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Apache is functioning normally

By Contributing Author 7 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited August 19, 2011.

My oldest sun turned 16 recently and you know what that means; he’ll be on the road soon.

He’s a good kid, I trust him to be a safe driver but that sill leaves the task of finding him a good first car. For the first time in a decade or two, I’m in the market for a vehicle. A lot has changed, but not everything. There’s still the same list of things to consider when thinking about which car to buy.

Some folks want something that goes super fast and will get them from place to place as fast as physically possible and look flashy while they’re doing it.

Some want something as a sort of status item to let people know that they are successful.

If you’re like me, something that gets good gas mileage is nice, but you’re really looking for something with some longevity. A car that you can depend on to never let you down. For this reason, I consolidated my research into a list of my personal favorite top 5 cars built to last.

Top 5 Dependable Cars Built To Last

    1. Porsche Boxster

I know what you’re thinking, “Really? You’re going to get your 16-year-old a porsche?” No way. This obviously isn’t going to be my son’s first car, but I repeatedly ran into this car when researching about dependability in vehicles. On most occasions, the Porsche Boxster stood head and shoulders above others in its class as far as reliability. The Boxster was introduced in the mid ‘90s as a light weight, turn hugging speed machine, featuring a 2.5 litre flat 6 engine. In 2000, they released a variant with a 3.2 litre and upped the base class to 2.7. From release to today, the Porsche Boxster remains one of the most dependable “vroom” cars out there.

    1. The good old VW Bug

In 1933, Ferdinand Porsche was comissioned to create a car for use by the greater German populous. Thus, a people’s car (or Volkswagen in German) was born with integrety through simplicity and economy being the basic ideas behind it’s conception. The factory survived ally controlled Germany in the mid to late 40s by serving to produce cars for the British army. The factory was almost moved to Britain but the British government decided it would be a massive waste of money and an un-marketable flop. Finally in the 60s, 70s and 80s the factory was pushed back to full production, distributing internationally and playing a major roll in the German economic recovery. To this day, the Volkswagen Beetle in America and Britain alike remains reminiscent of the 60s and 70s and one of the most simply built, dependable and economic vehicles of its time.

    1. Jeep

To this day, enthusiasts can’t come to an agreement about the origin of its name: a sluration of the army name “General Purpose” or GP or of GPW (G for government, P to designate it’s 80″ wheel base and W for it’s Willys-Overland designed engine). Originally developed for militaristic use as a light transport vehicle during WWII, Chrysler’s Jeep set a trend for four-wheel-drive SUV’s that is still an important image in today’s culture. They kept true to the idea that simple means dependable and created a rock solid vehicle that rarely if ever breaks down. When and if a Jeep does break down, the engine and frame were designed to allow complete strip down and rebuild in a matter of hours. Although not number one on my list, this is my personal favorite.

    1. Honda Accord

Between 1982 and 1997, the Honda Accord was consistently the best selling Japanese car in America. Honda developed that title built around a name that became synonymous with dependability. The name “Accord” was meant to be symbolic of “Honda’s desire for accord and harmony between people, society and the automobile.” In 1982, the Accord became the first Japanese car to be manufactured on U.S. soil in Marysville Ohio, concreting its position in one of the largest automobile markets in the world.

    1. Toyota Corolla

Staying true to Toyota’s tradition in using the variations on the word “Crown” in their main models, Corolla is Latin for “small crown.” Introduced in 1966, the Corolla is widely accepted as one of the most dependable, most economical cars ever, breaking the molded cliche of shoddy Asian car production. In 1997, the Corolla earned the title of the best selling nameplate in the history of cars and has maintained that through the new millennium. Over 35 million Corollas were sold as of 2007. Over the last 40 years, has been sold on average every 40 seconds. Where economy and dependability are concerned, it seems Corolla can’t be beat.

What are your thoughts on this list? Do you have your own car that you’d put up as the most reliable car? Tell us in the comments!

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Source: biblemoneymatters.com

Apache is functioning normally

When you apply for a loan, you might have the option to add a co-signer or co-borrower. And while the terms are similar, a co-borrower — or joint applicant — shares ownership of the loan and assumes responsibility for payments from the start.

On the other hand, a co-signer is only liable for the loan if the primary borrower fails to make payments.

Quite a few lenders will allow co-borrowers on a loan, but co-signers are much rarer. When you apply, confirm with your lender and the other person on the loan which term applies best to avoid confusion down the road.

Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

What are the differences between a co-signer and a co-borrower?

The most important difference between a co-borrower and a co-signer is the degree of investment in the loan.

A co-borrower has more responsibility (and ownership) than a co-signer because a co-borrower’s name is on the loan, and they are expected to make payments. A co-signer only backs your loan and will not need to make payments unless you are unable to.

Co-signers

A co-signer agrees to take responsibility for repaying a loan if the primary borrower misses a payment. The co-signer typically has better credit or a higher income than the primary borrower, who might otherwise not get a loan application approved without the help of a co-signer.

Co-signers typically have a close relationship with the primary borrower. A co-signer is typically a parent, immediate family member or spouse.

How it works

A co-signer is a guarantor for the primary borrower. Co-signers promise to assume responsibility for repayment if the primary borrower doesn’t pay as required.

Pros of a co-signer

Adding a co-signer to a loan application could improve a borrower’s chances of qualifying and securing a lower rate. Plus, if the loan is repaid on time, it can improve both parties’ credit scores.

Risks of co-signers

Like co-borrowers, co-signers take on financial risk. Co-signers are legally responsible for paying the outstanding debt that the primary borrower fails to pay.

Who a co-signer is best for

Co-signing is typically preferable if only one of the borrowers will benefit from the loan. For example, if a young person without established credit wants a personal loan, the bank might decide that the loan is too risky unless someone with better credit agrees to share legal responsibility for repayment. A parent with good credit might agree to co-sign with the understanding that their child will pay it back.

Co-borrowers

A co-borrower, sometimes called a co-applicant or joint applicant, is a person who shares responsibility for repaying a loan with another person — and who has access to the loan funds. Applying for a loan with a co-borrower reassures the lender that multiple sources of income can go toward repayment.

Applicants with co-borrowers are more likely to receive larger loan amounts since they are viewed as less risky for lenders.

How it works

In addition to both parties being responsible for making payments toward the loan, assets that guarantee the loan — like a home or car — may be owned by both co-borrowers. Each co-borrower has equal access to the loan funds. And if the loan was used to secure property — like a vehicle — both co-borrowers will be listed on the vehicle’s title.

Pros of a co-borrower

Similar to adding a co-signer, adding a co-borrower could help a consumer secure a lower interest rate. In addition, depending on the co-borrower’s income, it might also help them qualify for a higher loan amount.

Risks of co-borrowers

The biggest risk for co-borrowing on a loan is that each co-borrower is responsible for repayment from the start. Any actions by either co-borrower that impact the loan will have a ripple effect on the other borrower.

Who a co-borrower is best for

Co-borrowing is typically preferable if both borrowers will benefit from the loan. For example, if two people start a business together, they might take out a personal loan as co-borrowers and work on paying it back together. Both directly benefit from borrowing and enter the transaction knowing that they’ll each be making payments.

