Green Ninja

American Debt Opinion, Not What You Want to Hear

In David Brooks NY Times article - Culture of Debt, he gives his opinion about how Americans have arrived to be more in debt than ever. He states that -

"America once had a culture of thrift. But over the past decades, that unspoken code has been silently eroded."

Even with debt at an all time high and personal savings at an all time low, Americans find ways to justify how they have arrived to be in this position. It helps to have someone to blame such as big banks and credit card companies who entice or trick you into borrowing money. Easy access is one thing but you still have a mind and can say no. If your kids were under peer pressure to do drugs or commit crimes I don't think this mentality would apply. But how is caving into debt peer pressure by wanting to have nice new things or keep up with friends and associates much different? We pass on our culture to our children and through our relationships. Culture shapes and defines who we are as a society. In the last few decades, I think our culture has evolved into one that is much less worried about saving, working hard or being thrifty. Instead of earning it, you deserve it. So many things are defined as needs now instead of wants or would be nice to have. We need cell phones, cable tv, computers, fancy clothes, ipods and the list goes on. Shopping has been embraced and accepted as a way to make you feel better and dubbed "retail therapy". I wonder if having so much available to you can actually make you feel less satisfied?

Before You Rush to Trade-in Your SUV for a Hybrid

SUV sales have plummeted since fuel costs have increased. Many SUV owners who are trying to sell or trade their vehicles will suffer huge losses as values decline. SUVs are simply not selling and many dealers really do not want them on their lots. Before you rush to sell or trade your SUV, truck or minivan and buy the most fuel efficient hybrid available, consider these calculations.

For this example, let’s say you drive 12,000 miles per year and gas costs an average of $4.00 per gallon. An SUV will get about 15 mpg and a hybrid will get 46 mpg. Based on fuel costs only, driving the hybrid the same amount of miles per year will reduce your fuel consumption by 539 gallons and save you about $2156. That is pretty good but it may not save you any money at all if your monthly loan payment is going to increase or if you are standing to lose thousands on your trade-in.

You may be able to save more money by analyzing your driving habits and coming up with other creative ways to reduce fuel consumption. Reducing the number of miles you drive by 50 per week or 2600 per year equates to a savings of almost $700. This narrows the savings gap between the hybrid and the SUV to $1432 per year. Granted, this is compared to driving the SUV less than you would drive the hybrid. But, if you did have a hybrid, you may even be compelled to drive more which would also reduce your the total savings for the year.

If you are in a good position to buy a new vehicle, then by all means you should consider a hybrid or one of the other alternative fuel vehicles. The environment will thank you and these vehicles seem to be holding their value. If you are stuck with a gas guzzling SUV or truck though, I think it is wise to look at the whole picture not just the mpg. Think about how much you absolutely have to drive and find out if you will end up still owing money on your auto loan if you trade it in.

When you do buy a new vehicle, the cost of getting those extra mpg’s is something to consider too. For example a small fuel efficient sedan may get 35 mpg and a hybrid may get 46 mpg but the hybrid is a lot more expensive. Will a 10 mpg fuel savings really have an impact if you are paying more for the same size and comparably styled vehicle? You may have to drive a lot to actually reap the benefits of the better fuel efficiency of a hybrid. Maintenance is something else to consider. If you plan to keep your vehicle for three years or more, you may have to replace parts such as batteries in your hybrid. It has been reported that some fully battery replacements can cost over $3000.

Utah is going to a 4-day workweek to save energy

Republican Gov. Jon Huntsman issued an order that will make the workweek only four days instead of five for 17,000 out of 24,000 executive-branch employees. Universities, police, courts, prisons and liquor stores were not included in this new experiment. Employees will work ten hour days and still be paid the same as before. The goal is to reduce energy cost and fuel expenses for commuters. Utah plans to save $3 million a year in building operating costs and expects commuters to save more than 300,000 on gas. I think this is a great idea. It will be interesting to track this new concept and see if any other states follow suit. The new workweek schedule is proposed to take effect in August.

Crossing the border to save on gas

Alot of US residents are crossing the border into Mexico to take advantage of their lower government subsidized gas prices. The Associated Press reports that

"A gallon of regular unleaded gasoline in San Diego retails for an average price of $4.61 a gallon. A few miles south, in Tijuana, it's about $2.54 — even less if you pay in pesos"

A downside to this is the long wait to get back into the United States which can take over two hours. Some border towns are known for their gangs and violence so that is something to consider if you are thinking about trying it.

Construction Junction- Pittsburgh PA

Wow is this place amazing! Construction Junction is a place where you can donate construction or building materials that can be reused and also buy them. If you are trying to build green this is the place to get quality materials at a reasonable price. One of my company employees went there to take some paint that we needed to get rid of. Construction Junction will take paint (for free) as long as the can is half or more full and not rusted. I also was surprised to hear that their paint sells almost as fast as it comes in! It is nice to know that people are taking advantage of this resource. Check out Construction Junction on the web! They feature some of their new and unique items on there. They do sell some rare architectural details and other period items which have been salvaged from buildings.