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5 Saving Money Tips for Car Owners

This article was written by in Consumer, Featured. 4 comments.

This is a guest article by Emily Guy Birken, author of The SAHMambulust. In this article, she offers suggestions for cutting the costs associated with car ownership.

Owning a car is an expensive proposition, but most of us never stop to consider the cost of each trip. Unless you live in a city with great public transportation, you use a car for everything. We jump into our cars to commute, run errands, visit friends, go shopping or even just take in the fall foliage. Be proactive about your car to keep your ownership costs low.

Rusted CarHere are five ways to make sure that your car remains a manageable expense, rather than a financial black hole.

Don’t cheap out on a mechanic.

When you find a reputable mechanic whom you trust, don’t expect to see bargain basement bills. Mechanics not only have to stay on top of the ever-changing trends of car engines, but they also need to make sure their (very expensive) tools keep up with cars’ needs and are well maintained. A knowledgeable mechanic is worth the extra money. One who doesn’t know what he is doing but will save you a couple of bucks can often cause expensive harm to your car. This is not the place to try to save. You’ll spend less in the long run if you’re willing to pay a great mechanic.

Looking for the cheapest mechanic will cost you more money in future repairs, so don’t be penny wise, pound foolish. Think about the larger picture.

Make smart gas choices.

There may be a great deal of hype about premium fuel options, but most daily drivers are just fine with the lowest octane gas at the pump. If you’re not sure about your car’s gas needs, check your owner’s manual. Even if the recommendation is for the premium grade of fuel, chances are that you would only need to fork over for the high-grade stuff in warm weather, when hauling extra weight, or driving on extremely steep mountain roads. Any other times, save yourself the money. And if you’re still not sure what your car needs, talk to your mechanic or check the internet message boards devoted to your make and model—there are plenty of them!

Watch the advertised prices as the station. You may pay more for your gas if you use a credit card, because many stations now charge gas customers different prices depending on whether they use cash or a credit card. You may be able to make up some of the difference with a gas rewards credit card, but again, make sure the price you pay above the cash price is worth the benefits.

Provided you pay off your credit card each month, this could be a savvy way to reduce your fuel bill each month and keep you motoring for less, as long as you make smart choices.

Take good care of your tires.

Tires are one of the costliest items that you will have to replace during the life of the car. While they are not made to last forever, you can ensure you get your money’s worth out of each set by practicing good maintenance. Keeping the tires properly inflated will not only make sure they last but will also save you on fuel efficiency. Check your tires monthly for underinflation and wear.

Keep your car clean.

If you live in an area with long, cold winters, you’re probably surrounded by cars that are rusting away. Cars that are exposed to salt will succumb to rust, which can shorten the lifespan of the vehicle. Especially in winter, you want to make sure that your car is regularly cleaned and waxed to keep the metal safe from the eroding properties of salt.

Similarly, if you notice a chip of paint missing from your body, touch it up! That spot is open to the elements and salt and will eventually rust over.

Don’t ignore little problems.

A friend’s car was revving but not catching when he turned the ignition. When he tried again, the car started and he went along his way. The problem? He was short on transmission fluid. Had he not topped off that fluid, he could have destroyed his transmission and been looking at a multi-thousand dollar repair bill, plus an out-of-commission car. Because he took care of the problem quickly, he paid just a few dollars for transmission fluid instead of using his maintenance budget for the year in one shot. We can become so used to the idea that we just jump in the car that we can sometimes end up ignoring small warning signs. If your car is behaving oddly, get it to a trusted mechanic quickly. Always pay attention to small issues.

Maintaining your car is an investment that will keep you motoring for years after your less-savvy neighbors and friends have had to replace their vehicles and spent unnecessary costs.

Photo: sridgway

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My Two Best Financial Decisions: Leaving My Jobs

This article was written by in Career and Work. 11 comments.

