Cheaper Than Cheap Tip Of The Week #2 - Hypermiling

Posted by The Happy Rock on July 30, 2007

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“Cheaper Than Cheap” is a recurring tip series about frugality. The idea is to provide helpful frugality tips that border on fanatical to the point of being humorous. Love them or hate them, let’s hear what you think.

Cheaper Than Cheap Tip #2 - Hypermiling

In the age of $3.00 /gallon gas we are bombarded with tips for increasing our fuel economy. I have mentioned how keeping your tires inflated can increase safety and fuel consumption. Other common tips for better gas mileage include using cruise control, avoiding traffic, and driving less aggressively. Hypermiling takes getting the best MPG to the extreme. Take the HybridFest 2007 in Madison Wisconsin as an example. The contest has competitors drive the same course and compete for the highest MPG. The winner Wayne Gerdes had an astounding MPG of 180 over the whole course. Hypermiling was started by hybrid car owners, but the tips are easily transferable to ‘regular’ cars. I am a novice hypemiler, but have learned a good deal through some simple research.

This article from May about hypermiling highlighted some of the most well known techniques. Some of my favorites are :

Ride on the paint to save from friction
Over inflate your tires
Place cardboard over your radiator, because a cold engine uses more energy
Drive with your windows closed and your AC off
Park at the highest spot in parking lots, so you can coast out of the spot
Shift into neutral or shut off the engine at stoplights or even on large downhills

Check out the full article for some other creative ways to save gas. Note that the safety and usefulness of some of these tips is definitely under debate.

Here is the list of other great resources I came across during my research.

Two news articles about the phenomenon @ CNN and Washington Post
Six steps to better fuel consumption @ hypermiling.com
Popular hypermiling sites : CleanMPG, GreenHybrid, and InsightCentral

Let us know what you think of hypermiling by taking part in the Cheaper Than Cheap poll.

Opinion Polls & Market Research

» Filed Under Cars, Frugality

Raising Financially Savvy Children - Tips For Teaching Your Children About Finance

Posted by The Happy Rock on July 26, 2007

This is a guest post by Tehn Yit Chin over at @ Cheap as Chips, “a personal finance blog with an Australian spin”. Lend him some support by checking out his site.

We, as parents, have an enormous responsibility to our children. As soon as they are born, we are responsible for their well being. Initially, we give them care and ensure that they are healthy. As they grow, our responsibility shifts to their behavioral development, and one aspect of this is the way our children see financial matters being handled.

One of the ways that children learn is by copying. The child observes our actions again and again over a period of time, and they will start to copy our actions. When our children are in their toddler age, development of simple actions like learning to walk and talk are usually accelerated when there are other kids around for our child to copy.

The children also learn by repetition. Something that is performed over and over again will be ingrained in our children’s behaviour, almost like a second nature to them.

Our actions in the way we, the parents, handle money are also important as our children will be exposed to them, and will copy them if there are exposed to them over a long period. ie, If the parents are problem gamblers, there is a higher chance that children will be gamblers as well, or if the parents always uses credit irresponsibly, the child would probably behave likewise.

So what can we do to give our kids a better way of dealing with financial matters.

Involve the kids with financial decision making - When the children are able to understand, involve them in most of the day to day financial decision making. This could be simple things like a discussion with them on deciding on which type of bread to buy, or clothing from Target vs clothing from Calvin Klein.
Ask for the children’s input when it comes to setting up the family budget - The kids will want to be part of the the family budget. This will also show that their contribution in the decision making will not only affect themselves, but also the family as a whole. Make it a part of a family ritual, and make it fun for the kids.
Set up a savings account for them - A bank account for them is a real motivation for the kids as they can see the real results of the decisions made. A bad decision means that the account balance will go down, and a good decision means that the account balance will go up. Make sure that the bank account has the kids name on it so they understand that the bank account is theirs.
Reward the kids as you reward yourself - This will give the kids a targets to aim for, financially. EG, if the child wants to buy that comic book, ask the child to save for it from his pocket money.
Be upfront with them - Don’t colour the family financial situation for the kids as this may bring up false expectations in the kids. You know, if the family can’t afford to go on the big holiday this Christmas, let them know and the reasons why. Or if the big holiday is happening due to strong financial commitment from family, let them know that as well.