How to choose between a co-signer or co-borrower

The right approach depends on what your goals are for the loan. Consider these factors when choosing between a co-signer and a co-borrower.

Co-signers

A co-signer won’t have to put up collateral or accept responsibility for regular payments. Also, if the primary borrower makes on-time payments, the co-signer will never have to worry about the loan — and may still benefit from an improved credit score. .

On the flip side, if the primary borrower defaults, the co-signer will be on the hook for payments. Plus, they won’t be able to use the loan funds and might have difficulty getting approved for other loans since it still counts toward their total debt-to-income ratio (DTI).

Co-borrowers

A co-borrower benefits from the loan directly. Lenders may also offer lower rates and higher loan amounts, especially if both borrowers have good credit. And since each borrower has equal responsibility, you may not need to provide additional collateral to secure the loan.

What should I do before co-borrowing or cosigning?

Before co-borrowing or cosigning a loan application, have an open conversation with the other person. Determine if the loan is necessary, consider what alternatives there are and discuss each person’s financial picture and future goals.

Because both options have considerable financial risk, you should consider a contract that outlines how responsibility will be split and what happens in worst-case financial situations. It is also useful to research your state’s co-borrower and co-signer rights. There may be protections around property ownership and how credit is impacted.

Bottom line

Ask yourself a few questions before applying for a loan with someone else:

  • Can you afford to make payments toward the loan?
  • How stable is your source of income?
  • How will co-signing or co-borrowing affect your future goals?
  • What are the financial habits of the co-applicant or primary borrower?

Co-borrowing might make sense if you know the risks and want to borrow money with someone to accomplish a common goal. Alternatively, co-signing might be right for you if you want to help out a loved one by guaranteeing a loan.

Source: thesimpledollar.com

Apache is functioning normally


What Is a Credit Report and Why Does it Matter? – MintLife Blog

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financial wellness. Your credit report includes your revolving accounts — such as credit cards and home equity lines of credit — as well as non-revolving accounts like school and car loans. Credit reports also note any missed payments, the length of your credit history, and your utilization rate on each account. On the whole, the report acts as a central location for measuring your current credit health in detail.

This vital collection of data gathered by a credit bureau helps calculate your credit score and inform potential lenders, landlords, and even employers about your financial wellness, habits, and routines. Your credit report is also a place to keep yourself on track. View your borrowing habits at a glance, make adjustments to possibly raise your credit score, or even catch fraudulent activity. Overall, understanding your credit report is a crucial step in gaining financial confidence.

What Information Is Included in a Credit Report?

You may still be wondering: what is a credit report exactly and how much data does it include? Credit bureaus collect a range of information, from basic, personal data to detailed borrowing history in order to paint a picture of your credit habits. Identification details clarify who you are, where you’ve lived, and a bit about your life. They will list your full name and any alternately used names, your birthday, current and former addresses, social security numbers, and your phone number.

The meat of the credit report includes your account history including the types of credit accounts, how long they’ve been open, and their credit limits. Each month, your balance will rise or fall on your report based on payments or charges. This in turn affects the utilization rate on each card as well. Each account will also note your payment history, noting any late payments for up to around seven years. Your credit report will also include the number of recent hard inquiries, which usually occur when you apply for a new credit card or loan.

Certain public records and legal details — such as lawsuits — may also be listed on your report. It also lists if you’ve filed for bankruptcy, received a tax lien or had a bill sent to a collection agency. Though specifics vary, the majority of these details are wiped from your report after seven years, so there are often ways to improve your credit standing over time.

How Does Information Get on Your Credit Report?

A credit bureau, also known as a credit reporting agency, gathers this information in one place so you don’t have to. Though there are hundreds throughout the world, the three main U.S. reporting agencies are TransUnion, Equifax, and Experian. They receive information via lending companies, courts, and local government to build your credit record. Every month, an assortment of data transfers from these locations to the credit bureau database.

If you open a new credit card, make a purchase on your store card, or pay down a balance, this data is sent to update your report. The agency organizes the data and displays information on your credit report in a clear layout for you or a potential lender to view. This constantly updating system means that your credit score may fluctuate at times. It also allows you to take immediate action on any troublesome accounts or in the case of identity theft.

Why Is It Important to Get a Credit Report?

Credit reports are an excellent tool for guiding large financial decisions. Say you’re looking to purchase a home in the next five years. Your report allows you to fully assess how to raise your score and which credit accounts most strongly affect your overall financial balance. Your report is also a glimpse into why your credit score has remained low or stagnant. It could be helpful to request a report before applying for a new credit card or transitioning to a new phase in life like graduate school.

Checking your credit report at least once a year, even if you are not planning any large financial changes, is often suggested for several reasons. Credit reports allow you to catch any discrepancies either in how your data was reported or if someone attempted to open an account under your name.

Where can you get a free credit report? Free credit report programs, like Turbo, can give you a glimpse into your score and history. If you’re looking to improve your credit score, these tools may be useful for frequent tracking and do not count against your credit as a hard inquiry.

How Does Your Credit Report Impact You?

Potential lenders and employers may check your credit report for the same reason you check in on yourself. Your credit report may signal that you can be trusted to make timely payments and prioritize your financial health. Employers have been known to check credit reports in order to confirm you’re able to stick to contracts and agreements.

Credit reports are most commonly used to determine approval for loans, credit limits, and interest rates. If you have some troubling details on your account, lenders may protect themselves by offering higher interest or lower credit limits until you’ve proven a strong history of payments. On a higher level, credit reports affect your mortgage interest rate or simply your likelihood of being approved for the mortgage in the first place.

In some cases, your credit report could also affect your insurance rates and other monthly bills. Some utility companies and cell phone companies determine offers and down payments based on your credit score. Overall, the healthier your credit report, the more chances you’ll have to practice good borrowing habits with a range of accounts.

A credit report is a detailed tracking tool of your borrowing and repayment history. The greater you understand your credit report, the more it can act as a tool for financial growth. Feeling confident about borrowing and managing debt comes over time, and your credit report is there to help track your progress along the way.

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Apache is functioning normally

Summer is full of simple pleasures: baseball games, barbecues, beach reads, and that great American classic, the road trip. Whether you are heading to a national park or a local lake, on a wine-tasting getaway, an antiquing jaunt, or just to hang with your college roommate, a road trip can be exciting, easily wrangled, and spontaneous.

But if you’re wondering how to save money on a road trip, a little bit of planning can go a long way to keep costs under control.

Learn how to minimize expenses when you head out on a summer road trip, from deciding which vehicle to use, where to get gas, how to eat on the road, and more. Here, 25 easy ideas for road tripping on the cheap.

1. Choose a Fuel-Efficient Car

If you have a choice of cars to take, you may want to go with one that is large enough to be comfortable but also gives you the best gas mileage. This is true whether you are using your own wheels or renting a car.

You can use FuelEconomy.gov’s Trip Calculator to determine which car will cost you the least in gas. This tool helps estimate fuel consumption and how much it will cost for a particular route using a specific car.

2. Drive at or Below the Speed Limit

This cautionary measure can help you save money in two ways. For one, you’ll be less likely to get pulled over and slapped with an expensive speeding ticket.