There have been two major financial crossroads in my life until this point. Although it took a while to get to each one, by the time the dust settled, I knew I had made the right choice. In both instances, the decisions surround leaving my job, whether by my pure choice without external pressure or a “mutual agreement.”

Ten years ago, I knew my days at the non-profit organization were coming to an end. I was already in a tough financial situation and I had recently moved to be closer to the organization’s headquarters, which seemed like a bad move since the organization’s CEO was constantly talking about relocating, to save money and time. Three months later, I left the organization. Around the same time, my girlfriend and I parted ways. I spent my time looking for teaching jobs, and because of some kind of communication breakdown, my landlord found a new tenant for my apartment while I was still living there. If that weren’t enough, my ignored speeding tickets caught up with me and I found myself without a car.

Those few months following my departure from that organization were the lowest points of my life, but thanks to some support from family, I found a way to move forward. It began with the loss of the job, and although leaving that job led to short-term stress, from a financial perspective it motivated me to assume control of my life. Rather than let things happen to me without much engagement in the decision-making process, I became the CFO (and really, the CEO, too) of my own life.

The job I found just a few months after leaving the non-profit organization, in my new situation without a car and unable to take most teaching jobs, was for the company I ended up sticking with until December last year. At that point, I was fully in control of my financial direction. My day job had become a relatively insignificant contributor to my overall financial well-being. While I did enjoy inexpensive health benefits, access to a discounted stock purchase plan, and the camaraderie of spending most of my day with co-workers, this day job was only a barrier to pursuing my fuller potential with my own business, primarily Consumerism Commentary.

By this time last year, my business had consistently overtaken my day job income for three to four years. Some people would have used that benchmark to decide to quit their day job, but I took a more conservative approach. I was familiar with the risks, and wanted some security before I would say goodbye to corporate life. About a year ago, I put the wheels in motion to leave my day job, and I finally pulled the trigger after Thanksgiving.

Again, leaving my job has proven, at least so far, to be a fantastic decision for me. I’ve been able to dedicate more time to operating Consumerism Commentary. Although much of that gained time is not dedicated to writing, and my editorial approach hasn’t changed much in the last year, I can now use my time in such a way I’m not constrained. Trying to balance a day job, my own business, a relationship, and my own health needs like sleep resulted in low effectiveness in every area. By gaining nine hours back in each day, I do not need to spread my attention out as much.

This has resulted in improvement at least from the perspective of the business; the last nine months have been quite positive.

The unemployment rate is still high in this post-recessionary economy, and many people would not take a risky move like quitting a good job right now. Furthermore, many people have financial responsibilities like family, and these responsibilities make quitting a job without a solid back-up plan irresponsible. Put if you plant the seeds by saving enough money to feel secure in the decision over and above an emergency fund, you can reduce some of the risk. Then again, the riskiest moves can have the best payoffs, like my departure from the non-profit organization ten years ago.

Think about your immediate plans if you want to leave your job:

  • How will I afford my expenses? Quitting a job by choice is not an emergency, so you shouldn’t rely on an emergency fund. You can create a safety net in addition to your emergency fund, and some people call this extra savings an F.U. fund (as in “fuck you” fund — what you would might to your boss when you leave if you aren’t interested in leaving a good impression).
  • Who else will this affect at the job? Quitting your job out of the blue, again, could make things difficult for your organization. In most cases, be the better person and ensure there is a transition or succession plan in place. Offer to be available for questions after your last day in the office.
  • Who else will this affect outside of the job? If you are financially interdependent with other adults, this is the kind of decision you should discuss ahead of time. There’s a risk that your plan won’t be fruitful, at least not immediately, and if that loss of income affects your family, they have a right to plan with you. If your job loss means you’ll need to rely on extended family, discuss expectations and limitations so there are no surprises.
  • What’s my next move? For the most part, if leaving a job by choice, you should have a plan in place. In fact, you should always have a plan in place for the situation that would arise if you are forced out of a job, laid off, or fired. With a plan, you’ll always be a few moves ahead, like a good chess player.

