Highlights in this issue:

• Don’t be duped by the small print…
• Uncover the REAL cost before you’re blindsided…
  
• Do you have R179.70 to burn every month? Then why are you paying it…? and more

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From the pen of Karin Iten

Dear Investment Academy Reader,

They’re the bane of my life – just when you think you’ve found a great deal (whether it’s a plane ticket, cell phone contract or banking service), you discover the REAL cost is much, much more than you expected. Yup, you guessed it, I’m talking about those sneaky surcharges that come back to bite you when you receive a bill.

The only way to avoid them is to know they’re there. But here’s where the problem comes in: They’re always printed in the smallest font possible.

There’s nothing worse than knowing you’ve been duped. So this week, I’ll help you avoid the top six most common ones.

Bill buster #1: Always fill the tank on your rental car
Here’s something only the most seasoned traveller will know. Most car rental companies try to tack additional fees onto the vehicle if you return it to them without a full tank of petrol. And they’re likely to charge you for the full tank regardless of how much fuel is left. Even worse, most contracts state that a valet charge may be levied if the car’s returned dirty. So make sure you know exactly what’s expected of you before you hand back the keys.

Bill buster #2: When “free delivery” isn’t free
Ever ordered products on the internet only to be slammed with “delivery fees” after you’ve been promised free postage? Ten-to-one, it’s because you didn’t read the clause correctly.

Now I’m sure most of you know Kalahari.net delivers free of charge for purchases over R375. But are you aware of the fact that the package must weigh less than 10kgs to apply for this? If it weighs more, you’ll automatically be charged for the costs. For packages that weigh between 10kg and 20kg, you’ll pay an additional R65.

Bill buster #3: Short of cash – draw it at the ATM
Drawing cash at the check-out counter at your local supermarket may be convenient, but it’s by no means cheap. Did you know, that for every withdrawal you make over the counter, you’re charged R16? Plus the bank adds another 95c for every R100 you draw. This is opposed to the R3 transaction fee you’d pay at an ATM.

Bill buster #4: Pack light
Airlines are notorious for “hidden costs”. Over the past year, most domestic flights have either rolled out new baggage fees or raised existing ones. So before you pack, phone your travel agent or the airline and ask how many bags you’re allowed to take. If you’re flying with Kulula for example, you're allowed to check-in two bags, which together mustn’t weigh more than 23kg. Any excess weight will cost you R25/kg and this includes all sporting equipment other than golf clubs. And remember, there's no baggage allowance for babies under the age of two – so don’t forget to check with the airline if your child’s pram’s included in your baggage restriction or not.

Bill buster #5: Monitor your costs
Blindly paying your cell phone bill could mean you’re forking out more cash than you need to. If, for example, your cell phone package includes 200 free SMSs a month and you’re consistently exceeding that number find out how much it would cost to up your SMS limit. If you don’t, you’ll end up paying around 80c for every peak time SMS you send.

Bill buster #6: Check your new ringtone doesn’t come with a hefty price
Have you ever read the fine print on those TV ads advertising the latest Kanye West or Leona Lewis ringtone? If you have, you’ll know that not only will you pay for the ringtone you get sent, but you’ll also pay a joining fee (usually about R5) and a subscription fee. Depending on which service you’ve subscribed to, you could pay this fee monthly, weekly or even daily. Subscribers to Peach Mobile, for example, are charged R5.99 per day until you unsubscribe for the service. That’s about R179.70 a month. Of course, if you really want a particular ringtone there’s no harm in downloading it through these services, just make sure you unsubscribe once you’ve received it.

Till next week, here's to your financial freedom…

Karin Iten
For the Investment Academy

* This article was adapted from a MoneyWeek feature.