For another, observing the speed limit can actually reduce your gas consumption. In fact, according to the U.S. Department of Energy, you can save 18 cents a gallon on highways for every five miles per hour you slow down.

3. Pack Your Car Wisely

You can also cut your gas costs by placing items inside the car or trunk rather than piling them on your roof. By reducing drag, this tactic can increase your fuel economy by as much as 25% on highways according to one benchmark study.

If you’re out of room in the car, using a rear-mounted cargo box or tray instead of a roof rack can improve your fuel economy by up to 9%.

4. Set a Road Trip Budget

When you first start talking about the road trip, you may want to roughly map out where you want to go, how long it’ll take to get there, and if you’ll need hotels or motels. From there, you can calculate the approximate cost of gas (FuelEconomy.gov can help) and tolls (try Tollsmart ), as well as food and fun.

Once you’ve established an overall budget for the trip, you start creating a travel fund.

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5. Bring Your Own Food and Supplies

Packing a cooler with water bottles, drinks, hand-held snacks, and sandwiches before leaving home is a proven frugal traveler trick. You can end up saving a sizable chunk of cash by not having to buy drinks and snacks at rest stops, vending machines, and drive-throughs.

You’ll also have a quick solution the next time someone in the car wants to pull over because they’re hungry.

6. Sign up for an Electronic Toll Account

Depending on which state(s) you are traveling through, you may be able to save a fair amount of money on tolls by getting the region-appropriate quick pass (or transponder) for your car. In New York, for example, drivers with EZ-Pass can save about 30% on tolls.

7. Avoid Tolls Altogether

When your road trip isn’t on any set schedule, you may want to take the scenic route and completely avoid tolls. You can do this by setting your GPS app to “avoid tolls.”

If you’re in a location with pricey bridges and highways, your savings could really add up. You may want to make sure, however, that avoiding tolls doesn’t take you so far out of your way that you’re spending a lot more on gas.

8. Look for Hotels that Offer Free Breakfasts

If you’re comparing lodging options in a similar price and quality range, one way to save on hotel costs and on road trip expenses in general is to choose the hotel with a free breakfast.

Not only will you probably get a large, filling meal, but you might even be able to take a piece of fruit or cereal box as a snack for later on in the trip.

9. Pack Reusable Water Bottles for Everyone

You’ll no doubt get thirsty while driving and sightseeing, especially in summer, and buying water or drinks can put a major dent in your road trip budget.

Making sure everyone in the car has a large reusable water bottle (or two) to fill up at rest stops and in restaurants can help you avoid spending money on drinks, and also create less plastic waste.

10. Buy a National Park Pass

If you’re going to be road-tripping across the U.S. and visiting a few national parks, you may want to consider getting an America the Beautiful pass.

The pass (which costs $80 per year and $20 for seniors) covers entrance, standard amenity, and day use fees for a driver and all passengers in a personal vehicle (up to 4 adults) at more than 2,000 federal recreation sites.

Just remember that summer is primetime for many parks, from Yosemite in California to Acadia in Maine. If you need lodging, book early.

11. Hit the Grocery Store

Once you’ve run out of your cooler meals and snacks, consider re-stocking at a local grocery store while en route so you don’t have to resort to fast food or a pricey local restaurant for the rest of your trip.

This is also a good strategy if you’re going to be staying at a hotel for a few nights. Making good use of a hotel kitchenette and fridge can help you avoid having to eat out for every single meal.

12. Pre-Book Your Hotels

Spontaneity is great, but if you’re looking to save money on accommodations, it can be wiser to book ahead of time and stick to your plan. You can often secure a better rate by booking in advance (and online), than by showing up without a reservation or booking last minute.

13. Look Beyond Hotels

Your first thought when looking for roadside accommodation may be cheap hotels or motels. But you sometimes find a better deal (or a nicer option for the same price) using a home rental site, such as Airbnb, VRBO, or FlipKey, especially if you’re staying for more than one night.

When booking lodging, it can be smart to use a travel credit card, since every swipe can help you earn points, miles, or cash back that you might apply to future trips.

14. Plan to Visit Free Attractions

Part of the fun of a road trip is to enjoy the journey and scenery while en route to your final destination.

As you travel (or before you go), you may want to research free attractions, such as a hike, walk on a beach, or a free museum, on your route for times when you need to stretch and take a driving break.

You can also look for festivals and local events by checking out the online events calendar for the towns you’ll be visiting that day. You might also check out Meetup.com and see what kinds of local groups are gathering for experiences and outings.

15. Plan Gas Stops in Advance

Getting stuck in a big city with the tank close to empty can be costly (and driving in circles looking for a gas station when you’re en route to the beach is no fun either). To avoid overpriced gas, you may want to use a gas app like Gas Guru or GasBuddy, which can help you compare prices and find affordable gas no matter where you are. This hack is an easy way to lower your gas costs.

16. Set a Daily Spending Limit

You can use your overall budget to get a rough idea of how much you can spend on the road trip each day. This can help you avoid blowing the money you’ve saved, wherever you may keep your travel fund, before the end of the trip.

A spending plan can also let you know when you can splurge a bit and when you’ll have to reign it in with a meal, activity, or lodging. You may also want to set aside some of your budget for the unexpected, such as the car getting a flat and needing to be towed, or discovering the cheap hotel you planned to stay in is actually a total dump. Also factor in some summer road-trip treats: You’re likely to be stopping for ice cream here and there and maybe even a lobster roll.

17. Entertain the Kids on the Cheap

Road trips can help you afford a family vacation since you sidestep pricey plane tickets. But remember that kids have a tendency to get bored, tired, and antsy on a road trip. To avoid giving in to impulse toy purchases, you may want to bring along their favorite toys and also pick up a variety of new ones at the dollar store before you leave.

Good choices include coloring books and games they can play in the car that won’t create a mess. You might also consider borrowing audio books or DVDs from the library to give yourself an hour or so of peace and quiet.

18. Search Online for Local Coupons and Passes

It can be worthwhile to research online coupons and discount codes for local attractions and restaurants at some of your scheduled stops.

Consider checking Groupon or LivingSocial for deals and steals. Sometimes booking online ahead of time saves you money, and it’ll give you a reason to try to reach a specific destination by a certain day.

19. Save on Alcohol

Sipping a cold beer or glass of wine at a local bar at the end of your long drive might sound like the perfect way to unwind.

But alcohol costs can quickly add up on a road trip vacation. Consider buying a few local beers or a small bottle of wine that’s native to that area to enjoy in your hotel room. You’ll save money on tipping too.

20. Volunteer at a Festival

Yes, you read that correctly. Some festivals and special events offer discounts or free admission to volunteers. You can look up events taking place in the town you’ll be visiting and reach out to the event organizer to see if they need help. Summer is full of events like these, from concerts to craft fairs to food festivals.

21. Sign up for a AAA Membership

An auto club like AAA can save you time, money, and hassle should you run into car trouble during your trip. What’s more, a membership (often starting at around $5 a month) gives you access to discounts at loads of hotels, restaurants, and many retailers nationwide.

22. Travel During the Off-Season

Yes, summer can be the most welcoming time of the year to hop behind the wheel. But visiting national parks when kids are back in school can often help save money on lodging and activities. Planning a road trip to a destination like Disney World or Disneyland? You’ll likely find better deals if it’s not during a spring break or other school vacation.

