What qualifies as a clunker?

• Must be a drivable vehicle, produced in the last 25 years

• The car must get 18 miles a gallon or less.

• It must be a registered vehicle, and have been insured for the past year. (To eliminate people buying junk yard cards to trade in.)

How much is the rebate and what are the other rules?

• For passenger cars, the new vehicle must get 22 mpg to qualify, and the consumer would get $3500 in the new vehicle’s mileage is 4 miles more per gallon, and $4500 if it is 10 more miles per gallon than their old vehicle.
• For light trucks and SUV’s, the new vehicle must get 18 mpg, and the consumer would be $3500 for a 2 mpg gallon increase and $4500 for an increase of 4 mpg or more.
• Price of new vehicle cannot exceed $45,000
• It can be used for the purchase or lease of a new vehicle, provided the lease period is at least five years.


Additional details:
The new vehicle must also achieve minimum combined fuel economy levels. For passenger automobiles, the new vehicle must have a combined fuel economy value of at least 22 miles per gallon. For category 1 trucks, the new vehicle must have a combined fuel economy value of at least 18 miles per gallon. For category 2 trucks, the new vehicle must have a combined fuel economy value of at least 15 miles per gallon.( A category 1 truck is a nonpassenger automobile. This category includes sport utility vehicles (SUVs), small and medium pickup trucks and small and medium passenger and cargo vans. A category 2 truck is a large van or a large pickup truck, based upon the length of the wheelbase (more than 115 inches for pickup trucks and more than 124 inches for vans). Note: some pickup trucks and cargo vans exceeding these thresholds are treated as category 3 trucks instead of category 2 trucks. A category 3 truck is a work truck and is rated between 8,500 and 10,000 pounds gross vehicle weight. This category includes very large pickup trucks (those with cargo beds 72 inches or more in length) and very large cargo vans.)

The value of the credit for the purchase or lease of a new passenger car depends upon the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle that is purchased or leased. If the new vehicle has a combined fuel economy that is at least 4, but less than 10, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new vehicle has a combined fuel economy value that is at least 10 miles per gallon higher than the traded-in vehicle, the credit is $4,500.

Will it work?

The program is getting mixed reviews, to say the least. It is limited to $1 billion in total rebates, which sounds like a lot, but will have a limited impact. It also extends only to November 1, so it will be a limited time frame as well. Another popular criticism is based on the fact that consumers who are driving a car worth less than $4500 will likely not be able to afford the sticker price on a brand new car.

For more information visit the official government  C.A.R.S. site (It will be updated regularly as well.)

Upromise – Turn your everyday spending into college savings

• Are Gas Guzzlers and the Suburbs Equally to Blame for America’s Current Fuel Crisis?
• 10 Ways to Save Money on Gas While Driving-Drive More Efficiently
• Gas Under $2.00 a Gallon- Good or Bad?
• 10 Money Saving Vacation Tips
• Don’t Let Last Year’s Stimulus Check Mess Up Your 2008 Tax Return

I experienced a  situation last weekend that people who leave in warm climates dread.

My air-conditioner  stopped working in my car.

With two small children, and temperatures reaching 95+ degrees in mid-June, not getting it fixed was not a viable option.

Although several knowledgeable people I know told me to expect a repair bill in the $1500 to $2000 range if I needed a new compressor and other major air-conditioning components, the repair ended up costing me about $1000. (It doesn’t seem right feeling lucky when you have to spend $1000, but I do)

I have a mechanic that I have been using for several years, who, based on my slightly above-basic  knowledge of car repair, only fixes what needs to be fixed, and charges me what I consider to be a fair price. So going in, I knew he was going to fix what needed to be fixed, and that it would be at a fair price for the work being performed.

So how to you find a good, trustworthy auto mechanic?

If you have an older car, one that is out of warranty, one of the smartest things you can do is find a good, fair mechanic or auto repair shop. The best way to find a good mechanic or repair shop that you can trust and will give you a fair price on repairs, in my opinion, is word of mouth.

Talk with your friends, co-workers, and family members to find out who they use for car repairs, and consider trying them out.

