SMART SPENDER>TIPID TIPS

The Guerilla Guide to Cell Phone Usage

Spending too much on your phone bills? Follow these tips

By Sherwin Chan

While governments worldwide are scurrying to save their economies by spending, individuals like you and me are saving money by reducing our spending. Cutting spending – both discretionary and nondiscretionary – can be tough as this means a change in lifestyle. And there is none more difficult than modifying our mobile phone usage habits.

We send an average of 15 messages a day per person. In a month, that number sums up to 450 messages. Assuming you are using one of the two dominant providers in the country, you would have consumed your prepaid credit of 300 by the 20^th day – just on text messages. Even a postpaid plan of P500 seems inadequate when you consider that you also have to make calls from time to time.

Old numbers, new habits

It is estimated that almost half of the Philippine population already use a cell phone – prepaid or postpaid. This means that most of us are looking for ways to cut down on existing usage costs instead of looking for a new plan. The prepaid subscriber has it easier as he can just stop using his phone and save money instantly. On the other hand, the postpaid subscriber is going to be billed a monthly rate no matter what.

Apart from a monthly rate, if you’re a postpaid subscriber, you are probably still tied up with your two-year contract. You have the option to divorce, but the settlement will leave your jaw dropping. So the only choice left is to find creative ways of keeping the monthly bill at a minimum.

Here are our five guerilla tips for saving on your cell phone bills:

1. Track your calls and texts

The most obvious solution is also the most disregarded. Cell phones today can track both the total minutes of your calls and the total text messages you’ve sent. Since these features are already there, be wise enough to use them.

Moreover, make sure that you turn on the “summary after call” feature of your cell phone. Now, you don’t have to count every minute of your calls. But by being conscious about it, you’ll think twice before you make another call. When you finish a conversation, make sure that you press the end call button even if you are on the receiving end of the call.

2. Call, don’t text

While texting is still cheaper than calling, consider this scenario: ever realize how a simple question of “what you doin?” can lead to a lot of texting back and forth? If you sum it all up, you would have spent more on text than if you just called the person. Apart from that fact, there are promotional call rates out there from Globe Telecom and Sun Cellular.

Both prepaid and postpaid Globe subscribers enjoy special discounted call rates in-network. By adding one of three prefixes before your 10 digit number you can make cheaper calls Globe to Globe. With “235”, you benefit from P10 per three-minute Globe-Globe calls. With “232”, you get 10 centavos per second on Globe to Globe or Touch Mobile calls. And with “236”, you are charged P20 for 20 minutes per call between Globe to Globe or Touch Mobile.

The “235” promo will last indefinitely while the other two promos will end March 2009. To make a call using any of these prefixes assuming your Globe subscriber number is 0917-1234567, just dial – 2359171234567.

The charges applied depend on the type of postpaid plan you have. If you are a G-Plan subscriber, all your calls are charged first to your free minutes. Once your free minutes are consumed you can start enjoying these lower rates; however, they are charged on top of your fixed monthly rate. If you happen to be a G-Flex (consumable plan) subscriber, both the 232 and 235 prefixes are deducted from your bill. The 236 promo on the other hand, will be on top of your bill.

This tip is pointless for Sun subscribers as long as you and your friends are using the same network. Unfortunately, Smart’s text and call promotions are currently available only to prepaid subscribers. This brings us to our next tip.

3. Be on the same network as your friends, family and colleagues

If you happen to be out of the contract period, examine your contacts list. Among those that you frequently call, what networks do they use? Chances are you will realize that most of your friends are connected to a particular network. Maybe it’s time you switched?

You can try Smart’s Gold Lite Plan where you can get a line by just submitting a valid address-bearing ID. The benefits start when you realize that the call rate for this plan is just P2 Smart to Smart/Talk ‘n Text. The lock-in period is six months only and with a starter plan rate of P300, it is among the lowest out there. The Lite plans also come in denominations of 500, 800, 1200, 1800 and 2500. All plans do not have a free cell phone.

If you intend to get an additional plan for your family, why not look into the group plans plan offered by Smart and Sun? The Smart Trio Plan has a call rate P4 per minute for calls made among the three subscribers. With Sun Cellular, a value-minded consumer can look into their Group Plan 999. With this plan, three family members can enjoy unlimited texting and calling among themselves. Both the Smart and Sun group plans have free phones.

4. Say “no” to nonessential services and text-in promotions

Ringtones, while fancy and “cool,” costs money. Most phones today support MP3 and other music formats. These tones are readily available all over the Internet. This goes the same for wallpaper and mobile phone games if you know where to look.

