tag:blogger.com,1999:blog-8071947369854619452024-03-05T00:21:52.032-05:00Slow WealthBuilding wealth comes down to living within your means, making financial decisions unemotionally, taking reasonable risks, and sticking to your plan.Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.comBlogger38125tag:blogger.com,1999:blog-807194736985461945.post-71033630528386506272013-07-24T08:37:00.000-04:002013-07-24T09:14:42.678-04:00The real cost of AA batteriesAnyone who has kids, or even just a bunch of electronics, has felt the pinch of the cost of batteries.<br />
<br />
In a google search today, I found <a href="http://www.nbc12.com/story/18276282/which-batteries-last-longest?clienttype=printable">a report from WWBT</a> (NBC 12 in Richmond, VA) listing the reporter's data from a flashlight experiment where she tested many different brands of AA batteries.<br />
<br />
Her report provides a table of the type of battery, the cost of each, and the length in hours each burned. But that didn't answer my question: Which brand of battery is the best deal?<br />
<br />
So using her data, I created my own spreadsheet and got some answers. <br />
<br />
It is important to note that this is pretty unscientific. For example, I added the Sunbeam 8-pack (for $1) from the Dollar Tree. This is what we typically use around my house for kids toys, wireless mice, etc. I made the (hopefully correct) assumption that these are the same as the 4 to a pack sunbeam batteries from this reporter's test. This test also completely ignores the fact that batteries perform differently in different types of electronics. For example one battery may perform better in a device with a low energy consumption, and another may work better in one with a high energy consumption.<br />
<br />
But even for an unscientific test, the results are pretty interesting.<br />
<br />
Here is what I came up with -- sorted with the best deals at the top.<br />
<br />
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 453px;">
<colgroup><col style="mso-width-alt: 2998; mso-width-source: userset; width: 62pt;" width="82"></col>
<col style="mso-width-alt: 3291; mso-width-source: userset; width: 68pt;" width="90"></col>
<col style="width: 48pt;" width="64"></col>
<col style="mso-width-alt: 1499; mso-width-source: userset; width: 31pt;" width="41"></col>
<col style="mso-width-alt: 2157; mso-width-source: userset; width: 44pt;" width="59"></col>
<col style="mso-width-alt: 2084; mso-width-source: userset; width: 43pt;" width="57"></col>
<col style="mso-width-alt: 2194; mso-width-source: userset; width: 45pt;" width="60"></col>
</colgroup><tbody>
<tr height="51" style="height: 38.25pt;">
<td class="xl65" height="51" style="background-color: #5b9bd5; background-position: initial initial; background-repeat: initial initial; border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none none solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; font-weight: 700; height: 38.25pt; text-underline-style: none; width: 62pt;" width="82">Store</td>
<td class="xl65" style="background-color: #5b9bd5; background-position: initial initial; background-repeat: initial initial; border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; font-weight: 700; text-underline-style: none; width: 68pt;" width="90">Brand</td>
<td class="xl65" style="background-color: #5b9bd5; background-position: initial initial; background-repeat: initial initial; border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; font-weight: 700; text-underline-style: none; width: 48pt;" width="64">Price</td>
<td class="xl65" style="background-color: #5b9bd5; background-position: initial initial; background-repeat: initial initial; border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; font-weight: 700; text-underline-style: none; width: 31pt;" width="41">#
in Package </td>
<td class="xl65" style="background-color: #5b9bd5; background-position: initial initial; background-repeat: initial initial; border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; font-weight: 700; text-underline-style: none; width: 44pt;" width="59">Cost
per Battery</td>
<td class="xl65" style="background-color: #5b9bd5; background-position: initial initial; background-repeat: initial initial; border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; font-weight: 700; text-underline-style: none; width: 43pt;" width="57">Hours
Lasted2</td>
<td class="xl65" style="background-color: #5b9bd5; background-position: initial initial; background-repeat: initial initial; border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; font-weight: 700; text-underline-style: none; width: 45pt;" width="60">Cost
per Hour</td>
</tr>
<tr height="51" style="height: 38.25pt;">
<td class="xl66" height="51" style="border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none none solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; height: 38.25pt; text-underline-style: none; width: 62pt;" width="82">Dollar
Tree</td>
<td class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 68pt;" width="90">Sunbeam (8 to a pack variety)</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 48pt;" width="64">$1.00 </td>
<td align="right" class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 31pt;" width="41">8</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 44pt;" width="59">$0.13 </td>
<td class="xl69" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 43pt;" width="57">
4.50 </td>
<td class="xl70" style="border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Calibri; font-size: 11pt; text-underline-style: none;"> $
0.03 </td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td class="xl66" height="20" style="border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none none solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; height: 15pt; text-underline-style: none; width: 62pt;" width="82">Costco</td>
<td class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 68pt;" width="90">Kirkland</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 48pt;" width="64">$12.79 </td>
<td align="right" class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 31pt;" width="41">48</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 44pt;" width="59">$0.27 </td>
<td class="xl69" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 43pt;" width="57">
5.85 </td>
<td class="xl70" style="border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Calibri; font-size: 11pt; text-underline-style: none;"> $
0.05 </td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td class="xl66" height="20" style="border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none none solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; height: 15pt; text-underline-style: none; width: 62pt;" width="82">Dollar
Tree</td>
<td class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 68pt;" width="90">Sunbeam</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 48pt;" width="64">$1.00 </td>
<td align="right" class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 31pt;" width="41">4</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 44pt;" width="59">$0.25 </td>
<td class="xl69" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 43pt;" width="57">
4.50 </td>
<td class="xl70" style="border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Calibri; font-size: 11pt; text-underline-style: none;"> $
0.06 </td>
</tr>
<tr height="34" style="height: 25.5pt;">
<td class="xl66" height="34" style="border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none none solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; height: 25.5pt; text-underline-style: none; width: 62pt;" width="82">Dollar
Tree</td>
<td class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 68pt;" width="90">Eveready Gold</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 48pt;" width="64">$1.00 </td>
<td align="right" class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 31pt;" width="41">4</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 44pt;" width="59">$0.25 </td>
<td class="xl69" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 43pt;" width="57">
3.55 </td>
<td class="xl70" style="border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Calibri; font-size: 11pt; text-underline-style: none;"> $
0.07 </td>
</tr>
<tr height="34" style="height: 25.5pt;">
<td class="xl66" height="34" style="border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none none solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; height: 25.5pt; text-underline-style: none; width: 62pt;" width="82">Dollar
Tree</td>
<td class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 68pt;" width="90">Panasonic Alkaline</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 48pt;" width="64">$1.00 </td>
<td align="right" class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 31pt;" width="41">4</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 44pt;" width="59">$0.25 </td>
<td class="xl69" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 43pt;" width="57">
1.98 </td>
<td class="xl70" style="border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Calibri; font-size: 11pt; text-underline-style: none;"> $
0.13 </td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td class="xl66" height="20" style="border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none none solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; height: 15pt; text-underline-style: none; width: 62pt;" width="82">Walmart</td>
<td class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 68pt;" width="90">Duracell</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 48pt;" width="64">$3.77 </td>
<td align="right" class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 31pt;" width="41">4</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 44pt;" width="59">$0.94 </td>
<td class="xl69" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 43pt;" width="57">
5.93 </td>
<td class="xl70" style="border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Calibri; font-size: 11pt; text-underline-style: none;"> $
0.16 </td>
</tr>
<tr height="51" style="height: 38.25pt;">
