Friday, December 27, 2013

WAVE-B Free Ride Project 2013 Report




This is the first progress report of the "WAVE-B Free Ride Project".  When we begun this experiment we had the following cars:

  • Car A: Ramsey Rover - 2000 Ford Windstar Mini-Van with around 208,000 miles

  • Car B: Green Machine - 1998 Jeep Cherokee with 230,000 miles

  • Savings assigned to car: $4000

Transportation: Fuel Costs



http://de.wikipedia.org/wiki/Adler_Diplomat

1941 Adler Diplomat - Gasifier

Driving a car is expensive. What if you didn't own a car? (This question is of course directed at you who in fact do own one.) If you didn't own a car you would have to live relatively close to your work. Alternatives might be walking, biking, public transportation, van pools, or finding a job that involves teleworking.

If you are in fact one of those who does own a car and can not do the above suggestions you can do other things to make driving your car less expensive. Fuel costs are a major factor in my daily commute; I drive 66 miles round trip for work. I know other people who go as far as 88 miles daily for work.

Friday, September 27, 2013

How Much Is a Human Being Worth?




 $2,909,130

Upon seeing the web site HumanForSale.com I was able to value myself at $2,909,130. I felt like a cheap discount at a 1 dollar store. How can they just value me at such a low price? According to the web site the highest male was just over 4 million dollars while the average male was worth $2,106,266.  I guess I'm a little above average but, not quite top commodity material.

I live in the United States where the average income is $40,000 per year. If the average person works 30 years they would have generated $1,200,000 just being average. If they invest in themselves they can increase income. If they invest some more wealth will be generated.

Friday, September 20, 2013

Invest In People - The Greatest ROI




Vitruve Luc Viatour (Vitruvian Man)



Leonardo Da Vinci

Much of this blog is geared towards money and finances. I really like to just use money as the prism to see real value in life. As an individual you can invest in stocks, bonds, real estate, etc. The most powerful thing you can invest in is people. This can be yourself or your fellow human being.

Tuesday, September 17, 2013

Operating Costs - Real Costs

Operating costs can kill a good deal on a car. The depreciation of a car is the main financial loss expected in the first five years of ownership. That is the fixed asset loss of the vehicle. The car pretty much only depreciates only once.

The next big continuing loss year after year is the cost of fuel. This is why the MPG or MPGe is so important. The factors are the cost of the fuel, how much fuel you need, and the efficiency of turning the fuel into energy.

The cost of fuel is not within your control as much as the other factors. Still there are tools out there to help you. A web site called GasBuddy.com uses the general public to report on where the cheapest prices of gas is in relative real time.

How much fuel you need is determined by how far you are from work, grocery store, etc. This is a little more within your control. The choice is yours how far or how close you are to the places you need to go.

Efficiency is determined by which kind of car you drive and how you drive it. One resource is the fueleconomy.gov web site. Compare MPG with trip length HERE to find out the difference between two different cars. How you drive is important too. According to the US Dept. of Energy; observing the speed limit is worth 7-14% better gas mileage, removing excess weight can be 1-2% better gas mileage, and having tires with lower rolling resistance that are properly inflated can have a factor of 15-27%  (The report) .

Collectively the three factors above can be 23-43% of your gas mileage.

The cost of repairs and maintenance is the next biggest factor for operating costs of a car. This can have a decreased expenditure out of pocket by buying a more reliable car. This can be checked at Consumer Reports (subscription needed for all article access)

Old Faithfull-pdPhoto.jpg

Old Faithful Geyser - Reliability at it's Best 



The bottom line is although car depreciation is about 50% loss of the value in the first 5 years the holding costs can be like a leaky faucet for your finances. The only difference is the holding costs are continuous.

Friday, September 13, 2013

Credit Card Debt - Pay Maximum

Why be minimum be Maximum. Max out your life not your debt. Debt is a tool but, like a knife it cuts both ways. You can get a house with debt or you can get a boat with debt. You can live in a house and having debt to acquire one may be a good deal (you have to live somewhere). Acquire debt to buy a boat seems to me to be a bad deal (unless you live in your boat). Using a debt card to buy a want rather then a need is a bad deal. I'd buy a text book for school over a comic book but, I would prefer not to buy with debt  in the first place.

Friday, September 6, 2013

What is a Credit Card?

If it looks like a duck, walks like a duck, & quacks like a duck then,

 most likely you have a duck.





A credit card is a Debt Card*. It gives you debt, it tacks interest on that debt in a self replicating fashion, often it charges service charges creating more debt, there are late charges creating more debt, on top of that it creates more interest debt on all that previous debt. There is no such thing as a credit card there is only a debt card.