You can often also save money by visiting warm weather locations during “shoulder seasons.” This is the period in between a destination’s low and high seasons of tourism, when prices for hotels tend to be lower, and crowds tend to be smaller, at popular attractions.

23. Do Some Camping

Outdoorsy road trippers might enjoy setting up a tent at a free or low-cost public campsite. You can find out more on the Bureau of Land Management site.

This can end up saving you a lot of money on hotel costs, provided you don’t go out and buy a lot of expensive camping equipment.

If you don’t have any camping gear, you may want to consider renting equipment from an outdoor specialty store or asking a friend who regularly goes camping if you can borrow their equipment. As noted above, summer can be prime time for basking in some of America’s natural beauty, so book your campsite early.

24. Eat Out for Lunch Instead of Dinner

If there are special restaurants you want to try without breaking the bank, consider going there for lunch. You might get a slightly smaller portion than you would if you ordered it off the dinner menu, but the price will likely be more affordable.

25. Take Advantage of Loyalty Programs

Booking with the same hotel chain as often as possible and signing up for their member loyalty (or “points”) program may net you a free night after a few stays.

Travel booking services, such as Expedia, Travelocity, or Hotels.com, may also offer discounted rates and free nights for loyal customers.

Recommended: Getting the Most Out of Credit Card Rewards

The Takeaway

Planning a summer vacation? A car trip might sound much more affordable than traveling by plane. However, gas, food, and accommodations can add up.

One of the best ways to cut road trip expenses is to plan out your trip and research deals, coupons, and discounts ahead of time. Packing wisely and loading up on drinks, snacks, toys, and activities can also help cut costs once you’re out on the road.

Ready to start planning and saving for your next road trip? Consider signing up for a SoFi Checking and Savings® account.

SoFi Checking and Savings has a special “vaults” feature that allows you to separate your savings from your spending, while earning competitive annual percentage yield (APY) on all of your money and paying no account fees. You can even set up a separate vault for your travel fund.

SoFi Checking and Savings: The smart, simple way to save for your next trip.

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The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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Apache is functioning normally

Do you have piles of papers lurking on your desk? Mountains of laundry looming beside your bed? Shelves double-stacked with knick-knacks? I have a bit of a clutter problem myself. The other day, I spent an hour looking for the vacuum cleaner, which eventually turned up buried under a pile of laundry almost as tall as I am.

All that clutter isn’t just annoying. It’s expensive. That’s right: Excess Stuff can keep costing you money even after it’s been bought and paid for.

How expensive is your Stuff? Professional organizer Jen Hunter of Find Your Floor in Boston says clutter can cost us real money in a lot of ways:

  • Buying replacement Stuff: Somewhere in your closet is that pair of running shoes you bought last year. Probably next to the ones you bought the spring before that. Clutter costs us dollars and time when we have to buy duplicates of stuff we know we own but just can’t find.
  • Damage to your Stuff: When you have more Stuff than space, storage can become a problem. Things can get stepped on, stored improperly and broken, water-damaged or just so buried they can’t be retrieved when needed.
  • Missing deadlines: When your Stuff is disorganized, you wind up paying hundreds of dollars a year in bank fees, late charges, library fines, overdue fees and tax penalties. Trust me on this one. I speak from years of painful experience.
  • Renting storage space: Almost 10% of U.S. families rent storage space for belongings that don’t fit in their homes. That’s a lot of dollars going to serve your Stuff instead of your life. Even those that don’t rent space may choose larger homes than they need so that they can store more Stuff.
  • Health costs: Out of control clutter can pose health risks from falling, and encourage the growth of allergens like dust and mold. Treatments for those can get expensive. Clutter can also affect your mental health. Writer Ariel Gore saw a therapist until she realized that what she really wanted was a clean home. So she hired a housekeeper for less than she paid the therapist and lived happily ever after.

To Hunter, the biggest cost is an intangible. “It’s the impediment that it presents to people’s lives,” she says.

Stacy J. Kaplan of Clutter Away in San Diego agrees. “You can’t function at your optimum level if you’re disorganized,” Kaplan says. “You wouldn’t run a business without a business plan. If you’re not organized your business will fail. A house is a small business in a way. It’s the operating structure behind what your family is doing.”

Clutter stops us from working as effectively as we otherwise might. At its most basic level, time spent looking for your car keys is time you’re not spending working, playing or relaxing.

It also costs us time because all that Stuff demands attention. While clutter might be a sign of neglect, it requires us to spend time working around it to accomplish basic household tasks like paying bills or preparing a meal. Those extra hours of housework are a drain on time and energy that could go into creative side projects, education or any number of other productive pursuits.

We can become prisoners of our Stuff. J.D. has written a lot here about how Stuff ties up our money. We can inadvertently tie up a lot of our earnings in rarely used sports equipment, video games, and other pricey toys. Selling that unused Stuff frees up not only your cash but your energy. When there’s too much Stuff around you, you’re like a plant in a too-small pot. It’s hard to grow or thrive when hemmed in by clutter.

Of course, the answer isn’t to move to a bigger place. There are families who live happily in 100-square-foot apartments. They just have less Stuff than we do.

The solution is to put your space on a diet. Some basic steps to get started:

  • Consider adopting The Compact, an agreement to buy nothing new for one year. This should cut the flow of Stuff coming in down to a trickle.
  • To deal with the Stuff you have, go through one small area at a time. Don’t try to do the whole house at once. Choose a room, a closet, a desk, or even just a kitchen drawer.
  • A good rule of thumb: Get rid of anything you don’t use or love.

A habit of clutter can be hard to give up. If you’re used to having a lot of Stuff around you, a pared-down space can feel too spare and empty. Before you rush to fill that void, try sitting with it for awhile and really setting an intention for you want to replace your clutter with. It might be original art, new bookcases, workshop space or just more breathing room.

Whatever you choose to do with your space, you can use the same techniques you used to clear it to keep it clean. Don’t keep Stuff you don’t use or need. Don’t buy Stuff you don’t want or need. Spend a little time each day keeping your space organized.

Here are the top three clutter-busting tips from GRS Twitter followers:

  • “Throw clutter in bags, put them in the attic. As you need something, take it from the bag. After 6mo, donate bags.” — @jacobmlee
  • “For clutter: I’m using @gretchenrubin‘s rules: Make your bed and the 1-min rule: if you can do it in 1 min, do it now!” — @jc_losangeles
  • “My fave declutter advice: Spend 15 Mins a day!” — @BudgetsAreSexy

I know we just talked about Stuff last week, but how do you combat clutter? What tips and tricks can you share with readers?

Source: getrichslowly.org

Apache is functioning normally

Upstart is one of the newer peer-to-peer (P2P) lending platforms available on the Internet. But the platform is coming up quickly, drawing interest from both borrowers and investors. Despite the fact that the service is barely two years old, Upstart could be one of the better P2P platforms to use, whether you are a borrower or an investor.

About Upstart

Based in Palo Alto, California, Upstart is a peer-to-peer lending platform that began operations in 2014. Despite Upstart’s tender age, the platform has already arranged more than $300 million in loans. The company was “founded by ex-Googlers” (former Google employees) to provide personal loans using very different lending criteria than is common even for P2P lenders, to say nothing of banks.