<td class="xl66" height="51" style="border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none none solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; height: 38.25pt; text-underline-style: none; width: 62pt;" width="82">Dollar
Tree</td>
<td class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 68pt;" width="90">Panasonic Super Heavy Duty</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 48pt;" width="64">$1.00 </td>
<td align="right" class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 31pt;" width="41">2</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 44pt;" width="59">$0.50 </td>
<td class="xl69" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 43pt;" width="57">
2.77 </td>
<td class="xl70" style="border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Calibri; font-size: 11pt; text-underline-style: none;"> $
0.18 </td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td class="xl66" height="20" style="border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none none solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; height: 15pt; text-underline-style: none; width: 62pt;" width="82">Walmart</td>
<td class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 68pt;" width="90">Energizer</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 48pt;" width="64">$3.77 </td>
<td align="right" class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 31pt;" width="41">4</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 44pt;" width="59">$0.94 </td>
<td class="xl69" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 43pt;" width="57">
5.18 </td>
<td class="xl70" style="border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Calibri; font-size: 11pt; text-underline-style: none;"> $
0.18 </td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td class="xl66" height="20" style="border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none none solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; height: 15pt; text-underline-style: none; width: 62pt;" width="82">Rite Aid</td>
<td class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 68pt;" width="90">Rite Aid</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 48pt;" width="64">$4.49 </td>
<td align="right" class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 31pt;" width="41">4</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 44pt;" width="59">$1.12 </td>
<td class="xl69" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 43pt;" width="57">
5.45 </td>
<td class="xl70" style="border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Calibri; font-size: 11pt; text-underline-style: none;"> $
0.21 </td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td class="xl66" height="20" style="border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none none solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; height: 15pt; text-underline-style: none; width: 62pt;" width="82">CVS</td>
<td class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 68pt;" width="90">CVS</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 48pt;" width="64">$4.39 </td>
<td align="right" class="xl66" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 31pt;" width="41">4</td>
<td align="right" class="xl67" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 44pt;" width="59">$1.10 </td>
<td class="xl69" style="border-style: solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 43pt;" width="57">
5.15 </td>
<td class="xl70" style="border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid none none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Calibri; font-size: 11pt; text-underline-style: none;"> $
0.21 </td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td class="xl66" height="20" style="border-bottom-color: rgb(91, 155, 213); border-bottom-width: 0.5pt; border-left-color: rgb(91, 155, 213); border-left-width: 0.5pt; border-style: solid none solid solid; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; height: 15pt; text-underline-style: none; width: 62pt;" width="82">Walgreens</td>
<td class="xl66" style="border-bottom-color: rgb(91, 155, 213); border-bottom-width: 0.5pt; border-style: solid none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 68pt;" width="90">Walgreens</td>
<td align="right" class="xl67" style="border-bottom-color: rgb(91, 155, 213); border-bottom-width: 0.5pt; border-style: solid none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 48pt;" width="64">$3.99 </td>
<td align="right" class="xl66" style="border-bottom-color: rgb(91, 155, 213); border-bottom-width: 0.5pt; border-style: solid none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 31pt;" width="41">4</td>
<td align="right" class="xl67" style="border-bottom-color: rgb(91, 155, 213); border-bottom-width: 0.5pt; border-style: solid none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 44pt;" width="59">$1.00 </td>
<td class="xl69" style="border-bottom-color: rgb(91, 155, 213); border-bottom-width: 0.5pt; border-style: solid none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Arial; font-size: 10pt; text-underline-style: none; width: 43pt;" width="57"> 4.65 </td>
<td class="xl70" style="border-bottom-color: rgb(91, 155, 213); border-bottom-width: 0.5pt; border-right-color: rgb(91, 155, 213); border-right-width: 0.5pt; border-style: solid solid solid none; border-top-color: rgb(91, 155, 213); border-top-width: 0.5pt; font-family: Calibri; font-size: 11pt; text-underline-style: none;"> $
0.21 </td>
</tr>
</tbody></table>
Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com2tag:blogger.com,1999:blog-807194736985461945.post-22294869132384815442013-07-07T14:24:00.002-04:002017-09-22T12:49:57.969-04:00Fetching Stock Quotes with Excel 2013 and Windows 8Unfortunately, the MSN Stock Quote tool that I have been using for years in Microsoft Excel no longer works for fetching stock prices in Excel 2013. There are some alternatives out there -- <a href="http://pmstockquote.codeplex.com/">namely this option to enable the PSQ function</a> -- however, that solution doesn't seem to work in Windows 8.<br />
<br />
Luckily, I have finally found a solution thanks to <a href="http://www.jarloo.com/yahoo_finance/">this blog</a> and the little known WEBSERVICE function in Excel. Using the Yahoo Stock quote API, you can easily write a formula that can be copied (or "Filled Down") to adjacent cells.<br />
<br />
Assuming your ticker symbol is in A1, to fetch a price, a basic formula would be:<br />
<span style="color: blue;">=WEBSERVICE("http://download.finance.yahoo.com/d/quotes.csv?s="&A1&"&f=l1")</span><br />
<br />
Oddly enough, Excel returns this not as a number, but as text. We can fix this easily by rewriting the formulas as:<br />
<br />
<span style="color: blue;">=NUMBERVALUE(WEBSERVICE("http://download.finance.yahoo.com/d/quotes.csv?s="&A1&"&f=l1"))</span><br />
<br />
The parts to pay attention to are at the end. s="&A1&" tells it that the stock ticker is in A1.<br />
&f=l1 tells it to return the last trade price.<br />
<br />
To fetch the name of the stock, you would substitue l1 with n.<br />
<br />
So for example, if you wanted to have 3 columns with ticker, name, price, you could accomplish this by doing the following.<br />
<br />
<span style="color: blue;">A1=GOOG</span><br />
<span style="color: blue;">B1=WEBSERVICE("http://download.finance.yahoo.com/d/quotes.csv?s="&A1&"&f=n")</span><br />
<span style="color: blue;">C1=NUMBERVALUE(WEBSERVICE("http://download.finance.yahoo.com/d/quotes.csv?s="&A1&"&f=l1"))</span><br />
<br />
So now just setup your spreasheet and use Fill Down (Control D) to fill the columns.<br />
<br />
UPDATE: As of May, 2017, Yahoo changed the address. I have updated the address above. However, if you had it working previously, you may need to change the address in the formula from http://finance.yahoo.com to http://download.finance.yahoo.com. Thanks to a reader for figuring this out and posting the solution in comments. <br />
<br />
If you already have your spreadsheet setup with the old method, you can do a 'replace all' by changing "/finance" to "/download.finance".<br />
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<br />Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com188tag:blogger.com,1999:blog-807194736985461945.post-66280846540238250342012-01-05T16:14:00.004-05:002012-01-05T16:43:12.164-05:00How to Get a Great Deal on a New CarEveryone knows that the price of a new car can vary depending on your bargaining ability. Some people (although I hope not many) likely pay sticker price. And a the dealer sometimes even takes a loss on a few cars -- just to move them off the lot to make room for the next model year. The majority of sales fall somewhere in the middle of the bell curve. <div><br /></div><div>I want to take a few minutes to give you some tools to help you get as low as possible on the price of your next new car.</div><div><br /></div><div>One nice thing about buying new is that all new cars are the same. If you look at a 2012 Toyota Camry LE at one dealership....it is exactly the same as the new 2012 Camry LE at another dealership (perhaps only differing in a few minor options). Because of this, it is very easy to get apples-to-apples prices. If you are shopping for used cars, this is impossible, because no 2 cars will be identical in milage, maintenance, and wear and tear.</div><div><br /></div><div>So here are my steps to help you get the best deal:</div><div>1. First, decide on the make and model you want. Go to some local dealerships and do some test drives. This is not for buying -- this is just for deciding. Once you know which car you want, you are ready to begin.</div><div><br /></div><div>2. Use edmunds.com to find the invoice price and the current incentives on the car. Invoice minus incentives will be our starting point. It is also important that you understand tax, tag, and title costs in your state. For my state, tax is 3% of the purchase price + about $140 for tag and title.</div><div><br /></div><div>3. Next check o.co for the "Zag" price in your local area. Zag is a car buying service that serves as the back end for lots of car buying services like American Express, Overstock, and I believe even Costco. If the Zag price is lower than the price from step 2, that becomes your new starting point. Also check truecar.com to understand what people are actually paying for that car. (This is the price before tax and fees.) You'll want to target the price on the far left (hopefully even off of the grid).