Friday, August 30, 2013

Wealth and Time - Time Is Money




 "Time Is Money" - Benjamin Franklin


Often it is said "time is money". Many people don't know where the phrase comes from. It comes from an letter by one of the Founding Fathers of the United States, Benjamin Franklin. There is much wisdom that comes from the past. I have outlined the highlights for me here:

Friday, August 23, 2013

Getting a Car you Choose



1910_Ford_T
1910 Ford Model T


World of Choices
Choosing a car should be based upon need. If you own an antique shop seven miles from home the above model T might fit your needs. The price was $240 in 1910 (or $3,202.34  in 2013). At 13-21 MPG and the ability to run on gasoline, kerosene, or ethanol it could be a good choice.Most of us don't have the particular needs above so it is a good idea to define your own needs. I have defined my needs by the following:
Safety

Reliability

Efficiency of Mileage

Repair Costs

Cosmetics / Comfort


Friday, August 16, 2013

Rover's Retirement

When to retire a vehicle is sometimes a hard decision. Yesterday we retired the Ramsey Rover. It was making a noise in the brake system so we took it to the mechanic to get it checked out. There was a need of brakes, rotors, u-joints, and a couple of minor things. The total cost of repair was $1100.00 out the door.

Friday, August 9, 2013

Reliability equals Value

The one factor that bugged me about the "Drive Free for Life" plan was the lack of any mention of choice of car in the equation of moving up in vehicles. If you have a bad choice in vehicle it could have an effect on your bottom line. One factor I would like to focus on is reliability.

Thursday, August 8, 2013

Car Insurance Costs Before and After an Accident

In the beginning of the year we changed car insurance after over 20 years of being with the same company. It was after hearing a small radio snippet from consumer advocate Clark Howard. An article related to the quick radio story is on his web site: Consumer Reports Ranks Auto Insurers It sites the Consumer Reports rankings of customer service of car insurance companies.


Other_Drivers
The other drivers are the reason you need insurance!


Friday, August 2, 2013

New and Improved 1994 Accord



The_Almost_Sportscar_1994_Honda_Accord 
The Almost Sportscar -1994 Honda Accord



When I convinced my wife we should go for it and start our WAVE-B Free Ride Project she was concerned about moving backwards in quality of vehicle. After all at our price point of $3400 it is harder to find a deal then at a higher price point.  We wanted to have a car that wasn't a liability both in operation and looks. As part of our plan we kept in mind we would need to put more money into this car after we purchased it.


Friday, July 26, 2013

Free Ride Project - The Sportscar (Almost)

Finding a Car

With $4000.00 cash in hand the stage was set to get our Phase 1 car on the "Drive Free for Life" project. After searching for a couple of weeks straight and bringing a car to my mechanic to check out with a thumbs down we found a winner. My wife saw a 1994 Honda Accord with a new engine for sale on craigslist for $3500.00 . The car was on the other side of the city (80 miles away) but, after calling the guy selling the car it seemed like a good deal which needed to be looked into more deeply.

1996 Honda Accord 4 Dr LX V6 Sedan
Stock Photo of the 1994 Honda Accord





The first thing that made me interested was the new engine. I spoke with the seller and he explained it was installed 10K miles ago and he was using it as a daily commuter locally. The MPG is 22 City / 29 Hwy (25 combined) This would be a big change in gasoline usage (2000 Ford Windstar 15 City / 21 Hwy (21 combined)) To put this in real terms:

Friday, July 19, 2013

Do you want to Drive a Free Car?

The Dave Ramsey Seed:

I had come across an interesting video from Dave Ramsey's YouTube page ~

DR_Drive_Free



I suggest watch the video before you read my comments.

Done? Read on....

The main idea of the video was an application of pay yourself first. The car is in the top two of items payed for in the average American lifestyle. The house is the other of the top two.

Friday, July 12, 2013

WAVE-B Free Ride Project

This is the outline of  the "WAVE-B Free Ride Project Plan" based upon the Dave Ramsey's "Drive Free for Life" video / concept. The difference is I'm going to actually apply the concept to real life. The video is a concept video. This means it just faces you in the right direction. The goal is still the same just the details need to be tweeked.



Eliminating_Car_Debt
Main Goal - Eliminating Car Debt[/caption]


Friday, July 5, 2013

How much is a car worth?


Things Are Looking Up 
Things Are Looking Up - Value A Car Up



 I have a car that has 207000 miles on it from the year 2000. I would like to know what people think of how much it is worth. How do I value such a beast?