Is it better economically to run a car into the ground before buying a new one? Data driven answer

Old car or new car

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Is it better to drive your car into the ground before buying a new one? You might think that’s an odd question, but there’s some logic to it. We all know cars are expensive, and many people feel they have to buy a new one as soon as theirs starts to show its age. But is that really the best way to go? Let’s take a closer look at the numbers.

It might be more economical to run your car into the ground before buying a new one. Sure, you’ll have to deal with a few mechanical problems along the way, but at least you won’t have to worry about depreciation costs. Plus, you’ll get the added bonus of being able to tell your friends and family that you’re driving a “classic.”

The advice I’ve always had (and followed) is that you should always EITHER:

  1. Buy a new car – keep it for 3 years – then trade it for a new one….OR…
  2. Buy a new car and keep it until it goes to the car crusher.

Let’s see how economics work out with an actual example…

WE’RE GOING TO NEED SOME DATA:

This graph must depend a bit on make and model – but it’s probably a good average:

Looking at that graph you’re going to pay about…

  • $2,100 on maintenance over the first 5 years
  • $5,150 in the next 5
  • $8,800 in the next 5
  • $10,300 in the last 5.

For depreciation:

(15% seems kinda optimistic…but depending on the kind of car you buy – it might be OK)

When you look at your car payments – if you finance over 5 years then for a cheap $25,000 new car (A Camry or an Acura or something similar)…you’ll have somewhere around a $500 monthly loan payment over 60 months – so you’re actually paying $30,000 for the car – the rest being interest on the loan.

  • So in the first 5 years you spend $30,000 on payments and $2,100 on maintenance for a total of $32,100.
    • If you sell after 5 years: with depreciation – you get $10,000 back from selling the car – so it cost you $22,100 to have a car for 5 years…or $4,420 per year.
  • After 10 years, you spent $32,100 so far plus another $5,150 in maintenance for a total of $38,250.
    • If you sell after 10 years: you’ll get about $4,500 back so $33,750 to have a car for 10 years…or $3,375 per year.
  • After 15 years, you spend $38,250 so far plus another $8,800 in maintenance for a total of $47,050.
    • If you sell after 15 years: you’ll maybe get $2,000 – so $45,050 to have a car for 15 years…or $3,000 per year.
  • After 20 years, you spent $47,050 so far – plus $10,300 in maintenance (eek!) for a total of $57,350.
    • Nobody will buy your PoS car now – but on the plus side, the breaker’s yard will probably tow it for free – so $57,350 to have a car for 20 years…for a total of $2,867 per year.

So the cost to own a car per year (on average) is the least if you keep it until it goes to the car crusher.

This is where that original claim comes from – and it’s true.

WHAT IF YOU SELL AFTER JUST THREE YEARS?

  • Car payments are now $750/month over 36 months (MUCH higher than financing over 5 years!) – so you pay $27,000 in total (not much less than the $30,000 you’d have paid over 5 years!). But depreciation means that the car is now worth $15,000 and maintenance is zero. So you spent $12,000 over 3 years – which is $4,000 per year.

…which is LESS per year than keeping the car for 5 years.

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PARTIAL CONCLUSION:

These numbers are VERY approximate – maybe you buy a more expensive car and it depreciates faster – maybe you find a crazy reliable car and nurse it along to 25 years. Maybe engine and transmission failure happen simultaneously at year 15 and it goes to the crusher early.

But if we look at my scenario…which is based on industry norms if you swap your car out every 5 years, it’s going to cost you $4420 per year and if you keep it for 20 years, it’s costing you $2,867 per year. So on strict economic terms you should always run your car into the ground.

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However, the difference between $4000/year (swap your car every 3 years) and $2867/year is $1133/year or $94 per month.

You could not pay me $94/month to spend most of my life driving crapped out wrecks compared to driving an almost new car all the time.

Just the time I’d spend fritzing around trying to get my 20 year old car to start on a cold, damp morning isn’t worth $94/month.

IMHO – THIS WHOLE EXERCISE IS KINDA SILLY:

People who can afford to buy a new car are not going to worry too much about $94/month to keep replacing it. It’s not that big of a deal.

People who live close to paycheck-to-paycheck probably can’t (and certainly SHOULDN’T) buy a new car to begin with – and in that case, buying a car that’s already done most of it’s depreciation is a much smarter tactic.

If you can’t afford a new car – buy a 5 year old car – for less than half price. Your maintenance costs will be twice what a new car costs – but that’s peanuts compared to a full car payment.

FINAL THOUGHT: THE STEVE JOBS APPROACH:

Steve Jobs famously replaced his car every six months – with an identical car each time. He actually had a standing order with the car dealership – so he didn’t even have to think about it – they’d just drive to his house or his office with a new car and drive away the “old” one.

For years he drove a long run of black Porsche 911’s but did switch to a long number of black Mercedes SL55s.

But this is madness! A car loses 10% of it’s value during the first 20 feet as you back it out of the parking space at the dealership!

But the Steve Jobs story is weirder:

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In California, you don’t need a proper license plate for 180 days – you can drive on the temporary dealership plates, so by swapping out his cars every 6 months, he never had to go to the DMV to pick up his replacement plate. Looking at how much his time was worth – that wasn’t such a dumb idea. Jobs was earning upwards of $100 million per year – that’s $50,000 an hour. Going to the DMV for an hour cost him MUCH more than replacing the car!

This seems like a stupid story – but there is an underlying message here. While we look at those ever increasing maintenance costs over years of car ownership – each one comes with a penalty in time and stress.

In later years, the car probably breaks down – or won’t start – and you’d have to get it to a mechanic and sit around for an hour or two (or even be without a car for a few days) while you get it fixed.

How much do you value your time? $5/hour? $50/hour?

When you factor THAT in – then having a worry-free effortless new car can easily be worth the cost of swapping it out every 3 years.


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Source: Steve Baker

Top 20 Comments:

1- Or buy a 3 year old Japanese (or nowadays a Korean would do) car, having let someone else take the bulk of the depreciation, and run it on a shoestring for the next 15 years, when it’s more likely the driver will clap out before the car does.

2- Everyone says this but when I tried to do it I couldn’t find one. It seemed like the only people selling 2–3 year old cars were rental agencies. Is it worth the risk of buying a former rental? I didn’t but it could be totally fine I guess.

3- Rental companies sell their cars early so they don’t have to maintain them very well. The people who rent them also don’t drive them gently – because they don’t care. So buying a rental car seems like a bad idea.

4-

Seems to me there are some significant things you have ignored or just plain got wrong. You say it’s only $94/month difference between 3 year ownership and 20 year ownership but doesn’t your calculation require that you only pay $25,000 every 3 years when you replace your car? Does that mean you have to keep buying less expensive cars or did you just ignore increasing prices because it didn’t fit with your conclusion?

What about other costs which would be less with an older car, for example insurance and excise taxes, if applicable where you live. Also depending on where you live there may be significant sales tax due every time you buy a new car

I don’t expect your analysis to be perfect or all encompassing but I think you have substantially understated the cost differential of owning a car for 3 years vs 20 years

5- The model is simplified. In the real world, most of those variables are unknowns with a heap of “it depends”. Car prices and maintenance/parts are both impacted by inflation, but that effect can be completely dominated by supply/demand issues specific to the item in question, e.g. they stop making a specific part, your particular vehicle increases in popularity; or the old car has lower insurance, but new car has better gas mileage, etc.

6-Yeah – you can NEVER know for sure. My simplified model makes it easier to discuss and think about the consequences of depreciation versus maintenance. In reality, you need to check how the car you’re buying depreciates – and what it costs to maintain. Once you know that – you can run through the same thought processes that I did and deduce what is right in your situation.

A HUGE part of this is how many miles you drive – depreciation is a mix of mileage and age.

7- I don’t understand why all the maintenance is needed. I ran a Toyota Prius till it was 14 years old and I spent around £350 a year on maintenance including servicing. I’ve just bought a 3 year old Honda Jazz that I fully expect to run for another 10 years at similar yearly costs. Drive it gently and keep under the speed limit.

8- That graph comes from a statistical analysis of what an average car needs. There are always going to be a few people who do better than that – and a few that do a hell of a lot worse.

So your anecdotal one-off proves nothing.

9- Looks like the maintenance costs are too inflated for older cars. If one needs to put in 10000 dollars in maintenance a year, it is time to let this car go. But I’ve see enough examples when cars were running for 10 years or more with just basic maintenance, not needing a new transmission or any major repairs. Good strategy could be to buy a 2–5 year old car for a fraction of a new car cost, and then run it into ground.

10- I drive Toyota Corollas. Exclusively. The one I have now is a 2017 and it cost me $17,000. Had 11,000 miles on it when I got it. Paid off in 18 months. Almost nothing to maintain except oil changes, new brakes, and one set of tires so far. Goal is to get 300,000 miles out of her like I did the previous ones. I will drive it until the wheels fall off. Or the air conditioning breaks. I do live in the South.

11- Very well thought out. I came to the conclusion that I am in the switch out every 3 year category now. The peace of mind of always having a warranty is worth it if you can afford it in my humble opinion.

12- One major point to add. The hot-potato risk of a major service issue can greatly accelerate the crusher date, and those last 10 years can be a toss up, fix or crush.

13-

I think your maintenance figures are too high. But, using your own figures exactly:

Buy at 5 years, keep another 15: ((10000+(10300-2100))/15 = $1213/year

Buy at 10 years, keep another 10: (4500+(10300-5150))/10 = $965/year

Buy at 15 years, keep another 5: (2000+(10300-8800))/5 = $700/year

I bought my previous car here in NZ, a 1997 Subaru Outback, in 2012 for US$2.5k, and sold it in 2019 for $600 (22 yr old). There was very little maintenance. I replaced the head gaskets in the same year I got it (planned). $2k? At some point the AC started leaking and it took a couple of refills to find and fix the leaks (first refill with a dye included, so the leaks could be seen before the 2nd refill). No biggie. $500 total? In 2018 something seized in the brakes on one wheel and started dragging. Again, a couple hundred bucks to fix. Aside from that, just regular servicing.