Text-in promotions on the other had are very much the same as raffle promos. The odds of you winning are low. And unlike raffle promos, you are charged for sending an entry. So why bother?

5. Going abroad? Don’t bring your phone

Grab a local SIM card in your destination country. When you make calls using your Globe, Smart, or Sun phone from abroad, you will be shocked when you see your next statement. If you absolutely must bring it, use your phone to receive text messages. Your family and friends back home are only charged the regular text rate of P1 even if you are abroad.

Hopefully these tips will help you rationalize the use of your cell phone. Hard times call for tough measures. It doesn’t have to be painful though as long as you are conscious of how you use it.

SMART SPENDER>CONSUMER HELP

Damaged Goods

What to do when you open a newly purchased product that happens to be damaged or simply does not work?

By Excel V. Dyquiangco

You’ve probably experienced or heard the horror stories that come with purchasing a new gadget, appliance, or even a brand-new car. Ken Santiago (not his real name) even describes his whole incident as a “nightmare” when it took him almost a year to settle his case with the cell phone company and then with the Department of Trade and Industry (DTI).

Last 2007, he bought a cell phone worth P20,000, only to break down after awhile. He asked for a replacement and was given a different brand but it became of no use too. And then the whole “nightmare” happened when the cell phone company refused to accommodate him. When he asked the help of DTI, he was told that he can file a case but he just decided to accept the money offered by the retailer even though it was way below the price of the original phone he bought.

“The P13,000 I got, I think, is not worth it, considering the bad service I got from the seller,” Ken says. “I just had no choice but to fight for my right as a consumer.”

Ken is not alone. Some consumers right now – perhaps including you – are eager to fight for their rights, but don’t really know what to do about it. Fortunately, DTI offers some helpful tips once the product that you have bought breaks down – whether you’ve had it for a few days or years.

“When you buy a product, you immediately have the inherent remedy,” says Atty. Pedro Vicente, director in charge at the Bureau of Trade Regulation and Consumer Protection of the DTI. “That’s why we have what we call the 3R’s – refund, repair, and replace.”

According to Atty. Vicente, once your product seems to be of no use anymore, here are some things that you should do under these different scenarios:

1. Under warranty. Whether you just bought the product or you’ve had it for some time but it’s still under warranty, present the defective product immediately to the retailer – whether it’s just for a major or minor fix. The consumer has the option to have the product changed, repaired, or have the money refunded.

2. Lapsed warrant. Once the warranty has lapsed, there is no other choice. “When the consumer has had it for the longest time, he needs to pay for the repair or for other services that he wants imposed,” says Atty. Vicente.

3. No settlement. If the retailer refuses to have your product replaced or refund your money, and it’s still under warranty, you can file a complaint at DTI at tel. no. 751-3330. You can also file a complaint at the consumer welfare desks at selected establishments, such as those found in malls or small stores. According to Atty. Vicente, DTI serves as a mediator between you and the retailer. “Look at it this way – DTI acts like both a judge and a prosecutor.” Such process can take at least one month or longer, depending on the nature of the complaint. When witnesses keep on popping up, the issue might be settled a little bit longer.

For consumers within Metro Manila, you can file a complaint at either DTI’s Pasay, Quezon City, or Makati branches. For those outside Metro Manila, you can file a complaint at the regional branches.

But according to Atty. Vicente, in order not to go through all of these proceedings since it could cost you your time, resources, and efforts, the best way to protect your consumer rights is still to ensure that what you have bought is indeed of good quality. He gives you a lowdown on the things that you need to look out for:

Before purchase

• Know what you should buy. If cell phones are your thing, know its features. Do you want it to have a camera? Or do you need a cell phone with Bluetooth? The same goes with other appliances such as a television, refrigerator, or microwave oven – know their features. This way, you know that you won’t be shortchanged. “Consumers should be aware of the product features and the benefits they should gain from the product,” says Atty. Vicente. Ken adds that, “try all the features to check that everything is working right.”

• Don’t be an impulsive buyer. Never approach a store to buy a cell phone or a gadget which looks “good” and “fashionable”. Chances are, you could get frustrated or disappointed because you don’t know how to use the product. Study the material first.

• Choose where you buy your products. Always buy your products at registered stores and don’t just rely on anywhere else. This could guarantee not just the quality of your product but you can be sure of the internal remedy – the 3Rs.

When purchasing

• Examine and observe. The business name or the state of warranty should be explicitly stated and written on the packaging of the product that you plan to buy.