The above helps, but sometimes people can achieve the best results by just quitting. Some people would be more motivated to succeed on their own when the stakes are higher. This can create a sense of urgency. While not positive for everyone, certain personality types respond well to this type of pressure and use it an advantage.

Conformity, and in this case, conformity with the typical middle class career-based existence, is comfortable. I always knew I didn’t fit well in that mold, and if I wanted to find a way of living that was more satisfying, it would be outside of the corporate box. I may return to the corporate mold in the future, but only if it can be under my terms. I highly recommend leaving an unsatisfying day job in exchange for finding your own way. This could be to follow a passion or it could be to provide the motivation to take control of your situation. Even if it results in some short-term hardship, quitting a job can be financially and emotionally satisfying over the long term.

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Google Wallet Not Ready for Prime Time

This article was written by in Consumer. 7 comments.

Simplification is usually a good choice for finances whenever it is available, and the bulky wallet is due for a technological upgrade, simplifying back pockets of men’s jeans everywhere. I’ve received the occasional comment about my “George Costanza” wallet; as I collect receipts from my day-to-day transactions, the leather becomes increasingly distended. Google’s first in the United States on the train towards eliminating this particular bulge and lightening the load for those who carry cards and money in bags. In fact, Google re-purposed a clip from Seinfeld to tease the public about this forthcoming technology.

In Europe, this technology already exists, even if it isn’t ubiquitous yet: your mobile phone will be able to function as a payment mechanism with merchants who accept credit cards. New mobile phones will include a chip that securely transmits a credit card number of choice to a cashier’s receiver. Just like the PayPass or other credit card technologies that allow you to wave your plastic like a Jedi to pay for your groceries, cell phones carrying digital wallet applications will theoretically take the place of your bulky, card-filled wallet.

Despite strong marketing from Google and other companies getting ready to launch digital wallet services, there are still some barriers to this technology.

  • Most phones do not contain the NFC (near-field communication) chip that makes secure wireless communication between the phone and a retailer’s receiver possible. In fact, the Google Nexus S is the only phone in the United States that contains this technology as of today.
  • The Google Nexus S is only available on Sprint. Consumers who want to take advantage of this technology right away would need to leave Verizon Wireless or AT&T.
  • Not all credit card companies are on board. Google Wallet is launching with help from Citi and MasterCard. Visa, American Express, and Discover will operate with slightly different technologies. They’ve made the details available to programmers, though, and the issuers may be included in future versions of Google Wallet, or they will sponsor their own, competing applications.
  • Many people are still skeptical of security. I’ve often maintained that secure digital communication is more secure than handing your credit card to a waiter who disappears for five minutes, but there is a mistrust of credit card databases stored by financial companies. In order to use technology like this, you provide your credit card information to yet another third party.
  • With more of your financial information in the hands of others, you are open for more and better-targeted advertisements and unsolicited offers. Using a digital wallet will certainly require your agreement with a document outlining terms of use, and that document will undoubtedly reduce your rights to privacy. Your credit cards know where you spend your money and how much. Do you also want Google to know?
  • This service may replace your cash and credit cards, but that’s only part of your wallet. You may use your wallet to hold your identification and driver’s license, your health insurance identification card, your roadside assistance card, your mass transportation access card, your office security key, and your casino player’s club card, just to name a few. Some of these may be supported by Google Wallet and similar applications in the future, but some won’t.
  • Until all merchants accept wireless transactions, you’ll still need to carry your credit and debit cards. In fact, even if a merchant accepts NFC payments, if the technology is a little old, it won’t accept payments from cell phones.
  • My cell phone’s battery is generally dead by the end of the day. Without a wallet and without a back-up battery, how will you pay for an item with a phone that won’t turn on?

If you’re an early adopter of technology, feel free to jump on the bandwagon. Google Wallet is not quite ready for mass consumption.