These are five items that I will provide for my son when he gets a bit older, (at the moment, he is only 21 months). My wife and I already have started a couple of these ideas, in particular the savings account. Remember to keep doing these things for an extended period; to be copied and repetition is the key.

By ensuring that your children are positively influenced, financial wise, we are preparing them for a much brighter future. Remember that we will not always be about or in a situation to help them out.

If you enjoyed the guest post, please consider checking out Cheap as Chips or subscribing to his feed.

» Filed Under Children and Money, Guest Posts

I Want To Be Rich Someday! How To Set Solid Finance Goals

Posted by The Happy Rock on July 25, 2007

This is a guest post by Mark over at @ Financing Your Family, a newer blog that focuses on helping readers to be “smarter with their money, closer to their family, and willing to work towards worthwhile goals”. Lend him some support by checking out his site.

When I talk with people about there financial goals, there is one thing that tips me off as to whether or not they will be successful or not, and that is how they describe their goals. Some examples of goals I’ve heard are: “I want to be rich someday,” “I want to have kids,” and “I don’t want to work for a large company.” These are all financial goals to be sure, but when people tell me that these are their goals, I usually think that they just don’t really care about their lifestyle that much.

You see, all of the goals I just named are what I call, No-thought goals. These are the hasty kinds of goals that cause people to start businesses in areas that can’t support that type of business. They strip away any semblance of plan by being short and edgy. I can’t call them bad goals because they are all good things to the person saying them. They are just poorly worded.

So, let’s break apart one of those goals, “I want to be rich someday” for example:

How is rich defined? In dollars? $1,000,000, or $1,000,000,000? In possessions?
When is someday? 5 years? 10 years? retirement?
Who is I? If it’s just you, do you not want family? Do you judge wealth by family?

All of these questions (11 total in 10 seconds typing) need to be answered by the goal statement. So put some thought into it. A revamped goal statement for “I want to be rich someday” could be: “Twenty years from now, my goal is to be earning more than $80,000 a year, with a combined total net worth in excess of 4.2 million dollars, so that my family can live the life they deserve.”

The keys to making your goals good ones are:

Thought- take some time to consider your wants and needs.
Who- who will it impact? These people should be included in the goal-setting process too.
What’s the time frame? Put a deadline on your goal.
Be specific, words have many definitions, this helps narrow down your meaning.

The goal process is one that is overlooked by so many people in America, but good goals are what keep you from debt, from foolish spending, and from poor investments.

If you enjoyed the guest post, please consider checking out Financing Your Family or subscribing to his feed.

» Filed Under Financial Succes, Guest Posts

10 Tips To Save Money On Golf

Posted by The Happy Rock on July 24, 2007

This is a guest post by Double Eagle over at @ Life in the Rough. Life in the Rough is a golf blog. One of the best in my opinion. A good place to visit if you are looking to learn a few things about golf or drop a a few stokes off of your game. The golf tips are intermixed with his personal journey to fulfill a dream by becoming a golf professional. Double Eagle is very active in his comments section and enjoys answering his readers questions. Lend him some support by checking out his site.

When The Happy Rock put out the word that he needed some guest posters to take up the slack while he’s on vacation, I thought it would be a great opportunity to bring the world of golf over here.

As everyone knows, golf can be an expensive hobby (or lifestyle, in certain extreme cases). Not everyone infected with the golf bug has the benefit of wealth, so it’s good to find ways to help our money go further so we can keep playing the game, and more importantly, keep playing it at the frequency we would like.

Here are ten ways to save money on golf.

