Since I am eventually going to have to consolidate all of our insurance into one policy I decided to shop around a bit and see what is out there. I have been very happy with State Farm car insurance and I love my agent but I figured it can’t hurt to look around a bit. There are a few things I knew I did not want to consider like esurance (see my previous dealings with them) and titan (who Ive heard terrible things about) so I started looking around. On a side note, I really can’t believe how much more expensive it is being off my family policy and onto my own. I was going back through some old papers and my car insurance when I was under my parents was roughly a fifth (adjusted for change in car) of what it became when I went out on my own. But I digress.

If there is one thing I found its that going to different insurance sites and getting online quotes individually is a pain. Im not sure why but I would almost swear they try to make it painful to fill out the quote forms. A huge pain. This led to some frustration and me giving up for a while. So next I tried some of the those “compare and get quotes” places. The main advantage to the “compare” type of site is simple: you only have to fill in all the ridiculous amount of information that insurance companies make you fill in once instead of every time. At very least it saved me some time trying to go through all the different sites. My two favorites I found were the highly touted progressive and a british Car Insurance site. Obviously the british site doesn’t do me much good since Im in the US but I liked their forms and layout. Progressive has a pretty nice layout too and shows the various rates that each car insurance company would give. There is one caveat Ive gotta throw in: somehow progressive is ALWAYS lower. Im not so sure I believe their commercial anymore.

On a side note, holy cow Farmers insurance is expensive. It was routinely (on insurance.com and progressive.com) 1/3 more than all the others. I guess they are greedy little farmers.

That’s right, we’re having a baby boy!  I am a lucky guy.  A few years ago I had a rough patch of life when I got laid off…  Little did I know that the next portion of life would be so rewarding.  I met the most amazing woman who I now get to marry, got a great job and now the latest development; I get to be the father of a baby boy.  I pretty much get choked up just thinking about it, I cant wait for the first time I get to see him.

It seems like it was just yesterday that I was the kid looking up to my dad.  I remember nothing was ever a huge problem as long as dad was around.  Now its my turn to be the protector and guide and Ill be honest: its damn scary.  That being said Ill try to stick to some financial talk here.  I made a checklist of financial things that need to be done before/after the baby is born that aren’t related to buying things…Ill write more on that a different time.

1) Get the baby’s Social Security Card

2) Get the baby’s Canadian Social Insurance Card (since I am a Canadian citizen, he gets to be one too)

3) Adjust insurance to cover baby

4) Adjust budget for coming baby expenses

5) Check for government benefits/tax credits

6) Adjust my life insurance policy

7) Do a complete re-read of our company insurance policy so I can understand exactly what is covered with dependents and expenses once they are added.

8] Possibly start a 529 Educational savings plan

Feel free to add any that you think of…

 As most of you know, with a baby on the way I am selling my 350Z.  In its place I need a new car and I am thinking I want an SUV.  Before I get one, I figured I would run down the advantages and disadvantages.

Advantages to Driving an SUV

The first advantage is obviously room.  Even without a baby I have found myself constantly short of space driving my 350Z around.  Obviously some of that would be alleviated having a sedan instead of a coupe but even with a full size sedan there are a lot of things Ive been doing lately that need some major space (ex: lawn and garden equipment, full size crib, etc).  The extra luggage capacity and carrying space I had while my car was in the shop and I had the pathfinder rental was amazing.  A minivan would work, but quite frankly I am not going to drive a minivan.

Snow.  I really don’t need to say more because its sort of self explanatory, but I will say that Colorado is ridiculously unpredicible.  We’ve had days where I went out in shorts in the morning and it was snowing by noon.  An SUV is definitely a nice way to hedge my bets against the weather.  People loved telling me about my Z “hows the skates” in reference to sliding around on snow and ice.  I wont miss that.

Another advantage to purchasing and driving an SUV are the off-road components which I probably won’t use that much, but on the occaisonal camping trip could be useful.  I used to have a friend that I went backpacking and camping with and he’d always say “good thing I have a ranger” about his truck that barely cleared the dirt mounds on trails.  Mostly it was good tongue in cheek joke, but truth is if the small truck barely cleared, a car will not.

General handling capabilities are also good on a lot of SUVs. Although each make and model of SUV comes with its own degree of handling capabilities, it can arguably be said that the overall handling capability rivals most other vehicle types.