</div><div><br /></div><div>3b. Check your banks and credit unions for the lowest car financing rate. For credit unions, this can currently be as low (as of Jan 2012) as 1.79%. Once they have approved you for a loan, they will send you a blank check valid up to a certain amount. (Sometimes dealerships will offer 0% incentives, but usually this is at the expense of giving up a rebate. It is almost always a better deal to take the cash rebate instead of the incentive offer.)</div><div><br /></div><div>4. Use google maps or the auto manufacturer's site to find as many dealerships as you can in your local area. For my purchase, I used about 15, but you can use fewer. Remember, driving a few hours to get your car is a small price to pay to save thousands.</div><div><br /></div><div>5. Go to each dealers website and either use their "chat now" function or email their internet department and ask for a quote on the car. Don't give your phone number. If the form asks for it, just fill in 999-9999 or something similar. When you ask for the price quote, insist on an "out the door" price. This is important to ensure that you are getting a real price, and that they can not add additional fees at the dealership. </div><div><br /></div><div>5b. When you are at these sites, make a note of which ones have internet coupons that pop-up. Almost every dealer has these now. Sometimes they even go higher if you agree to make an appointment. These are typically anywhere from $100 to $500 off. Be sure to make a note of this, but don't register for any appointments yet.</div><div><br /></div><div>6. These dealers will email you their starting price, which you should add to a spreadsheet or a table you draw on a piece of paper. </div><div><br /></div><div>7. Once you have these bids, you can begin to email the dealers back, letting them know where the low bid is. This allows them to essentially bid against each other to earn your business. </div><div><br /></div><div>8. As they say on shampoo bottles...now just rinse and repeat. Continue to email back and forth with dealers getting their lowest out the door price. As a courtesy to the dealers, it is best if you not reveal which dealership is offering you what deal. Keep that to yourself.</div><div><br /></div><div>9. Once you have a deal you are comfortable with then go to their website and print the coupon and potentially sign up for a test drive if that increases the coupon value. Email the internet manager that you have the coupon printed and ask that he/she send you a new "out the door" quote with the coupon factored in. </div><div><br /></div><div>10. Ensure again via email (so you have it in writing) that the car comes with all the features you have specified, including floor mats. </div><div><br /></div><div>11. Go pick up your car. (The dealer may ask you to put down a deposit on your credit card to hold the car if you are driving from out of town or need to wait a few days.) Print out all of the emails from the dealership, so you have in writing the "out the door" price. Ensure that this is the price on the bottom of the sales form when you pickup the car. </div><div><br /></div><div>12. Write a check using your credit union auto buying check.</div>Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com1tag:blogger.com,1999:blog-807194736985461945.post-18259798563411200712011-01-17T08:19:00.006-05:002011-01-31T19:27:21.346-05:00The Real Cost of Time SharesMy wife and I recently took a trip up to Williamsburg, VA (about a 3 hour drive from home) for a "free" 2 night stay in exchange for a timeshare presentation. We had been to one of these before (see my post from June 2008) and figured it was worth our time in exchange for free lodging + $75 visa gift card.<br /><br />Overall, the place was reasonably nice -- although to call it a "resort" is a stretch. It was more like a 2 BR townhouse I would expect to see in a typical suburb. But it was a comfortable stay and didn't cost us anything.<br /><br />Throughout the process, what bugged me most were the half-truths of the time share presentation. The salesman kept making his pitch saying that every year the vacations he takes only cost $140. My wife and I had agreed before hand that the way to get out of there the quickest was to just agree and let them keep going -- so we both had to bite our tongues several times.<br /><br />I've done quite a bit of reading on timeshares -- and one of the best sources out there is a forum called <a href="http://tugbbs.com/">tugbbs.com</a>. So if you are looking to learn, that's a good source.<br /><br />Timeshares aren't necessarily a bad thing, <span style="font-weight: bold;">IF</span> you know how and what to buy. I would only suggest only buying resale (not retail) since you can get most of them for free upfront for taking over the maintenance fees (as opposed to retail prices of $15,000-$30,000). So if you are considering it, here is the real cost breakdown per year.<br /><br />Any amortized up-front expenses (If you buy resale, this should be near 0.)<br />+Yearly maintenace fees. ($500-$700)<br />+Points network dues. (~$150)<br />+Points network exchange fee. (~$150)<br />----<br />Total $800 -$1000/year.<br /><br />If you know you will take a 1-week vacation every year, this may be a good fit for you. But you should also know that you can rent timeshares from current owners for almost exactly the same price as owning -- with all of the benefits -- and none of the downside. So to me, renting a timeshare is the way to go.<br /><br />To find timeshare units for rent, check sites like <a href="http://tug2.com/timesharemarketplace/">http://tug2.com/timesharemarketplace/</a> or <a href="http://redweek.com/">http://redweek.com</a>.Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-88892747974006578232011-01-14T12:46:00.003-05:002011-01-31T19:28:53.743-05:00Scams that make me laughI'm always amused by the latest in low-budget tv commercials that are obvious scams.<br />I saw one today that made me laugh outloud. It claimed that the information about the benefits of Vitamin D are being suppressed (by the government?) and that we should "join together in one voice" by joining the "Vitamin D Health Initiative." And, the commercial says, you'll get free vitamin D for life.<br /><br />The funny thing is that when you go to the website, they charge you $6.95 per month "shipping and handling" for your monthly supply of Vitamin D. (30 pills of 2000 IU). That made me laugh outloud. A quick search of walmart.com shows 2000 IU Vitamin D is $9.00 for 200 pills, or about $1.35 per month. And of course, if you didn't know it, Vitamin D comes from exposure to sunlight -- so you can get a healthy dose just by stepping outside!<br /><br />I'm sure there are some unfortunate individuals out there picking up the phone and signing on to be part of the "initiative" -- but for the rest of us, it at least serves as entertainment.Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-83589646692948049622010-12-26T07:34:00.004-05:002011-01-31T19:30:11.470-05:00Sell those unwanted gamesLike a lot of folks, we have some Wii games that don't get played as much as they used to. So I decided to see where I could sell some games and come out the furthest ahead. All of the 3 major sites for selling your stuff have different fees. So I decided to calculate the amount I would pocket if I sold a game for $25+$4 shipping on eBay, Half.com (also owned by ebay), and Amazon Marketplace.<br /><br />How much would you get to sell at $25 item with $4 shipping? This of course assumes that each of these would find buyers willing to pay the same price. Surprisingly, I found that Amazon was the most expensive and Ebay was the cheapest!<br /><br />Amazon Fees<br /><br /> Sale price of the item $25<br /> Shipping credit $4<br />- Referral Fee of 6-25% of the sale price -15% for video games<br />- Variable Closing Fee<br />- $0.99 Fixed Closing Fee (waived for Pro Merchant Subscribers)<br />-------------------------------------<br />Total deposited to seller's account = $22.91<br /><br /><br />Ebay fees:<br />$25 + $4<br />No insertion on<br />-9% of sales price<br />-2.9% + .30 paypal fee<br />----<br />= Total deposited to seller's account = $25.73<br /><br /><br />Half.com fees<br />$25+$4<br />15% commission<br />+.60 shipping commission<br />----<br />= Total deposited to seller's account = $24.05Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-69421005296735606932010-11-15T17:39:00.003-05:002013-07-24T09:08:30.346-04:00How much does it cost to have a baby without insurance?We had a difficult decision to make last year. I got hit by a layoff with my Fortune 500 employer but we knew it was our best opportunity to have a baby.<br />
<br />
At the time, I called every hospital and doctor's office in the area to see if I could get an idea of price. That was a lot more difficult than it should have been -- as it seems that most hospitals have no idea. After a lot of digging, my calculation was that it would cost $8,000 out of pocket. This was also with the assumption that we would carry medical insurance on my wife (but not maternity) so any complications would be covered.<br />
<br />
We had a relatively uneventful birth with no complications. After tallying all the bills, it turns out that was a pretty accurate estimate. Here is what we were billed for. I hope this is helpful to some of you out there who are in the same boat.<br />
<br />
The first line is the "fake" price you see on the bill. I hope that no one really pays this.<br />
The second line is the insurance negotiated price. This is what insurance uses to figure your co-pay.<br />
The third line is the cash price. This is a 50% discount on the retail price -- and oddly enough -- also cheaper than the insurance negotiated rate.<br />
<br />
Location: Raleigh/Durham, NC, USA<br />
<br />
<table border="0" cellspacing="0" cols="8" frame="VOID" rules="NONE"> <colgroup><col width="251"></col><col width="86"></col><col width="86"></col><col width="86"></col><col width="86"></col><col width="86"></col><col width="86"></col><col width="86"></col></colgroup> <tbody>
