By Carlos Gonzales

It’s a good thing gas prices are going down. But don’t expect this will go on forever. World oil is notorious for drastic price changes. So develop good habits of saving on gas now.

1. Don’t be idle. A big no-no: letting the engine run, with the air conditioning on, while waiting or parked. That’s actually more wasteful than restarting the engine. So, if you have to wait more than a minute, open the car windows and turn the engine off. In the same way, make your warm-ups short. Half a minute is long enough, so drive off.

2. Don’t be fast and furious. Don’t rev up your engine, even if you think you’re Vin Diesel. And be gentle on the brake and gas pedals. Hard stops and fast starts waste fuel.

3. Gas up properly. Buy gas at cooler hours, like early morning or at night, to reduce gas evaporation. Also, avoid buying higher octane gas than necessary. And don’t overfill the tank to prevent evaporation.

4. Don’t be a drag. Take out stuff you don’t need from the backseat or trunk. Every extra 100 pounds of excess weight reduces fuel economy by 1%-2%.

5. Take care of your tires. Make sure your tires are properly inflated; otherwise it will take your engine more effort and energy to run. It’s costly too, adding six percent to fuel consumption for every pound the tire is under inflated.

6. Tune up. Get a regular tune-up as recommended by your car manufacturer. That includes changing your oil and filters regularly, to keep the engine running smoothly. Poorly tuned engines increase fuel consumption by 10%-20%.

By Gela Isidro

Some people believe that only rich people can afford to enjoy the richness of life. After all, most good things come with a hefty price tag, from fine cuisine to grand vacation trips to some remote island in the Caribbean. There are actually a number of ways to enjoy the high life without leaving you and your budget in the dumps. All it takes is a bit of ingenuity.

Vintage style Attention fashionistas! The next best thing to owning a brand-new and unquestionably expensive designer item is snagging an original in mint condition from an ukay-ukay, which has been sprouting up all over the metropolis in response to the people’s clamor for cheap, quality goods. These second-hand shops have been regarded as a true-blue shopping mecca, carrying everything from clothes and shoes to bags and accessories and, yes, even appliances. So buff up those skinny arms and be prepared to dig your way to piles and piles of second-hand clothes. Who knows? You might just snap up that authentic Prada bag you’ve been drooling over for a quarter of the original cost.

The mailing list Sign up for the mailing list of your favorite brand. Most manufacturing companies show their appreciation to their loyal clients through free product samples, discount vouchers, and limited special offers. Some may even get in touch with you to give their latest releases a test drive.

The almighty coupon Dining out can be a very expensive experience, especially if you lean towards more exotic tastes. However, some restaurants actually offer discount coupons as a marketing strategy to have a steady flow of customers. Instead of crumpling these sheets of paper, arrange them in an organizer so that you can avail of the discount when the urge to eat something different hits you.

Stock it up Unless it’s something perishable, stock up on your favorite items when they go on sale. While you may find no use for that expensive bottle of perfume or bottled olives at the moment, it still beats going out and buying it on full price.

The perfect plan Try to keep track of the best time to go shopping. Check the dailies as to when malls usually go on sale. One of the best times to go out and shop is after the holidays, as most stores have a clearance sale on items they overstocked during the holidays. A number of shopping centers also have promos linked to an upcoming. Never buy during the holidays because prices usually skyrocket during this period.

Go for charity If you are an art lover on a budget, try to scour for valuable pieces at seemingly weird art stores and junk shops. Most of these establishments get their wares from people who either have no more room in their houses for the pieces or are moving someplace else. You can never tell what you can get for a steal. If you’re on the lookout for something new and edgy (a.k.a. nouveau art), try visiting shows of up and coming artists. Their style may just address your artistic taste.

Mix and match Who says that only the rich can have smashing homes? You can too, with just a little creativity. Instead of splurging on a pricey Victorian-period chaise lounge, allocate your budget on throws, slips and quilt covers that exude a similar vibe and drape it over your well-worn couch. You can also color to jazz up a dreary room.