Use knockoff clubs. These are the off-brand clubs that cost a fraction of their name-brand counterparts. Are these clubs as high quality as the name brands? Of course not. But, if you’re on a golf budget they’re more than capable as substitutes. This is especially true if you have a high handicap, where you’re not getting the much value out of the tour-quality clubs anyway (and in some cases they’re doing more harm than good to your game).
Look for X-out balls. When golf balls are manufactured, they go through quality assurance inspections where balls with minor blemishes are removed from circulation. These balls are normally perfectly playable and the issues are strictly cosmetic. The good news is that manufacturers offer them at a discount to recover some cost, instead of putting them on the trash heap. A dozen Titleist Pro V1 balls costs around $45 new, but a dozen X-outs can be had for around $30.
Along those lines, look for logo overruns. Often, companies, courses, individuals, and the like will order balls with custom logos or writing on them. Sometimes during the manufacturing process, they will print more than the customer ordered. These balls end up getting sold at a discount. They can be found at national retailers like Golfsmith. It seems like early in the season is the better time, but you can find them all year if you look hard enough.
If you demand band new, look for the lower end ball selections. It’s tempting to play the balls that the pros do, but if your handicap is high, then play a ball that’s more appropriate. You probably don’t have the skill to take advantage of the sophisticated characteristics of the better balls and probably also tend to lose them at a high rate.
If you play frequently, think about getting a membership at the course where you play. It’s hard to part with that lump of cash up front, but consider a lower-end public course where a membership might cost $1,000 but where it costs $30 per round to pay each time. You only need to play 34 times in a year to make the $1,000 worth while. Any more than that and you’re saving money.
If you hit balls at the driving range frequently, check to see if they have a pre-paid range plan. My course offers a pre-paid plan at $400 per year. This sounds like a lot, but at $10 for a large basket, any more than 40 sessions and it pays for itself. That also sounds like a lot, but I go to the driving range at least 3 times per week in the spring, summer, and fall and any time the weather permits in the winter. Some ranges may not offer a standard plan but might be willing to negotiate something with you.
Instead of buying the latest and greatest irons and drivers every year, stick with your old set and save the money for a series of lessons. You might think, “how does spending money on lessons save money?” Well, I see too many people chasing the next miracle club that promises to cure slices and every other golf malady. Unfortunately, this is rarely the case for most players. Spend the money on some lessons, fix your swing, and you can stop buying all the latest and greatest clubs. You’ll be happier and will spend less time drowning balls too (which adds to the savings).
For a golf vacation on a budget, consider some of the big golf destinations like Myrtle Beach, South Carolina. It’s no Pebble Beach or St. Andrews, but the area is saturated with a huge number of high-quality courses that you can play at rates that will surprise you. Because of all that competition, you’ll find that service is great and the course conditions are excellent. There are some stinkers out there, so do some research before hand. I went there in 2001 with three other players and we had a condo on a golf course for four nights and played rounds at two excellent courses and two average courses, all for $400 per player. If Myrtle Beach isn’t your style, you can find golf hot spots in Florida, Arizona, Nevada and in many other places in the U.S. (and in the world, for that matter…Scotland, here I come…)
When planning a buddy trip, try and convince more people to go. It makes things a little more tricky to organize, but you can often times find discounts on packages with larger groups. And if thrift really drives you, you might be able to negotiate with one of the companies who sets up the package deals to include you at no cost if you agree to bring a certain number of players. Something like a buy 15, get one free deal.
When your birthday approaches, check with your favorite courses to see if they offer birthday specials. Often, courses will offer a free round of golf on your birthday, sometimes with a window of seven days on either side. If you plan it right, you can go on a two-week golf binge at a bunch of courses right around your birthday, all for free.

These ten tips should help you save some serious cash without having to give up the game you love to play. Keep an eye out and there are even more cost savings to be had. Good luck and hit ‘em straight.

-Double Eagle

Does the frugal community out there have any other tips to share?

If you enjoyed the guest post, please consider checking out Life In The Rough or subscribing to his feed.