<tr> <td align="LEFT" height="17" style="border-color: rgb(0, 0, 0); border-style: solid; border-width: 1px 1px 1px 2px;" width="251"><br /></td> <td align="LEFT" style="border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="86">Anest.</td> <td align="LEFT" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="86">Hospital</td> <td align="LEFT" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="86">Lab</td> <td align="LEFT" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="86">OBGYN</td> <td align="LEFT" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="86">Path</td> <td align="LEFT" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="86">Specialist</td> <td align="LEFT" style="border-color: rgb(0, 0, 0); border-style: solid; border-width: 1px 2px 1px 1px;" width="86"><b>Total Result</b></td> </tr>
<tr> <td align="LEFT" height="17" style="border-left: 2px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);">Sum - Retail</td> <td align="RIGHT" style="border-left: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);">$1,404</td> <td align="RIGHT" style="border-top: 1px solid rgb(0, 0, 0);">$9,223</td> <td align="RIGHT" style="border-top: 1px solid rgb(0, 0, 0);">$237</td> <td align="RIGHT" style="border-top: 1px solid rgb(0, 0, 0);">$3,677</td> <td align="RIGHT" style="border-top: 1px solid rgb(0, 0, 0);">$80</td> <td align="RIGHT" style="border-top: 1px solid rgb(0, 0, 0);">$2,874</td> <td align="RIGHT" style="border-left: 1px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"><b>$17,495</b></td> </tr>
<tr> <td align="LEFT" height="17" style="border-left: 2px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">Sum - Insurance Negotiated Rate</td> <td align="RIGHT" style="border-left: 1px solid rgb(0, 0, 0);">$1,123</td> <td align="RIGHT">$5,979</td> <td align="RIGHT">$92</td> <td align="RIGHT">$2,157</td> <td align="RIGHT">$60</td> <td align="RIGHT">$2,051</td> <td align="RIGHT" style="border-left: 1px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);"><b>$11,463</b></td> </tr>
<tr> <td align="LEFT" height="17" style="border-left: 2px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">Sum - Cash 50%</td> <td align="RIGHT" style="border-left: 1px solid rgb(0, 0, 0);">$702</td> <td align="RIGHT">$4,612</td> <td align="RIGHT">$119</td> <td align="RIGHT">$1,839</td> <td align="RIGHT">$40</td> <td align="RIGHT">$1,437</td> <td align="RIGHT" style="border-left: 1px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);"><b>$8,748</b></td> </tr>
</tbody> </table>
Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-35293716882007408482010-05-12T22:23:00.000-04:002013-07-24T09:05:39.050-04:00Is Kohl's training me to wait for discounts?<span class="postbody">About once a month we get a marketing piece from Kohl's in the [snail] mail with a peelie on it that says you can either get an additional 15, 20, or 30% off your purchases. <br /><br />Every single time until today I've always gotten 15%. Then I throw it in the garbage thinking -- why would I go get 15% off if there are 30% coupons out there. Today I finally got a 30% off and thought -- "ok, maybe I'll use this."<br /><br />So my question to my wife (and now to you all) is whether the Kohl's promotion is good or bad for business. They've been using this same promotion for at least a few years. Are they just conditioning me to never buy anything unless I have a 30% (or even 15% off) coupon?<br /><br />Same thing happened to Linens N Things. They totally conditioned me to never shop without a coupon. Because the coupons were everywhere! (And now look where they are!)</span>Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com2tag:blogger.com,1999:blog-807194736985461945.post-82697410679437012922009-11-02T09:11:00.003-05:002009-11-02T09:24:36.313-05:00Bogle's 12 Pillars<span style="font-family:verdana;">This morning I was doing a little reading on the fantastic <a href="http://www.bogleheads.org/forum">Bogleheads forum</a> and came across something I had not read in years -- Jack Bogle's 12 Pillars of Wisdom (as it applies to investing). This was written in 2001, but certainly this system has been the mantra of "Bogleheads" for the last few decades. What is amazing is that despite its simplicity and its incredible effectiveness, very few investors follow these 12 rules. For the complete list and commentary, visit Vanguard's site here: <a href="http://www.vanguard.com/bogle_site/april272001.html">http://www.vanguard.com/bogle_site/april272001.html</a><br /><br />Pillar 1. Investing Is Not Nearly as Difficult as It Looks.<br />Pillar 2. When All Else Fails, Fall Back on Simplicity.<br />Pillar 3. Time Marches On. (Compoud Interest)<br />Pillar 4. Nothing Ventured, Nothing Gained.<br />Pillar 5. Diversify, Diversify, Diversify.<br />Pillar 6. The Eternal Triangle. (Risk, Return, and Cost)<br />Pillar 7. The Powerful Magnetism of the Mean<br />Pillar 8. Do Not Overestimate Your Ability to Pick Superior Equity Mutual Funds, nor Underestimate Your Ability to Pick Superior Bond and Money Market Funds.<br />Pillar 9. You May Have a Stable Principal Value or a Stable Income Stream, But You May Not Have Both.<br />Pillar 10. Beware of "Fighting the Last War." (Making decisions based on recent history.)<br />Pillar 11. You Rarely, If Ever, Know Something The Market Does Not.<br />Pillar 12. Think Long-Term.<br /><br />Similarly, the <a href="http://www.bogleheads.org/wiki/Bogleheads_Investment_Philosophy">Bogleheads Wiki</a> has boiled down the essential beliefs into 5 brief statements:<br />1. Save a lot<br />2. Asset Allocation (Holding Bonds) Is Essential<br />3. Buy Low Cost Index Funds Covering the Whole Stock Market<br />4. Tax Efficiency Matters<br />5. Stay the Course<br /><br /></span>Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-50840027675327787752009-10-14T10:14:00.002-04:002009-10-14T10:30:07.267-04:00Do you need an Umbrella Policy?I've been thinking recently about Personal Umbrella Policies (also known as PUPs). A PUP is an insurance policy that protects you against the potentially catastrophic impact of a liability suit. "What are the odds of that?" you may ask. Well, they are a long shot for sure. But that is precisely why the policies are so affordable. <br /><br />Remember that when you assess a risk, you should ask yourself two questions. First, try to determine the likelihood that the incident occurs. Second, ask yourself the financial impact if that incident were to occur. <br /><br />For example: the likelihood of my DVD player breaking is reasonably high. I'm sure it will probably happen within a few years. However, the impact is low -- less than $50. So I'm likely not going to buy insurance on my DVD player (although somehow BestBuy convinces millions of people they should....but that's another rant). <br /><br />On the other hand, the possibility of you being sued for some sort of liability claim is relatively low, but the consequences could ruin you financially. And remember, we aren't just talking about the money you already have. Law suits can impact your wages for the future. <br /><br />This is where a personal umbrella policy comes in. For likely less than $200/yr. (my GEICO policy is $144/yr.) you can buy $1 million worth of coverage. The coverage in an PUP is usually very broad and may even cover potential liabilities that your homeowners or auto policies do not. If the incident is covered by both policies, the PUP coverage is in addition to the coverage provided by your primary policy.<br /><br />So is it worth it? Obviously there is no right or wrong answer because no one can see the future. But for less than $200/yr. -- it surely does let me sleep better at night knowing that if I'm at fault in a catastrophic car accident, I won't lose everything I've ever earned (or earn in the future).Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com1tag:blogger.com,1999:blog-807194736985461945.post-17272200441041442572009-10-12T15:07:00.003-04:002009-10-12T15:26:31.117-04:00Can a managed fund produce alpha?That question has provided plenty of room for debate over the last decade is whether or not a managed fund can really produce alpha for an investor. Of course, up until about 10 years ago, there wasn't much of an alternative to managed funds, but nowadays there are enough low-cost index funds and low-cost ETFs to make your head spin. So given the choice for a low-cost index fund or a managed fund, which direction should you go?<br /><br />First of all, I do think it is possible to beat the market. Just look at the numbers. Plenty of fund managers cream the market every year -- especially in years like 2008 and 2009. But as I was thinking about this today, I kept coming back to 3 basic reasons I still gravitate toward the low costs index funds.<br /><br /><span style="font-weight: bold;">Challenge #1: Pre-identifying the Manager<br /></span>Sure, everyone can look at Warren Buffet now and say, "If only I had put $1000 with him in the 60's!" But would you have? There are plenty of smart, young money managers just getting started that would love to take your money now. But it is impossible to know which 1 out of 10,000 is going to be the next Buffet.<br /><br /><span style="font-weight: bold;">Challenge #2: Performance Net of Fees</span><br />The next challenge is once you have found a manager that you believe can beat the market over time, you must then deduct fees. (If you check annualized numbers in a prospectus, they should already be net of fees.) If a manager can beat the market by 1-2% every year, but charges a total expense ratio of 1.5%, you really aren't getting ahead.