My current car is a 2008 Outback, bought in May 2020 for US$6k with 54,000 miles. So far the only unscheduled thing is a $15 A/C control relay. Beautiful car. Limited 2000 unit production Subaru 50th anniversary model. 265 HP STI turbo engine (0–60 in 5 seconds), “Touring” cabin spec, modern safety features such as dynamic cruise control, pre-collision braking, lane departure warning (in 2008!). Going to keep this thing a long long time. 富士重工業株式会社 ニュースリリース | ニュースリリース | 株式会社SUBARU(スバル)

14-I enjoy your answers Steve:)

The only exception to that I’ve experienced is buying a used electric vehicle. I purchased a very low mile (13k) 3 year old EV lease return and have had zero maintenance on it except for tires. I spent 9k on it still have it. It was paid off early because of the savings and I could probably get around 5k for it at 10y/o. Of course whoever has to replace the battery would get that cost so it might break even using your calculations. I plan to run it into the ground including using it as a storage battery for my off grid solar.

15- My wife and I are leasing a vehicle at the moment. It’s probably the best decision we’ve made regarding transportation. We drive a new car for three years, the dealer pays for all major maintenance while we only pay for oil changes and when the time is up, we give it back and get a new one. We pay one fixed monthly price for a reliable, safe and more fuel efficient vehicle. This actually costs us less than when we drove a used vehicle that would break down randomly throughout the year and would require expensive repairs, not to mention days without a vehicle. Still, people try to tell me how I’m a sucker because I went to the dealership. But the dollars don’t lie: I save far more money doing it this way. Unless of course I am going to steal all of my new vehicles. That would be a lot cheaper, until I was caught at least!

16- I like answers like this with real figures. They give sense of scale and change so nice one!

Side note is RVs or motorhomes, as called in UK, have weirder curve. As highly customized from new much steeper curve over first 3 years. Then long time flat up to 15 years. Then kind of afterlife up to 25 years.

Why excited about Tesla Truck, if ever happens. With RV conversion could last forever.

17- For me it is also stressful to spend time looking for a new car. Trying different models, find a good deal, compromising on this and that. Some people like this part, but I don’t.

So for me the optimum is to get rid of it before the stress occasionally bad news from the mechanics.

Ans: Find one brand/type that you like and stick to it. I owned 7 MINI Coopers in a row. The only decision each time was what color do I want this time?

I’ve now switched to Tesla as my go-to-brand – but I’ll do the same. However, the depreciation curve for Tesla’s is much more gentle – and they need almost no maintenance – and will likely last for 500,000 miles, not 200,000. So I won’t be replacing them every 3 or so years. Probably every 5? We’ll see. Right now, my 3 year old Tesla is worth $2,000 MORE than I paid for it…and is indistinguishable from a brand new Tesla. So there’s no way I’m replacing it right now.

18- In my experience, it’s only worthwhile for people to keep their cars until they have paid off the financing – assuming you haven’t done something stupid like financed over 72-84 months. If you need to do that to keep the payments down, you couldn’t afford the car in the first place.

Beyond that, it only makes sense to keep old vehicles if you are able to repair them yourself. In my case, since I do 90% of the post-warranty repair work on cars I own, I buy vehicles intending to keep them until they disintegrate into a pile of brown powder out there in the yard. My current vehicles are 7, 20, 22, and 23 years old. In the past 3 years I’ve sold off other cars I owned that were 21 and 18 years old.

19-

Interesting analysis, but I think that your data on depreciation is too dramatic.

None suffer 50% depreciation after only 5 years, and in fact some hardly suffer 20% after 5 years. Certainly, 15% per year is too much.

 
 
Cars with the Worst Resale Value
Rank and sort over 200 Vehicles with the worst resale values at the 3, 5 and 7 year marks.
19- These monetary and time cost are virtually worthless. I have never purchased a new car for my own use for decades and have never incurred those types of maintenance expenses. I have always had nice cars. My last was an awesome Lincoln Mark VIII and my current is a very nice Silverado crew cab. My wife always insist on a new car. They have constantly been in the shop for scheduled maintenance and odd issues that pop up and the dealers can’t seem to resolve. German cars seem to really rack up annual maintenance cost, and dealing with their service departments is a lesson in extortion.

 

Her current vehicle is a Ram Big Horn with an A/C system that has a slow leak they cannot seem to fix and a bizarre wind noise that is also elusive. It’s under warranty, but constant trips to the dealership are a constant hassle. All while my 2007 Silverado Classic just rolls right along without any problems.

20- Beautiful analysis. Very insightful thank you. So one question? If the vehicle/truck is used to create dinero, then these stats obviously go out the window correct? Not trying to take away your analysis which is great. Just thought I would add this little wrench in the engine…no pun intended:-)

What car would be the optimal balance between affordability, speed, exoticness and parts availability?

A VW Golf would be cheap and parts would be readily available, but it would hardly be exotic or particularly fast.

Conversely, something like, say, a Lamborghini Diablo SV would undoubtedly be fast and exotic, but running the thing and replacing parts would be horribly costly and difficult.

What car ticks a balanced box between all these?

Consensus is:
– if in the US, a C4-C7 Corvette, preferably a Z06 or ZR1

Engines are cheap and easy to modify, can pull around 1 g on the skid pad depending on setup, dirt cheap on the used market.

– If in Europe, a 996 or 997 Porsche 911.

A mid 2000s Porsche. (996)

They’re reliable, relatively cheap meaning you could buy 3-4 entire fully running models for less than 10k each, and use them for parts, they’re exotic and have a more timeless appearance than most cars from that time. As for speed, they can go top to 177 mph!

At what miles does a car start to wear and break down?

  • Toyota, Lexus, Daihatsu, Honda, Subaru, Suzuki,  Volvo: 300,000
  • Audi, BMW, Mercedes, Lincoln, VW, Skoda, Seat, Mazda, Mini: 250,000
  • Ford, Buick, Chrysler, Dodge, Land Rover: 200,000
  • Opel, Chevrolet, Peugeot, Citroen, Dacia, Smart: 150,000
  • Renault, Fiat, Lada: 100,000 – on a good da, though I know of many examples of people throwing in the towel with one of these only a few weeks old.

Source: Here

While the mechanics of  fancy vehicles like Mercedes, BMW, Lincoln may be designed to last longer than most, the fatal flaw is that the electronics are buggers and will make the car useless long before the cylinders give up the ghost.

Caveat:

All those makes with proper maintenance will go much longer if you

  • Change coolant every 5 years or less
  • Change oil religiously with an excellent synthetic oil at proper intervals, and use OEM filters
  • Service  automatic transmissions at 50k miles
  • Change differential and transfer case oils at 100k
  • Check hoses belts and replace if necessary at 100k miles


Algorithm and Tricks to save up to 30 cents per litre on Gas in USA and Canada

Algorithm and Tricks to save up to 30 cents per litre on Gas in USA and Canada

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Looking to save a few cents per litre on gas in the USA or Canada? Here are a few tips and tricks that can help you do just that.

First, make sure you’re using the gas rewards program at your local gas station. By using a gas rewards card, you can earn points that can be redeemed for discounts at the pump. Additionally, many gas stations offer coupons and promotions that can save you money on gas purchases. Be sure to check the gas station’s website or app for any current offers.

Second, consider carpooling or taking public transportation when possible. This will help you save on gas costs and may even improve your fuel economy. If you must drive, try to consolidate your errands into one trip instead of making multiple trips. This will also help you save on gas.

Finally, keep your car well-maintained. A well-tuned engine can improve your fuel economy by up to 4%. Additionally, properly inflated tires can also improve your fuel economy by up to 3%. By following these simple tips, you can easily save up to 30 cents per litre on gas in the USA and Canada.

Gas is getting very expensive and we are trying to help consumers save on Gas by providing you daily tricks to help you save up to 30 cents per litre on Gas in USA and Canada.

Tricks to save up to 30 cents per litre on Gas in USA and Canada

1- Go shop for Food at Safeway and get an automatic 15 cents per litre discount at Safeway Fueling stations

2- To get 30 cents discount at Safeway Fuel stations, use the code below based on Epoch:

[Day]-800-[random 5digits]

Example:  Safeway 16 to 30 cents cents off gas code

  • For July 16 2022, so the  Epoch Day is:  197
  • A random 5 digits  (Change the 5 digits if it doesn’t work. )
  • So a Coupon to save 30 cents per litre at Safeway Gas Station on July 16, 2022 is:   
  • 197-800-263944
  • (Remember to change the random 5 digits until it works)

3. Purchase Discount Gift Cards for Gas

Rewards card – Cashback

You can discover a great deal of rebate gift vouchers for gas on the web. These will work all things considered Shell, Gulf, and Mobil stations. They will spare a couple of dollars for each buy, yet that can add up to enormous reserve funds on a yearly premise.

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The Optimum program is one of the better value points programs. And the points convert to cash discounts on stuff you buy every day, rather than air travel and catalogues full of slightly aged-out consumer trinkets that you don’t really need.

PC Optimum savings on gas
PC Optimum savings on gas

If you are a Costco member and also optimum member, which option gives you the most savings?

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 From a quick google of prices in my area it looks like the average price is around $2/L and Costco is currently around $1.75. The value of the Optimum program is more that you can keep your eye out for specials and earn points which can then be put toward gas purchases. But the basic earnings of 10 pts/litre (1¢ equivalent) and redeem up to 4,000 pts ($4 equivalent) aren’t anywhere near 25¢/litre. If you don’t mind the lines 😉

If you have one near, try to fuel up at Mobil gas instead of Esso. Esso provides 15 points per liter, Mobil gas provides 35 points per liter.

I used to have a work vehicle that I filled with Mobil gas, on the company credit card, got approx. 30 dollars of free groceries from Loblaws every week because of this practice.

Which card gives 10% cash back at the moment?