By Carlos Gonzales

Sure you know everything about deposits. Or do you? Here’s a short primer to get you up to speed.

What they are
They are bank products that allow you to place your money for safekeeping, pay for goods and services, and earn interest. The common types of products are:
•    Savings Account: This is where you place your money (or if you’re employed, usually where your payroll is deposited) for temporary use. It’s very liquid but it also usually pays low interest. You get a passbook or a statement of account, plus an ATM card.
•    Special Savings Account: Also referred to as premium savings account. There is a tiered structure such that you get higher interest the higher your balance. But there are withdrawal restrictions.
•    Current Account: Better known as a checking account. You get a checkbook which you used to write checks to pay for transactions. Usually you don’t earn interest.
•    Negotiable Order of Withdrawal (NOW): A checking account that earns interest, but there are restrictions to the number of checks you issue per month.
•    Time Deposit: You get a certificate as proof of ownership. It’s like a savings account except you can only withdraw the money when it matures, usually from 30 days to up to five years.
•    Certificate of Deposit (CD): It’s like a time deposit, but negotiable, meaning you can sell it in the open market.

What you earn
You earn a fixed interest on bank products, except for some checking accounts.

What they cost
•    Usually, there’s a minimum maintaining balance (called average daily balance or ADB), except for some savings accounts, below which the bank charges a fee.
•    You also pay if there’s no movement in the savings or checking account for a long time (which is labeled dormant).
•    You pay if you close the account within one month of opening it.
•    If you use the ATM, you’ll get slapped with fees for using another bank’s machine or another ATM network.
•    If you have an ATM card, but you withdraw over the counter even if the network is not down or you withdraw less than the daily maximum limit, you pay a fee.
•    And if you issue a check and there’s not enough money in your account, you’ll be charged for insufficient funds, whether or not you were able to subsequently fund it.
•    If you issue a check, then issue a stop payment order (SPO), you pay.
•    If the account has restrictions on the number of withdrawals you can make, and you exceed them, there’s a surcharge.
•    You also pay for new checkbooks and getting a print out of your statement of account.
•    Banks have devised a lot of other fees and charges other than those listed here. So check with your bank.
•    There’s a 20% withholding tax on the interest you earn, except for deposit products that have a maturity of more than five years.

What’s good
•    They’re insured by the government through the Philippine Deposit Insurance Corporation up to P250,000 per person.
•    They’re typically liquid, particularly for savings and current accounts, so if you need access to your money, this is one of the quickest ways to get it.
•    They’re useful for everyday transactions like paying for goods or for bills, without having to carry a wad of paper bills in your wallet. That’s why they’re referred to as settlement accounts. You can use a check, your ATM card (which in some banks double up as debit cards, plus you can do transactions on the machine itself), or through Internet, phone, or mobile banking.

What’s bad
•    They don’t pay well, except for some long-term special savings products and CDs (which, on the other hand, are not as liquid anymore since you have to hold them till maturity). So you can’t beat inflation. In the case of checking accounts, they don’t pay anything at all.
•    The fees and surcharges can really hurt. If you don’t balance your checkbook regularly or if you strike ATMs randomly, you’re apt to ramp up charges.

N is for negotiable, D is for deposit
That’s quite a mouthful. If you’re wondering what a long-term negotiable certificates of deposit (LTNCD) offered by a few banks is all about, breaking it down per term will help (sing along with me):
•    LT is for Long-term: In this case, we’re talking about five years and one day, making the interest income exempt from withholding tax, if it’s kept that long.
•    N is for Negotiable: That means you can sell them before the maturity date at the current market price.
•    Certificate of Deposit: Better known as a CD. It’s a bank deposit product. So it’s insured by the PDIC (up to P250,000) and it earns interest, much higher than a regular bank deposit. It is also a debt instrument offered by a bank. But CDs, as we commonly think of, are short-term and non-negotiable. This is a new animal.
So an LTNCD is like a deposit in that a bank issues it and it is covered by the PDIC. Yet, it’s also like a bond because it’s negotiable and long-term and pays interest every quarter. In other words, it’s a hybrid product. See, that wasn’t so hard.