<br /><br /><span style="font-weight: bold;">Challenge #3: Keeping Up Peformance, When the Money Rolls In</span><br />The third challenge is the kicker. Let's say that you accomplish numbers 1 and 2 and believe you have found a solid manager with reasonable fees who can beat the market over time. Chances are you aren't the only one who feels that way. For example, his fund may get a 5-star Morningstar rating which sends the cash pouring in. In a closed-fund environment, managers don't have to deal with the constant cash flows in and out of the fund. This means they have to constantly be pouring money into new investments, or if they have the patience to wait for a deal in the market, then their overall portfolio numbers may suffer because of an increased percentage of cash sitting on the sidelines. The flip-side of this coin is also true. When the market goes through a rough patch, and millions of investors panic and pull their money out of the fund, the manager may be forced to sell even if he doesn't want to. In both of these scenarios, the manager who may otherwise have stellar performance, sees his performance take a beating.<br /><br /><span style="font-weight: bold;">There are (at least) two potential answers to this problem. </span><br />The first is that you, the investor, become the money manager. Investing in the education, the technology, and time that it takes to be a solid money manager. For most people this is not doable -- as the time and education needed for this FAR outweighs any potential gains.<br /><br />The second is that you can roll with the market. By building a diversified portfolio that covers both stocks and bonds, domestic and international, you can build a portfolio that suits your needs. If you don't feel comfortable doing this (as you probably shouldn't), finding a fee-only financial planner (check Napfa.org for a fee-only planner near you) who works on a per hour basis is well worth the money. A few hundred or a thousand dollars now for unbiased advice will save you stomach ulcers for years to come.<br /><br />Thoughts? Leave feedback below.Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-13632184650890527912009-08-26T10:00:00.003-04:002009-08-26T10:10:40.968-04:00Best Credit Card Deal? PenFed All The Way!A friend emailed me today and asked what credit card I would recommend for her. Of course, that depends, I told her -- on what she was looking for. Oddly enough, however, my pick for the best cash back card as well as my pick for the the best long term balance transfer card is the <a href="https://www.penfed.org/productsAndRates/creditCards/rewardCards.asp">Pentagon Federal "Platinum Visa Cashback" card</a>.<br /><br />It offers 5% back on gas, 2% back on groceries, and 1.25% back on everything else. (And that's cash back, not some crazy points system.)<br /><br />If you are looking to transfer a balance, there are several 0% deals out there for short periods. But if you are looking for a longer term transfer, the PenFed card currently offers a really good "2.99% for the life of the balance" promotion. Just don't use the same card for your daily purchases that you use for a balance transfer -- that is a recipe for disaster.<br /><br /><span style="font-weight: bold;">Here's an added bonus</span> that we recently discovered when using our PenFed card overseas. PenFed only charges a 1% surcharge for international purchases -- and yes, you still earn rewards. So even on international purchases you still come out at least .25% ahead!<br /><br />Kudos to PenFed for offering this card!!!Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-73630266593731763362008-12-05T08:58:00.009-05:002009-01-24T23:38:14.686-05:00Swoopo: Bargain or Rip-off?<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEge35ir0cAl1CX4mvwHiMBh3TVGdlNCvFqaE709N8TLWsuKpXZRcdjqtfvV_YecdZwFuLaCTMoY3FeFeHbiU23_su49GSPOCOOyjqcRGgRNzkB3sJoZwJ8Rjpn3THDPphRfO-oOsDn1yC8/s1600-h/mu_auction.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 90px; height: 90px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEge35ir0cAl1CX4mvwHiMBh3TVGdlNCvFqaE709N8TLWsuKpXZRcdjqtfvV_YecdZwFuLaCTMoY3FeFeHbiU23_su49GSPOCOOyjqcRGgRNzkB3sJoZwJ8Rjpn3THDPphRfO-oOsDn1yC8/s200/mu_auction.jpg" alt="" id="BLOGGER_PHOTO_ID_5295083977332271138" border="0" /></a><br />I recently came across a site called Swoopo.com. At first glance, this site leads you to believe that items are selling on auction for a small fraction of retail. So what's the catch? Knowing that things that sound to good to be true, usually are, I dug a little deeper.<br /><br />Here's the scoop. They charge you to bid -- $0.75 per bid. That doesn't sound too bad until you realize that bids are only in increments of $0.15 and done automatically by their system! That means that both the bidders who win the auction and those who do not are paying just for bidding. And before you ask -- no, you don't get your bid money back if you don't win the item!<br /><br />This model is different, that's for sure. I'm not sure whether to be impressed by their ingenuity or disgusted by the fact that they are obviously getting (i.e. tricking) people to pay mountains of money either for products they "win" -- or even worse -- paying money for the right to bid on products that they don't win. Of course none of this is spelled out clearly. Only after reading through a few pages of the "terms and conditions" would a user be aware of this.<br /><br />Let's create an example, let's say they put a laptop up for auction that sells for $499 at a normal store. They start the bidding at $.01.<br /><br />After the first 6 bids, the bid stands at $.91 and the site has collected $4.50 (6x$.75) in bid fees. After 100 bids, the bid stands at $15.01 and the site has collected $75.00 in bid fees.<br />After 2000 bids, the bid stands at $300 (a seemingly good deal for this laptop), but users have paid the site $1500 for the privilege of bidding on the laptop! <br /><br />In this case the winning bidder would be in for $300 + all of his bid costs (likely several hundred dollars). The losing bidders would have nothing to show for there efforts except empty pockets.<br /><br />Are there deals to be found on this site? Maybe, but it is a gamble if there ever was one. In my estimation, you are much more likely to come out ahead in Vegas than on Swoopo.Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-33051942246230340342008-09-22T11:13:00.008-04:002008-09-22T12:20:55.995-04:00Eating Healthy on a Budget<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxMPGSGLmj3Citfp1pQ-iI7-dWvhNlQBqLspqM-FR14vtXRlHwDrx_szWc_SgUowJibQHPmE-2Xfi61yU00YrBZetKbZdpB0lLwtWSrEaSCESZRxL4pXbY4j4kgLB1tgXjGgwDdNRUYQQ/s1600-h/mixed+vegetables.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxMPGSGLmj3Citfp1pQ-iI7-dWvhNlQBqLspqM-FR14vtXRlHwDrx_szWc_SgUowJibQHPmE-2Xfi61yU00YrBZetKbZdpB0lLwtWSrEaSCESZRxL4pXbY4j4kgLB1tgXjGgwDdNRUYQQ/s200/mixed+vegetables.jpg" alt="" id="BLOGGER_PHOTO_ID_5248875449379801842" border="0" /></a><br />Coupons are an interesting animal. On one hand, they are a great tool for saving money at the grocery store. But on the other hand, they are tools used my manufacturers to induce you into trying their latest packaged goods. Too often, these packaged goods are highly processed and far from being healthy. In fact, there have been many times my wife and I have decided not to use coupons that would have gotten items like free pizza rolls, just because we didn't want to eat that kind of food.<br /><br />But thankfully, there are still ways you can save money with your grocery coupons, while managing to eat healthily.<br /><br />1. <span style="font-weight: bold;">Take advantage of sales, even without coupons</span> - While it is true, you rarely see a coupon for fruit, berries, fresh veggies, or meat, deals can still be found plentifully. Remember to put your freezer to use when you spot "Buy One Get One Free" deals on meat, berries, and freezable fruit.<br /><br />2. <span style="font-weight: bold;">Look for coupons and other incentives on frozen veggies</span> - While fresh vegetables may rarely be targeted by coupons, frozen vegetables are featured quite regularly. Just last week, a sale combined with a coupon on frozen Green Giant veggies, got us 20 boxes at only $0.30 per box. Not bad for healthy frozen vegetables.<br /><br />3. <span style="font-weight: bold;">Shop at farmer's markets</span> - This is my favorite way to find fresh, local fruits and vegetables. You can buy just a few, or buy entire cases of vegetables you love and trade with others. (Trading 1/2 and 1/4 cases is a constant practice at my local farmer's market.)<br /><br />4. <span style="font-weight: bold;">Use coupons for household items</span> - Saving money on these items likes cleaners, paper towels, toothpaste and others gives you some flexibility on your other purchases while still coming in under budget. During the last "Triple Coupons" weekend here in Raleigh, I scored 5 different brand name cleaners (Windex, 409, Fantastik, etc) for about $.25 each. All of these were on sale and had $.50 or $.75 coupons which were tripled. <br /><br /><span style="font-style: italic;">In the end</span>, the key with eating healthy on a budget is the similar to finding deals on many other things. Watch for sales (especially if you can combine with coupons) and make smart purchases. Remember to not buy more than you can eat (or freeze), and save money in other places to allow yourself a little extra money for healthy food. Remember, "You are what you eat!"Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-65157869129238703602008-08-26T14:53:00.005-04:002008-09-05T18:30:31.833-04:00It's not the credit cards, It's the consumers!<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://reneeashleybaker.files.wordpress.com/2007/10/good-morning-america.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 109px; height: 82px;" src="http://reneeashleybaker.files.wordpress.com/2007/10/good-morning-america.jpg" alt="" border="0" /></a>I recently saw a clip on Good Morning America (<a href="http://cosmos.bcst.yahoo.com/up/player/popup/index.php?cl=9401754">link to clip</a>) about a family who they challenged to go without credit cards for one month. This family came back raving about how much money they had saved by not having credit cards. I think this is completely ludicrous!