Several things to consider when getting advice on local mechanics and repair shops from someone, include the following:

Do they use a dealership exclusively?- Dealerships are fine if your car is under warranty, and many of them will do great work, but you are probably not going to find the best price at a dealership, in my opinion. There could be other reasons, such as convenience, but I would use a dealership as a last resort, for non-warranty work.

How old is their car?- This is somewhat related to the first question, but if they have a relatively new car, they may not have had to get much repaired on their car yet, or they could be using a dealership because the car is under warranty. If they always drive newer cars, they may not have much experience or knowledge regarding car repair.

Consider the source- Is the person knowledgeable about cars and auto repair? The more they know, the more likely it is that they know what a fair price is, and whether or not the repair was totally necessary. Someone who rarely opens the hood of their car may not know if they are getting a good deal or not.

Be sure to check out a mechanics reputation, by checking with the Better Business Bureau, if applicable, and by searching the internet for and information or feedback from previous customers that you can find.

Credit Crisis Concerns? Get 20% off FICO credit scores now

• How Asking a Very Simple Question Can Save You Money
• The Irony of the 3 Day Only, 50% Off, Salebration!
• How To Keep Your Car Running Longer-Car Maintenance-The Basics
• Negotiating a Deal and Tips on Becoming a Better Negotiator
• How to Save Money on Gas- Fact vs. Fiction

12 Ways to Save Money in the Bathroom

This would really be a great time to sink to a new low, if that is possible, with some “bathroom humor”, but I’m not going to go there- (I’ll leave that up to you!)

Buy in bulk- toilet paper is the obvious choice here, but other items can be bought in bulk if they will be used, like shampoo or soap (especially large refills of liquid soap). Keep in mind, a cheaper price might not always be cheaper overall if it doesn’t work as well- as in this toilet paper example. (Courtesy of That One Caveman.)

Low flow shower head- Consider getting a low flow shower head for more efficient water usage in the shower.

Low flow toilet- A low-flow toilet, like a shower head, can save on water usage, especially if your toilet needs updating or replacement.

Take quick showers- Keeping your showers quick (five minutes or less- which is hard to do sometimes) will save on your water usage over a bath.

Avoid taking baths- assuming you can keep your showers fairly quick (under 7 to 10 minutes, but shoot for 5), you will use more water taking a bath than a shower.

Conserve water when using the sink- Don’t leave the water running while brushing your teeth or shaving.

Buy generic- Name brand medicines and toiletries are often much more expensive than their generic equivalents. I find they work just as well, in almost all cases.

Put a bottle in your toilet tank- This is an update on the brick in the toilet tank method,where it has been recommended to put a brick in the toilet tank to displace some of the water used for flushing. A  plastic bottle filled with water is probably better than a brick, which can break down or dissolve some over time.

Use homemade cleaners- Try baking soda and water for the bathtub or sink, and a vinegar and water mixture for windows and mirrors.

Install compact fluorescent bulbs (CFL’s)- Compact fluorescent bulbs can make your bathroom lighting more energy efficient, saving you money in your electricity bill.

Learn how to unclog a drain and toilet-I purchase an Air Powered Drain Clearing Tool several years ago, and I know it has saved me quite a few dollars over chemical drain cleaners for clogged sinks, which I have not needed since, and certainly over calls to a plumber-it really works well for both sinks and the toilet.

Get several uses out of your towels- Make sure to hang it up to dry, so it will be ready for the next day and doesn’t get musty.

And no, I’m not going with the “If it’s yellow………”!

Are there any other ways to save money in the bathroom that you can think of?

• 20 Ways To Reduce Your Household Energy Use
• Mastering Frugality Series- Reducing Waste
• Top Ten Ways To Aggravate Your Spouse or Significant Other With Your Frugality
• 30 Ways To Save on Your Grocery Shopping and Food Bill
• The Basics on Finding Ways to Increase Your Cash Flow

Some great reads over the last week:

Trent from The Simple Dollar did a great comparison of Amazon’s 25 Software Bestsellers- and Their Free Equivalents. I use several of these currently, but there were quite a few I was not aware of. I recommend you check it out to save some dough on expensive software for your computer.