All loans made through Upstart are made by Cross River Bank, which is an FDIC insured commercial bank that is chartered in New Jersey, but funded through independent investors.

Upstart Borrowing Review

In most respects, borrowing through Upstart is similar to the process on other P2P lending sites, like Lending Club and Prosper. The application is completed entirely online, your loan request – if you qualify – is graded and priced, then the loan is funded.

But what makes Upstart different is the way they underwrite your loan. They check your credit score, your years of credit, and your job history, just like every other lender does. But those aren’t the only criteria that Upstart uses in determining whether or not to make a loan to you. They also consider your education and your area of study.

The idea is that “you are more than your credit score”. Upstart also considers your future potential, which they believe is demonstrated through your education experience. They will take into consideration the college that you graduated from, your grade point average, and your major – obviously certain major fields of study are considered to be an advantage from a lending standpoint. The Upstart system seeks to identify and make loans to what it refers to as “future prime” borrowers.

The Upstart target borrower. Because of the consideration of a borrower’s education, Upstart is well suited to new and recent college graduates. The company is less concerned with how deep your credit history is, or even your employment history. Your potential for future income becomes an essential consideration.

Traditional loan requirements. Upstart does require that you have a minimum credit score of 640, however there is no minimum credit history requirement. You must also not have any bankruptcies or other negative public records on your credit report.

There is also no required minimum income level, nor is there a maximum debt-to-income ratio (DTI). That could be a major advantage if a bank turned you down for a loan due to insufficient income.

Minimum/maximum loan amounts.The minimum loan amount on Upstart is $3,000, and the maximum is $35,000.

Loan term. There are two loan terms available with Upstart, 36 months or 60 months.

Loan purpose. Upstarts loans are generally classified as personal loans, but you can use them for just about any purpose you can imagine. For example you can use the proceeds to pay off credit cards, consolidate debt, refinance student loans, take a course for boot camp, pay for college or graduate school, make a large purchase, relocate, pay medical bills, start or expand the business, buy a car or anything else that you like.

Loan qualifications. In order to qualify for a loan with Upstart, you must be a US citizen or permanent resident alien, be at least 18, not live in West Virginia, have a valid email account, be able to verify your name, date of birth, and Social Security number, have a full-time job or a full-time job offer starting within six months, or a steady part-time job or other source of regular income, and have a US bank account.

Application process. The application is online, and requests information about your academic credentials, work experience and the purpose of the loan. All information provided on the application must prove to be correct. You can complete the application in as little as two minutes.

If you accept your loan no later than 5:00 pm (Eastern Time), your loan proceeds will generally be available on the next business day. Otherwise they should arrive after two business days. However, if the loan is being used for education purposes, there is a three day waiting period between when you accept your loan, and when the funds arrive. In any event, the loan proceeds will be wired to your bank account.

Documentation requirements. Upstart will run your credit report, and you will need to upload documents that support your income. If you are a full-time employee you’ll need to provide your most recent pay stub. If you will be qualifying using bonus or commission income, you will need an offer letter from the employer spelling out the terms and expected income. If you have multiple jobs, you will need the latest pay stub for each.

Rental income will require a copy of a lease on the rented property. And if you are self-employed, they will need the most recent year’s income tax return, as well as copies of current year’s invoices.

And since your college background is an important part of the loan evaluation process, you may also need to furnish a copy of your college transcript. A college transcript will be required if you graduated within four years of your application date.

One more point on income, and it’s a big one. Since the loan that you will be applying for on Upstart is a personal loan, you cannot include other household income on your application. That includes your spouse’s income, if you’re married. Your qualification is based on your income only.

What if you lose your job and can’t make the payments? Upstart doesn’t provide specific information on this point, but they do make the following claim on the website:

“If you are experiencing hardship and cannot pay, please contact us immediately. If you are unable to pay, we may be able to work on an alternative payment plan that will avoid additional fees or penalties.”

You also have the option to change your monthly payment date to better suit your schedule. However, the new payment date needs to be set before your actual due date, otherwise you will accrue additional interest.

Collateral. There’s more good news here; Upstart doesn’t require collateral on any of its loans.

Interest rate and fees. Your interest rate is generated by the model and is based on your application and a “soft pull” of your credit report. Rates range from 4.66% APR to 29.99% APR for a 36 month loan, and between 6.00% APR and 27.32% for 60 month loans.

Like many other P2P lenders, Upstart does charge an origination fee. That fee is equal to between 1% and 6% of the loan amount (putting it squarely in line with Prosper and the other lenders). However, there is no prepayment penalty should you choose to payoff your loan early.

Upstart Investing Review

Upstart is all about lending money to borrowers, but it’s equally accommodating if you want to join the platform as an investor.

Here are the highlights:

Minimum investment. You need just $100 to open an account and invest with Upstart.

Loan quality. Upstart claims that about 98% of their loans are either current or are paid in full. Only about 1.1% of their loans are more than 30 days late, and just 1.2% are listed as charged off.

Borrower quality. The good experience that Upstart has on its loans has to do with the profile of the typical Upstart borrower. Here are some statistics:

  • Average FICO score: 691
  • Average income: $105,842
  • College graduates: 90.9%
  • Refinancing credit cards: 76.2%

Refinancing credit cards needs some explanation as to why it is seen as a positive factor as a borrower profile. Loans generally perform better when they represent some form of refinance of existing debt. If the borrower has successfully managed that debt in the past, there is a credit track record, and a better chance that the new financing will be similarly well-managed.

In a borrower is using a new loan from Upstart to replace high-interest revolving credit card debt, with a fixed rate installment loan, the borrower’s financial situation improves immediately, particularly if the new monthly payment is lower than what the total payments were on the credit cards that were refinanced.

Expected Returns. As you’ll see below, you can expect to earn rates of interest on your Upstart loan portfolio that are well above what are available through banks and brokerage firms.

Here are the modeled returns listed on the site, based on loan grade:

  • AAA – 3 year loans 3.79%; 5 year loans 5.67%
  • AA – 3 year loans 4.50%; 5 year loans 6.18%
  • A – 3 year loans 5.60%; 5 year loans 7.14%
  • B – 3 year loans 6.88%; 5 year loans 9.13%
  • C – 3 year loans 7.93%; 5 year loans 11.92%
  • D – 3 year loans 9.01%; 5 year loans 13.67%
  • E – 3 year loans 10.57%; 5 year loans 15.57%

Modeled returns for each grade and loan term are net of the annual loss rate, which is different for each grade and term. For example, on AAA loans the annual loss rate is less than 0.1% on three year loans, and less than 1% on five year loans. At the opposite end of the spectrum, there is a 13.60% annual loss rate on three year loan grade E loans, and 11.19% on five year loan grade E loans.

Income tax reporting. Upstart will report taxable interest income earned on your account with the filing of Form 1099-INT with the IRS. Naturally, you will receive a copy of the document, which must be sent to you no later than January 31, following the year in which the interest income was earned.