<br /><br />In my opinion, these sort of stories (and there are plenty of them) <span style="font-weight: bold;">completely miss the boat</span>. What these stories glaze over is that it is not the credit cards, but rather the consumer behavior attached to those credit cards that gets people in trouble. I would bet money on the fact that I can save more by using credit cards than by using cash. Here's why:<br /><br />1. With credit cards, you know where your money goes<br />It is astounding to me that this doesn't get mentioned more often. With credit cards, you have a monthly statement, and you can even get a yearly statement online. You can import your purchases into programs like Quicken, or add them to a spreadsheet. This allows you to dissect your expenditures, tweak your budget, and be accountable to yourself during and at the end of the month.<br /><br />2. I can shop for things online and find a bargain without ever leaving my desk. That means I'm not burning gas and wasting time going from store to store, I have full information on product reviews, and can compare apples to apples identical products. By using "user ratings" on sites like Amazon, it is easy to find the truly better products, and not just the prettier boxes.<br /><br />3. I get cash back on my charges. I know that some of you may roll your eyes, but if you have the right card (such as Pentagon Federal's Visa Platinum) you can earn real cash (not "points") that gets credited to your bill each month. For example, the Pentagon Federal card earns 5% on gas, 3% at the grocery store, and 1.25% on all other purchases. That means if I charge $1500 in a month, I'm getting roughly $20 back -- $240 per year. Not bad for doing nothing.<br /><br />Of course all of this assumes you have the discipline to pay off your credit cards at the end of the month and not spend more than you have available. If you can't do that, then maybe you are better off with cash or debit.Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-17890317274870563972008-06-27T10:44:00.000-04:002008-06-27T10:45:04.404-04:00Worst June since the Great Depression? Give me a break!!!!Allow me to rant for a second....<br /><br />ABC and a few other news outlets are using the sound bite this morning of "This was the worst June since the Great Depression!" Claiming that the 9% fall this month compares to the fall 78 years ago. <br /><br />This is utterly ridiculous! While it may be technically correct (there have been no other <span style="font-weight: bold;">Junes</span> when the Dow has taken a 9%+ plunge), the spirit of the statement is meant to invoke fear, and fails to consider that for 2008, including June, both the Dow and the S&P are only off by 12%...a mild market correction. Compare that to the near 80% fall between late 1930 and July 1932. To compare these two is blatant fear mongering. (It is also reminiscent of the "creative statistics" recently used by the Clinton campaign when claiming Hillary had the popular vote.)<br /><br />The few people whom I have personally known who lived through the Great Depression (including my grandfather) told me stories of those days such as only adults having shoes and saving pennies to bake a cake. Compare that to the multi-car families with 3000 sq. ft. houses, $300 footware, and spending billions on entertainment. Even the thought of comparing those two worlds gets me hot under the collar.Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com1tag:blogger.com,1999:blog-807194736985461945.post-82136945596066253892008-06-19T21:17:00.001-04:002011-01-12T21:18:18.640-05:00Timeshare Tour Experience<p>This weekend, my girlfriend and I met up with my parents in Myrtle Beach for a few days of relaxation. Coincidentally, my girlfriend and I had recently been talking about timeshares -- and saying that it might be fun to get some freebies for sitting through a presentation. So when we were approached at a local restaurant to take a timeshare tour for a $100 visa card and two "3 day / 2 night vacations" we decided to sign up. They wanted $20 to hold our spot -- which I was leery of -- but I agree from their perspective seems to make sense so they don't have 50% no-show rate. We did get our $20 back when we checked-in the next morning.</p><p>While I have never taken a timeshare tour, I'm very familiar with the concept, the points system, and the retail and resale rates. I suggest if you are going to take one of these tours, you spend an hour reading on different websites before you go on your tour. It will provide you with plenty of ammunition.</p><p>How does this tie to building wealth? Simply put, building wealth is as much about avoiding bad financial decisions as it is about making good ones. As a rule of thumb, you should never buy anything (even something inexpensive) under pressure from a salesperson, and definitely do not make a large purchase on the spur of the moment. We live in a time where a world's worth of information is searchable at the touch of a button. There's a reason why a sales person wants you to buy immediately...because if you have a few minutes to go off and think about it and do a little research, they'll never see you again.</p><p>If you are considering taking a timeshare tour to get the freebies, here's what you should expect:</p><p>We arrived and the first thing that I noticed was that the group of people in the lobby didn't look like they could afford a $35k timeshare. When our salesperson came out, he greeted us and took us into a room with lots of tables, chairs, and balloons. He sat us down and began with the questions about where we were from, how we met, blah, blah, blah. He actually mentioned that he had only been on the job for 3 weeks. My guess is that the average tenure is not much longer than that.</p><p>Knowing that the next round of presentations wasn't until 12, my girlfriend and I figured we probably had 2 1/2 hours to sit through and we were right. After the fake chit-chat, we opened the "workbook" where he began to ask us questions about our ideal vacations. Knowing the cons of timeshares, we purposefully stated things that we knew timeshares couldn't fulfil. Such as we enjoy traveling spur of the moment, going to off-the-beaten-path destinations, and the flexibility of choosing from a wide array of accommodations. I got a kick out of the fact that he only wrote down the ones that he wanted and that he had a good comeback for. I actually stopped him and made him go back and write down the others. <img src="http://www.fatwallet.com/forums/i/expressions/face-icon-small-smile.gif" border="0" /></p><p>When he saw the pros and cons list wasn't really working out, he went on to the next page, which was "rent vs. own." I got a kick out of this as well, because they try their best to equate timeshare ownership to home ownership. Of course the two are completely different, but they play on the fact that "everyone wants to own." We continued to come up with good reasons why "renting" on vacation was optimal, so he brought over his manager for a little chit chat and convincing. We played along.</p><p>Next they did a little "cost analysis". He asked us what we spent on vacations, and we stated about $800 a year. So he said over 30 years, we'd be spending $28,000. "Did we really want to waste all that money?" Of course, when I pointed out that the fees on a timeshare (maintenance, points network, etc) are fairly comparable, they tried to glaze over that fact by saying that "as long as you refer 20 people a year, you don't pay maintenance fees!" Wow. They also tried to convince us that the $28,000 would be more like $75,000 because of inflation. It is amusing to me that they don't do the flip side and calculate the $30k sales price, 30 years of maintenance fees and network fees, and the cumulative interest from the sky high interest rate.</p><p>Next we got around to the portion where they show us the website. We both laughed when one of the "benefits" was "discounts at restaurants" and the domain in the browser clearly showed entertainment.com. I stated I already bought an entertainment book for $15 from work, so I already had access to those discounts.</p><p>Finally, we got to the portion where we took the tour. We got in the salesperson's humongous diesel truck and drove a few miles down the road. The ride was the most interesting part to me, because I got the guy a little off his script. I told him that my side business was a website about saving money (savvydollar.org) and gave him a card. We then drove past the "Bass Pro Shop" where he said that he was approached for a timeshare demo just a month earlier. He then showed us his drivers license picture where he had long hair and a scruffy beard and told us how they told him he needed to shave and come back in a tie. He also told us that things were going well in his first 3 weeks, and that he had even sold 2 timeshares in the same day and had been salesperson of the week for selling the "gold" package to a football player the week before. (This is where I felt a little sorry for this guy. He sounded like an honest Joe...working for a living...trying to move up in the world. I really don't believe he understands what he is selling....or what he bought himself. ) He also had a New Testament bible in the console between the seats. My gf and I wondered later if that was part of the show.</p><p>When we arrived at the "resort," my gf and I were really surprised at how dingy it was. Seriously, you'd at least think they would show you the good stuff, but this was seriously in need of a good cleaning. It certainly didn't have the "luxury" feel.</p><p>We tried to hold in our chuckles as we looked out over the balcony and the sales person let out a "Ahh..." at the beauty of the beach. We laughed later because it was obviously overcrowded and dirty.</p><p>On the drive back, I told him that I might consider timeshare ownership, but only on a resale. I said that I would never buy something full price that I could buy at a 90% discount on craigslist or <a href="http://www.fatwallet.com/redirect/bounce.php?afsrc=1&mid=12389293&url=http://www.ebay.com/" target="_blank">eBay</a>. (This is where my gf says that she saw the confusion on his face -- that perhaps he was unaware of that and was wondering whether he had made a wise purchase himself.) When we got back, he was ready to get rid of us, but still put on a fake "so are you ready to buy?" He gave us a $25k price tag for a 12,000 point package, and we just smiled and said no. He brought over his closer, who honestly didn't try very hard, but he did give us the "teacher's discount" with some other lines about "we'll pay this and that" the first year. I would love to know what other creative "discounts" they make up on the spot.