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American Express Credit Card Reviews

This article was written by in Credit. 1 comment.

American Express is consistently one of the highest rated credit card issuers. This could be because the customers are demographically different than average Visa and MasterCard customers. American Express customers are generally individuals and businesses with higher credit ratings, and they are more likely to make better financial decisions. Additionally, many American Express cards are charge cards. Charge cards don’t have associated interest rates, so every bill is due in full. As a result, American Express customers generally don’t buy what they can’t afford to pay back within 30 days.

In the J.D. Power and Associates 2011 credit card satisfaction survey, American Express received five out of five in all ratings categories: overall satisfaction, credit card terms, rewards, and benefits. This is the fifth consecutive year that AmEx has taken the highest honors. American Express also won the highest accolades from personal finance bloggers, taking home the Best Credit Card in the First Annual Plutus Awards last year, with the Blue from American Express card.

Here’s an overview of the major credit and charge cars from American Express and reviews for each.

Platinum Card® from American ExpressThe Platinum Card® from American Express is the flagship charge card, offering the best benefits American Express can offer. With this card, AmEx will reimburse the cardholder up to $200 in airline fees each year, including any fee from any airline. Members will be able to enter private lounge areas at airports to pass the time in comfort. When cardholders use AmEx’s travel services, they will benefit from free companion tickets. AmEx has a concierge available to tend to all customers’ needs. Businesses can receive similar features with the The Business Platinum Card® from American Express OPEN.

These benefits come at a significant cost. With an annual fee of $450, the Platinum Card is not for the faint of heart. The potential benefits could outweigh this annual fee, but this is a personal decision. This card would simply not be the best match for many consumers due to that annual fee.

Premier Rewards Gold CardSitting in between the Platinum Cards and the regular Gold Card is the Premier Rewards Gold Card from American Express. New cardholders will receive 15,000 Membership Rewards points after spending $1,000 in the first three months of card membership. On purchases, you cardholders earn points quickly, with three points per dollar on airfare, two points per dollar on gas and groceries, one one point per dollar on all other purchases. These points can be used to fly anytime, anywhere, on any airline. Members receive exclusive access to buy tickets for popular events.

This card carries a $175 annual fee, much less than the Platinum Card, but the benefits are not as extensive. The annual fee is waived for the first year.

American Express® Gold CardThe American Express® Gold Card offers some of the same features as the Platinum card, but at a lower level. Today, this card offers a 10,000 Membership Rewards bonus when you spend $1,000 in your first three months of card membership. Benefits include 24-hour roadside assistance, and exclusive, early access to purchase tickets for events. With the business version, The NEW Business Gold Rewards Card® from American Express OPEN, you can earn points faster, get rewarded for what your business already spends.

Both versions of the charge card waive the annual fee for the first year. Thereafter the American Express Gold Card comes with an annual fee of $125, while the business version comes with an annual fee of $175.

Gold Delta SkyMiles® Credit Card from American ExpressFor travelers that fly on Delta Airlines frequently, the Gold Delta SkyMiles® Credit Card from American Express is one of the best ways to earn relevant and valuable rewards. The introductory offer is up to 30,000 miles, which converts to $300 in Delta airfare. You can continue to earn miles at the rate of two miles per dollar spent on Delta flights and one mile per dollar for all other expenses. The Gold Delta SkyMiles card offers free checked bags on Delta flights for up to nine people in your reservation.

While the annual fee for this credit card is $95, American Express waives the fee for the first year.

Blue Cash Everyday(SM) from American ExpressFor consumers with excellent credit, the Blue Cash Preferred from American Express offers one of the best cash back programs the issuer has to offer. After a $150 sign-up bonus after spending $1,000 within the first three months of card membership, earn 6% on supermarket purchases, 3% on gasoline and department store purchases, and 1% on everything else. This is the best cash back offer American Express has, and it is better than offers from many other issuers, as well.

