Tuesday, November 15, 2016

The $76,627 Gratuity: Young Canadians Tipping Away Their Financial Futures



With the holiday season now underway, the perennial tipping stories are soon to surface, advising Canadians on what is an appropriate holiday tip for their trainers, hairdressers, dog walkers, Baristas and any other service provider they may have interacted with throughout the year. While such stories are typically viewed through the lens of the person expecting the tip, the people at Lendful Financial believe it’s time to dramatically change the conversation.

The online lending platform crunched the numbers and found that the average single Canadian in their late 20’s to early 30’s spends up to an incredible $2,500 annually on tipping, or $76,627* throughout their adult lives. This at a time  when that the average wage for Canadian employees is $943 a week – or just over $49,000 a year (After-tax, a little shy of $41,000 per annum, $3,400 per month.) And with many younger Canadians un- or underemployed, the after-tax income is even greater.

“A gratuity is supposed to be a gift on top of the bill, but really what it has become is an extra tax on the service received, and one that continues to rise disproportionately to inflation,” said Alex Benjamin, co-founder and CEO of Lendful. “Tipping norms in Canada have gone from a generous 10 to 15 percent to now 18, and even 20 percent in many markets, and in the process, the custom is starting to have a substantial big impact on the financial futures of Canadians.”

To further illustrate the point, Lendful commissioned an online survey to gauge the tipping habits of Canadians. The poll found that over a quarter of respondents (26%) who earn less than $20,000 regularly tip between 15 and 20 percent. One sixth of respondents (15.5%) regularly tip 20%, regardless of income.

Men also tend to tip more than women, with 54% of male respondents regularly tipping 15%, versus 42% of women.

At the other end of the spectrum,15% of respondents tip less than 10%, while 11% admit to not tipping at all.

Benjamin is not suggesting that eliminating tipping is the answer; rather, he recommends being mindful of the amount, and being cognizant that a 20 percent tip to a service provider can contribute to significant debt over time for the customer. 

“For many, it’s not only the regular large tipping that’s setting people back, it’s also the fact that people are tipping on credit cards that they can’t pay-off each month. So it has a real compounding impact long-term too that isn’t being factored into people’s tipping mindset.”



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A week in the life of your average millennial

Event
Meal cost
Tip 15%
Per week
Total weekly tip
Comments
Daily coffee
$3.50
$0.525
7
$3.67

Lunch out
$15
$2.25
5
$11.25

Dinners out
$30
$4.50
3
$13.50

Friday night drinks
$30
$4.50
1
$4.50

Weekend b/fast
$24
$3.60
2
$7.20

Weekend dinner
$60
$9.00
1
$9.00

Total weekly



$49.12

Total daily



$7.01

Annualized



$2,554

Over 30 years



$76,627
After-tax $’s

  

  
About Lendful

Bank on a better borrowing experience with Lendful, which offers Canadians quick and easy access to loans at interest rates that can save them up to 30 per cent when refinancing. Lendful offers three- and five-year fixed-term loans to credit-worthy borrowers with a credit score of 650 and over. More importantly, we give Canadians an alternative to outdated borrowing systems that are complicated and expensive. We want to offer customers the means and the time to build their lives, not the banks’ bottom lines. For more information please visit Lendful.ca


Review: Roadmaster Motorhome Spare Tire Carrier

Review by: Gerry

For those who choose to carry spare tires on their RV's, (Class A), Roadmaster has the answer with their hitch mounted spare tire carrier.


I was interested in checking out a spare tire carrier for the motor home because our motor home did not have a suitable location to carry a RV sized tire. But as well having to do change a flat would have meant the inconvenience of crawling under the RV to get at the tire.With the Roadmaster carrier, the tire remains fully accessible at all times to check air pressures as well as to do a quick release in case of an emergency.



The carrier allows for tow bars to used and comes with an integrated safety cable tab.



Assembly took me 15 minutes. While mounting of the spare tire took 10 minutes.





With the position of the tire mounted on the carrier, lights and ladder are not affected.



In closing I would like to highly recommend this product to anyone that is looking for a simplier way to access their spare tire.


See how your tire can go from blah to wow with a Roadmaster spare tire cover!
You can't imagine how wow this marine grade vinyl cover is.. perfect in fit, style and just a more finished look for the back of your RV:







Super Secrets: Saving Money With Online Coupons

There was a time when saving money with online coupons was seen as nothing but a bizarre craze. Now, it’s very easy to dramatically alter your personal finances with online coupons. You can find ways of saving money on everything, from insurance policies to new bits of furniture. As Black Friday and Christmas approach, you’re going to need these secrets more than ever.

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Go Beyond Google

When people look for online coupons, they often go to Google and type in the coupon they want. That’s OK, and it might bring you success to a certain degree. However, there’s much more you could be doing to find the best deals. Firstly, find more tips articles here at One Income Dollar and at websites like The Fortunate Investor. They’re dotted all over the web, and crucially, they’ll give you hints about where to find the best deals. Also, don’t forget about social media, where you’ll find groups dedicated to this activity.

Timing Is Everything

Coupons rarely stick around for that long. If they do, it’s normally because the deal is nothing special. If you want to find the real exclusives that offer considerable discounts, you want to make sure you get the timing right. Normally, coupons are refreshed early in the month or late in the month depending on the company involved. If you didn’t have any luck this week, don’t forget to check next week.

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Use Them As Leverage

Coupons can sometimes be used as leverage with other companies. Businesses that don’t want to lose your custom will often resort to price-matching tactics to get the sale. Coupons can regularly be used to help you save a lot of money on products. So, even if you don’t end up using the coupon itself, you can still benefit from it.

Stacking

It’s really tempting to use a coupon immediately when you discover it. In many cases, you’ll need to, as they expire quickly. However, if you’ve got the ability to stack those coupons for later use, make sure you do so. This tactic will help to save even more money on a purchase you want to make down the road. However, don’t forget to check the small print for any terms and conditions surrounding stacking. It has long been a popular tactic, and this means some companies have clamped down on it.

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Please Don’t Go!!!

Sometimes, a company is so desperate not to lose your custom that they’ll offer you online coupons as a way of encouraging you to stay. That’s great, but you can’t bank on them doing that in every scenario. You don’t want to leave a company you were happy with for the purpose of a discount, only to find you don’t get it! This is where searching online can help to determine what tactics companies traditionally use. You might just come across a bit of info that will save you big money.

Saving money with online coupons requires a strategic mindset to get the most out of it. Equip yourself with the right strategies, and you’ll definitely succeed.