Income taxes may be withheld from your interest income for a number of reasons. If you did not complete lRS Form W-9 when you opened your account with Upstart, then withholding will be required. It may also be necessary in the event that the name, Social Security number or taxpayer identification number that you provided to Upstart doesn’t match IRS records. In addition, withholding will take place if Upstart is notified by the IRS that it is required for any purpose.

Withdrawing funds from Upstart. You can have cash balances in your Upstart investment account transferred to your bank account at any time you choose. There can be a delay of up to seven business days with the transfer, depending upon your bank.

IRA accounts are available with Upstart. You can set up a self-directed IRA account with Upstart that allows you to invest in loans through the platform. Given that interest rates are so low at banks and brokerage firms, the higher interest income that an Upstart account can provide could make an excellent place to hold your fixed income IRA allocation.

Fees. There’s really good news here – Upstart charges no fees to investors. What’s more, Upstart doesn’t earn fees on loans that default. Even better, if the loan defaults, Upstart turns the fees that were collected when the loan was originated over to investors in the loan. This is where that origination fee of between 1% and 5% of the loan amount could loom large.

No FDIC or SIPC insurance coverage! There is one caveat in regard to investing with Upstart. In the event that Upstart goes out of business, there is no federally sponsored insurance agency or fund that will cover your investment with the platform. However, this is another factor that is common with P2P platforms.

Upstart claims that they have a backup servicer and administrator in place so that the loans held for the platform will continue to be serviced, and you will get paid as an investor in those loans.

Upstart Review Summary

If you are a borrower, Upstart uses innovative methods in approving loans. This is an excellent loan source if you are recently out of college, and have not fully established yourself financially, or if your bank thinks your income is insufficient to support a loan. The platform will accept a very short employment history, or even a written promise of employment. It gives you an opportunity to be approved for a loan, even though banks may decline your application.

From an investor standpoint, Upstart’s loan quality is providing solid returns. The emphasis on “future prime” borrowers may be allowing Upstart to tap into a market that other lenders are ignoring. That assures more good investment opportunities in the future.

Whether you’re looking to borrow or to invest, check out Upstart as one of the P2P possibilities.

Source: goodfinancialcents.com

Apache is functioning normally

When Minnesota resident Sherry Shannon was short on cash after her car broke down in 2013, she turned to a storefront payday lender for a $140 loan. She remembers the process as quick and easy — she signed on the dotted line, got the cash and was out the door within minutes.

But when it came time to repay, the combination of her monthly bills, plus the triple-digit interest rate on her payday loan, meant she was short on cash again, so she took out another loan.

As the amount she owed ballooned, Shannon says she soon felt trapped by her debt.

“I experienced homelessness once, and I didn’t want to be homeless again, so I had to keep taking [payday loans] out just to pay my rent and my light bill,” she says. “I didn’t see any way out of this.”

Shannon’s story doesn’t stand alone. Payday lenders operate in 32 states, and about 12 million Americans use payday loans each year, according to research from the Pew Charitable Trusts. Though these loans may be advertised as a way to cover a one-time emergency cash shortage, borrowers often use them for important recurring expenses such as rent and utilities, and the cost can be exorbitant.

If you’re trying to get out of payday debt, there are ways to break the cycle, especially if you know where to turn in your community.

How payday loans work

Payday loans are short-term, small-dollar loans typically capped at $500. They’re considered high-interest because of their fee structure.

A typical two-week $100 payday loan comes with $15 in fees — which equates to an annual percentage rate of 391% — according to the Consumer Financial Protection Bureau. For context, financial experts consider 36% the maximum APR a loan can have to be affordable.

Because payday loans are relatively easy to get, they can also feel like a surefire solution to an urgent financial problem, says Anne Leland Clark, executive director of Exodus Lending, a nonprofit based in St. Paul, Minnesota, that helps families break out of predatory loan debt. But when people can’t repay, their financial situation becomes more precarious.

“Payday loans may provide immediate relief in a financial crisis or a financial trauma, but then it almost retraumatizes you,” Clark says. “It causes more stress, and people fall into a cycle where they aren’t able to catch up.”

The payday loan debt cycle

A debt cycle is when repeat borrowing leads to an ever-increasing debt that may demand even more borrowing to manage it.

According to 2014 research from the CFPB, four out of every five payday loans are reborrowed after the initial two-week term. The CFPB’s research also shows that most borrowers end up owing more in fees than the original loan amount.

That was the case with Shannon. Though her initial loan was $140, she eventually paid $500 in fees while making little progress in paying down her principal loan amount.

The quick turnaround time on payday loans is part of why they’re so hard to repay, says Clark. Chances are, if you’re short on cash when you borrow, you’ll still be short on cash two weeks later when you have to repay the loan in one lump sum plus the interest you owe.

If borrowers can’t repay, they may be able to renew the loan depending on their state. However, renewals require an additional fee, making it that much harder to catch up when the loan comes due again.

“Even when people feel like they’re making progress, they’re not actually paying down their loans,” says Yasmin Farahi, deputy director of state policy and senior policy counsel at the Center for Responsible Lending in Durham, North Carolina. “That’s how the cycle continues. They’re paying some amount, but it’s not enough to get them out from under this.”

Clark and Farahi emphasize that borrowers shouldn’t feel ashamed for being stuck in a payday loan debt cycle. Though consumer finance education can help, they say greater regulatory efforts are needed to address the issue truly.

“It’s important for consumers to understand that this is really a policy problem,” Farahi says. “It’s up to policymakers to ensure that we’re getting rid of these kinds of loan sharks, not up to consumers to learn how to swim with the sharks.”

Breaking free of payday loan debt

Shannon eventually found her way to Exodus, which offered her a zero-interest, 12-month loan to refinance her payday debt.

She’s now free of payday loans but wants others to know how easy it is to become trapped. Though Shannon admits it’s hard to do, she says the key is reaching out for help before the loan gets out of control.

If you’re struggling with payday loans, consumer advocates strongly recommend exploring the options below to help you pay off the debt.

Research organizations in your area that offer financial assistance

Your city or state should have organizations that provide financial assistance to community members in need. Look for nonprofits, charities and religious groups. Some organizations may specifically address payday debt, like Exodus does in Minnesota, while others may offer general financial assistance to help cover necessities, such as rent or groceries. Use the money you save on those expenses to pay off your payday debt.

Reach out to a nonprofit credit counseling agency

Credit counseling agencies specialize in helping people with their finances, including getting out of debt. Credit counselors can work with you to create a budget, manage your bills and explore your debt payment options, including a debt management plan. With a debt management plan, you pay the credit counseling organization, which then pays off your creditors and may charge you a fee.

Take out a small-dollar loan from a credit union or bank

More credit unions and banks are offering small-dollar loans. These loans could help you pay off payday debt and be left with a more affordable loan instead.

Your neighborhood credit union is a great place to start. Though you’ll need to become a member before applying for a loan, membership is easy and affordable at most credit unions. Some federal credit unions also offer small loans, including payday alternative loans or PALs. These loans can range from $200 to $1,000 and cap borrowing costs to keep the loan affordable. You’ll need to be a credit union member for one month before applying. However, some credit unions offer a second type of PAL that allows you to apply immediately and has higher loan amounts.