• Ask questions. There are products which have implied warranty, which means that the warranty is not stated in the packaging. If this is the case, talk to your retailer or seller the things that you need to know such as the warranty. Also ask hypothetical questions – what if the product you bought breaks down? Who can you approach? Be sure that your questions are answered clearly.

Upon purchase

• Always get the receipt and keep it. At least when your product breaks down, you have proof. “I have an envelope for all the receipts and warranty certificates of all the products that I purchase,” Ken says.

Ken indeed has learned a lot of things with his experience. “Whenever I buy a new gadget now, I use it for the whole week to make sure it will not give me any trouble,” he says. “I understand that I can return a defective unit within seven days upon purchase. And of course, I always ask the stores if they give assistance to their customers.”

So when it comes to buying new products, always make sure that the usefulness and benefits of the products are maximized according to what you need. Rest assured, you won’t be having any problems dealing with defects anytime soon.

SMART SPENDER>BUYER’S GUIDE

Buyer’s Guide to Air Conditioners

The hot summer’s near and it’s time to turn the A/C on. If you’re buying an air conditioner for the first time or need to replace your ancient model, here’s a checklist of what to look for

By Carlos Gonzales

Thirty four degrees Celsius is not “warm.” It’s the “Sahara Desert.” Okay, that may be a bit of an exaggeration but summer nights can be awfully hot. Electric fans just won’t do it and if you’re still keeping your decrepit 80s- or 90s-era air conditioner, you’ll wonder if it has miraculously transformed into a heater or at least a glorified blower.

The average life expectancy of an air conditioner is around 10 years, after which it starts having more problems. The longer you hold on to it, the less sense to have it fixed since repairing it may not be cost-effective and will likely not do much good in the long haul. You might as well buy a new unit that’s much more energy efficient and will last a longer time.

So whether you’re replacing a unit or buying for the first time, there are five things you should consider:

1. Type

Air conditioners come in at least four types: window, split, centralized, and portable. Your choice depends on your space requirements and budget.

Window: This is the most common type for home use, particularly for small rooms, installed through a window or a hollow area of a wall. Pros: ideal for small rooms, relatively inexpensive, and easy to install. Cons: a bit unsightly, can’t handle big spaces.

Split system: A notch above window types are split systems, which come in either as a package (no outdoor components, but take up room space) or in separate components (indoor and outdoor). They can also be wall mounted, floor mounted, or ceiling suspended. A variant is a multi split system, which is similar to a split system except one outdoor component powers multiple indoor parts, thus is able to cool the entire house instead of just one room. Pros: cools bigger space better, sleek and compact design, quieter. Cons: more expensive, require professional installation.

Central ducted: A centralized system uses an indoor unit linked to an outdoor compressor unit that pumps cool air through flexible ductwork around your house. Pros: efficient, quiet, cools entire house. Cons: most expensive type, difficult to install.

Portable: The newer portable air conditioners can be rolled around the house. Pros: portable, cheaper, consume less energy, simple to install. Cons: less powerful, can’t be a substitute for standard types.

For most homes, a window type or split system is sufficient. But if you have a big house, centralized air conditioning may be a better option. For living rooms and kitchens, a portable unit will suffice.

2. Size

The most crucial factor to consider when buying an A/C is its size, which should be based on how big your room is. If it’s too small for your room, it will not be cool enough and your air conditioner has to work harder, thus consuming more energy and jacking up your electricity bill. If it’s too large, it may cool your room fast but it will feel damp and humid since there isn’t enough time to remove moisture. There are generally three sizes for window and split type units:

Small: For rooms smaller than 25 sq.m. Horsepower: 1.0 HP or below unit. Capacity: 8,440 to 10,550 kJ/hr (kilojoules per hour).

Mid-sized: For rooms between 25 and 44 sq.m. Horsepower: 1.5 or 2.0 HP. Capacity: 12,661 to 22,156 kJ/hr.

Large: For rooms between 50 and 72 sq.m. Horsepower: 2.5 or 3.0 HP unit Capacity: 24,266 to 35,872 kJ/hr.  

For most rooms, small- and mid-sized air conditioners are enough. Aside from the room area, you should also take into account factors like ceiling height, other appliances, natural light, number of occupants, and adjust the required cooling capacity and horsepower accordingly.

3. Features

This is what sales people will highlight to differentiate their models from competitors. So what exactly should you look for?

Inverter: This automatically adjusts the fan and motor speed of the A/C to cool down rooms quickly and more efficiently as well as maintain a constant temperature, which can save on power consumption. Models with inverters are a little more expensive but they can save 30%-50% in electricity.