The Blue Cash Preferred from American Express comes with a $75 annual fee, but you can eliminate this fee or even make more money by referring qualified customers to the card.

Blue Cash Everyday(SM) from American ExpressConsumers with good credit can consider the Blue Cash Everyday(SM) from American Express, offering consumers one of the best cash back programs the issuer has available. Earn 3% on supermarket purchases, 2% on gasoline and department store purchases, and 1% cash back on everything else as well as $100 cash back bonus after spending $1,000 in eligible purchases in the first three months. There are no spending thresholds to overcome before earning this cash back. Unlike the Gold and Platinum cards, Blue Cash Everyday is a credit card, so purchases are subject to interest fees if the bills are not paid in full.

There is no annual fee for being a member of Blue Cash Everyday.

Blue Sky from American ExpressThe Blue Sky from American Express and the Blue Sky Preferred from American Express are credit cards, not charge cards, focused on travel rewards. With the Blue Sky card, spenders earn one point for every dollar spent on the card, but those points are about 33% more valuable than typical rewards programs. You need only 7,500 points to qualify for a $100 statement credit. The Blue Sky Preferred card has the additional feature of earning two points for ever dollar spent on hotels, dining and car rental purchases, as well as an annual $100 airline allowance to cover airline fees, like checked baggage.

The Blue Sky has no annual fee, and The Blue Sky Preferred Card comes with a $75 annual fee.

Starwood Preferred Guest® Credit Card from American ExpressWithout fail, the Starwood Preferred Guest® Credit Card from American Express is the readers’ favorite at Consumerism Commentary. This credit card currently features an introductory bonus of 25,000 Starpoints, receive 10,000 Starpoints after your first purchase and an additional 15,000 Starpoints when you spend $5,000 in six months. Starpoints can be used for free nights and hotels and free flights with many airlines (over 350). The business version of this card, the Starwood Preferred Guest Business Credit Card from American Express OPEN, offers the same features for small businesses and their owners.

The Starwood cards comes with a $65 annual fee, waived for the first year.

TrueEarnings® Card from Costco and American ExpressThe TrueEarnings® Card from Costco and American Express is another favorite among Consumerism Commentary readers. There is no bonus offer with this credit card, but the cash back arrangement is solid. Approved applicants can immediately begin receiving cash back at the rates of 3% on gasoline purchases up to $3,000 (1% thereafter), 2% on restaurants and travel, and 1% on all other purchases, including purchases at Costco.

For Costco members in good standing, this credit card has no annual fee.

All the above American Express cards, both credit cards and charge cards, have the same security features, extended warranty benefits, and purchase protection.

This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

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The Best Credit Cards for Bad Credit, February 2012

by Flexo

For consumers with a poor credit history, the options for new lines of credit are limited. Far too often, lenders take advantage of people with poor credit by charging high interest rates and fees. Rather than improve their credit, the added debt only makes things worse. The world can be a much uglier place when ... Continue reading this article…

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American Express Gold Card Review

by Flexo

While the credit card market continues to change due to new regulations, American Express and its line of charge cards have not. For decades, AmEx has offered three different charge cards, each well known because of their color. Whether it’s the Green, Gold or Platinum American Express charge card, consumers continue to charge purchases without ... Continue reading this article…

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Blue Cash Everyday from American Express Review

by Flexo

Since last summer, credit card offers have been a bit of a mixed bag. While rewards programs and sign-up bonuses have been increasing, the issuers have also been increasing fees and interest rates. If you use a credit card, always make sure to pay your balance off in full every month, keep your spending within ... Continue reading this article…

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AAA Members Earn More Interest at Discover Bank

by Flexo

I’m a member of AAA, paying once a year for benefits like roadside service, travel assistance, and in some cases, discounts. AAA members can now earn a higher interest rate at Discover Bank than non-members. Currently, the rate for AAA members is 5 basis points (0.05 percentage points) higher than the standard Discover Bank online ... Continue reading this article…

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