Banks are also increasing their small-dollar lending, though you’ll need an existing account in good standing to apply. Even if your account isn’t in good standing, it doesn’t hurt to call the bank, explain your situation and see if they’re willing to offer you a loan.

Borrow money from a family member or friend

If you’re unable to get help from an organization or financial institution, don’t be afraid to tap your network. It can be hard to ask a family member or friend for money. Still, you can make it more comfortable by writing down mutually agreed-upon loan terms — including when and how you’ll pay them back and if you’ll pay interest — so the expectations are clear.

Many people find themselves in financial trouble at one point or another, so remember that getting back on your feet means you may be able to help someone else in the future.

Source: nerdwallet.com

Apache is functioning normally

Commuting to work is one of the top things people consider when looking for an apartment. A long commute adds stress to your life. You sit in traffic, you use a substantial amount of gas, and you have far less free time than you would with a shorter commute. Moving closer to work makes life so much easier, but make sure you take all factors into account when apartment shopping based on your commute.

A move for shorter commuting

Switching neighborhoods to make your commuting time more tolerable is a great call. However, in order to ensure that you aren’t adding a different kind of stress, you need to ask yourself a few questions.

  • Is the new neighborhood safe?

Look into the crime rates in the neighborhood you are considering. You don’t want to jeopardize your safety for a shorter commute; it’s simply not worth it.

  • What’s the cost-benefit analysis?

Do a cost benefit analysis to see what your long commute is costing you. You want to look at the full cost of additional mileage on your car, including general wear and tear, depreciation, the cost of more frequent oil changes and repairs AND the cost of gas. Be realistic when figuring your gas costs, by learning the mileage your car gets. Talk to your accountant, if needed, about the wear and tear factor.

  • What’s the cost effectiveness of the move?

Once you know what your commute to work actually costs (and what it might cost in a new neighborhood), you can compare that to rent prices. See what the rent prices are in the neighborhood you’re considering. Even if a place has higher rent, you may still be coming up on top because your car expenses would be so much less.

The commuting drive-time test

Online maps are one way to get a general idea of your drive time. But these don’t take traffic into account. You want to make sure your shorter commute will actually save time. A new neighborhood may make your commute a few miles shorter, but if you’re not saving any time because you’re stuck in traffic day in and day out, it’s a wash. Give your commute a try from your new neighborhood. How is rush hour traffic? Are you still saving time even during peak driving times?

Many folks like proximity to a freeway when considering a new neighborhood. But back roads may get you to work faster. When you’re doing your drive tests, see if there is a route for you to avoid the major freeways. This could save you time and sanity.

RELATED: Walking to work as a lifestyle

RELATED: Create an emergency kit for your car

The benefits of a shorter commute

There are so many benefits to having a shorter commute: less stress, since you won’t be spending nearly as much time on the road in traffic; less money, in gas and car upkeep; time, as you’ll have more time to yourself each day. There are many perks to cutting down your commuting time.

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After a long hard day at work, the last thing you want to do is deal with traffic and a long trip home. Traffic is stressful and can be dangerous as well. Why not take one less stressor out of your life? A shorter trip home will not only impact your sanity but your pocket book too.

Apache is functioning normally

With the recent rise in gas prices, many people have been looking for ways to save money on gas. These efforts usually fall into two categories; reducing your fuel consumption, or finding a way to pay less. Realizing that because of the various uses for crude oil, gas prices are somewhat out of our control (especially if our only weapon is a gas boycott), we are limited in how we can reduce the price that we pay. Paying less for gas is really just a matter of either finding the lowest priced gas stations in your area, or using various credit card benefits to get cash back.

However, it is in the area of reducing fuel consumption, where people can get very creative. Unfortunately, some of these techniques can actually cost you money or make your drive more dangerous. Recently, Investopedia published an article outlining some of these methods. I thought it would be interesting to see which fuel saving techniques they highlighted and what they had to say about each one.

They are listed below, with my feedback beneath each one. Be sure to leave your comments below.

Save Money On Gas? Not With These Techniques!

Devices To Increase Airflow

The Theory: High-tech devices designed to increase your engine’s airflow will improve fuel efficiency.

The Facts: It sounds plausible, but the results don’t back up the impressive claims. Consumer Reports tested several of the devices, such as Fuel Genie ($89.95, plus shipping), that purport to increase fuel economy by accelerating airflow to the engine. The tests found no noticeable gains in MPGs, despite claims of 50% fuel savings. While it’s true that drastically increasing the airflow to an engine is a common way to increase horsepower (i.e. forced induction through turbo and superchargers), doing so will actually increase fuel consumption and increase wear on the engine, not to mention that this proven technology costs significantly more than its gimmicky competition.

I have to admit that I have never gotten so much into fuel efficiency that I’ve researched or purchased an airflow gadget. However, I know that some people have been willing to make significant investments in these types of gadgets in order to increase their miles per gallon.

If the problem of increasing the wear on your engine is true, then these gadgets will end up costing a lot more than what you pay for gas!

Fuel Additives

The Theory: The gas we buy can be improved by adding scientifically formulated chemicals that will increase fuel efficiency and, sometimes, horsepower.

The Facts: Clearly, some drivers believe the answer to their fuel woes lies in a magic elixir, because there are numerous fuel treatments that claim to increase MPGs, despite no scientific proof or explanation of how less fuel is burned. According to CNN.com, one common tactic used by shady fuel-additive makers is to tout the product’s approval by the Environmental Protection Agency (EPA). This suggests that a trusted consumer watchdog has approved the product’s claims, but in fact, the EPA had only deemed that the product does not increase a vehicle’s harmful emissions. The truth is, if there were an additive that made fuel burn more efficiently, oil companies would be racing to market their new gas at the pumps and gain a bigger market share.

I used to add a fuel treatment to my car every 3,000 miles. I never noticed a difference in how the car ran, or in the fuel efficiency, but I just figured it was because I wasn’t paying close enough attention.

I think that the worthless EPA approval is pretty deceptive. The average person would think that the claims to improve fuel efficiency have been tested and proven to be true; however, it just means that it won’t increase your emissions!

I don’t think I’ve purchased this stuff since we got our new car over 3 years ago, but I always had a supply in my trunk before that!

Premium Gas

The Theory: Premium gas provides increased performance and better gas mileage.

The Facts: This is true … if you own a premium automobile that requires high-octane gas, but these cars make up the minority of daily drivers. So if you’re in the majority – drooling over Ferraris from the seat of your Corolla – your car’s engine control unit (ECU) is programmed to run on the octane levels present in regular gas. Increasing the octane – either through buying premium gas or adding bottles of octane-boost – can actually cause the engine to be less efficient, as the car’s combustion timing becomes altered and efficiency is lost. But the most noticeable loss will be the extra 20 cents per gallon you’ll be wasting to buy high-octane gas. A safe bet is that if you can afford a vehicle that requires only premium fuel, you likely aren’t concerned with gas prices or tracking mileage.

This is one I’ve always known about. I think the only time I ever purchased anything higher than regular was when the gas station ran out, and they charged the same price as regular.

Once in a while I would come across people who swore by a higher octane, but they could never tell me why. It was just another case of, “it costs more, so it must be better”!

