Gas Prices vs Car Prices

Although the cost of a gallon of gas has come back down, hybrid cars have been steadily improving and soon you’ll be able to buy one (Honda Insight 2010) for $19,000.  Despite the drop in oil prices I think people have realized that fuel economy is an important long term concern not only for individuals but for the country as a whole.

Hybrid Cars in the US

With Detroit lagging behind the rest of the automotive world when it comes to hybrid sedans, General Motors is pinning their hopes on the Chevy Volt, which won’t be available until sometime after 2009.  For now, the list of best hybrid cars contains mostly non-US car companies.

It will be interesting to see what role the US government plays in hybrid car adoption rates.  Obama’s focus on alternative energy and concern for the environment could result in more incentives for both consumers and auto-makers favor hybrid vehicles.

Best Hybrid Cars

A look at hybrid car reviews around the web seems to indicate that Toyota and Honda are still the top players in the hybrid card market.  Toyota has made the most popular hybrid to date, with people paying full price and waiting 6 months just to get a new Prius.  The 2009 Prius and the Toyota Camry Hybrid 2009 are getting good reviews and look to continue Toyota’s run.

The Honda Civic Hybrid 2009 is another one of the top picks and as mentioned above, Honda will be coming out with a new version of the Insight.  According to hybridcars.com:

“At $19,000, the 2010 Honda Insight will be the most affordable high-mpg vehicle on the market.”

In terms of price, the Saturn Aura Hybrid 2009 is comparable with the offerings from Honda and Toyota but the miles per gallon is nowhere near that of the Civic, Insight, Prius, or Camry.

Another car that recieved good marks is the Nissan Altima Hybrid 2009, with decent gas mileage and a reasonable price. However, it’s basically the same car as the Toyota hybrid since Nissan simply liscended Toyota’s hybrid technology, and it’s currently only available in eight states in the US.

Lexus has some good reviews as the best luxury hybrid maker with it’s 2008 Lexus LS 600h and 2007 Lexus GS 450h but the still only get just over 20 MPG and it seems the high cost of the cars would far outweigh any gas savings you’d realize from buying a hybrid.

Sources:

• US News & World Report
• CNET
• Consumer Search
• Hybrid Cars

Online savings accounts from banks like ING Direct, FNBO Direct, HSBC Advance, WT Direct, Emigrant Direct, and E*Trade Bank have become very popular due to the high yield interest rates they can pay, usually an APY that even the best banks offline can’t match.  As online banking has become widespread, more and more financial companies have begun offering online bank accounts, giving you many different options.

As you review these online savings accounts you’ll find that many of them have pretty similar features but there is usually one or two differences which can help you choose the best savings accounts for your money.

Here is a look at some of the best online savings accounts:

FNBO Direct

FNBO Direct has been known for high interest rates and good customer service. With no minimum balance, an option for online bill pay, and an ATM card to access your cash this high yield savings account is one of the best. I use FNBO Direct and would recommend it. – FNBO Direct

ING Direct

ING Direct has been around for a while and is probably the most well known online savings account.  ING is famous for offering a new customer bonus for opening an account. 

They also introduced the ING Electric Orange Checking account which typically offers a competitive interest rate for a checking account.  Before FNBO Direct came along we used to keep all of our emergency fund in this online bank account . – ING Direct

HSBC Advance

HSBC Advance also offers decent interest rates on the money you deposit into their online savings account. 

Like FNBO Direct, HSBC has no fees and no minimums on their accounts. One benefit of HSBC Advance is they allow you to link your account to multiple other banks to ease money transfers. Earlier this year, Forbes ranked HSBC highly in their annual global ranking. – HSBC Advance
 

WT Direct

WT Direct is the online bank of Wilmington Trust.  With similar features to the other online savings accounts, WT Direct often runs new customer promotions to help set itself apart. 

The latest promotion allows you to earn up to $250 in bonuses depending on your balance in your online savings account over time. – WT Direct

E*Trade Bank

E*Trade is best known for it’s online brokerage account offerings but they needed a way for customers to earn interest on the money they had sitting around, waiting to make a trade.  

The online savings account from E*Trade has historically offered a competitive interest rate and you can link your bank account with your brokerage account – E*Trade Bank

FDIC Insured

One common question I get asked is whether online savings accounts are FDIC insured.  People that use them for large amounts of cash obviously want to know if that money is protected by the FDIC.  Of course you’ll have to check when applying but as of the writing of this post, all the online savings accounts above are FDIC insured.

College Cost / Benefit Analysis

Free Money Finance has a great cost/benefit analysis for undergraduate and grad school; one of his more popular articles is how he made millions on a $5,000 investment.

His philosophy is to match the cost of the education with the earning potential upon graduation. This also ties into the degree that you choose. Many people choose degrees in subjects that interest them, but they fail to think about how to apply those degrees to a real-life career.

For example, if you spend $100,000 on a four year undergraduate degree to earn $30,000 a year. It will most likely take you 5, 10, or even 15 years to pay off your education. In comparison, if you spend $50,000 on a four year undergraduate degree to make $60,000 a year, then you’ll be able to pay back those student loans much faster.

College Cost Example

My wife is a great example of getting an education that pays off. She received her undergraduate degree in health sciences from the University of Florida and was about $9,000 in debt from it. Then, she did a two years master’s program to become a physician assistant through UF’s physician assistant program. Her starting salary was well over $70,000. She spent $40,000 to make double the investment.