FFB from Free From Broke provided a summary of Unbroke -What You Need to Know About Money- A Recap- which is great for me, since I missed it Friday night!

Bob from Christian Personal Finance is giving away a Nintendo Wii and an iPod in celebration of 2 years as a blogger. Congrats!

I participated in several carnivals over the last week or so:

Kelly at Almost Frugal hosted the 8th Edition of the Carnival of Pecuniarities, and included my article “15 Ways for Teens to Make Money this Summer.”

Lisa at Greener Pastures: Personal Finance hosted the Carnival of Personal Finance #206, and included my article “Is Buy and Hold Investing Dead or Just Misunderstood?”

Meadowwood Garden hosted the Carnival of Homesteading- Vegetable Gardening Edition, and included my article “Create an Edible Container Garden This Spring.”

If you haven’t signed up already, be sure to get signed up for free updates to Think Your Way To Wealth via RSS feed or email and get all of the latest posts and updates delivered for free.

• Weekly Personal Finance Links-Weird Weather Edition
• Weekly Personal Finance Links- Late Cool Weather Edition
• Weekly Personal Finance Links- The Taxman Cometh
• Weekend Roundup- Xmas Edition
• Weekend Roundup- Quick Holiday Edition

Many states have tax free (state tax free, to be specific) holidays, or days where you can purchase certain categories of items without having to pay state sales tax. It may not always amount to much, but it is still better than having to pay the tax.

Below is an updated list of states with tax-free holidays in 2009.

For additional details, I would recommend visiting each state’s individual tax department website also listed below.

Alabama
3 Days-August 7-9
http://www.ador.state.al.us/salestax/SalesTaxHol.htm
clothing – $100
computers – $750
school supplies – $50
Books – $30

Connecticut
7 Days- August 16-22
http://www.ct.gov/
clothing and footwear – $300

District of Columbia
9 Days-August 1-9
http://otr.cfo.dc.gov/otr/ (link not updated from 2008)
clothing – $100
school supplies – $100
17 Days-Nov. 27 – Dec. 6
clothing – $100

Georgia
4 days- July 30-Aug 2nd
clothing under $100
Computers/computer equipment under $1500
School supplies under $20
Energy Efficient Items
4 days- Oct 1-4
Under $1500

Iowa
2 Days-August 7-8
http://www.iowaccess.org/tax/
clothing – $100

Louisiana
http://www.rev.state.la.us/
2 Days-May 30-31
hurricane preparedness items – $1,500

Mississippi
http://www.ltgovbryant.com/news/2009/Mar/SalesTaxHoliday.html
2 days- July 31-August 1
Clothing under $100

Missouri
3 Days- August 7-9
http://www.dor.mo.gov/tax/
clothing – $100
computers – $3500
school supplies – $50

New Mexico
3 Days-August 7-9
http://www.state.nm.us/tax/
clothing – $100
computers – $1,000
school supplies – $15

North Carolina
3 Days-August 7-9
http://www.dor.state.nc.us/
clothing – $100
school supplies – $100
computers – $3,500
other comp. – $250
sports equip – $50

Oklahoma
3 Days-August 1-3
http://www.tax.ok.gov/ (Link for 2008)
clothing – $100

South Carolina
3 Days-August 7-9
http://www.sctax.org/
clothing
school supplies
computers
other

Tennessee
3 Days-August 7-9
http://tn.gov/revenue/
clothing – $100
school supplies – $100
computers – $1,500
Texas
http://www.window.state.tx.us/
3 Days-August 21-23
clothing and backpacks – $100

Virginia
7 Days-May 25-31
hurricane preparedness items – $60
generators-$1000
http://www.tax.virginia.gov/
3 Days-August -TBD
clothing – $100
school supplies – $20
4 Days October-TBD
energy efficient products – $2,500

West Virginia
90  Days-September 1-November 30th
http://www.state.wv.us/taxdiv/
energy efficient products – $5,000

Upromise – Turn your everyday spending into college savings

• States With Upcoming Tax Free Holidays in 2008
• Saving Money for College- Education Savings Accounts and 529 Plans
• The Easy Way to Budget for Irregular Expenses Using A Separate Checking Account
• How to Prepare for a Hurricane or other Weather Related Emergency
• 20 Ways To Reduce Your Household Energy Use

No person, no entity, or no future event will help me solve my money problems.