TD , CIBC and Scotia all have one right now. It’s 10% cashback on purchases up to $2000 in the first three months.

I use CIBC Dividend card not only do I save on gas (.03 off a litre till you get 300l then .10 off one time and then it resets) but earn Cashback everywhere. Last yr I earned about 580 Cashback this yr I’m over 200 right now.

I bank with CIBC as I use my card I pay it off same day so never paid interest.

Note that your max yearly cash back for the 4% (gas and groceries), 2% and 1.5% categories is $800 (4% of $20,000). After $20,000 yearly spend, the 4% cash back ends, and is replaced with 0.5% on all purchases. In other words, if you spend on any of the other categories, you won’t get the $800, because you’ll hit $20,000 total spend before you hit $20,000 on gas and groceries.

I got a Rogers World Elite card, and use it for all purchases except gas and groceries, for 1.5% cash back. I use the cibc dividend card only for gas and groceries for 4% cash back.

CAA members save 3 cents per L at all shell stations. And they use air miles.

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4. Drive Sensibly

Quick quickening and short explosions of speed can cost you a ton with regards to gas. Slow and reliable movement is constantly favored over aimless driving. Land Rovers, for example, can show signs of improvement mileage utilizing journey control. Practice smooth driving and you’ll certainly set aside some cash with improved gas mileage.

5. Time Your Trips to the Gas Station

Gas costs can ascend on Thursdays because of high odds of end of the week travel. To keep away from these expanded costs, top off the tank before Thursday or on significant occasions.

6. Utilize Your Smartphone to Find the Cheapest Gas Station


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Your cell phone is for something other than perusing Facebook and Instagram. Use it to locate the least expensive gas in your general vicinity. Applications like AAA Triptik and GasBuddy will assist you with finding the closest and least expensive fuel. gas

Something I’ve noticed with the gas saving apps… many times the prices are wrong. I show up at a station, and end up refueling anyway, and then a few minutes later I see it has been put back to the “fake low price”.

I think owners are gaming the system in order to draw people in.

7. Get a Gas Rewards Card

Too few have a gas rewards card. It resembles not getting a prizes plan regardless of whether you’re a long standing customer. There are a great deal of sites out there that can acquaint you with bargains for fuel rewards. You can get free gas on the off chance that you gather enough focuses, so why not? Pursue that prizes card!

8. Try not to Leave Your Engine Idling for Very Long

Close off your motor in case you’re not going anyplace. You’re squandering gas, and you’re dirtying nature.

9. Deliberately Use Cards or Cash

money or credit

A few service stations charge a premium on the off chance that you pay with Visas, however some give you limits on them. Discover and use what you can to set aside cash.

10. Keep up Your Car

Keeping your vehicle kept up is the manner by which to get a good deal on gas over the long haul. In the event that you have a clunker or a vehicle that you treat severely, it will have awful mileage. Simply keeping your tires expanded can improve your gas mileage by 3.3%. So focus on your support.

11. Be Picky

Corner store

Quit heading off to the corner store near your home or the interstate so you can get it over with. This can cost you almost 15 pennies more for every gallon. Discover a corner store that has modest costs and stick with it.

11. Try not to Overload Your Car

over-burden vehicle

This is an easy decision, however it needs strengthening. In case you’re hauling around as long as you can remember in your vehicle, quit doing it. Clearly the heavier your vehicle gets the more gas it will require to cover a similar separation. Just keep the minimum necessities in your vehicle. Leave the rest at home.

This application gets you 40/cents per gallon money back at several gas stations. Average individuals are getting paid hundreds, and expert drivers are getting thousands with this application that gets you 40cents money back on each gallon of gas!”

12. Drive more slowly and think ahead and use motor braking.

The amount of time you win for speeding is so little compared to the amount of fuel you are going to save.

13. Plan out grocery trips for longer times. Instead of going a few times a week to pick up a couple things, go once every 2-3 weeks with a list of everything you’ll need for that timeframe.

14. Drive the smallest stick shift diesel available. Press in your clutch on downhills, especially long ones on the freeway. Play a game where you try to put as little foot on the gas.

15. Buy a more fuel efficient car. That makes the biggest difference.

16. Drive less. Combine trips. Carpool. Walk. Bicycle. Take public transit.

Do things (including many types of work) that can be done over a wire, over that wire, instead of driving to it. Drive a more fuel-efficient vehicle. If people would bother to think about when all of these might be possible, they would find that they generally are possible.

16. Limit discretionary driving. 

I have a gas-powered SUV and paid nearly $60 to fill its tank last week. I no longer drive around town just for the hell of it—I have to be strategic. Instead of driving to Target or Walmart for household goods and groceries, I order these necessities for delivery via Amazon. If I do need to drive to one part of town, I hit all the shops in that area at once and act as if I won’t be back for weeks. Ultimately, I am driving with intent—every trip has a purpose.

17. Tyres

Find the Tyre pressure placard in your car and make sure your tyres are pumped up to the correct pressure.

Try and do this when you have driven the car for less than 5 minutes. hot air expands and will give a false reading if the tyres are hot. do it when it is cold. Do NOT pump them up to the max pressure listed on the side of the tyre.

Keeping your tire pressure perfect is not only a safety measure but also helps in Saving Fuel as the right amount of tire pressure will reduce the friction with the road.

Tips- Tire pressure check is free on every petrol pump, but it does not mean it’s useless. Make Use of It every time you can.

Actually, over-inflate your tires for best gas mileage.

The number on your door is the recommended pressure. The max pressure on the tire is the “do not exceed” number. Something in between is fine.

The drawback is that you’re going to wear out the middle of the tire quicker than the sides (because it’ll dome a bit from the higher pressure if you don’t have enough weight to force it flatter again). This might be noticeable after years.

But tires aren’t that expensive, and fuel is. You’ll pay off the small reduction in tire life with the bigger reduction in fuel use (and, especially if you’re in a pinch today, you could kind of consider it a deferred expense). And, it’s a small change you can always taper off again later.

A side effect will be a slightly harsher ride, and slightly less grip (not great for the winter).

Roughly speaking, 50% of your gas usage comes from rolling resistance in the tires, the other 50% from air resistance. At city speeds, tires and starts/stops make up most of your gas cost. Around 2/3, 3/4 of highway speeds is where air resistance takes over. Above 60mph/100kmph is where you really start to gobble fuel disproportionately (10% faster uses 33% more fuel).

Avoid where you have to use the brakes. Any time you use the brakes you’re wasting all the energy you had to put into accelerating the vehicle. In stop/go traffic, this is most of your fuel use. So instead of racing forward to fill gaps and then have to stop, just drive half the speed, steadily. If you see the light is red, get off the gas and coast, don’t accelerate up to it and then hit the gas. Careful you’re not blocking turning lanes by driving slower, just because you’re stopping at the lights doesn’t mean everyone behind you is.

In short… there’s no free lunch here. If there were ways to save money on gas, those would already be things we’re doing. All the little tips and tricks might add up to 20%, which is like… where gas prices were a month ago.

The only easy way to save money on gas is to drive less.

18. Lose weight.

Get rid of any excess stuff you have in your car. Every extra kilo costs money to haul around. Same goes for aerodynamics. those roof racks you never use? take them off!

19. Change your driving style.

So many people these days drive aggressively. stamping your foot to the floor whenever you accelerate is both unnecessary and burns far more fuel than using 50 or 75% throttle. there are other throttle positions than 100%!

Instead of speeding up to close any gap in front of you. leave it there and coast a bit. someone may change lanes, who cares? watch ahead, if cars start braking ahead, take your foot off the throttle early and coast a bit instead of riding the car in front of you constantly braking and accelerating.

20. Drive smoothly. it’s amazing how big of a difference driving style makes to fuel consumption.

21. Engine Air Filter

Make sure the engine air filter is clean, dirty air filters make for poor fuel consumption.

22. Premium Fuels

Only go for premium fuels if the car company suggests you to. Otherwise, you are just increasing the cost of fuel and increasing the overall running cost of your car. Well, it’s a myth that premium fuel will help you save more fuel and increase the mileage of your car It’s False.

Tips- Buy Normal Fuel, Premium fuel burns more and adds more price and Same less Fuel.

23. Cruise Control

Using cruise control on the highway will provide a smooth ride with a little bit of constant acceleration. Ultimately it will add to your mileage and save you a lot of fuel.

24. Race Peddle Control

If you keep a soft foot on the peddle you will always Save lots of Fuel. When we use a hard foot car consumes the maximum amount of fuel that needs to generate the power we want.

Tips – After attaining a speed of 70-80 try losing your foot maintaining the race paddle at the fixed position where the acceleration is almost zero.

25. Keep RPM Low

Higher RPM means higher fuel consumption and Lower RPM helps in Saving Fuel providing a safe feeling to every passenger in the car.

Tips- Remember you can only create a very little difference in time if you drive fast keeping your speed and RPM high. But you can’t save more than 5 Min as per the traffic on the roads these days. Keep it Low to Save Fuel.

26. Save Fuel by Driving Smart

Driving consciously and safely will always help in maintaining the mileage of a car and Save Fuel. Avoiding unnecessary fast pickups and jackrabbit stops will always help in saving fuel.

Tips – Easy and Safe driving will help in Saving Fuel and driving safety.

27. Overlooked button on your car may help save on gas

The ‘Air Recirculating’ button on your A/C might cool off your car faster and save you a little gas. On most cars, trucks, and SUVs the air recirculation button is easily identifiable, with its representing symbol of a half-circle inside of the outline of a vehicle. Many people say they’re aware of the button, but are not sure when it should be on or off.

Another function of this climate control system is to stop pollution and exhaust fumes from entering the vehicle. Having this button activated will also help to greatly reduce pollen when driving, which is a big positive if you suffer from outdoor allergens.

“If you don’t switch the air recirculation button on, then your car’s air conditioning will be constantly cooling warm air from outside your vehicle, and will have to work much harder, putting more stress on the blower and air compressor,” said Ruhl.

Another benefit to using the air recirculation feature is the money you could save on gas.

