet computers etc. fully charged. Be aware that cell phone charges can quickly mount up when you are travelling, particularly if you leave Canada and roaming charges kick in. Use Skype on your cell phone or a computer to avoid expensive long distance calls.

Cross-border

Each member of your family needs a passport to travel to the U.S. If you cross at a busy crossing frequently it may be worth getting a Nexus pass to avoid line ups. Check out what you can bring back duty free, depending on the length of your stay.

Drive safely

Follow the rules of the road. Don’t drink and drive. If you are tired find a place to spend the night, even if it is earlier than your anticipated stop. Avoid picking up strangers or hitchhikers. It is dangerous and can put your family at risk.

Do you have ideas about how to have a successful road trip on a budget? Share your tips with us at http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card. And remember to put a dollar in the retirement savings jar every time you use one of our money-saving ideas.

If you would like to send us other money saving ideas, here are the themes for the next three weeks:

11-Jul	Travel insurance	What you need to know about travel insurance
18-Jul	Buying a home	Mortgage insurance vs life insurance
25-Jul	Telecommuting	Jobs where you can work from home