» Filed Under Frugality, Guest Posts

The Happy Rock Takes A Vacation

Posted by The Happy Rock on July 24, 2007

The Happy Rock was a good little rock, but always very curious. Today he leaves for the mountains of Pennsylvania with his friend the Man with The Yellow Hat, 8 children, 4 sister-in-laws, 3 brother-in-laws, and 2 grand parents.

Enough with the Curious George references. I will have a great time. The weather should be nice, and I will cherish the break and family time. In my absence three guest posters will fill in the gaps Tuesday, Wednesday, and Thursday. Please treat them kindly and give them some feedback on their excellent articles. I will be back and answering emails and comments at some point over the weekend. Enjoy!

» Filed Under About Me

Government Sometimes Save Us Money - Tire Pressure Monitors

Posted by The Happy Rock on July 23, 2007

The government always seems to be taking our money, but sometimes they do get things right and pass legislation that beneficial. US government legislation that has been in the works since the 2000 tire recall will require auto manufacturers to install tire pressure monitoring sensors on all new models for vehicle’s under 10,000 pounds. The bill, which affects vehicles for the 2008 model year, is being phased in September 1st of this year. The system is such that when the pressure of any of the four tire drops below 25% below the recommended pressure, a warning light will display on the dashboard. The consumer will still need to stop and fill up the tire though, tires are not yet self inflating(although that it is probably coming).

Tires are the most abused part of the car. We all know that we should check our vehicle’s tire pressure every 30 days, but most of don’t monitor it very closely. I probably check it once every couple months, and before long trips. This upgrade will only reportedly cost “manufacturers between $48.44 and $69.89 per vehicle”, a small price for the numerous benefits that come with properly inflated tires. I am all for technology helping us stay safer and live less expensive lives. The savings of properly inflated tires are this :

NHTSA estimates that 120 lives a year will be saved.
Better fuel economy/gas mileage
Decreased stopping distances
Decreased likelihood of tire failure. Majority of flat tires would be avoided with properly inflated tires.
Less skidding on wet surfaces.

Now for those of us with older cars, we should go out and get a huge interest only loan for a new car to take advantage of the new technology. Just kidding, my goal is to set a monthly calender date to start checking my tires. The motivation is coming from the increased gas savings and improved safety that my family will receive. If I make it habit, I should never have to worry about it again. To start, I just added it into my PDA as a recurring monthly event.

How often do you check your tires? Do you like the new law?

Source

» Filed Under Cars, Frugality

Cheaper Than Cheap Tip Of The Week #1 - Pretend You Are Running Out

Posted by The Happy Rock on July 21, 2007

I am starting a recurring tip series about frugality called “Cheaper Than Cheap”. The idea is to provide helpful frugality tips that border on fanatical to the point of being humorous. Love them or hate them, let’s hear what you think.

Cheaper Than Cheap Tip #1 - Pretend You Are Running Out

Yesterday, I noticed when items like shampoo, dish soap, and toothpaste are running low I become much more conservative in my usage. I squeeze out the minimum drop needed to wash my hair as the shampoo begins to run low. When I have a brand new bottle I am much more liberal my whole palm ends up covered in shampoo. It doesn’t help that the amount is harder to control with a full bottle. If you can relate, here is the frugal system for you. Next time you finish a bottle of shampoo or a similar item don’t recycle the bottle; save it. From the new container put just enough into the old container to keep the frugal skimping side of you in control. Basically the exact opposite of the excellent tip for tootpaste posted at Lifehacker.

Good idea, crazy, what do you think? Share your opinion through the poll below(must be on the site to see) and through the comments.

Opinion Polls & Market Research

» Filed Under Frugality

Request for some guest posters

Posted by The Happy Rock on July 19, 2007

I will be on vacation Tuesday - Friday of next week. I wanted to see if anyone would be interested in guest posting @ The Happy Rock next week on short notice.

