Why You Shouldn’t Buy a Hummer

“What do you need that thing for”, I ask myself every time I see another Hummer driving through the neighborhood. Out here in suburbia I just don’t understand why in the world people would own such a money pit just to drive around town.

I searched online and found that Jim Walczak over at about.com wrote an article “Should You Buy A Hummer?” that covers the pros and cons of owning a Hummer. He sums it up

“the Hummer is a symbol more than anything. It’s all about image and attitude. It’s purchased more for looks and brawn than practicality and purpose. So, if you’re looking for another way to get noticed…the Hummer could be just what you’ve been waiting for.”

Below are some of the negatives that he lists about owning a Hummer:

• Insurance is higher than most vehicles.
• Gas mileage is poor (roughly 12mpg), especially when used as a daily driver.
• Maintenance costs are high.
• Resale value isn’t very high.
• Expensive to buy, and even more to keep.

In my opinion, owning a Hummer is obviously not a wise move financially. I guess I’ll never understand why people choose to buy one, the only thing I can say is don’t do it!

One thing to note, his article covers the H1 and H2 models, not the newer, smaller H3 that costs less and has better gas mileage. It doesn’t matter to me, H1 or H5, you’re not being smart with your money if you buy a Hummer! I guess if you have no debt, an emergency fund, and fully funded retirement accounts then you can spend your “play money” on a Hummer; but people who have 30K of play money laying around probably aren’t reading this article.

In summary, Just say no to Hummers!

Written by Ben · Filed Under Personal Finance >Comments (2) 

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eBay Powerseller Personal Finance Tips – Turn Trash Into Cash

Many of us are feeling the financial pinch the few days after Christmas. The presents have been given and now we have to figure out how to pay for them all! One way to help make the payments is to turn trash into cash!

Thinking Inside the Box
What is one thing most Christmas gifts have in common? Almost all come wrapped in a box! Almost everything I sell on eBay has to be shipped somewhere, which means I’m always in need of boxes.

The first three things I sold on eBay actually lost me money due to the expense of buying boxes, packing peanuts, and bubble wrap. I quickly learned to factor the cost of shipping materials into the total price. Then last Christmas, as I watched nieces and nephews tear through box after box of gifts, I realized that I shouldn’t be spending money on packaging materials, they were all around me for free!

Turning Trash into Cash
Anytime I come across any already used packaging materials I store them on shelves or bins in my garage. I’ve spread the word to family and friends so now they collect their empty boxes, extra packing peanuts, etc. for me as well. Since I don’t have to buy the materials I can charge lower fees and still end up making a few extra bucks on each sale for shipping. I figure over the last year I’ve probably made $800-$1000 just by turning trash into cash!

Personal Finance Tips
There is “trash” all around us that can, with a little effort, be turned into cash. Anyone can do it but most people don’t take the time.

Printer Cartridges
freerecycling.com

Cell phones
TradeMyPhone.com or CellForCash.com

Furniture
Buying new furniture but don’t have a truck to take it to Goodwill? Instead of paying to have it hauled away, sell it locally on craigslist.com.

Donate Items
Donating items such as used computers or clothing won’t put any cash in your pocket right away but the tax deduction at the end of the year can help.

Friends & Family Plan
Use the network effect to help you turn other people’s trash into cash. Let friends, family, and co-workers know you’re always looking for empty printer cartridges, old cell phones, or whatever “trash” you can turn into cash. Over time the word will spread and “trash” will start to trickle in.

eBay Tips
Another way to turn trash into cash is to sell your used items on eBay. If you go that route, make sure you save all the sturdy boxes you opened over Christmas to cut down on your shipping costs!

Written by Ben · Filed Under eBay >Comments (8) 

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Avoid Late Fees! Pay Your Personal Property Tax Online.

As usual, I’ve managed to put off paying my personal property taxes for 2006 until the very end. Lucky for me my county now allows procrastinators like me to pay their personal property taxes online up until 12/30!

Keep Your Money
Putting off payment has not been all about procrastination, I’d like to keep my money earning interest as long as possible before giving it to the government. I received my tax bill in November. Waiting until the end of December to pay it probaby earned me an extra $4-5, not a lot but little things can add up!

Making the Payment
The county website has two options, pay with eCheck or with credit card. I ruled out credit card right away because they charge a 13% conveinence fee. In order to pay by eCheck you need your bank account number and bank routing number.

I setup a separate bank account a few years back that I use only for making electronic payments to the government. Any tax bills I pay electronically come out of that account so Uncle Sam won’t ever be able to “accidentally” withdraw money from my main checking account.