“Cars are usually more fuel-efficient when the air conditioner is set to recirculate interior air. This is because keeping the same air cool takes less energy than continuously cooling hot air from outside,” said Ruhl.

While the recirculation button is great for the summer months, it may be best to avoid it in the winter or when your windows become foggy.

“Anytime you’re using defrost, it’s best to not have that button on. Also, using it while you have your heater on isn’t going to do anything for you vehicle,” said Ruhl.

Source.

28. Your driving habits are a huge factor. Very slow accelerations and decelerations help dramatically. Coasting to that upcoming red light instead of keeping on the gas and braking. Chilling at 60 on cruise in the right lane vs accelerating between 65 and 75 passing people in the left. Things like that.

Also for most cars, above 55 its better to keep your windows up and use ac, below 55 better to do windows down and ac off. Varys by model due to aerodynamics, but 55 is good enough to give you an idea.

29. Don’t hard accelerate

Try to slow down in a more gentle manner if your lucky the light will go green before you stop

Be consistent with your speed if it’s 30 mph zone try not to go faster than that or get distracted to the point where your car starts slowing down

If it’s hot out keep the windows down, AC in older cars can make the car consume more gas, not sure how these newer cars are doing with that.

Make sure your tires have good tread, bald tires can spin out more and if the wear is uneven that can cause additional issues.

30. If you drive a SUV trade it for a Toyota Corolla

Scientifically proven that the wavelength of reflections on the beige tone is in the optimal bandwidth to reduce optical resistance, thus better fuel efficiency.

Check your engine air filter. Make sure it is clean, replace if necessary. Make sure your tires are filled to the recommended pressure.

Also change spark plugs at their recommended service life.

Also, if you car is over 160k km, good idea to replace the O2 sensors as they get slow. Replaced all four sensors in my car and my mileage went from 9.x L/100 km to the high 7’s.

What kind of car should you buy that saves on gas?

A Prius, or any type of gas/electric hybrid, or a smaller vehicle, like a Toyota Corolla, Honda Civic, Chevy Malibu, Ford Focus, VW GTI or Rabbit.

But there is a direct correlation between How you drive, regardless of What you drive. I have a 1998 Chevy Silverado, with a 5.7L (350 cu in) V8, and I can get great MPG’s when I drive it sensibly, and don’t have a ton of unnecessary stuff/gear in the back, or even back seat.

Make sure the tires are set to the appropriate PSI. Always set them to the pressure setting on the inside of the drivers door. On that subject, changing the tire size or wheel size and sidewall thickness will also have a negative effect on MPG.

You would be surprised how much stuff a lot of people have laying in the back of their car, and if they would simply clean it out, they could save money.

Also, keeping your vehicle tuned up and the oil changed per the owners manual will also help keep the MPG high.

Not speeding away from every stop sign or stop light will also help.

 

Keeping your speed down on the freeway will help.

However, opting to roll the windows down instead of using the A/C to keep cool will actually create drag on the car and lower the efficiency. So crank the heat sucker up to high. Not only with rolling the windows up save fuel, it will also reduce noise and reduce fatigue, so you can drive more comfortably.

What burns more gas, accelerating as fast as possible to 60 mph (e.g. 10 seconds) or accelerating slowly (e.g. 30 seconds)?

Not long ago I had a ’16 Subaru WRX. Fast, turbo-charged all-wheel-drive car. Terrible gas mileage. It’s also heavy, roughly two tons.

One day, I did an experiment on the city streets. Rather than accelerate in a controlled manner and drive at a consistent pace, I put the gas pedal all the way down to reach about 15 mph over the speed limit, and then I put the car in neutral, and let it coast. The car would coast a full mile before it was going slow enough (5 to 10 mph below the speed limit) that I had to put it in gear and goose the throttle again full blast and bring it up to 15 mph over the speed limit.

In this simple test, the overall gas mileage skyrocketed. It went from about 25 mpg to more like 40 mpg. And yet I was ultimately going the speed limit on average, and kicking off my trips very quickly.

This led me to a realization. Yes, holding that gas pedal all the way down uses up a lot of gas. But what it also does is important: it brings you up to speed. What also uses up a lot of gas is simply cruising—not coasting, cruising. That’s where most of your gas is being spent, because your engine is expending gas, quite a bit of it, actually, just to keep up and maintain velocity.

And when you accelerate slowly, you’re effectively cruising, without being up to speed, yet with a little extra gas. That’s wasteful, because you’re going slow and still using up plenty of gas. Is it more wasteful than the explosion of rushing your car forward immediately? Actually, perhaps so, if you’re taking too long to do it.

Remember, just turning that engine using fuel uses up fuel. Accelerating quickly brings the car up to speed quickly—which brings the engine’s productivity to the maximum output quickly—which is not an infinite dump of fuel, it is limited to what the fuel line and injector and cylinder can mix with air and compress, which is measurable, and it’s actually not as far off from cruising fuel as people seem to think. Source: Quora

 TIPS ON PUMPING GAS THAT WILL SAVE YOU $$$

1️⃣ Only buy or fill up your car or truck in the early morning when the ground temperature is still cold. Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening….your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role.

2️⃣ A 1-degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps.

3️⃣ When you’re filling up do not squeeze the trigger of the nozzle to a fast mode If you look you will see that the trigger has three (3) stages: low, middle, and high. You should be pumping on low mode, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some of the liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you’re getting less worth for your money.

4️⃣ One of the most important tips is to fill up when your gas tank is HALF FULL. The reason for this is the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount.

5️⃣ Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up; most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom.

6️⃣ Note: If the pump repeatedly shuts off early, it could be a sign of a problem with the vapor recovery system, such as a clogged carbon canister.”

How can You save gas when driving long distances?

1. First and foremost Maintain a steady speed.
2. Fill your tire pressure 1 or 2 psi more than the prescribed number.
3. Do not travel with your AC off, especially during long distance journey. With your AC off you will have to lower the car windows and if you are traveling at speed more than 60 miles per hour it is going to affect the aerodynamics of the car and this might affect the fuel consumption a bit.
4. Remove all unnecessary weight from the car.
5. Choose a well maintained road even if it is going to take you more time than a bad road.
6. Have your car checked with a mechanic before you travel.

Do automobiles get better fuel mileage with the A.C. on and windows up, or A.C. off, and windows down?

Under 70mph and your windows up, your AC will use more energy than if the windows were down and the AC off. As your cruising speed increases, the aerodynamic drag on the car increases to the point where having the windows down creates a greater load on the engine than the AC does. This only applies to modern cars which are generally quite aerodynamic. Having the windows up or down doesn’t really make any difference to vintage cars. Remember though, AC takes more power than you might suppose so on a long hot journey, driving with the AC off will improve mpg. Taking the AC equipment off altogether will make an even bigger difference – as much as 10%.

 
 

Does cruising in a car save on gas? How?

 

Since cruising involves maintaining the vehicle at a constant velocity, it requires minimum efforts (Power) from the engine.
The power required from the engine is used to nullify the declaration from frictional forces (air drag and road adhesion). Since less power is required from engine the ECU ensures minimum gas is used.

Can lowering your tailgate really save on gas?

No it’s a myth…in fact the now cancelled show MythBuster’s did an episode on it. Pretty legit test if I do say so, although if you have a truck with two gas tanks you could test it yourself as I have. The one thing that can help seems counterintuitive, which is add a little weight. Like around 100 pounds or so depending, and make sure it’s over or behind the rear axle in the bed. What this does is give the rear wheels a bit more traction and that increases your gass mileage a little. A trick I learned from my Grandpa as a curious little kid wondering why he always had a couple spares mounted to each side of the bed right up against the tailgate. Those old gas guzzlers need all the efficiency they could get.

Bonus: also works better in snow, ice, and slush…get some sand bags and throw them in the same spot behind the axle and you limit fishtailing/sliding in the winter. More weight than the hundred pounds, plus it has multiple uses. If you get stuck where the tires are spinning on the ice you can open up a sand bag and out the sand in front and behind the tire to help gain traction. Make sure to do both sides of the truck as you probably won’t have positraction. Lol…additionally if it’s not too cold you can pee on the ice around the tire. I have gotten many a people unstuck with a little sand and piss.

 

How can I save gas when driving long distances?

 

1. First and foremost Maintain a steady speed.
2. Fill your tire pressure 1 or 2 psi more than the prescribed number.
3. Do not travel with your AC off, especially during long distance journey. With your AC off you will have to lower the car windows and if you are traveling at speed more than 60 miles per hour it is going to affect the aerodynamics of the car and this might affect the fuel consumption a bit.
4. Remove all unnecessary weight from the car.
5. Choose a well maintained road even if it is going to take you more time than a bad road.
6. Have your car checked with a mechanic before you travel.

Hope these points might help you.

Can I keep driving on eco mode? How much does it save on gas?

Economy mode is useful on most conditions but be advised, that some engines need to be “ blown free” by using higher rpm snd full engine load in order to keep the exhaust/ turbo- system declogged. That applies especially to diesel- engines with egr- system. In “ grandfather”— drive mode only those will have need for extended overhaul way before resching estimated end of service- time. ( what absolutely nullifies all eventual gains from eco- mode

 

What are some ways to save on gas annually?

To save gas you should follow the instructions of the manufacturer of your car if your question refers to the gasoline that you spend to make your car run. If your question refers to the natural gas that you use at home to heat up food, water etc then the only recommendation is to watch for any leaks if you suspect that you are losing gas. Fixing those leaks by means of an experienced technician will resolve your problem. Coming back to your car, not over speeding, and not letting the engine on idle for long time in order to keep the air conditioner working or the heater in the Winter these are two important ways to reduce gasoline consumption.

Summary:

Looking to save a few cents per litre on gas? Here are a few tips and tricks that can help you do just that:

1. Check gas prices before you fill up. Many gas stations offer discounts for cash, so it’s worth checking beforehand to see if there’s a station nearby that offers a cheaper price.