Private College versus Public College

I am a strong proponent of public colleges in terms of the value of the education based on the cost. If your parents do not have a college savings fund for you, and you will be taking out student loans to pay for your undergraduate education, there is no financial reason to pay private college tuition.

In my opinion, the value of an undergraduate degrees is not based on which school it came from, it’s more about how YOU use the skills you learned while earning the degree. Graduate degrees on the other hand are a little different, prestige still seems to matter quite a bit. Here are some interesting facts taken from a salary report from payscale.com.

Dartmouth College graduates have the highest median salary in the country with a Total Cash Compensation of $134,000

Dartmouth is a private school, so they would be an exception to the rule that you may want to consider paying the high priced tuition with high earning potential.

The University of California Berkeley is the state school with the highest Median Total Cash Compensation of $112,000

Cal-Berkeley is one of the best public schools in terms of a cost/beneift approach.

Chemical Engineering is the most lucrative college major with a median Total Cash Compensation of $107,000

If you have the mind for this stuff, and it interests you, then by all means pursue it. But, don’t pick chemical engineering as your major just for the money. Engineering could be the most boring thing you ever do if you are not passionate about it.

Harvard College graduates frequently enter not for profit positions

This is an interesting one, and don’t think that working in a non-profit environment always means that you’re taking a pay cut.

Major state universities provide exceptional value, with median salaries of graduates in the top 5 in their states, just behind highly selective national universities and colleges (e.g., Rutgers in New Jersey, University of Texas, University of Washington, University of Virginia)

No surprise here. If you live in these states, and I would definitely throw Florida into the mix, consider state school first, because the education is just as good as their private schools at a much cheaper price.

Best Colleges

Here are a few lists of the best colleges from Payscale, US News, and Forbes:

• PayScale’s Best Colleges (Party schools w/high earning potential)
• US News Best Colleges for 2009
• Forbes List of Best Colleges for 2008

Affordable Colleges

Don’t take your decision for choosing a college lightly. I learned the hard way, and I chose a school that I could not afford my freshman year. I ended up coming back home a year and a half later and tons of debt. I got my act together, went the community college route, and ended up graduating from the University of Florida. 

I accumulated $18,000 of debt in the first 18 months; and then only $4,000 over the next 3 years. Don’t make the mistake of going for prestige and small classroom size if you can’t afford it.

College Finances

Attending college can certainly be one of the most life changing experiences of a young person’s life. Out on your own, it’s the first time you must depend on your personal responsibility skills.

It’s a time that can make or break your financial future so when looking for a college and choosing a college major, getting the best education possible at the best price possible should be one of your main goals.

Rating Top Cities

As you will see, each list took a different approach.  Money Magazine seemed to go for small towns that are near big cities, and Kiplinger’s went with larger cities, assuming that you would live somewhere near that big city.  So, what goes into rating a city for being the best place to live?  Here are some of the criteria the publications used to rate the cities.  

• Job Opportunities
• Strength/Weakness of the Housing Market
• Average price for a single family home
• Median salary per household
• Crime Rate
• Pollution Rate
• Education Ratings

Money Magazine Top Ten

1. Plymouth, MN
2. Fort Collins, CO
3. Naperville, IL
4. Irvine, CA
5. Franklin Township, NJ
6. Norman, OK
7. Round Rock, TX
8. Columbia/Ellicott City, MD
9. Overland Park, KS
10. Fishers, IN

I am not too familiar with any of these towns, except Fort Collins, Colorado.  I have heard that is a great city to live.  By looking at this list though, I know that many of these town are near bigger cities where jobs are plentiful and the cost of living is not outrageous, with the exception of Irvine, California. 

Norman, Oklahoma most likely made the list, because that is the home of the University of Oklahoma.  Anyone who lives in a nice college town where the town revolves around the university knows that it is a fun place to live.  The university provides a ton of jobs, there is always something to do, and the athletic events make a great weekend for families.

Kiplinger’s Magazine Top Ten

1. Houston, TX
2. Raleigh, NC
3. Omaha, NE
4. Boise, ID
5. Colorado Springs, CO
6. Austin, TX
7. Fayetteville, AR
8. Sacramento, CA
9. Des Moines, IA
10. Provo, UT
     

I am definitely more familiar with these cities, because Kiplinger’s went with rating larger cities.  Raleigh is a great town, but there are some unsavory parts to it, as there are in any big city.  What’s great about Raleigh is that you have Duke University and University of North Carolina just miles away from each other.  Plus, the health care is world class in Raleigh. 

I’ve heard great things about Austin, Boise, and Colorado Springs.  If you are in the IT field and you love to go out at night, then Austin is the place for you.  They have something going on all the time, and their IT jobs are plentiful.  

The Best Cities Near Me

CNN Money rated Coral Springs, Miramar, and Weston in the top 100 best cities to live in Florida.  Personally, I would not have picked these three town to represent Florida in the top 100. 

I was born and raised in South Florida, and all three of these towns lie in Broward and Dade counties, which are the busiest, most crime ridden counties in the state.  I would have chosen Bradenton, Gainesville, and Palm Beach Gardens over these three towns.  The most important factors for me are crime rate, job opportunities, and things to do.  I want to be safe, have plenty of options for jobs, and I don’t want to be bored where I live.  

Your Favorite City

What are you most concerned about when picking a place to live?  What do you think about these lists for best places to live?  We’d like to hear from you, and you can also brag about your town, if you want.  But, be prepared to defend it, because this tends to be a spirited debate : )