Money, Cash, Funds

Tax Withholding is Not Savings

2009-01-15T12:30:00.000-08:00

...starting Feb. 1, the state may issue IOUs as tax refunds to millions of Californians. It may also issue IOUs as payment to local governments, state vendors, judges and lawmakers and their staffers

(from The Wall Street Journal). It is best to have as little taxwithheld as possible. Put the money in an FDIC insured bank account to earn interest on the money; you must simply be sure you do not spend the money you later owe. Governments are clearly not reliable banks.

Car Rental Registration

2007-02-01T11:58:00.000-08:00

When getting a rental car, always check the car's registration sticker and make sure it will be valid for the time you'll have the car. If it is expired, you may be pulled over and/or ticketed. Major rental car companies sometimes don't automatically put the new sticker on the license plate.

Car Insurance Variance

2006-11-13T15:46:00.000-08:00

Quotes from these four major auto insurance companies varied by over 50%:

Shopping around saves.

Inflation Calculator

2006-08-20T14:32:00.000-07:00

Useful tool to determine the real value, or buying power of money (not merely its numeric, or nominal value). For example, $100 in 1995 could buy then what took $124.42 to buy in 2005. Inflation affects the value of a raise in salary, an interest rate or any money spent, borrowed, invested or earned.

Cost of Gas and Cost of Driving

2006-05-07T05:36:00.000-07:00

Average gas prices in the US have gone up almost 10% in the last month, and about 33% in the last year. The average American driver therefore will spend around $433.80 more on gas this year than last year.

An average ten mile trip today costs about $1.40 ($2.895 / 20 MPG = $0.14 per mile); a year ago it cost around $1.09. In some cities it costs more (e.g., New York ~ $1.60, Los Angeles ~ $1.70, Chicago ~ $1.50).

Drivers are expected to drive 1000 miles a month, 12K a year. This translates to ~$144.75 a month, ~$1,737.00 a year at todays prices, ~$1,303.20 one year ago. Steps to improve gas mileage include:

replace air filter
keep tires inflated properly
use correct grade of oil
don't speed
avoid idling and extra weight
use cruise control and overdrive

A new car may get 20 miles per gallon (MPG). Average price of a gallon of gas in the US: today = $2.895, one month ago = $2.640 and one year ago = $2.172 (losangelesgasprices.com).

The Cost of Investment Advice

2006-03-25T13:41:00.000-08:00

In other words, the burden of paying Helpers may cause American equity investors, overall, to earn only 80% or so of what they would earn if they just sat still and listened to no one

(from Warren Buffet via I Will Teach You To Be Rich).

Real Estate verses Stock Investing

2006-01-31T13:13:00.000-08:00

In fact, by a wide margin over time, stock prices have risen more quickly than home values, even on the East and West Coasts, where home values have appreciated most

(from The New York Times).

The Power of Compounding

2006-01-22T03:19:00.000-08:00

An animation explaining the difference between investing money now (higher yield from compounding) and waiting to invest money until later (lower compounding benefit).

Car Value, Auto Safety, Reliability, Preference

2005-11-18T16:28:00.000-08:00

Factors to consider in car buying:: a car's value; how safe the auto is; reliability; if you like the car

Cheap versus Frugal

2005-11-07T16:15:00.000-08:00

An examination of the difference between the two. For example: Cheap people think short term. Frugal people think long term.

Comparing Freight Shipping Options

2005-10-18T16:22:00.000-07:00

Moving costs can be largely shipping related. There are options for moving all of your stuff cross country (e.g., for career/job relocation, college, etc.). According to bankrate.com, a combination of the US Postal Service, Amtrak and Greyhound is likely the cheapest method.

Buying vs Leasing a Car - what saves money

2005-09-26T00:55:00.000-07:00

In fact, when you look at the average household budget, the biggest opportunity for savings is found in auto-related costs rather than food, clothing or utility bills (from edmunds.com). So saving money on your car is important. In the long term, leasing seems to be more expensive. As you pay off your car loan, you build equity; lease payments do not. To help in decision making, use bankrate.com's Buy or Lease Questionnaire.

A Truly Free Credit Report

2005-09-21T18:40:00.000-07:00

The three major credit reporting bureaus, Equifax, Experian and TransUnion, are required by the FTC to give you, at your request, a free credit report once every 12 months.