Believing that, there leaves basically one person who can help me improve my finances.

Myself

Basically, if  you want to improve your financial situation, you are going to have to do it yourself. (If you are married, then your spouse or partner can assist as well, but that is about it, in my opinion.)

The following people, entities, or events will not help you with your money problems or help fix your financial situation:

The Government- Even if you get a little more money in your paycheck, or an actual check from the government, the Stimulus Plan is not going to bail you out (unless you happen to be a very large bank). Nor will the new credit card rules save the day for you, either.

Your Family- While your family can be great and help you out in a pinch, relying on others to bail you out will not get your finances on the right track. In fact, it may encourage or enable your bad money habits.

A Windfall- How many lottery winners  end up broke? Quite a few.  Large sums of cash may not fix your finance, either, in the long run.

Promotion or Future Advancement- It’s easy to think that once you reach a certain level in your career, salary wise, things will be better. But like many people, you may incur additional, regular expenses as you get older as well. Things such as buying a house, having kids, and other regular expenses can contribute to lifestyle inflation.

Your future self- Your future self might make more money. You might even become better at managing money. But the truth is, unless you take the steps to manage your money better now, you will likely still have the same money problems you have now when you are making more money.

It is very easy to think that things will change in the future, or that “I’ll catch a break one day”, and your money problems will eventually disappear. The truth is that it is not very likely to happen, unless you take positive steps to make it happen.

Credit Crisis Concerns? Get 20% off FICO credit scores now

• Developing A Burning Desire to Improve Your Finances-Part I- Motivation
• How 15 Minutes a Day Can Improve Your Finances
• Discussing Money Issues With Your Wife or Husband
• My Personal Finance Tipping Point or When I Decided to Change My Financial Future
• The Peril of Living Paycheck to Paycheck- Are You One Step Away from a Financial Disaster?

What will the ramifications of the CARD Act be?

It is supposed put a limit on credit card companies frequency of rate increases, make the credit card companies be upfront when raising rates, as well as limiting the severe penalties frequently place on  people who are occasionally late by a day or two on their payments. The bottom line is that it should be good for credit card users. However, credit card issuers are going to find other methods to keep their income from decreasing, so there is the possibility that rates could go higher (even though they may not be increased as frequently as they are sometimes right now). Annual fees could become more frequent, and rewards could be reduced. It is too early to predict if  or to what degree these will happen though.

Some of the highlights of the Act include:

• Credit card companies  must provide consumers with a 45-day advance notice of changes in rates and other significant changes to account. (Rate changes due to changes of prime rate are exempt.)
• Credit card issuers cannot increase the annual percentage rate (APR) during the first 12 months of opening up a new account.
• Promotional rates must remain in effect for at least six months from the beginning date of that promotion.
• Credit card issuers are prohibited from charging a finance charge based on the double billing cycle method, except in limited circumstances.
• If two or more different APRs apply to different portions of an outstanding balance, the amount of any payment above the required minimum payment needs to be applied to the balance with the highest APR first and then to lower APR balances.
• Card issuers are required to send credit card statements at least 21 days before the due date of the outstanding balance.

New Credit Card Rules for College Students

• Cards cannot be issued to those under 21, unless they have a parent or guardian co-signer, or proof of  independent means of repayment. For college students without a co-signer, the maximum amount of credit extended will be limited to the greater of 20 percent of the student’s annual gross income or $500 dollars.
• Inducements to college students prohibited-  No card issuer or creditor may offer to a student at an institution of higher education any tangible item to induce such student to apply for or participate in an open end consumer credit plan offered by such card issuer or creditor.
• No extra fees for making payments over the phone or internet- unless it is an expedited fee on the day before or day of the payment due date.

Read the full text of the 2009 CARD Bill approved by the House and Senate.