</p><p>We finally got out of there...after 2 1/2 hours...and got our $100 gift card. The "2 night vacations" weren't worth the paper they were printed on (full of "notification in writing" clauses) so we tossed them in the garbage. I called the automated visa number to ensure there was $100 on the card.</p><p>In the end, it was sort of fun if you go in knowing enough about timeshares, resale, points systems (RCI), etc. After an hour of reading online, you'll likely know more than your sales person. We figured the return on our time was pretty low ($20/hr each), but it was sort of a fun experience, paid for our gas down to Myrtle Beach, and gave us plenty to laugh about on the 3 hour drive home that evening.</p><p>So, what should you do if you fall for their sales pitch? Well, there's still hope. If you signed the contract in the last few days, you may be able to wiggle out of it thanks to your "right of rescission." This means that you typically have 3-7 days (depending on the state you live in) to cancel the contract you signed.</p>Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-65706350803958234702008-06-03T16:42:00.011-04:002008-09-29T14:26:26.634-04:00Looking for a 529 savings plan? Let's look at options...If you are a parent, grandparent, or even planning to go back to school yourself in a few years, a 529 savings plan is worth considering. A 529 gives you a way to save for college and pay no tax on the earnings in the account. Considering that 4 years of college is now pushing $100k and is only going up from here, taking advantage of government-sponsored programs is more important than ever.<br /><br />Here are some of the advantages of a 529 plan:<br /><br />1. <span style="font-weight: bold;">Anyone can contribute to a fund </span>--<span style="font-weight: bold;"> </span>This means that parents, grandparents, friends, and even the child can contribute to the fund.<br />2. <span style="font-weight: bold;">Tax Savings </span>--<span style="font-weight: bold;"> </span>The earnings are tax free, and that's a lot of savings when compounded over 18 years.<br />3. <span style="font-weight: bold;">Easily Change Beneficiary</span> - If the original recipient does not attend college, the beneficiary can easily be changed to be another family member.<br />4. <span style="font-weight: bold;">No Harsh Withdrawal Penalty</span> -- If the original designated person receives a scholarship, (or meets a few other conditions such as going to a military academy) the only withdrawal penalty is to pay the tax you would have paid anyway on the earnings.<span style="font-weight: bold;"> </span>Now that's what I call a no lose proposition. (If you withdraw the money for a non-qualified reason, there is a 10% additional tax on the earnings, but not the principal.)<br /><br />Now that I have you convinced that a 529 is worth thinking about, you should know that each state offers a different plan, and you are eligible to pick almost any of the state plans you desire (not just the state that you live in). However, if you (or whoever will be making the contributions) are an NC resident, and plan to stay in NC, the North Carolina 529 is an attractive option. If you are not a resident of NC, or plan on moving sometime soon, your best option is the Utah plan. Let's take a quick look at both.<br /><br />There are three facets that distinguish between plans and that quickly take large groups out of the running. Those three items are total fees, tax benefits, and fund options.<br /><br />The North Carolina plan offers low administrative fees, the option to invest in diversified Vanguard funds (low fees, stellar reputation), and offers a tax break to residents. (The $2500 allowed deduction for a single person and $5000 per couple results in tax savings of approximately $175 and $350 per year, respectively.) The fees for the NC plan are 0.25% of the average balance throughout the year, and are in addition to the fees (also about 0.25%) charged by Vanguard. While you also have an option for <span class="blsp-spelling-error" id="SPELLING_ERROR_0">Seligman</span> funds, their fees are significantly higher. You can find out more at the official website at <a href="http://www.blogger.com/www.cfnc.org/site/nc529/main/overview.jsp">www.cfnc.org/site/nc529/main/overview.jsp</a>.<br /><br />If you (or the person making the contributions) will not be a NC resident for the long term, Utah offers a very good alternative. You will not get tax credit if you are not a resident of Utah, however, their "maintenance" fee is capped at $20 per year and the funds charge a set 0.25% administrative fee. Utah also offers Vanguard funds, so it is easy to compare apples to apples when comparing with North Carolina's plan. You can find out more at the official website at <a href="http://www.blogger.com/www.uesp.org">www.uesp.org</a>.<br /><br />So as you can see, the only real difference is with fees and tax deductions. As a NC resident, the tax break seals the deal, but you really can't go wrong either way. The only real mistake you can make here is not opening an account.<br /><br />-----------<br />Dan Griffin holds a Master's Degree in Business from the University of North Carolina, and is founder of <a href="http://savvydollar.org/"><span class="blsp-spelling-error" id="SPELLING_ERROR_1">SavvyDollar</span>.org</a>.Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com2tag:blogger.com,1999:blog-807194736985461945.post-33212677114488012912008-05-08T09:45:00.002-04:002008-05-08T09:48:02.958-04:00Kids and Money - Are we preparing our children?I don't yet have any children, but I thought this was a good article. It questions the type of mentality that is becoming pervasive. Unfortunately, generations x and y grew up with a "want it, get it" mentality, and that is now being reflected in our current American savings and debt numbers. Let's make sure that we break that cycle of spending with our kids.<br /><br />http://www.crosswalk.com/finances/11574509/Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-54182185207188229682008-05-05T18:05:00.005-04:002011-01-31T19:58:37.213-05:00$4 gasoline? Sounds cheap to me!I'm so tired of the constant media coverage of "high" gas prices. Yes, it feels expensive because it was cheap for so long, but according to CNN Money, out of 155 developed countries, 110 of them have more expensive gas than we do in the US. <a href="http://finance.yahoo.com/family-home/article/104996/Why-Gas-in-the-U.S.-Is-So-Cheap">(Source)</a><br /><br />We should be thankful that we had a free-ride for such a long time. The price of gas has gone up slowly...too slowly in fact. In 1918, the price of gas was about $.25 per gallon. Inflation adjusted, that brings it to $3.50 in today's dollars. Pretty much where prices stand now. <a href="http://www.inflationdata.com/inflation/images/charts/Oil/Gasoline_inflation_chart.htm">Source</a><br /><br />In the last 90 years, supply surged faster than demand and the price decreased (I'm over simplifying a bit here, but for the most part this is correct). Now, with India and China growing at staggering rates, the demand is catching back up with supply. I ran some quick calculations based on the oil consumption data from the <a href="https://www.cia.gov/library/publications/the-world-factbook/fields/2174.html">CIA factbook</a>.<br /><br />Oil consumption per day<br />US: 20.8 million barrels/day<br />India: 2.438 million barrels/day<br />China: 6.93 million barrels/day<br /><br />Population<br />US: 304 million<br />India: 1.13 billion<br />China: 1.32 billion<br /><br />Oil consumption per person per year:<br /><span style="font-weight: bold; color: rgb(255, 0, 0);">US: 24.97 barrels per person per year</span><br />India: 0.78 barrels per person per year<br />China: 1.91 barrels per person per year<br /><br />So as you see in the numbers above, we are consuming roughly 10-20 times the amount of oil per person than our counterparts in India and China. So just imagine what happens when China and India catch up to us! How expensive do you think gasoline will be?<br /><br />We better start looking for better and more viable fuel sources quick...or $4 gasoline will be just a fond memory we tell our children!Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-77280491483585874482008-03-03T14:01:00.000-05:002008-03-03T14:02:54.884-05:00Credit Cards vs. the "Envelope Method"While I realize there are quite a few anti-credit card folks out there, I can't help but point out a few downsides of the envelope method and stand-up for credit cards (who always seem to get a bad rap).<br /><br />1. Using cash doesn't offer any protection that credit cards provide. If you have a "situation" with a product or a store, your credit card company can be your best advocate.<br /><br />2. If you carry lots of cash, you can lose lots of cash. If I lose a credit card or it "falls" out of my pocket thanks to the help of a quick-handed thief, it's easy to cancel. Even better, credit card companies limit your liability on fraudulent purchases. Usually with $0 deductible. Try getting back your envelope full of money!<br /><br />3. The envelope method encourages overspending. I know that sounds counter-intuitive, but if you have $50 in this week's "restaurant" envelope, you are more likely to spend it. Perhaps you decide to order the dessert or a glass of wine that you wouldn't ordinarily have purchased just to use up the money in the envelope.<br /><br />4. Credit cards allow you to hold onto your money longer. Having one bill at the end of the month allows me to hold onto my money longer, and earn interest longer.<br /><br />5. Credit cards offer rewards. My current credit card offers 1% cash back on every purchase and 3% on gas. That money is automatically credited to my bill each month. So by paying cash, I'd be paying 1% more for most everything.<br /><br />6. Paying with cash is a pain in the neck. I can't stand paying for something that costs $13.27 and getting back tons of coins. Or how about going to a sit-down restaurant where your bill including tip is $18.50. What a pain to have to try to make change.