Lastly, its bigger probably safer (yes, dependent on model) than most cars, especially smaller cars.  Having a baby in a bigger car at least makes me feel better.

Disadvantages to Driving an SUV

I do not follow the trendiness of the “green” movement, and global warming.  But that being said, I know CO2 isn’t good so I would prefer better gas mileage or even a hybrid.  Unfortunately most are out of my price range and I have a bigger concern in the short term:

1) Fuel Cost

2) Current Fuel Cost

3) Future Fuel Cost

This is the part that makes me more nervous than anything else. I hate paying for gas as it is, the thought of buying even MORE gas per month does not sit well.  Add this to the fact that we are in very uncertain times right now.  Since Iran has decided to go full speed ahead with its nuclear missle development Israel is (rightfully) unnerved.  Its akin basically to if say, cuba said over and over their one goal is to wipe us off the map and they started developing nukes.  All it would take is one Israeli attack on Iran and gas prices could go to $5,$6 a gallon.  Assuming we would get involved in the conflict if other nations stepped in and we’re looking at $20/gallon if we were cut off from OPEC.  Assuming $20/gallon and 15 miles to the gallon with an SUV and thats $40 a day just to drive to work and back.

Id write more but I think I better go pump my bike tires up just in case.

If I had to characterize the state of the market right now I would say its sort of like Gary Busey. A sort of unpredictable downward spiral that occasionally shows signs of its former self only to slip back into some sort of awkward state of existence. Luckily for us, unlike Busey, the market will recover, its only a matter of time. In the meantime it has left a lot of people asking what do with their money.

What not to do with your money

-Invest in massive amounts of penny stocks. I have a friend who invests $20 a month in Penny stocks. Though its amusing to own 20,000 shares of a stock, its not exactly a big investment plan for real investing.
-Put money into non-insured banks.
-Buy low end mortgaged backed securities.  Here is an awesome graph I made that sums up my guess:

What to do with your money

Here is the easy part: keep investing. A diversified portfolio right now will make you more in the long run than buying at any other point. Why? Its cheaper. Absolutely positively do not jump ship. Jumping ship right now is basically akin to deciding to jump ship in the middle of the ocean.

I know Im beating a dead horse but for those you who continually are searching on google “401k losing money” rest assured, if you have your money in something decent in the long run you will be ok. In fact, you will be worse than ok, you will be excellent.

I have talked to a lot of people trying to get out of debt. They try to find ways around debt, sometimes doing the right thing…many times not. Other times, people try to ignore the problems, hoping they will simply go away. Ignoring debt and credit problems is not a solution. Instead, it is important to prevent problems by understanding how loans and credit work.

When you borrow money, from either a bank or a credit card lender, there are two ways to do so. The first way is known as a secured loan which is when you put down collateral for your debt. If you fail to pay this loan, your collateral, often your home or car, is taken from you. The other loan type is known as an unsecured loan. For this type of loan, there is no collateral securing the debt. The most common type of unsecured loan is credit card debt. Credit card companies offer loans of a certain amount of money made available to the lendee. The lendee takes advantage of this loan by using the card issued by the company to charge against a set credit amount issued. If the lendee fails to make payment on the loan, the credit card company has a few options when trying to collect. They will raise interest rates, lower the lendee’s credit rating and, in extreme cases, send a collection agency after the lendee or take him or her to court in order to collect the money owed.

Which loan type is better?
It depends on the need. A secure loan will have lower interest rates, and the lendee pay less money over the course of the debt. Credit cards and other unsecured debt tend have very high interest rates. Unsecured debt can lead to problems as a lendee does not always have to prove they can pay the full amount before making use of it. The lendee can then spend years paying back the cost under higher interest rates. Unsecured loans will also often have variable interest rates instead of the lower, fixed interest rates offered by secured loans.

Why would anyone take an unsecured loan?
Generally people with no collateral or who have poor credit histories have no choice other than unsecured debt and loans. If someone does not have the collateral to secure a loan they are going to have no choice other than to pay for an unsecured debt. The good news is, paying back the debt in a timely manner will help restore a potentially poor credit history and help with potential future loans.