• What You Should Know about the New Credit Card Rules and Regulations
• Credit Card Debt Elimination Using a Zero Percent Balance Transfer
• College Students and Credit Card Debt
• Creating an Aggressive Credit Card Debt Elimination Plan
• The Easy Way to Budget for Irregular Expenses Using A Separate Checking Account

Some great articles I’ve read over the last week or so:

6 Small Things You Can Do When You Lack Discipline- at Zen Habits- I see a lack of discipline/focus as one of the things I need to work on, so this hit home for me.

Why Australia?  Financial Implications of Our Move Overseas- at Man vs. Debt- I applaud anyone who is bold enough to pick up and move across the world. Good Luck!

40 Most Useful Travel Websites That Can Save You a Fortune at Wisebread- The most comprehensive travel website compilation I have seen-great for planning summer travel!

And if you are planning summer travel, check out Airline Fees for Checking Bags at Consumerism Commentary.

I participated in several carnivals over the last couple of weeks:

Always the Planner hosted the Festival of Frugality-Remember When Edition, and included my article ” Thoughts on Going Cash Only- The Benefits and Drawbacks of Not Using Credit Cards“.

I Pick Up Pennies hosted the Money Hackers Carnival-Swine Flu Edition, and included my article “20 Ways To Reduce Your Household Energy Use”.

Money Hacks hosted the Kids and Money Carnival, and included my article  “From the Economic Stimulus Plan- 529 Funds Can be Used for Computers, Software, and Peripherals”.

Earn What You Spend hosted the Carnival of Personal Finance #204- and included my article “What Does Retirement Mean to You and What Will Your Retirement Needs Be?”

If you haven’t signed up already, be sure to get signed up for free updates to Think Your Way To Wealth via RSS feed or email and get all of the latest posts and updates delivered for free.

Upromise – Turn your everyday spending into college savings

• Weekly Personal Finance Links- Hurricane Season Begins Edition
• Weekly Personal Finance Links-Weird Weather Edition
• Weekend Roundup-Dad’s Day Edition
• Weekend Roundup-Slightly Under the Weather Edition
• Weekly Personal Finance Links- St. Patrick’s Edition

A PR rep for BJ’s was kind enough to send me the link, and invited me to share it with my readers, so try it out if you have a BJ’s near you.

I am a big fan of Warehouse/Wholesale shopping clubs, not just for buying food and household items in bulk, but also the great prices on things like electronics, tires for your automobile, and household furnishings.

Unfortunately for me, my warehouse club shopping is limited to Sam’s Club- although I like Sam’s a lot and don’t really have any complaints, I would not mind trying out others such as BJ’s or Costco. The nearest BJ’s is probably a day’s drive away.

Info from the BJ’s website:

• Save more than 30%** off supermarket prices on favorite brands
• Multiply your savings with manufacturers’ coupons — BJ’s accepts them all
• Find more of the family-friendly sizes you use every day
• More payment options — BJ’s offers convenient ways to pay: cash, checks, major credit cards, EBT and debit cards

Free 60 Day Pass to BJ’s Wholesale Club

Credit Crisis Concerns? Get 20% off FICO credit scores now

• Tips on Saving Money When Buying Tires- and Making Your Vehicle’s Tires Last Longer
• Vending Machine Economics: The Convenience Factor
• 30 Ways To Save on Your Grocery Shopping and Food Bill
• Have You Jumped on the Coupon Bandwagon Yet?
• Is it Cool to be Frugal? 10 Frugal Practices You’ve Always Done That Are Now “In” Again

So what did come first, the chicken or the egg?

All jokes aside, apparently raising chickens in your backyard, especially in suburban and urban areas, is becoming a popular trend, if you want to call it that. More and more people are starting to raise chickens for eggs and well, food, in non rural areas across the country.

Depending on the type of chicken, they can lay an egg every day or two,  so a couple of chickens could produce up to a dozen fresh, organic eggs for you and your family each week. Can you get any fresher than stepping out of your back door to grab a couple of eggs for breakfast?