2. Use coupons. Many gas stations offer coupons that can be used to save money at the pump. Simply present the coupon when you’re paying and you’ll automatically get a discount.

3. Shop around for gas cards. Some gas cards offer discounts of up to 5 cents per litre, so it’s worth doing some research to see if you could be saving even more money.

4. Drive less. This one is obvious, but the less you drive, the less gas you’ll need to purchase. So, if you can carpool, take public transportation, or walk/bike instead of driving, you’ll save yourself some money in the long run.

5. Keep your car well-maintained. A well-tuned engine can improve your fuel economy by up to 4%, so it’s worth getting your car checked out by a mechanic every

By following these tips, you can easily save money on gas without making major changes to your lifestyle.

Does getting a Tesla make financial sense in terms of cost savings on gas and maintenance?

If you looked at all the cars in the world and calculated which one had the lowest cost per mile transporting someone from Point A to Point B. It would probably not be a Tesla. If people used that criterion for buying a car, then there would be only one car in each class. People buy cars for lots of reasons. If you’re keeping the car for 5 years, some high-mileage hybrids will cost less (absent government subsidies) than a Tesla. Gas is cheap these days. Push it out 10 years or if gas prices go back up, the calculus is different. Your Tesla will outperform that high-mileage hybrid and be a lot more fun to drive. How much is that worth to you?
 
 
 

With rising prices, what are smart ways to save money or good alternatives like horse and carriage to save on gas?

This is my plan for tackling the current inflationary environment in the United States:

  • Limit discretionary driving. I have a gas-powered SUV and paid nearly $60 to fill its tank last week. I no longer drive around town just for the hell of it—I have to be strategic. Instead of driving to Target or Walmart for household goods and groceries, I order these necessities for delivery via Amazon. If I do need to drive to one part of town, I hit all the shops in that area at once and act as if I won’t be back for weeks. Ultimately, I am driving with intent—every trip has a purpose.
  • Meal substitution. In my area of the U.S., beef is less expensive than chicken. Thus, I substitute beef for chicken and prepare meals like spaghetti, burgers, and chili. Also, my cost of groceries has risen faster than the cost of a Chipotle burrito, for instance, so I sometimes eat a Chipotle burrito instead of eating at home.
  • Plan for higher utilities. My energy bill is much higher today than it was last year. Since I live in an apartment, each unit’s bill is decided by dividing the energy cost for the entire building by the number of occupied units. Thus, I have very little control over the cost of my monthly bill. I must prepare for this expense and not let it blindside me.
  • Limit unnecessary consumption. Now is not the time to be frivolous with money. All nonessential consumption (i.e., online shoe shopping, going to the movies, etc.) is essentially placed on hold.
  • Invest tactfully. With inflation running hot, the Federal Reserve likely hiking interest rates in the coming months, and macroeconomic and political uncertainty, the stock and crypto markets may fall further before rising once again. Having dry powder (i.e., cash) on hand to take advantage of the situation is not a bad idea. I’ve been building my cash position over the past couple of months, so I can buy assets when others are fearful and need/decide to sell. As a long-term investor, you want to buy into fear and weakness, and I believe we are in that environment.
 

How much money do you save on gas with a hybrid?

If you compare a small, light ICE vehicle, you won’t save anything but if you compare an ICE car of the same weight as an EV then you will save money, possibly as much as $10 every 200 miles.

 
 
 

How much money do you save on gas by paying cash instead of credit in the long-term?

 

Using a 10 cent per gal difference between cash & cc, that comes to about $28 extra per year to use my credit card for my mileage and average MPG. That’s about $2.33/month so not much at all. Then you need to take into account that I get 3% back using my credit card at the pump from my credit card rewards program. That comes to $29/year. Those were round number calculations I did though so we’ll just call it even.

 

Does cruise control actually save gas or is that a myth?

The cruise control itself does not save any gas compared to simply keeping your foot at the same position. However, what cruise control does tend to do, is influence the driving style of the human inside.

The whole point of the cruise control is that you don’t need to constantly control the throttle. And thus you will tend to want to avoid needing to do that while using it. At the most, you will want to disengage the cruise control, to reduce speed slowly when needed, and then re-engage when you can overtake.

The result is that you tend to start looking further ahead, a few cars further than the one directly in front of you. Coming up on a car, you will decide earlier if you can overtake, or if you lift the throttle. This is very positive for reducing fuel consumption.

Many drivers without cruise control will not lift until the last moment, and then often need to brake when they can’t overtake. This is disastrous for the fuel consumption.

There are some special situations where cruise control itself can help reducing fuel consumption. One of those is when using the highest gear at very low throttle. This tends to be the most fuel-efficient configuration, but with so little torque, it can be difficult to keep the speed constant. The cruise control can do that very well. If you can’t manage to drive comfortably at that speed yourself, but the cruise control can, then that is a case where the cruise control directly allows higher fuel efficiency.

Another is when your car doesn’t have a mid-console near your foot, and thus is it difficult to lean your foot against it, helping keep a steady position. In that case, driving without cruise control might lead to constant speed changes as well, and the cruise control could help smooth that. That will also improve fuel efficiency slightly.

But in general, anything the cruise control does, you can do as well… It’s is the driving style that improves fuel efficiency. Cruise control can stimulate a more relax driving style, and that helps. If you already were driving relaxed and smooth, then you’ll not notice any difference.

 

By improving public roads in order to minimize rolling resistance and enhance traction, how much money could be saved on gas consumption and avoidance of traffic accidents?

Patent 6,923,124 has a rolling surface that is 1000 times smoother than typical asphalt. This smooth rolling surface and engineered reverse sag allows steel wheels instead of energy wasting rubber tires. All oil can be avoided (saved) by switching to aerodynamic vehicles rolling on three more perfect rolling surfaces configured in a triangle. There is no reason a car should ever leave the normally traveled portion of the roadway. Designing in 3D means a vehicle can never come off the designated trajectory. Instead of a reactive suspension producing pitch, yaw and roll the guideway produces those motions with precision. This improved “road” (guideway) allows for 180 mph travel at a tiny fraction of the required energy. This in turn allows all transportation to be powered by a 7 foot wide s
 

If I drove 100 miles every day, how long would it take me to pay off my electric car with the money I save on gas?

 
Ok, let’s get serious, and go about doing this the way a person would who’s really trying to save money. Two scenarios: * Aggressive scenario: Buy a used 2014 Nissan Leaf for $8,000. It will only have about 30,000 miles and a range around 85 miles. In my area, electricity will cost 2 cents per mile since our electricity is fairly cheap. Assume the gas car being replaced was getting 30 mpg, so its fuel cost is 11 cents per mile. You are commuting to work each day, 50 miles each way. You don’t have enough range to get home, but your employer offers free charging. (That can happen. My employer does.) Driving 100 miles per day, paying for half and getting half from your employer, will cost $1.00 per day, or $30 per month. The gas car would cost $11 per day or $330 per month. Savings is $300 per
 

What kind of car should I buy that saves on gas?

Short answer:  Toyota corolla or Honda civic

But there is a direct correlation between How you drive, regardless of What you drive. I have a 1998 Chevy Silverado, with a 5.7L (350 cu in) V8, and I can get great MPG’s when I drive it sensibly, and don’t have a ton of unnecessary stuff/gear in the back, or even back seat.

Make sure the tires are set to the appropriate PSI. Always set them to the pressure setting on the inside of the drivers door. On that subject, changing the tire size or wheel size and sidewall thickness will also have a negative effect on MPG.

You would be surprised how much stuff a lot of people have laying in the back of their car, and if they would simply clean it out, they could save money.

Also, keeping your vehicle tuned up and the oil changed per the owners manual will also help keep the MPG high.

Not speeding away from every stop sign or stop light will also help.

Keeping your speed down on the freeway will help.

However, opting to roll the windows down instead of using the A/C to keep cool will actually create drag on the car and lower the efficiency. So crank the heat sucker up to high. Not only with rolling the windows up save fuel, it will also reduce noise and reduce fatigue, so you can drive more comfortably.

 
 

When I have little gas left in my car, is it better to drive fast or slow so that I can get the best distance out of the amount of gas left?

 

Look at all the other mileage techniques that other people have formulated over the years, they all apply. Basically:

  1. Accelerate firmly from a stop. Too slowly, and you waste time in low gears, which are inefficient. Too fast, your engine is burning more fuel than it needs to. 8 – 10 seconds to 40mph is good, get a feel for your car, maybe get a OBD sensor to monitor fuel usage directly (any car after 1990s has one, I think)
  2. Try to get to the top gear, and at lowest RPM. Engine spins the slowest for maximum distance. A little slower is usually ok, especially if the car has bad drag coefficients, or there’s a lot of stops. Accelerating to top gear only to brake for a stop light is a waste of fuel.
  3. Modern cars cut fuel when engine braking. Try to roll as far/long as possible without using the brakes and avoid idling. Braking early, then rolling is better than coming to a complete stop since idling is just a constant drain, and if the light goes green, you save kinetic energy. You can usually feel when the ECU starts fuel delivery again when the engine braking lessens, though forcing downshifts is not recommended due to
    1. Increased wear on a transmission which is more expensive than brake replacement
    2. the spurt of fuel needed to kick the RPMs up. Though it may be needed if you need every last drop. Try downshifting early, if needed.

Try not to use neutral when coasting since the engine is still running. Also, its generally illegal

4. coast up hill, accelerate downhill (where possible). Don’t roll down the hill backwards.

5. If in a Hybrid, try to coast at 0 throttle and 0 regen. Regen, while nice, is fundamentally inefficient due to multiple transformations of energy. At 0 throttle, the engine is off, and no fuel is used. Hybrids generally have low drag, so can go pretty far on flat ground.

6. Tailgating can save some fuel, but it isn’t really safe. A few car lengths of distance can still yield a bit, though don’t overspeed to do so.

7. Turn engine off if you’re gonna be stopped for long periods of time.

 

Is driving slow up on a hill(consume less fuel but takes longer) or fast(consume more fuel but takes less time) better choice for fuel saving ? The hill would be 1 km for reference.