<br /><br /><br />I know it is popular to tout of the evils of credit cards (Dave Ramsey). Just remember, like every other business, credit cards are in business to make money. But you can play on your terms. Treat your spending like real money and pay it off every month. If you do, you'll come out ahead.Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-3386276188060893732008-02-09T08:22:00.002-05:002008-11-18T17:07:11.365-05:00Should you switch to Compact Flourescent bulbs?<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiizr3wLJ1gbJT2hbS7N61zJmmIH_RcpRDs9VfaKHcpLLOnNERhUHK39Qng4P3JayK9QSO6JJQgqmrnSjwrahPWZgNCUqYGWumnKBrk8Cmn2-gcFrf3H40lf16C3M6NLA9taM8aRj7nILw/s1600-h/photo_1103_20060216.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 89px; height: 134px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiizr3wLJ1gbJT2hbS7N61zJmmIH_RcpRDs9VfaKHcpLLOnNERhUHK39Qng4P3JayK9QSO6JJQgqmrnSjwrahPWZgNCUqYGWumnKBrk8Cmn2-gcFrf3H40lf16C3M6NLA9taM8aRj7nILw/s200/photo_1103_20060216.jpg" alt="" id="BLOGGER_PHOTO_ID_5164977803047859010" border="0" /></a><br /><br /><span class="postbody">It's good news that the industry is phasing out the standard incandescent lightbulbs....you know, the kind we've used for years. They are replacing them with the Compact Fluorescent bulbs which you've no doubt seen gracing the aisles of your home improvement store, and have even slowly made their way into drug stores and grocery stores.<br /><br />The good news is that not only are they better for the environment (by using less energy), but they also are a good deal for you....the person paying the energy bill. On average, you will recoup the money you spent on the new bulbs in about 6 months.<br /><br />If you are replacing a 60 watt bulb with a 13 watt CF bulb, you save 47 watts per hour. Let's say that you burn a bulb on average 4 hours a day. That means you save (47x4) 188 watt hours per day. Multiply that by 365 days = 68,620 watt hours....also known as 68.6 kilowatt hours.<br /><br />In my home market of Raleigh, NC, 1 kilowatt hour costs $0.095. (To find out how much 1 kilowatt hour costs you, just check your energy bill.)<br /><br />Therefore assuming 4 hours per day for a year, you'd save (68.6 x .095) $6.51 per year per bulb replaced. Considering the bulbs cost only $2-$3 these days...you get your payback in just a few months.<br /><br />Here's a quick spreadsheet to help you figure your payback.<br /></span><br /><iframe src="http://sheet.zoho.com/publish.do?docurl=dV6qkqR7Rqdz2UeuS08tNosRgf0J%2B87d&name=Qk1pQExAv1%2F%2BuVm31GQvyw%3D%3D" frameborder="0" height="400" scrolling="no" width="500"> </iframe>Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-39669959909489648912008-02-05T13:37:00.001-05:002008-02-05T13:40:15.936-05:00Avoid Coupon Burnout by "Playing the Game"<p>I read an article this morning on "Avoiding Frugality Burnout." One of the pieces of advice that the author gives is to treat your "couponing" like a game. I couldn't agree more. Treating it like a game makes it much more doable. Have fun with it...laugh at yourself.<br /></p><p><br />Does saving $30 on groceries this week really make that much difference in the grand scheme of things? Not really. But by treating it like a game and enjoying the "thrill of the hunt," the savings begin to add up ...and up....and up.</p> <p>One of the more enjoyable aspects of couponing is having others to compare to. Even if my girlfriend "wins" this week -- because I save 68%, and she saves 70%....we just had fun and saved tons of money. It beats spending $8.50 per ticket to go to the movies!</p><br />So don't fret if you had a bad spending week. Just play the game again this week and vow to win this time. If you had a great week last week, try to beat your best "score." It's a win/win.Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com1tag:blogger.com,1999:blog-807194736985461945.post-43858553107629191592008-01-13T02:15:00.000-05:002008-01-13T03:01:11.700-05:00Should I buy a Hybrid car?I've been thinking lately about hybrid cars. There are several of them already on the market, and more and more coming each year. With the price of gas over $3.00 a gallon, the allure is easy to see. However, it is easy to fall into the trap of "I'll save so much money on gas!" without realizing the other costs associated with buying a new car (sales taxes, registration, more loan interest, and higher yearly depreciation). <br /><br />So, as I do with most things, I wanted to put this to the spreadsheet test. My current car is a 2000 BMW 323i, worth about $8k.<br /><br />I will compare this to the 2008 Nissan Altima Hybrid and the 2008 Honda Civic Hybrid -- two hybrids I have considered. Both which qualify for $2k and $1k, respectively, for federal tax credits.<br /><br />First, let's calculate what our gas savings would be with two new hybrids vs. my BMW.<br /><iframe src="http://sheet.zoho.com/publishrange.do?id=cf5d3fb8b1d3692979428dea1dd5a50e" style="height: 163px; width: 415px;" marginwidth="0" marginheight="0" frameborder="0" scrolling="auto"> </iframe><br /><br />Since I only drive about 10,000 miles per year, my savings would only be in the $700/year range (depending on the hybrid car).<br /><br />Next, we need to figure out several calculations to answer the following questions:<br /><br />Does the hybrid have a federal tax credit?<br />What is the expected depreciation?<br />What is the expected maintenance?<br />What registration and taxes are involved in buying the new hybrid?<br />What is the cost of the loan?<br />Are there any incentives from the hybrid manufacturer?<br /><br />I have plugged the answers to these questions into the pasted spreadsheet. <br />As you can see from my calculations, keeping the BMW or going for the hybrid produce roughly the same 3 year projected cost. <br /><br /><iframe src="http://sheet.zoho.com/publishrange.do?id=4954621f094c31fe0584e012bbf6ee9a" style="height: 144px; width: 411px;" marginwidth="0" marginheight="0" frameborder="0" scrolling="auto"> </iframe><br /><iframe src="http://sheet.zoho.com/publishrange.do?id=a1ba1866343b1fd13f1d74caf99f8054" style="height: 258px; width: 411px;" marginwidth="0" marginheight="0" frameborder="0" scrolling="auto"> </iframe><br /><iframe src="http://sheet.zoho.com/publishrange.do?id=902ee69e958ff6475ebc8fdd5336abca" style="height: 277px; width: 505px;" marginwidth="0" marginheight="0" frameborder="0" scrolling="auto"> </iframe><br /><br />So as you can see, based on my calculations and assumptions for unpredictable costs (maintenance, depreciation, etc), the Altima should have roughly the same total 3 year cost of around $10,200-$10,400. The Civic Hybrid however, will have a slightly higher 3-year cost at a little over $11,000. All of these, however, are in the same ballpark and within a margin of error on my estimates.<br /><br />Conclusion: In my particular situation, both of these Hybrids will have roughly the same cost over the next 3 years as my current car.<br />The upside would be driving a new car and feeling a little better about my carbon output. <br />The downside is, with all due respect, that neither a Civic nor an Altima compare to the handling or the fun of a Beemer. So for now, the BMW is staying put.<br /><br />You can try this spreadsheet for yourself below:<br /><iframe src="http://sheet.zoho.com/publish.do?docurl=UL7DoiyIXikywjIFN27sQmoBcyHmbiQGg6AtgJul6q0%3D&name=Qk1pQExAv1%2F%2BuVm31GQvyw%3D%3D" frameborder="0" height="400" scrolling="no" width="500"> </iframe>Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com0tag:blogger.com,1999:blog-807194736985461945.post-45517573546993525012008-01-07T11:12:00.001-05:002008-01-08T15:08:58.003-05:005 reasons Gift Cards make a lousy giftEvery Christmas, it seems that gift cards become more and more popular. People give them, people receive them, and the stores market them like crazy.<br /><br />Here are five reasons why I CAN'T STAND them:<br /><br /><span style="font-weight:bold;">1. They have less value than actual money. </span> <br />I know some will argue that a $20 gift card is worth $20, I say it is worth much less. The reason is because a $20 dollar bill, has no terms and conditions. I can spend it anywhere, anytime. I can save it and use it later. I don't have to spend it all in one place. I can't do any of those things with a gift card.<br /><span style="font-weight:bold;"><br />2. The fees.</span><br />Some gift card companies have the audacity to charge fees! Inactivity fees, activation fees, and even a fee for checking the balance! That's outrageous.<br /><span style="font-weight:bold;"><br />3. Balances go unused.</span><br />It's pretty common that when I receive a gift card, I have a hard time finding something within that store that I actually want. I don't want to get ripped off, just because it is a gift card, so I'm not just going to waste it on random things. So what happens is that a fraction of the original never goes used. Apparently I'm not the only one.<br /><span style="font-style:italic;">Freakonomics</span> authors Dubner and Levitt <a href="http://www.nytimes.com/2007/01/07/magazine/07wwln_freak.t.html?ex=1325826000&en=970d53de24147ae4&ei=5090&partner=rssuserland&emc=rss">report in the NY Times</a> that 10% of the gift card balances never get used. That's $8 billion dollars that goes unused every year!<br /><br /><span style="font-weight:bold;">4. I may not want something at whatever store it is that you think I should want something. </span> <br />While I don't want to be unappreciative, it happens quite often that I get a gift card for a store or restaurant that I have no interest in going to. The good news is that ebay and gift card trading sites like <a href="http://www.cardavenue.com">CardAvenue</a> have made it easier to get rid of these and trade for something you'd rather have.<br /><span style="font-weight:bold;"><br />5. Giving me a gift card may actually COST me money. </span><br />Again, I hate to be unappreciative, but giving me a $20 gift card to a restaurant is basically the same as handing me a bill. There aren't many places where a couple can dine for $20, so unquestionably, I'll have to add to the gift card balance with my own funds.Danhttp://www.blogger.com/profile/00335145797083190270noreply@blogger.com1