Sounds pretty intriguing to me, I must admit, and sort of the “next step” after growing your own vegetables. They don’t need a whole lot of room (just few square feet per chicken)  , don’t eat a whole lot (just chicken feed, obviously), and don’t make a lot of noise, unless you make a mistake and accidentally buy a rooster.

The basics necessities required to raise backyard chickens include:

• an enclosed area (coop) to protect them from predators
• a roost for them to sleep and lay their eggs
• food and water

For a wealth of information on raising backyard chickens, visit backyardchickens.com.

I not sure that I am ready to delve into backyard chickens just yet, but I could see myself thinking about doing so some time  in the future.

Is the rise in popularity of backyard chickens because of a movement towards self-sufficiency, a desire to save money over store-bought, organic free range eggs, or the  novelty of having a farm animal in your own backyard? Probably a little of all three, I would imagine.

photo credit: JenCarole

• Eating on the Cheap-Give Ethnic Restaurants a Try
• Save Time and Money by Batch Cooking With the BBQ
• 12 Ways To Save Money in The Bathroom
• 20 Ways To Reduce Your Household Energy Use
• 35 Ways To Kick Start Your Debt Snowball

Passed as part of Obama’s Stimulus Bill, officially known as the American Recovery and Reinvestment Act of 2009, the credit is a refundable tax credit of $8,000, or 10% of the home’s purchase price, whichever is less, for first time home buyers who purchase a home between January 1, 2009 and November 30, 2009.

For purposes of the credit, a “first time home buyer” is a person who has not owned a home in the past three years. There are also restrictions on income. Home buyers must make less than $75,000 for singles, or $150,000 for couples to qualify for the full credit. (Partial credit is available for higher incomes earners).

The refundable tax credit can actually be claimed immediately, either by filing your 2008 taxes (if you have not filed yet), or filing an amended 2008 return if you have already filed for 2008. Since it is a tax credit, you are entitled to the full $8000, plus or minus either whatever you either owed to the IRS or whatever you were due as a refund.

Obviously, getting $8000 free is nice. But will it stimulate the real estate market enough? I guess only time will tell. Another thing that could potentially happen, is that people will “stretch” themselves when they are not quite ready financially, trying to purchase a home before the deadline of November 30, 2009.

• What’s in the Stimulus Plan? Read the Full Text of American Recovery and Reinvestment Act of 2009
• Don’t Let Last Year’s Stimulus Check Mess Up Your 2008 Tax Return
• Why You Should Prepare Your Taxes Now
• 7 Reasons You May Not Have Received Your Economic Stimulus Rebate Yet
• Not Going to Finish Your Taxes by April 15th?- How to File For An Extension

Happy Cinco De Mayo

Cinco De Mayo commemorates the Mexican army’s unlikely defeat of French forces at the Battle of Puebla on May 5, 1862.

Now you don’t have to drop large chunk of change on a Margaritaville Frozen Concoction Maker to have a great time- you can be frugal and make your own with a regular blender or make one “on the rocks”-(I prefer on the rocks myself, with salt).

Here are some great articles I’ve read over the last week or so:

Common Credit Report Errors at Prime Time Money

Resigning on Good Terms at Cash Money Life

The Secrets of Financial Freedom: An Interview With the Millionaire Next Door at Get Rich Slowly

Congrats to nickel - Check out Four Years of FiveCentNickel at FiveCentNickel

I participated in 2 carnivals last week:

Fire Finance hosted the Carnival of Personal Finance #202- The Lao Tzu Edition, and included my article “Mark Cuban, Naked Pizza, and Being Passionate and Persistent about Your Dreams“.

The Paycheck Chronicles hosted the Festival of Frugality- The Spring has Sprung Edition, and included my article 20 Ways To Reduce Your Household Energy Use“.

photo credit: holisticmonkey

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Credit Crisis Concerns? Get 20% off FICO credit scores now

• Mark Cuban, Naked Pizza, and Being Passionate and Persistent about Your Dreams
• Weekly Personal Finance Links- The Taxman Cometh
• Weekly Personal Finance Links-Weird Weather Edition
• Weekly Personal Finance Links- Hurricane Season Begins Edition
• Weekly Personal Finance Links- The Obama Inauguration Edition