The answer is matching the proper rev range to power to be most efficient.

The real world answer is that if it’s just a kilometer the difference is negligible

Engines are most efficient usually somewhere at the 1/3 to half of the RPM range and at decent load. So if you need to floor it to get on the hill on current gear, downshift, else just press pedal slightly stronger and keep the speed.

As long as you can engine brake downhill the speed doesn’t really matter, just keep the usual traffic speed.

In general accelerating just to slow down later is worse than just keeping steady pace, especially if there are brakes involved.

That’s a good question, but not a simple one to answer.

A car is most efficient when in its highest gear. If you accelerate too slowly, you will spend too much time in the lower gears before you get into the highest gear. Therefore, accelerating excessively slowly is not the most economical technique. Thus, advise to accelerate slowly to save fuel is WRONG!

A few decades ago, BMW did some tests to determine the most economical way to drive their cars. Although that was before fuel injection became common, I’m sure that the rules have not changed very much. They found that for their cars, the most economical technique was to accelerate with a heavy foot (2/3 to 3/4 throttle) but upshift at only 2000 rpm. That works well for a manual transmission, but is generally impossible with an automatic transmission because it will upshift at a considerably higher speed if you use a heavy foot and, just as bad, delay locking the torque converter. So, with an automatic transmission, the most economical technique is probably to accelerate at a moderate rate, i.e., not too fast and not too slowly.

The rules may have changed slightly because of modern electronic fuel injection systems which control the fuel mixture better. They are less likely to deliver an excessively rich mixture at wide throttle openings which occur with a very heavy foot.

With an Otto-cycle engine (4-stroke, spark ignition), the throttle valve is an important source of inefficiency. The power required to suck in air against the vacuum created by the throttle valve wastes fuel. For that reason, an Otto-cycle engine is most efficient when the throttle valve is wide open, or nearly so, provided that the fuel system does not provide an excessively riche mixture under those conditions. That’s why it is most efficient to use a heavy foot and upshift at low speeds, but not at such low speeds that the engine knocks or doesn’t run smoothly since that could cause damage.

The most inefficient thing you can do is use a lower gear than necessary for the power you are using. So, if you delay upshifting until 3000 rpm when, with a heavier foot you could get the same power at 2000 rpm, you are wasting fuel. So, for fuel efficiency, you should upshift at the lowest possible speed that will provide the power you need, but not at such a low speed that the that the engine protests.

In simplistic physics terms, it makes no difference. You create the same amount of kinetic energy either way – and theoretically, that means you must burn the same amount of fuel.

For an internal combustion engine with gears it gets complicated.

A conventional car engine has a range of RPM’s at which the engine operates most efficiently. At lower or higher RPM’s gas consumption is worse.

So the trick is to keep the car in that band.

With a manual gearbox – the best approach is to push hard on the pedal to get the RPM’s into the efficient range – then accelerate more smoothly to the top of that range – then downshift.

If your car has enough gears, you can arrange to stay in the efficient range for all but the initial acceleration in 1st gear.

However, with an automatic (and especially automatics with not many gears in their gearbox) – you have no direct control over that – so it becomes a matter of tricking the gearbox into doing what you want. With modern gearboxes, you’d hope that the manufacturer set the shift points for efficiency – but it depends on the car. For a sports car they probably optimized the shift pattern for best 0–60 time – so they’d keep the engine in the “power zone” of RPM’s rather than in the “efficiency zone”…for a family sedan, the reverse would be the case. Many cars have a “sport” button which essentially lets you choose between keeping the engine in the power band or the efficiency band.

But even on the “economy” setting, the software won’t be able to prevent you from demanding performance that drives it out of the economy range.

It also varies depending on the air temperature – when the air is cold, it’s more dense and the fuel management software can burn fuel in larger quantities than on hot days – and that may influence the decision.

There are other considerations too. If you accelerate and brake gently then it takes longer to get you where you’re going. This means that the air conditioner, radio, lights, computer(s), etc are running for longer…and that takes energy too.

On the other hand – if you continually red-line the engine, it’ll wear out faster and a worn out engine uses more gas than a good engine.

Honestly – the answer is horribly complicated – and it varies from car to car.

To Conclude:

Looking to save a few cents per litre on gas? Here are a few tips and tricks that can help you do just that:

1. Check gas prices before you fill up. Many gas stations offer discounts for cash, so it’s worth checking beforehand to see if there’s a station nearby that offers a cheaper price.

2. Use coupons. Many gas stations offer coupons that can be used to save money at the pump. Simply present the coupon when you’re paying and you’ll automatically get a discount.

3. Shop around for gas cards. Some gas cards offer discounts of up to 5 cents per litre, so it’s worth doing some research to see if you could be saving even more money.

4. Drive less. This one is obvious, but the less you drive, the less gas you’ll need to purchase. So, if you can carpool, take public transportation, or walk/bike instead of driving, you’ll save yourself some money in the long run.

5. Keep your car well-maintained. A well-tuned engine can improve your fuel economy by up to 4%, so it’s worth getting your car checked out by a mechanic every

Sources:

1- Quora

2- Reddit

3- https://vehiclecare.in/blaze/how-to-save-fuel-13-fuel-saving-tips/


Financial Independence and Legit Side Money Ideas For Techies and Geeks

Legit Side Money Ideas for Techies and Geeks

You can translate the content of this page by selecting a language in the select box.

This blog is about Clever Questions, Answers, Posts, discussions, links about:

Making money isn’t that big of a deal especially if a person is determined, The primary cause of poverty is ignorance and nothing else.

It stars with a burning desire to learn and your willingness to practice all you’ve learned and make the mistakes needed in other to get the a greater height, “that is how financial progression is achieved and sustained.”

in the aspect of making money online with a laptop, you can try out the following listed below….

  1. Affiliate Marketing.
  2. Selling on Amazon, eBay, Etsy, and Craigslist.
  3. Blogging.
  4. Niche E-commerce.
  5. Your Own YouTube Channel.
  6. Selling E-books.
  7. Develop Apps.
  8. Invest/trade cryptocurrency.

To be a master and be really successful in any of the listed, one has to first learn them before anything else goes.

And if you’re interested in cryptocurrency but too Busy and don’t have to time to learn, you can contact me I’ll teach you how a newbie trader can make profit in crypto quickly.

Legit Side Money Ideas on Quora

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  • Daily FI discussion thread - Sunday, September 25, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 25, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

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  • Retiring shortly and moving: tips for managing emotions and building social connections?
    by /u/Thin-Shirt6688 (Financial Independence / Retire Early) on September 24, 2022 at 3:45 pm

    I've always dreamed of FIRE, but am getting increasingly nervous as I come closer to pulling the trigger on retiring. Recent stock market gyrations don't help. Another source of anxiety is that my plan involves moving to a lower cost of living area. I'll have to build social connections again (and continue finding a life partner, which isn't getting easier as I'm in my 30s, and the gay dating market is much smaller than the straight market). It generally takes time to build social connections after one moves, and I'm also not sure what people will think when I introduce myself as an "early retiree". Any tips for handling both? submitted by /u/Thin-Shirt6688 [link] [comments]

  • 2 yr Update: I left a FAANG pre-FI for a more fulfilling job and took more than a 50% pay cut
    by /u/wholeWheatButterfly (Financial Independence / Retire Early) on September 24, 2022 at 2:55 pm