Don’t Be Late!
The county charges a late fee of 3.5% if the payment is a day late, then 1.5% late fee per month after that. My total taxes due are about the amount I’ll contribute to my IRA in January. So even if my IRA holdings increase by 8% in January, overlooking my bill and making a late payment would effectively cut that return down to 4.5%! I definitely don’t want to miss the payment, make sure you don’t either!

Written by Ben · Filed Under Taxes >Comments (2) 

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Festival of Frugality #54

Welcome to one of the most happening festivals around! Internet Explorer users please excuse the mess as the uplanned hosting caught me in the middle of a theme upgrade. I didn’t have time to do each submission justice with a comprehensive review so all I can say is, get ready to meet some frugal people! Without further ado, I give you all the festival!

David presents How a $3.85 drink at Starbucks affects your bottom line. posted at My Two Dollars.

Alison presents Why I Have a Fake Christmas Tree posted at Bargain Quest.

TMT presents I Was Rejected By Lowe’s Home Improvement posted at The Money Tortoise.

Super Saver presents Do It Yourself and Save Money posted at My Wealth Builder.

FMF presents Save Money on Prescription Drugs by Getting Free Samples posted at Free Money Finance.

Steve Faber presents How to Put an Extra $100,000 in Your Bank Account posted at Debt Free.

FIRE Finance presents Frugal Tip – Wink, Flash And Get 50 Free Digital Prints This Christmas! posted at FIREFinance.

Moneywalks presents Problem with people who ?wants? to save posted at Money Walks.

Silicon Valley Blogger presents There’s Treasure In My Trash posted at The Digerati Life.

Joe Caterisano presents Debt solution posted at Penny Pinching.

Nina presents LED Holiday Lights: Eco-Friendly & Reduces Your Electric Bill posted at Queercents.

Sagar Satapathy of BizNicheMedia presents Tips To Reduce Debt & Stay Out Of Bankruptcy posted at Bankruptcy Reader.

Stingy Student presents Dell coupon posted at Stingy Students.

jim presents Always Rent Economy Cars and Avoid Airports posted at Blueprint for Financial Prosperity.

makingourway presents SHOPPING: a neat little gift posted at makingourway.

Lisa Knight presents Dust covers for new fangled sweepers. posted at The Frugal Momma.

Matthew Paulson presents Of Diets and Dollars posted at Getting Green.

Hope you’re feeling more frugal than ever after all those great tips. Have a Happy New Year, now go out and be frugal!

Written by Ben · Filed Under Finance Friends >Comments (6) 

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Quick Guide for Last Minute Tax Strategies – It’s Not Too Late!

Back in November I wrote an article A Quick Guide for Last Minute Tax Strategies covering some things you could do to reduce your 2006 taxes, courtesy of H&R Block. If you have a tendency to procrastinate like I do you may not have gotten around to these yet. The good news is it’s not too late! If any of the areas below might apply to you then check out the strategies and act before the end of the year:

• Retirement Contributions
• Charitable Giving
• Energy Efficient Home Purchases
• Education Expenses
• Hybrid Vehicle Purchases

Written by Ben · Filed Under Taxes >Comments (0) 

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My Money Secrets Revealed!

Bryan Fleming, founder of the Million Dollar Savings Club and the Personal Growth Carnvial recently sought out my thoughts on money in a short interview, which I have included below:

1. What made you decide to write about Personal Finances?

My blessing has been the great role models I’ve had when it comes to handling money. No, not Warren Buffet or Dave Ramsey. My parents and grandparents taught me the value of a dollar and how to use money wisely. I’ve been on the right track financially pretty much my whole life thanks to them.

I see a lot of people that didn’t have the advantage of having good financial mentors growing up. I saw them making poor financial decisions and I wanted give them the help that I’d had and make a difference in their life. Writing about personal finance online seemed the best way to spread the word to a wide audience.

2. What was your biggest Money Managing mistake?

I’m sure I will make more mistakes in the future but to date it was my investment choices during the dot com tech bubble. I was caught up in the tech craze and lost around $5000 investing in B2B companies that are now worth nothing.

On a positive note, I’m actually glad for the error because it taught me a good lesson. I learned the dangers of speculation and the benefits of diversification and valuing a stock appropriately at a young age. Now I just have to make sure that lesson sticks with me throughout my life. (more…)

Written by Ben · Filed Under Personal Finance >Comments (2) 

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Feliz Navidad – Frohe Weihnachten – Joyeux Noël – Buon Natale – Merry Christmas!