Secured loans are an easy way to put the equity to work. They are also common for car purchases or for purchasing a home. For these more expensive purchases, it is unlikely a buyer will be able to make the purchase of the full amount without the loan. A secured loan will have a lower interest rate and better payment terms than an unsecured loan. The downside is if the loan is not paid back in a prompt manner, the collateral can be lost. If the loan is for a risky venture, then it might be better to take unsecured debt.

There are pros and cons to both types of loan, and which type is best relies on many factors personal to the potential lendee. Whichever type of loan is chosen ought to be done with due diligence. Taking any kind of debt which can not ultimately be repaid will have negative effects on credit histories. As such, it is important to be careful when taking out any sort of potentially unnecessary loan. Even credit card purchases should be considered carefully. If credit card payments are not affordable, then perhaps that new television is not as necessary as first thought.

I was thinking to myself I would like to recognize the blogs that helped me get to where I am at.  Not coincidentally everyone on the list are blogs that I read daily and most are people I talk with often.  My top referrers of all time are as follows:

1) Five Cent Nickel

2) My Money Blog

3) Blogging Away Debt

4) Consumerism Commentary

5) Mrs Micah

6) Prime Time Money

7) Suns Financial Diary

Being Frugal

9) Lazy Man and Money

10) Cash Money Life

The following is the first post from my beautiful and brilliant fiance Lauren about our ongoing battle to sell her house so that we can get into our new house that we are building:

Selling a house in a bad market

So Jesse and I are doing something I don’t recommend to most of you right now (but if not us, then who would you get advice from what not to do on?). Buying high and selling low. We each owned houses before we got engaged and decided his was in a great location to be a college rental, but mine was newer and not in a college area and therefore decided to sell mine to finance a down payment for our new house that we are building. Very risky idea especially in the current market conditions.

My house has been on the market for 90 days. I have had about 15 showings and 1 open house. All the feedback we have received is “such a beautiful well maintained house”, “immaculate house”, “beautiful decorations”, only to lead to let downs of, “we don’t like the area”. Unfortunately, 1 year ago when I bought my house, I was looking for a new house and settled on one that was 15 minutes out of the way. For me, that was okay, but I didn’t consider I would be selling it in a year and that other buyers might not be that flexible.

So why can’t my house sell if it is immaculate!?
In our case, it is because of the area. My realtor at the time oversold me on many features in the neighborhood that have since either not been funded or were just pure lies to get me in to the house. So, what am I doing to compensate for “location, location, location” (the biggest factor for most buyers )? DECORATE DECORATE DECORATE! I have to admit, it has become somewhat of my hobby keeping my house in order and buying nice decorations and accents, but never did I imagine it would all pay off someday (well hopefully). Of the potential buyers we have had, my house is always at the top of the list because it looks like a model home and buyers can imagine themselves living in it. I am convinced after doing some “market research” that my house beats the competition in my area within the same price point hands down. Here are a few tips for getting your house model home ready if you are as crazy as Jesse and I are right now:

1) Clean Your House and Remove all Clutter!
I mean, spotless, you don’t want a water spot anywhere. I know it sounds excessive, but buyers will notice . It might take a weekend to do, but it’s worth it. If your realtor is listing your house online, make sure there is no clutter for the pictures. When I say clutter I mean TV remote controls, magazines, dog/kid toys.

2) Maximize the Amount of Livable Area
Maximize the amount of room/space each room has to offer especially kitchen counter tops and bedrooms. You want buyers to imagine their personal belongings in these areas, not how they can work around your mess.

3) First Impressions Matter!
If your front yard doesn’t match the inside, buyers won’t even consider stopping in. Make sure your lawn has been perfectly manicured and if you have plants make sure they aren’t looking dead. Just a quick cleanup can add to your curb appeal. On that note, make sure that your neighbors have curb appeal too. Most communities are protected by HOAs and therefore you have the right to make your neighbors get their act together as well.

4) Design on a Dime (it’s a good show on HGTV)
I get a lot of my decorating ideas from HGTV and my mom. You would be surprised at how inexpensive a lot of decorating ideas are. You don’t have to empty your wallets to get your house model home ready.

5) Treat every showing as your one shot to sell
It has become quite tedious keeping the house in order constantly (you can’t help rushing out of the house without making your bed sometimes), but realtors will sometimes only give you 20 minutes notice that they would like to show your house! Typically they will give you about 2 hours, but when the conditions are as bad as they are, you cannot say no! My advice is making sure that your house is in order the night before or before you leave for the day. I am lucky that I have a flexible job that allows me to leave on a moment’s notice, but if you do not have that luxury, you will want to make sure the house is spotless.