I love what the article said at the end of this…it’s very true. If you can honestly afford a car that needs a higher octane, you probably aren’t worried about your MPG as much as most.

Over Inflating Your Tires

The Theory: Rounder tires roll easier, creating less work for the engine and therefore, better MPG.

The Facts: Again, this tip is true … to a point. Over inflated tires will have less friction with the road, which lessens the effort the engine exerts to keep the car rolling, providing slight gas savings. However, overinflated tires will wear out quickly and irregularly, causing you to need early replacements at a cost of about $50 to $100 per tire. What’s worse is that the decreased contact with the road increases stopping distances and limits handling capabilities. This all adds up to a large risk in costly accidents and injuries. Even if you are lucky and avoid a collision, it would take a lifetime (which could very well be short if you’re riding on bald and bulbous tires) for your fuel savings to negate the cost of four new tires. According to Edmunds.com’s testing, the fuel consumption difference between driving with over-inflated tires and tires at the recommended pressure is negligible. Sometimes, despite what GM’s recent track record suggests, carmakers do know what they’re doing and the recommended settings and levels do provide the best results.

I’ve actually never heard of this trick. It just seems so dangerous, because you have less of your tire making contact with the road – meaning it is more difficult to brake! Even if the increase in MPG were substantial, I would not feel comfortable doing something this dangerous!

I think that the cost of your new tires and the increased risk of being in an accident, would easily negate any gains you have from buying fuel less often.

Roll Down The Windows Rather Than Using Air Conditioning

The Theory: Operating the AC to cool the vehicle uses fuel, so it’s more efficient to cool off by driving with the windows down.

The Facts: While it’s true that some fuel is used to operate the AC compressor, as much or more fuel is lost when the windows are down. Rolling down the windows increases the drag on the car, which causes the car to work harder to maintain its speed. For even better mileage, you can improve your AC’s efficiency by using the re-circulation setting on the car’s HVAC system instead of forcing the AC to cool the hot air from outside. Heeding this tip will increase your mileage, as well as your comfort.

This has been a subject of great debate for a while now. Many people – including me for a while – will drive on the highway with the windows down in the summer, in order to save money by not turning on the AC. Actually, I do it because I love fresh air and I didn’t want the AC to burn up gas. However, once you get over about 40 MPH, the drag on the car (from the air resistance) causes the fuel efficiency on your car to drop dramatically. Therefore, if you are driving on the highway, you will burn less gas by using the AC and keeping the windows up.

Now, I just have to weigh this fact against my need to feel comfortable. I am one of the few people who I know are more comfortable with air blowing on my face in the summer, than having the “conditioned” air blowing on me. If gas prices continue to increase, I may have to get used to running the AC (on the lowest setting, or course).

Reader Questions

  1. What methods have you implemented in order to save money on gas?
  2. How often do you think about rising gas prices?
  3. What are some common myths that you’ve heard about saving money on gas?

Related Posts

Source: biblemoneymatters.com

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Liability-only vs. full coverage insurance

Simply put, liability-only car insurance is a type of policy that only provides coverage for damages you cause, not damages you sustain. Full coverage builds on liability-only and adds additional coverage, including coverage for damages to your vehicle from collisions as well as non-collision incidents such as storms and fires. In the U.S., the average cost of car insurance for minimum coverage — the lowest coverage level of insurance that you can purchase — is $622 per year, while full coverage costs an average of $2,014 per year.

Keep in mind, though, that your auto insurance needs will likely change over time. You may find that full coverage is the best option for you now, while in the future, you may be more apt to choose liability-only. Reassessing your needs once in a while, especially if you’ve recently gone through a life change, can help you align your coverage with your circumstances. Below, we delve deeper into the differences between liability-only and full coverage to help you determine which is best for you as you gather car insurance quotes.

Liability-only car insurance

Liability car insurance coverage is the part of your policy that pays for the injuries and damages you cause to someone else in an at-fault auto accident. Most states require drivers to carry at least a minimum car insurance coverage limit, often called “minimum coverage.” However, you can buy higher liability limits than required by your state and still have a “liability-only” policy, as long as you don’t add coverage for damage to your vehicle.

Liability coverage is broken down into two parts:

  • Bodily injury liability: This coverage pays for the injuries you cause to another party in an at-fault accident.
  • Property damage liability: This portion of your liability coverage pays for the damages you cause to another’s property, such as another vehicle, a fence or a building.

Liability coverage is often listed as split limits, which are listed in a bodily injury per person / bodily injury per accident / property damage per accident format. However, your liability coverage may also be a “combined single limit,” meaning it’s one number that can be used flexibly to cover the damages and injuries you cause.

Some states also require other coverage types as part of their minimum coverage requirements, including:

  • Personal injury protection (PIP): This coverage pays for your medical bills and your passengers’ medical bills if you are injured in an accident, regardless of fault. PIP may also pay for lost wages and the costs for household services you can’t perform due to injuries. In no-fault states, PIP is required.
  • Uninsured and underinsured motorist: These two coverage types pay for injuries you sustain if you are hit by a driver who does not have insurance or does not have enough insurance to cover your bills. This also provides coverage if you are a pedestrian hit by an uninsured motorist or a victim of a hit-and-run accident.
  • Medical payments: Although only required in a few states, medical payments coverage is similar to PIP. It pays for your injuries and the injuries to your passengers regardless of fault. However, medical payments coverage does not cover lost wages or household services like PIP.

Takeaway: You must purchase a car insurance policy with at least your state’s minimum required coverage types and limits in states where car insurance is required. However, you can purchase higher liability limits and other coverage types, such as medical payments, and still have a “liability-only” policy.

Full coverage car insurance

Full coverage car insurance refers to a policy that has all the state-required coverage types as well as comprehensive and collision coverage, which add coverage for damage to your vehicle. While it’s possible to have a full coverage policy with low liability limits, many full coverage policies have higher limits for liability coverage to offer more robust coverage and greater financial protection for you and your family.

Full coverage policies include:

  • Collision: This coverage pays for your vehicle’s damages from collisions, such as hitting another vehicle, tree or building. Collision coverage will help cover your vehicle’s repairs in a covered claim, regardless of fault.
  • Comprehensive: Often called “other-than-collision” coverage, comprehensive pays for non-collision damages, such as damages caused by fire, theft, weather, vandalism or striking an animal.

You may also be able to add some additional coverage types, known as endorsements, to full coverage policies:

  • Rental reimbursement: This coverage will pay for a rental car if your vehicle is not driveable and is being repaired or replaced by a claim covered under your comprehensive or collision coverage. There is generally a per-day coverage limit and a total maximum amount of coverage limit.
  • Roadside assistance: This endorsement pays for service calls needed for your vehicle, like a tow, jump start or tire repair service.
  • Gap insurance: Gap coverage is designed to pay the difference between your new car’s actual cash value and the amount you owe on a loan or lease. If your vehicle is totaled or stolen and you owe more than the car is worth, gap coverage pays the difference.

Takeaway: A full coverage policy is generally more expensive than a liability-only policy, but it provides more financial protection and often has higher liability limits. Full coverage is often required when a vehicle is financed or leased. Additionally, you must have full coverage to qualify for several common endorsements, including car rental coverage and roadside assistance.

Source: thesimpledollar.com