What you will you get in return? The joy of helping out a fellow blogger who gets about 60 hits a day, and has about 70-75 readers. At the top of the guest post I will link to your main site, and at the bottom of the post I will link up your RSS feed. Finally, I will submit the post to a carnival the following week for some more exposure. If you don’t have a blog, don’t worry. The only requirement is that it must be personal finance or personal development related. If possible, I would like to have the posts by Sunday Night, but I can work with Monday too.

Please email me to let me know if you are interested.

Email me here :

» Filed Under About Me

What bloggers are saying about canceling cable and TV.

Posted by The Happy Rock on July 18, 2007

Yesterday I posted some eye opening statistics about TV viewing. Today I wanted to wrap up the canceling cable experiment by searching the blogosphere for some bloggers that had already tried giving up cable or had relevant posts. Here is what I found :

Gary Lee just recently canceled cable and is still adjusting.

Boomie @ The Wastrel Show downgraded to basic cable just a week ago.

Lazy Man tried to hack a cable free solution.

Clever Dude talks about not upgraging his viewing experience.

FMF @ Free Money Finance admits he doesn’t have cable.

And finally Trent @ The Simple Dollar discusses 10 reasons to cut out TV in one of his most popular articles. He then talks about dropping cable in a later post.

Enjoy

» Filed Under Bloggers, Experiments, Links

Do Cable and TV Cost More Than We Think?

Posted by The Happy Rock on July 17, 2007

Here are the highlights of some research to add some discussion to the cable canceling experiment.

I found a great website called Trash Your TV. It is your one stop shopping experience for anyone thinking of canceling cable or getting rid of their TV. TV viewing stats, success stories, effects of TV articles, and much more.

Let’s start with some eye opening stats about the about some real costs of watching TV:

Nielsen Media Research Inc. reports that the ‘average person’ watches TV for 4 hours and 35 minutes every day. Furthermore, the average household has a TV playing for 8 hours 14 minutes every day.
That 5 1/2 days a month watching TV, 69 days a year, and about 13 or so years for an average life span. Even if I watch half that amount in a week, WOW!
Exposing children to all that TV can affect the wallet by the Nag Factor. Marketers seek to brand your children and make them discontented. All that TV time could result in viewing as much as 30,000 commercials a year, which in turn influenced an estimated $300 billion in sales or $4,000 per pestering child a year in 2001.
Number of hours of TV watched yearly by Americans: ~250 billion
Assuming an average US wage of $7/hour that equates to S1.75 trillion dollars
Average US cable bill in 2005 was $43.04. $783 for the primary TV in their home, and $176 on accessories. $22 billion total on TVs in 2006. Source
A multitude of studies that link TV watching to obesity and weight gain. Cut out some TV and lose weight.
Television viewing has been linked to ADHD.
The American parent spends 38 minutes per week in meaningful conversation with their children.
Children view on average 16,000 television murders before age 18.

These facts don’t even include other factors like opportunity cost, decreased energy, decreased brain activity, and peer pressure. Some of those time and money statistics are staggering.

Mike @ Prosperous Land left a good comment in the cancel cable and save post that linked to a recent article on The Street : How to Earn $1 Million by Not Watching TV.

One thing I found interesting was a recent study found that it would take $1,000,000 for white people to not watch TV for the rest of their lives. Second, although I am not sure I can vouch for the reality of his numbers, he argues that if you ditch the TV at age 25 and “instead invested this money and received a return of 8% compounded annually over 45 years until you’re 70 years old, you would have more than $3.7 million in your account.”

I think that little fact sheet may be just the tip of the iceberg when it comes to the drawbacks of cable and TV. Sure those numbers look a little high, but even if they are half or a quarter that much, isn’t that a lot? I’m not saying that there aren’t any benefits, but I am becoming hard pressed to find them at this point in my life. The more I think about it, the truth is I really don’t want to look back in 20 years and realize how much TV and cable really cost me. How much is it costing you?

» Filed Under Living with Purpose, Motivation, Productivity

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