Energy Savers: Look for a set of operating modes that help save energy usage, such as a timer, sleep mode, energy saving mode, auto restart, and the like.

Air Direction: You’re A/C is installed usually at either side of a wall, rarely at the center, so you need to direct airflow toward one side. Look for a model that has air flow control steps, air direction control, and a remote control.

Purifiers: Newer models have the ability to filters dirt and dust particles (even germs) to purify the air in the room as well as remove odors.

Dehumidifier: Removes some the humidity in the room without having to cool the room, so this should

There are other extra features that may appeal to you. Just remember that the more functions there, the more expensive.

4. Efficiency

Don’t just look for the initial purchase price but the total cost of ownership. The critical aspect is efficiency, which affects electricity consumption. What you should look for is an Energy Star rating, expressed in EER (energy efficiency ratio), which indicates how good an air conditioner is at turning electricity into cooling. For every point difference in EER, you save 10% in electricity cost. Air conditioners manufactured after October 2000 should have at least a 9.7 EER. To get the yellow Energy Star label, the unit must have a 10.7 EER.

5. Noise

Many air conditioners are noisier than your snoring spouse, which makes sleeping a bigger challenge. So if you’re a light sleeper, look for a unit that runs quietly in the background, not blaring scandalously. Some models indicate their low and high indoor and outdoor noise levels in decibels (dB). The lower the number, the quieter it is.

[SIDEBAR]

[note: please save space for this table]

What to Buy

Carrier

Kolin

Panasonic

Kelvinator

LG

Condura

Whirlpool

GE

Haier

Kenmore

Sharp

SMART SPENDER>BEST VALUE FOR MONEY

Saving On Your Coffee

Budgeting for your caffeine intake can give you the best aroma for your finances. Find out how

By Lynda C. Corpuz

Coffee starts and ends the day for Australian and master mariner Robin Lockwood, 42 – one big mug of strong instant coffee with milk and no sugar before his shower, and another mug before he goes to work. (He can finish off a 500 gm. jar of about AU D60 in only two weeks at times). He also can have café latte (up to AUD 5 per order) with his steak and it would not give him any stomach problem. Before bed time, he can have another two mugs of his brand of coffee or pick up from Mccas (McDonalds) on his drive home and to cap his long day.

Whether it was plainly for the caffeine fix, how we like coffee varies – and at times, puts a strain on our budget.

Spending for your blend and brew

When Robin was in the Philippines, coffee was a must – and kept him company while waiting for his fiancée to arrive for their meet-ups. He would hang out at Bo’s Coffee Club in Glorietta and order, yes, a big mug of café latte, and read a book until his fiancée arrived. On occasions, he would have another round of his favorite blend with her. He has been to Kota Kinabalu, Singapore, Italy, France, the Mediterranean, Japan, America, and among other countries, and he did try those coffee offers each of those locations has. “Like how I enjoy quality, at times, pricey bottle of wine, I don’t mind spending for my coffee. I know what I want and my kind or brew, or the “proper coffee” (those offered in specialty coffee shops) versus the instant brands I like,” he says.

Ordering from a nearby coffee shop

As for the new generation of Filipino coffee lovers, it’s not just about having a caffeine fix, it is about a host of other factors that define how the coffee culture is very much a part of our daily lives.

For tax accountant Maria Cristina Salvosa, 27, a daily trip to Starbucks near her office for her favorite Chocolate Frappuccino is a planned spending. She adds, she goes to the US-coffee chain not because she has coffee as favorite, but more for convenience, as Starbucks is the most ubiquitous of them all. Despite being around in almost every corner, Starbucks gets full, so Cristina would go to either Gloria Jeans coffee (for brownies) or Coffee Bean & Tea Leaf for its tea offers. “Although I go to Starbucks everyday, I only have one round of my favorite blend. It has always been a planned spending since I have budget for that. And I spend about P700 for my coffee blend,” she cites.

Drinking for the ambiance

Brunei-based copywriter Earvin Charles Cabalquinto, 26, loves the local coffee chain Figaro, especially its SM North branch for its ambiance, and its coffee and pastries, of course. “Plus, I prefer experiencing the outdoors than the shop’s interiors,” he adds. His alternatives are Starbucks and Coffee Bean, because they are everywhere and more popular.

Boosting your day

Earvin adds he likes Oreo flavor blend because it boosts him when he is gloomy and it feels like it brings out the child in him. “Admit or not, coffee could also be a reflection of our childish cravings!” he exclaims.