    TL/DR: I like my job, but also mental health is really important. Edit: in case this confuses anyone else, the timestamp on my old post is showing up as 1yr ago on some devices. I believe this is because it was technically poster 1yr 11mo ago and some versions of Reddit app round down to the nearest full year. But it was indeed written in October 2020, and this is a (nearly) 2 year update. In October 2020, I made a post here that was fairly well received. I wrote that post 9 months after leaving a FAANG and, as the title says, I took more than a 50% pay cut, pre-FI, for a more fulfilling job. I’ve been thinking about doing an update post for the past year or so, and now the time feels right enough. Quick financial recap: Back then I was 25 years old, NW of around 200k-ish, and I felt I was just about coastFI. Now I am 27 years old, unsure of exact NW, especially now that I have to consider house equity, mortgage debt, and recent market volatility, but it’s gone up a decent amount - maybe to 240-270k depending on how you count the home equity (and if you consider markets from a month ago and not time of posting lol). Basically I’ve been able to save some, but not as much as I’d like - who’da thunk it’s harder to save money on a lower salary. What’s happened since October 2020? I’ll start with some life updates. Apologies in advance for being a wall of text / stream of consciousness. I’ll put reflections later - this paragraph is intended to just be an info dump of the last 2 years. When writing that last post, my partner (now ex) and I were weeks from closing on a house. The closing went well, and I love the house. It is an old house (1910’s), but so far have had no issues. Since closing, property values have gone way up - just got a HELOC based on a valuation about 30% higher than we bought. I should be able to remove PMI next month, at the 2 year mark. My sister, who lives down the street, had my first nibling a bit over a year ago, and being an uncle has been wonderful. I am still working at the same place, still remote. My responsibilities kept expanding until I finally felt justified in asking for a title change to CTO, which was approved without question; it’s not super meaningful at a small research nonprofit (< 8 full time employees, but many part time and volunteers), but my previous title was pretty obscure so it’s great to have something clear and an obvious career progression for me. My salary has increased to about 103k - you may recall that my starting salary was 88k; not too shabby, but not tech sector executive level either! I now manage, at any given time, 3-6 part time engineers and student interns. I manage several projects, write statements of work for the consulting arm I started, manage some IT related stuff (I’m not the primary IT person at the org though), and individually contribute. As foreshadowed before, my partner and I have (recently) split up. I’ll get into that more later, but for now, I’ll just say we are on fairly good terms, and it didn’t financially wreck me. Brief review of October 2020 post While rereading the old post, I’d say I was (perhaps cautiously) optimistic about the future and the choices I’d made then. My takeaways were that I liked my job more than my FAANG job, but it was still a job. Some gushy statements about values, purpose, and fulfillment, and having faith in the future. Do I still feel the same way? In a lot of ways, yes. In the last year, I’ve actually come to enjoy my new job more. At the time of writing the old post, I was being pushed to work on this one project that I grew to really dislike. Once that was finally over, things got a lot better. I eventually started a consulting arm of our nonprofit, where we help apply our research methods to other academic projects as contractors. I’ve been managing engineers in a much more real capacity, and I’ve found it really fulfilling. I significantly helped in this one grant application, which, if we get, could mean a fairly significant expansion to the org. I am still regularly coding interesting things as well, and generally working easy hours. The main thing that deviates from the points of my old post is that caring for my mental health was just as, if not more, important than having a job I found fulfilling (and, of course, the two are likely related in several ways). I’ve come to realize that I have had significant depression and anxiety, probably since I was a teenager. While I’d been to therapy a few times even before writing my last post, I never really got much out of it. It wasn’t until the Fall of 2021, when I finally talked to my doctor about it, was diagnosed with major depressive disorder, prescribed meds, and even took FMLA (medical leave), that things really started to improve for me. Just existing is not supposed to feel like a major struggle every single day! It’s such a simple statement but it’s really something that’s easy to forget when you’re depressed, especially when it’s been your “normal” for years or decades. My meds (an SSRI and a mild stimulant) really helped me from being stuck in such a low place. My improved mental state, therapy, and some shocking life events (the sudden, unexpected passing of my grandmother, and a cancer event with my sister (she’s doing well now!)) really brought some perspective in my life, which eventually culminated with me realizing how unhappy I was in my relationship. Since this is not r/relationshipadvice, I won’t get too much into relationship details, but I’ll say that my relationship was keeping me from doing a lot of things I wanted to do, and kept me stuck in some poor habits (that really fed my anxiety and depression) that were formed when I was mentally ill teenager. I have no ill will toward my ex. Since this is a financial subreddit, I’ll briefly go over the financial details of the breakup. We were not married, but we shared a house and vehicle. The house was technically in my name only, but we would have bought it together if it wasn’t for my ex being between jobs due to COVID at the time of applying for financing; we split costs and always treated it as co-owned. So, I’ve bought out their equity in the house and the car (subtracting some money that they owed me from something unrelated). All in all, it put me out < 25k; it’s not really a life-changing amount, but it’s nontrivial. Now that I have significantly better mental health, I am looking back at my career pivot with some more perspective. I still think it was a good choice, and probably the best for me at the time, given my poor mental state. However, I suspect I could have managed working my “unfulfilling” FAANG job if I had better mental health at the time. It was actually kind of an epiphany moment that led me to leave the job (in part from a self-help-ish book that I still very much appreciate), but given my extreme history with depression, what I think I needed more than anything was medication! Don’t get me wrong, I made great strides with self-reflection and learning to process my emotions. But, at least for me, my upbringing as an LGBTQ individual in a Catholic Texan family did not leave me well equipped to handle life without some significant intervention. So, I am doing much better now, mentally, and am more optimistic than ever about the future. I am back into a good fitness routine. I am going past my comfort zone and making new friends - something I found extremely difficult to do before with my anxiety, depression, and being able to use my relationship as a crutch. I don’t regret my career choices, and I really enjoy my job now. I also feel that, if I wanted or needed to, I could probably go back to the tech sector and get a pretty good job, coming in as a CTO with the diversity of experience I now have. Or, perhaps I’d be able to freelance / househack my way into coasting. (Or, as a young new single, marry rich!) A caveat to all this good, though, is that from a pure financial perspective, these QOL improvements might not be a good thing; my poor mental health in a lot of ways gave me tunnel vision for FI. Now, I am spending quite a bit more and saving less as I explore a lot of things I had not before. But, maybe that’s as it should be ? Conclusion? I don’t know that I have a clear takeaway here, other than really investigate your mental health whenever you feel you really need a big life change. I’m not saying you shouldn’t trust your perceptions, knowledge, and beliefs, but if you’re fortunate enough to have decent food, a non-toxic home, and a non-toxic job that pays enough, yet still feel like it’s a struggle just to exist in the world, something isn’t right - and it might not be as straightforward a fix as a new job or new chore schedule. submitted by /u/wholeWheatButterfly [link] [comments]

  • Daily FI discussion thread - Saturday, September 24, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 24, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • How "irrational" are you when pay down a mortgage/debt compared to the expected 7% stock market gains?
    by /u/Blunderdashed (Financial Independence / Retire Early) on September 23, 2022 at 10:58 pm

    In FI I feel like there are two principles that can conflict. One is to pay down debt as fast as possible and the other is that we can generally expect the stock market to produce 7% gains. If your interest rate is below 7%, the rational economist would say make the minimum payment on your debt and invest your other savings in the stock market. I think two things that would make me not do this are the inherent risk in stock market returns, which is a more rational calculation, and also the feeling of freedom from not being in debt to someone/thing, which is less "rational". ​ For me I think my buffer would be around 2% (So anything less than 5% debt I would pay the minimum on), but I'm curious to hear what other people's buffers are. Also I'm not asking specifically about current market timing. I know things are funky right now. ​ p.s. If my financial thinking is wrong here please let me know, and sorry if a question like this has been asked before. submitted by /u/Blunderdashed [link] [comments]

  • Three Side Hustles I Started as a Kid
    by Chris Smith (Money Making Ideas on Medium) on September 23, 2022 at 9:04 pm

    And what they taught me about business and making money.Continue reading on Medium »

  • 7 Ways to Make Money Online Fast — For Newbies In 2022
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  • Daily FI discussion thread - Friday, September 23, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 23, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • Weekly FI Frugal Friday thread - September 23, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 23, 2022 at 9:00 am

    Please use this thread to discuss how amazingly cheap you are. How do you keep your costs low? How do become frugal without taking it to the extremes of frupidity? What costs have you realized could be cut from your life without pain? Use this weekly post to discuss Frugality in general. While the Rules for posting questions on the basics of personal finance/investing topics are more relaxed here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • You Can Find Money on the ground!
    by Fred: Almost Famous (Money Making Ideas on Medium) on September 23, 2022 at 7:11 am

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  • is this sub worth reading anymore?
    by /u/Lostinspace69420 (Financial Independence / Retire Early) on September 23, 2022 at 5:08 am

    used to check in and read post for years on this sub but now everything is a daily thread. what is going on, no one wants that. just allow everyone to up or downvote posts on their own. submitted by /u/Lostinspace69420 [link] [comments]

  • Daily FI discussion thread - Thursday, September 22, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 22, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • How to make money online in 2022
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  • Daily FI discussion thread - Wednesday, September 21, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 21, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • Weekly Self-Promotion Thread - September 21, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 21, 2022 at 9:00 am

    Self-promotion (ie posting about projects/businesses that you operate and can profit from) is typically a practice that is discouraged in /r/financialindependence, and these posts are removed through moderation. This is a thread where those rules do not apply. However, please do not post referral links in this thread. Use this thread to talk about your blog, talk about your business, ask for feedback, etc. If the self-promotion starts to leak outside of this thread, we will once again return to a time where 100% of self-promotion posts are banned. Please use this space wisely. Link-only posts will be removed. Put some effort into it. submitted by /u/AutoModerator [link] [comments]

  • How I turned $5k into a 6 figure annual passive income at 25 yo.
    by /u/asianboydonli (Financial Independence / Retire Early) on September 21, 2022 at 2:55 am