A young family shows how to be peso-wise
By Heinz Bulos

Raising a growing family is a challenge for anyone, and many just let their finances get out of control. Not the Ramoses. Cynthia Ramos, 35, and her family are savvy consumers.

They buy non-food items in bulk to pay for today’s lower prices. And they avoid the frequent trips to the grocery, which means more gas, more merienda on the side, and more effort. They always make a list and refrain from buying things not on it. For fresh food, they buy from the wet market, where it’s often fresher and cheaper than supermarkets.

When malls hold sales at 50%-70% off on children’s clothes and shoes, Cynthia buys 3 to 5 items for each of their two children, including items a size bigger for future use. She waits for major price reductions for shoes, bags, clothes and make-up. For house decors, they frequent Tiendesitas and Kanlaon, where they hunt for bargains and at the same time support cottage industries.

They’re role models for the environment too, as they recycle whatever they can. She says, “Our helper collects bottles of suka, patis, toyo, and newspapers and magazines. The proceeds go to our helper. You help someone and you also help the environment.” They also teach their children to conserve water, even employing that Barney song to remind them (“Oh, I never let the water run”). They save on electricity, thanks to their air-conditioner with timer and free fan. They cook for more than one meal and store leftovers in the freezer, since re-heating entails less time and uses less LPG. Cynthia sometimes arranges carpools with her neighbor or sister.

They often bring the kids to the movies, but they carry their kids’ snacks and drinks instead of buying exorbitantly priced popcorn and sodas at the cinema. They also avoid Timezone when they’re with the kids as it’s practically a money trap. Rather, they create fun games at home using existing toys and computer games, even using their own point system and giving out prizes.

They also time their vacations when low-cost packages are offered. “Try the Palakbayan packages of PAL for domestic vacations. Or try the Cebu Pacific seat sales,” she points out. And when she needs a little pampering, she gets a massage at home for just P200 to P250, half or a quarter of what it would cost going to a day spa. “You can even sleep longer,” notes Cynthia. “But be sure to pick one with a good reputation.”

By Heinz Bulos

1. Lower long distance charges. When you call friends or relatives abroad, call them at night and on weekends to save on your long distance phone bill. Avoid using directory assistance; dial direct. If only call occasionally, use a prepaid overseas phone card, which has cheaper rates. Broadband service providers also offer very cheap international rates on international calls using Voice-over-IP (VoIP). Better yet, consider alternatives such as e-mail, online chats (install a web cam even), or using Skype or Yahoo Messenger With Voice.

2. Choose the right plan. Match your plan with your usage. Whether it’s your phone or Internet access, use prepaid cards or pay-per-use plans if you’re an occasional user or you’re on a budget. Otherwise, using a monthly service will be cheaper if you’re a heavy user. If you rarely use a landline or hardly make long distance calls, use a prepaid phone card. If you use your cell phone a lot for voice calls, switch to a monthly unlimited plan. If you’re not a heavy Internet user, don’t subscribe to monthly plan. Use prepaid cards, get a per-use plan, or surf at an Internet café.

3. Compare service providers. Competition in the telecommunications sector is good for you. Compare their per-minute rates, monthly plans, extra services, area coverage, and other charges. If you don’t want to be tied down by two-year post-paid subscription plans, adopt prepaid plans so you can switch anytime.

4. Downgrade your package. Switch to a lower and cheaper package for cable television or Internet service. Maybe you can live without those extra channels or extra speed. Drop extra services you might not need from your cell phone provider.

5. Think twice about bundled services. Cable companies bundle both cable TV and broadband Internet, giving you discounts on your monthly fees. You can also get VoIP phone service for cheap international calls. But consider getting these services separately. You can subscribe to cable TV separately from broadband from a DSL provider, and it could come out cheaper.