Depending on the mood

Depending on his mood and availability, Earvin says he gets his caffeine fix from his favored coffee shops about a maximum of thrice a week. He admits it is a part of his impulsive purchases. “Sometimes, simply walking at the mall and seeing a group of teenagers hanging around while enjoying their coffee provokes me to buy one. Plus, the smell of the coffee makes me drool. It’s totally tempting and irresistible,” he reasons.

Satisfying crave

Donor relations specialist Anna May Patao Aldana, 32, she goes to Starbucks for Caramel Coffee Jelly or Seattle’s Best for Javakula, which she says is perfect for non-coffee addicts. She adds she goes to these shops only when she has a craving, since she doesn’t classify herself as a regular drinker. For her, going to the coffee shops are expensive. “So it should be a planned spending,” she points out.

[sidebar]

Brew Your Savings

Literally it is the latte factor – many of us dismiss that a grande café latte of P115 from Starbucks is not that much – but multiply that by five (being five working days a week, where most usually frequent these coffee chains), you spend P575 a week, P2,300 a month, and P27,600 a year – such money for specialty coffee alone. This is excluding your weekend trips to the coffee shops at that.

The following are suggestions on how to still have your coffee fix, and at the same, fix your budget:

Brew from home. Invest in a good coffee maker or an espresso machine, buy your bag of beans and have them grind (or purchase also a coffee grinder), get filters, and prepare your coffee at home. Some will argue that preparing coffee daily is more laborious than going to the store, but it is about making it a routine – setting up your coffee machine would be as easy as entering a shop, waiting in line, and having your coffee.

If you really can’t avoid going to the coffee shop, you may try the following:

Dig the perks. Most coffee shops offer rewards or gift cards that entitles you to a host of perks, like free brewed coffee refills, free add-ons like syrup for select drinks, free drink when you buy a whole bean, or free hour or so of Wi-Fi use. Some of these shops also offer online promos like free coupons, or coffee club meets and tours.

Try an alternative. If you only prefer your coffee as brewed, then it might save you buying from McCafé than Seattle’s Best. (McCafé is also now giving Starbucks a tough competition in the overseas market). Better, try the local coffee chains, like Bo’s Coffee Club, Figaro, or Coffee Dream, which also make blends comparable to those offers of foreign brands.

Share a drink. Depending on the store policy, it may be possible to request for your drink to split – say, order a venti and split in two glasses than buying two tall orders. Also, it would also be good to have a friend to share this similar drink with you – you get your coffee and you also get to enjoy it with a good company at that.

Be nice. Frequent customers like Robin, Cristina, Earvin, and May, on occasions get freebies from their favorite coffee chain. The key is to be the friendliest customer you can be. Baristas who know their customers well – from what time they come in to their regular order – not only serve them well, but also can, at times, give their loyal patrons freebies or perks and discounts.

Robin jokes, had he stayed longer in the Philippines and the Glorietta Starbucks baristas got to know him well, he would probably be having his café latte for free. “They were friendly with me right from the start, asking why I was there, and would I be regularly getting my coffee from them. I told them I was just on a visit, and still, the few times I went there, I was served all right, and chatted with often,” he cites.

Cut on your coffee trips. Better, save those trips to the coffee shops on special occasions, like meeting friends on Friday night-outs or hanging out on weekends, or a friend or relative from abroad comes home.

Truly, the coffee shops are more than just for coffee, they have become the mecca for most activities outside of home (usually after lunch or dinner, a movie, or touring the mall), and it would not hurt to spend for such deserved bonding or business-related occasions.

TABLE:

Your Coffee Shop Guide

Listed here are the coffee shops with most branches in the metro, with their coffee menu and prices. McCafé offers the lowest price for P50 for a regular espresso, while Starbucks’ lowest offer is P80 for a short brewed coffee (figure gathered as of January 15, 2009):

Peso Bond Funds Save the Day
While stock funds have been ravaged, bond funds—particularly UITFs—have proven more resilient
By Heinz Bulos

Peso bond funds are hands down the most popular types of investment funds in the Philippines. Perhaps it’s the generally more conservative nature of Filipino investors. As bond funds invest in safe government securities and fixed income securities from blue chip companies, returns are less volatile (although not totally immune to panic withdrawals and resulting plunge in net asset values, as evidenced a couple of years ago).

There are a lot more bond or fixed-income mutual funds and unit investment trust funds to choose from. As always, consider factors such as historical returns, fees, minimum initial investment, additional contributions, holding period, and management. Figures are as of February 16, 2009.
Download the complete PDF of the article:

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