These are just a few tips that have helped me get an edge on the competition. I am not a professional realtor but I am a professional marketer, so I know how important it is to beat the competition. We just found out today that we might (fingers crossed) have a potential buyer. I will keep you all informed on that!

On the news yesterday they said its a record how many days we have had in a row over 90 degrees in good ol sunny Colorado. Along with the heat which I do not mind so much is the skyrocketing water bill, which I do mind. If the grass doesn’t get water daily, it immediately starts to brown up. Since here in colorado we get roughly as much rain as kapiti plain that means having to run the sprinklers daily. Joy. Before I get into some tips here is a question you might ask…

Why dont you just stop watering your lawn/garden?
We like our lawn and we’ve worked our butts off to make it nice. As far as the garden its been producing like mad and we literally are getting to the point where we have enough tomatoes and jalapeños for salsa every night and enough cucumbers for a cucumber salad every night. That is of course if the grasshoppers don’t eat everything first…I’m almost read to go inorganic and spray the damn things. Its not quite to the biblical locust storm proportions but its getting there.

So what can be done about the huge water bill? Here are some ideas…

1) Water the lawn at night
This is multipurpose, first of all you don’t lose a lot of water to evaporation and secondly you dont want your grass to burn.

2) Make sure your sprinklers are all aligned and adjusted
Why waste water watering the driveway or street or neighbors yard?

3) Buy some drought resistant shrubs
Instead of regular shrubs we bought some drought resistant rose bushes and they are doing really well. Plus they look great.

4) Use a bucket to wash your car instead of letting the hose run

5) Use a broom to sweet the patio instead of spraying it off with the hose

6) Don’t cut grass too short, the shorter the grass, the faster it dries out

Inside

1) Take shorter showers

2) Dont leave the water running while you brush your teeth

3) Make sure dishwasher loads are full loads
4) Repair leaky faucets, toilets and pipes

5) Do full loads of laundry

6) Keep some water or tea in the fridge instead of running the water for a long time waiting for it to get cold

I have a cousin who is one of those guys who is always doing some sort of crazy project so when he told me recently that he was going to run a car on vegetable oil I thought he was insane. Turns out he’s crazy for sure, crazy like a fox (ok ok no more cliches).

Sure enough, last week we went up wakeboarding with him, his brother and our significant others he showed up with a new Mercedes Benz. Now, when I say new, I mean new to him. It is without a doubt the ugliest mercedes I have seen since I saw a mercedes garbage truck in Europe. As I approached the car I got a nice whiff of something frying. Not the pleasant french fry smell you get from those biodiesel buses but something that smelled like a kitchen fire. In any case, he did it and is now paying absolutely ZERO for gas…and here is how it works:

Step 1) He bought an old diesel engine car. In this case a mercedes benz from the mid 80s that was beat all to hell. Any diesel engine will do, though apparently you should avoid buying one that has rubber in the fuel system because vegetable oil tends to corrode it after a while. Total Cost: $1500
Step 2) Build a centrifuge. He build one in his garage out of an old riding lawnmower engine and spare metal parts from a junkyard. More on this later. Total cost $350.

Step 3) Find restaurants to give you used fryer grease. Total cost $0.00

How it all works:

As it turns out good old Rudolf Diesel introduced his signature engine at the 1900 Paris Exposition, he said his new engine ran on, get this, Peanut oil. He’d designed his engine so farmers could grow their own fuel. Most diesel engines were indeed run on vegetable oil until the 1920s, when it was disovered that the byproduct of gasoline (what we call Diesel) could be used instead. The irony being that now with clean air laws, diesel is actually MORE costly to produce than gasoline…but I digress.

The fryer oil is brought home and put in the centrifuge. There is a hole in the top that the oil runs out of and into a holding cell, while the dirt particles collect in the sides. It is then poured through a filter and into his gas tank. Pretty simple.

Ill try and get some pictures and write more on it later.

Where has Jesse been?
I didn’t want to write an entire article on it, but the truth of the matter is that I have been simple to busy to blog. I apologize to my regular readers and to everyone else stumbling on my page. Rest assured I am rested, work has died down a bit, and Im dedicated to bringing back TPS better than ever.