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bettermoney
Buy safely online, snap up this app and
score a nice nest egg
By Scott Pape - The Barefoot Investor
O
nline shopping has
exploded in recent years.
Originally the domain of
the tech savvy, websites like eBay
have made it so easy anyone can do
it. It’s a great way to cut your costs,
sometimes by as much as 25 per cent.
The savings come from the fact that online
retailers don’t have to pay for a fancy shop or a
salesperson’s wages —
and so are able to pass on
the lower costs to you. Here are our best tips for
bagging a bargain, and avoiding being scammed.
Staying safe online
To get started, you need a bank account or a credit card,
which you can connect to a PayPal account. Using PayPal to
handle the transfer of funds between your account and the
sellers gives you an added level of security, because in the
event that your purchase never arrives, or is different to what
you paid for, PayPal can help you recover your money. It also
protects your private banking details from the vendor.
When you go to pay, with either PayPal or a credit card, check
the address bar. If it doesn’t start with ‘https’, and has a little
padlock in the address bar, it isn’t a secure site, and your banking
details will not be safe. One rule is to only shop with online
businesses that have a good reputation. If you’re purchasing from
a big company, you can be fairly confident your details are safe.
Careful clicks
Use the web to compare prices with other online vendors. A
new book at an Australian online bookstore might be cheaper
on the Amazon website - with the Aussie dollar currently high
against the US dollar, purchasing from American online stores
can get you a bargain. Just be careful of high postage costs.
Make sure you understand the returns policy, and that the
warranty is valid in Australia. Buying at online auctions can make
you ineligible for a refund, and you still have to pay postage to
return it. Finally, changes in currency values can affect the price,
making yesterday’s bargain an unpleasant surprise.
O W T O
save the price
of your mag
THIS MONTH
Here’s an iPhone application
that will have shopkeepers'
blood boiling. Just point the
(free) RedLaser app at a barcode while you’re
at the shops, and it will instantly compare prices for
the same item online, and in other stores. I managed
to find a copy of my own book for $18.75, or about
30 per cent off the regular retail price. Good for
shoppers, not so good for struggling authors!
QUIZ TIME
How many Aussies
bought
something online last year
from overseas vendors?
A.
500,000
B.
1.2 million
C. 4 million
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u p fr o n t in v e s tm e n t
With all the recent uncertainty about
investments, are you wary about tying up
your money when you don’t know if you’ll
end up with a nest egg or with nothing?
If that’s what you’re thinking, consider an
annuity. It guarantees a series of payments
in return for an upfront investment, so you
know what you’ll get and when.
Secure and flexible, with highly competitive
earning rates and no management fees,
annuities are worth investigating. They can
only be issued by life insurance companies
and are strictly controlled by the Australian
Prudential Regulation Authority.
1 7 0
BETTER HOMES AND GARDENS, APRIL 2011 bhg.com.au
Photography iStockphoto