Merry Christmas to all those around the globe that are celebrating Christmas today!  I hope you all have a wonderful day with friends and family as we remember the true meaning of Christmas.

As you can see from the title, Christmas is a global event. Unfortunately, I don’t have enough room in the title to include all languages and my browser does not support character sets for Chinese! Once the Christmas season has ended, people all over the world will start making plans for next year.  The potential for economic growth offers many opportunities internationally.

You can help feed the economic engines in other countries while also helping to grow your own portfolio by investing a portion of your money internationally.  The world is becoming a smaller place, make sure you think globally and participate in the growth that will occur around the world this year.

Merry Christmas!

Written by Ben · Filed Under Investing >Comments (0) 

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Personal Finance Reviews and Previews

Check out the following reviews and previews from personal finance sites submitted to a recent group writing project held by Darren at Problogger.net:

Investor Trip reminds us to shop for lower prices and redeem rebates immediately in Stupid Ways to Lose Money.

The Money Tortoise talks about avoiding financial porn, lowering your investment costs, making your planning easier in “Set It & Forget it” For the Future.

Broke-Ass Student encourages us to find courage to take bigger risks in life with
Finding the Courage to Fail – Even as a Broke-Ass Student .

The Simple Dollar offers some insightful trends in blogs and money for the coming year in  Blogging and Money: Six Trends For 2007 .

A new site that I’ve never read before, Living the Life as a SAHM talks about being a
Financially Savvy Stay at Home Mom.  This looks to be a great resource for single moms that hopefully we can all learn something from.

My contribution How Christmas Letters Can Make You a Happy Millionaire! rounds out the personal finance entries.

Please let me know if I overlooked anyone.  Unfortunately, none of us came away with a prize but I am happy to have discovered some new and useful blogs.  Check out the other submissions and find some treasures yourself!

Written by Ben · Filed Under Blogging, Personal Finance >Comments (0) 

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Mutual Funds for the New Investor – SLASX, HOLVX, TCEIX, AMAGX

Where should you make your first investment when just getting started investing?

If you don’t have a lot of money to invest and aren’t sure where to put it, don’t let that stop you from getting started!  In the December edition of Smart Money magazine, Reshna Kapadia takes a quick look at four no-load mutual funds that have minimum initial investments, low fees, and have performed well in comparison to other similar funds:

1) Selected American Shares (SLASX)
Minimum investment -$1,000
Expense Ratio – 0.90%
5 Year Return – 9.34%

2) Homestead Value (HOVLX)
Minimum investment – $500
Expense Ratio – 0.76%
5 Year Return – 11.10%

3) TIAA-CREF Equity Index (TCEIX)
Minimum investment – $50 (If signed up for automatic investment of $50 month)
Expense Ratio – 0.26%
5 Year Return – 7.01%

4) Amana Growth (AMAGX)
Minimum investment – $250
Expense Ratio – 1.41%
5 Year Return – 11.38%

Thanks to Reshna Kapadia for doing the initial fund screen. I don’t have any experience with these funds but you can examine them in more detail with the links above, financial data shown is from Google Finance.

The new year is approaching, if you’ve been meaning to begin investing but haven’t gotten around to it yet, make a New Year’s resolution to research these funds and get started!

You can also check out my earlier discussion on Vanguard’s STAR fund for those just new to investing.

Written by Ben · Filed Under Investing >Comments (3) 

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Act Now and Double Your Charity Donations for Half Price

Wouldn’t it be nice if you could donate $100 to your favorite charity and have them get a check for $200?

Matching Gift Program
Some corporations have a matching gift program where they will match their employee’s charitable donation dollar for dollar. You can search MatchingGifts.com to see if your employer has such a program.

Free Money!
Once I discovered that my employer would match my gifts I felt guilty not utilizing it, I was basically throwing away free money for people that needed it!

Things to Consider
Pre-Approval
Corporations typically only match gifts to charities that are on their pre-approved list. Check with your Human Resources department to see if your charity is on their list.

Meet the Deadline
The donation must be made prior to the end of the calendar year. Your Human Resources department may have their own policies, be sure to check with them.

Follow the Rules
In order to be eligible for the matching gift through my company, I had to submit the donation check to my employer who then matched the money and forwared it on to the charity. If I donated directly to the charity they would not offer the match.

Act Now!
There are still a few more business days before the end of the year take advantage of your company’s matching gift program and double your donations!

Written by Ben · Filed Under Charity >Comments (5) 

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