    So the title is a bit click bait but not untrue. I graduated from college in 2019 and have now quit my job and live on a "passive" income of $115k a year from my rental properties. I'm currently in the process of closing on a few more that will leave me at about $160k "passive" income a year. I know the "rental properties aren't passive" and "you have a ton of debt!!" comments are coming but I figured I'd share my story anyways. After graduating with a BS in mechanical engineering I got my first job in upstate NY making $65k a year. I absolutely hated that job; I had to wake up around 5 am so I could get to my 6 am team meeting everyday. The environment was dusty and dirty and there was no one even remotely close to my age I could talk to during the day. Admittedly it was a pretty relaxed environment work wise and I did spend large portions of the day browsing reddit. Fast forward 6 months and I got a new job in western NYS. This job was more in line with what I wanted my career to be and gave me a great name to throw on my resume. For this opportunity I did actually take a pay cut to $62k (was raised to $65k 1 year later however), however the area was super low cost of living (1b1b goes for $550 back before covid). This next part is where I might lose some people because while my title isn't click bait, its not exactly a situation people can easily duplicate. Around 2 months into my new job, I opened a brokerage account and put $5k into it. Initially I was buying shares and would get excited when I made $2. I read all your typical r/investing advice etc, etc. However after not even a full month I got bored (I'm sure some of you can see where this is going). That's when I found r/wallstreetbets; I saw all the people leveraging their money into options and making crazy 40%, 60%, 100%, and even 200% returns on a single play. I began to stalk and stalk and eventually I pulled the trigger and liquidated by entire portfolio and began options trading. I will the the first to admit that I got very lucky. I turned ~$200 into ~$700 with a LL earnings play, made over $2500 with some far OTM calls on SPCE, and with some other trades, eventually I got my account up to around $65k in less than a year. Around this time is when I pulled out ~$30k to purchase my first rental property. I bought a 4 unit (1 SFH + Triplex on the same lot) for $138k. This property was more or less turn key with only the SFH sitting vacant. Once I got the keys I quickly rented the SFH out for $950 /month. This left me with a cash flow of around $900/month after all expenses besides management (I was self managing these since this was my only property). While all this was happening I was still working my FT job and day trading on the side. During the next couple months I was mostly day trading amazon options and managed to get another $30k which I used to buy a 3b1b SFH in cash. This was a bit of a fixer upper and I would spend my evenings working on it. After about a month and an additional $5k in work/materials (plumber for blocked sewer line, appliances, tools, etc) it was rent ready and I rented it out for another $950/month. Then in early December of 2020 I read a post on wsb about how undervalued GME was. I dumped nearly $35k into options and shares (I had 10 calls and 1100 shares). Initially I lost about 1/3 of the value but the infamous short squeeze happened and the price shot well past $400/share. I managed to sell everything around $350 leaving me about $375k after taxes. This really poured fuel on the rental property fire. Using around $150k I purchased triplex for $70k cash, a duplex for $58k that was financed, and a 6 unit multifamily for $270k (again financed). At this point I was still self managing these property but I had hired a couple contractors to renovate a couple apartments as well as replace the roof on one of the properties. During that time I also bought a sfh for $110k that I would live in as my primary and spent around $35k renovating it myself (minus paying a contractor to remove a load bearing all + install an lvl beam). For anyone that's keeping track, all in these properties (minus my primary) were bring in about $3500/month in cash flow. My next big purchase happened just after I finished renovating my primary; I found a 7 property portfolio for $735k. Because of all the work I did on the 2 houses that I paid cash for, I was able to refinance them and get out about $100k and only had to put up about $50k for the down payment + closing costs. During this time I was actively looking for a new job down south because I was quiet frankly tired of all the snow. Around the same time the portfolio closed I got a new job down in NC for $70k and moved down at the end of 2021. Instead of selling my primary I ended up renting it out to a group of grad students at a local university for $1600/month. Knowing that I would be a remote landlord I did end up finding a property manager to take care of all the properties. Combining that with the portfolio and my previously mentioned properties that brought my cash flow up to $9600 a month pre tax. I was laid off in February of this year and chose to not look for a new job. I don't really day trade anymore but I am continuing to look for new properties in the area. I currently have a few under contract and once those close I'll be sitting at around $160k pre tax. My goal is to get to $300k pre tax before I turn 30. Anyways that's my story. I don't have any advice or anything and I don't think I'm in the position to give any anyways; I just wanted to share with someone. Thanks for taking the time to read this! EDIT: Since this post has gotten a bit more attention than I expected in this sub I'll answer some common questions/comments Yes I got extremely lucky, nowhere in the post did I deny that. However I believe luck plays a huge component in anyone's success; my story is no different. All these properties are located in western NYS No I am not trying to sell anyone a course, a few people have dm'ed me about it. No clue where that came from. $9600/month is the net free cash flow. The breakdown is below I don't post often to my account, that doesn't mean I don't use reddit a lot. I've been subbed/lurking/and occasionally commenting on wsb since it was 500k users. I currently own 13 properties (33 doors/tenants). I owe about $1.2m and have about $300k in equity between all properties. Market value on the whole portfolio is around $1.5m. $375k was the approximate amount left after setting aside nearly $125k for tax. Breakdown (annual to nearest $) Gross rent: $310,704 Property tax: $39,490 Mortgage (PMI): $90,764 Common Utilities (varies but never more than): $3000 Repairs/maintenance budget: $24,760 Insurance: $8957 Lawn + snow removal: $2730 Management: $24,856 Net free cash flow: $116,147 or $9678.92/month submitted by /u/asianboydonli [link] [comments]

  • Daily FI discussion thread - Tuesday, September 20, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 20, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • Too Many Ways to Make Money?
    by Diane El-Hachem (Money Making Ideas on Medium) on September 19, 2022 at 5:02 pm

    Ever feel like we live in an age where there’s so many ways to make money — Almost too many?Continue reading on Medium »

  • Has anyone backtested a version of "the 4% rule" with a rotating debt facility?
    by /u/ReturnOfBigChungus (Financial Independence / Retire Early) on September 19, 2022 at 2:34 pm

    I was thinking about this the other day - given that sequence of returns risk is the greatest risk by far in determining how "safe" a 4% withdrawal rate is, has anyone backtested a strategy with some sort of systematic rules for drawing expenses from a rotating debt instrument like a home equity line of credit or a pledged asset loan? So for example - your conditions might be: Secure a PAL or fixed HELOC at a relatively low rate (say 3-5%) If at any point, you experience a drawdown from your portfolio balance of more than X% (10? 15?), then you stop withdrawals from your portfolio and start withdrawing your expenses from the debt facility Once the market is on the way back up (say up X% from a recent low, or within X% of a previous high), you revert back to drawing from your portfolio and start paying down the debt balance over time Intuitively, I think this would greatly reduce your risk in situations like retiring right before the dot com bust or GFC, but I think it would also smooth out some of the general ups and downs and perhaps reduce some of the heartburn associated with watching your hard earned nest egg get drawn down. The big questions for me would be - what are the right values for the parameters that dictate switching in to and out of the debt draw, and what is the best option with regards to the specific type of debt to facilitate this strategy. Anyway - has anybody looked at this or know of any backtests that have been done? I can probably put together a decent model for it with a bit of time, but no sense in reinventing the wheel if it's already been done. EDIT: here's a very quick and dirty profiling of this strategy over the GFC vs. a portfolio of 100% SPY, feedback welcome. https://imgur.com/O5amqQ4 submitted by /u/ReturnOfBigChungus [link] [comments]

  • Daily FI discussion thread - Monday, September 19, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 19, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice - September 19, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 19, 2022 at 9:01 am

    Need help applying broader FIRE principles to your own situation? We’re here for you! Post your detailed personal “case study” and ask as many questions as you like, or help others who’ve done the same. Not sure if your questions pertain? Post them anyway…you might be surprised. It’ll be helpful to use our suggested format. Simply copy/paste/fill in/etc. But since everybody’s situation is different, feel free to tailor your layout to your needs. -Introduce yourself -Age / Industry / Location -General goals -Target FIRE Age / Amount / Withdrawal Rate / Location -Educational background and plans -Career situation and plans -Current and future income breakdown, including one-time events -Budget breakdown -Asset breakdown, including home, cars, etc. -Debt breakdown -Health concerns -Family: current situation / future plans / special needs / elderly parents -Other info -Questions? submitted by /u/AutoModerator [link] [comments]

  • Weekly FI Monday Milestone thread - September 19, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 19, 2022 at 9:00 am

    Please use this thread to post your milestones, humblebrags and status updates which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • How I am earning my living making money online?
    by HSCP For You (Money Making Ideas on Medium) on September 19, 2022 at 7:24 am

    By the time you read the title, if you have never made money online; This event may seem impossible to you. But fear not, it seemed to me…Continue reading on Medium »

  • Daily FI discussion thread - Sunday, September 18, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 18, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • If you retire with a mix of stocks, bonds, and cash, what proportion of withdrawals should come from each asset class?
    by /u/Thin-Shirt6688 (Financial Independence / Retire Early) on September 18, 2022 at 12:42 am

    The first solution that came to my mind was spending all cash first, before liquidating bonds. Only after bonds are liquidated should one withdraw from stocks (since stocks have the highest expected returns). However, an obvious drawback is that this method can be badly affected by sudden gyrations in the stock market e.g. if the market suddenly collapses after one liquidates one's bonds. What are your rules of thumb? Have there been any simulations on this topic? submitted by /u/Thin-Shirt6688 [link] [comments]

  • Daily FI discussion thread - Saturday, September 17, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 17, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • SWR performance for people who retired in 2000
    by /u/jason_for_prez (Financial Independence / Retire Early) on September 16, 2022 at 6:40 pm

    Early in the days of this forum, people thought 2000 would turn out to be one of the worst times to retire. So, at the end of each year I like to look at their performance. I was bored today, so I did a mid-year update. It looks at the results of different withdrawal rates under 2 scenarios, 100% inceated in SP500, and a 60/40 split SP500/10-YR-Treasuries. It adjusts for inflation, assumes dividends/interest are reinvested, and uses a fixed withdrawal rate (like with the 4% SWR rule). ​ Chart: For 2000, and the years just before and after, shows how much of their portfolio would remain on Sept 1, 2022 for various withdrawal rates. Graph: For people who retired January 1, 2000, it shows how their portfolio value would change over time for various withdrawal rates. ​ Edit: since commenters are discussing the impact of when you are most likely to retire (during a peak or a pull-back), I wanted to like Big ERN's good article on that: https://earlyretirementnow.com/2017/12/13/the-ultimate-guide-to-safe-withdrawal-rates-part-22-endogenous-retirement-timing/ ​ Source ERN's data that I used: https://earlyretirementnow.com/2018/08/29/google-sheet-updates-swr-series-part-28/ . You can use this to look at different asset allocations and to adjust other assumptions. If you don't want to work with the raw data directly, he has some tools in the spreadsheet that will do the analysis for you when you adjust assumptions. Here is the extra sheet I added to ERN's workbook, in case you want to play around with it: https://docs.google.com/spreadsheets/d/1JcSRDrGv9YxQmR8E8dAmLELRgtqiCFtw8lcdSRUyAVc/edit?usp=sharing submitted by /u/jason_for_prez [link] [comments]

  • Daily FI discussion thread - Friday, September 16, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 16, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • Weekly FI Frugal Friday thread - September 16, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 16, 2022 at 9:00 am

    Please use this thread to discuss how amazingly cheap you are. How do you keep your costs low? How do become frugal without taking it to the extremes of frupidity? What costs have you realized could be cut from your life without pain? Use this weekly post to discuss Frugality in general. While the Rules for posting questions on the basics of personal finance/investing topics are more relaxed here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • HOW TO MAKE MONEY FROM HOME (passively).
    by ONLINE-MONEY-MAKING-GURU. (Money Making Ideas on Medium) on September 16, 2022 at 8:51 am

    What is Passive Income? ... Imagine if you could earn money simply by sitting back and doing nothing. Believe it or not, it's something…Continue reading on Medium »

  • make money from home
    by Meem Abdullah (Money Making Ideas on Medium) on September 15, 2022 at 4:50 pm

    Make money from home. so the article will be all about making money online or make money home and what are best freelancing sites to start…Continue reading on Medium »

  • One-year FIRE update: Early retirement is great!
    by /u/TheOrchardFI (Financial Independence / Retire Early) on September 15, 2022 at 2:26 pm

    Greetings, FIers! I retired in summer 2021. As is tradition, I'm back to fill you in on how it's been going. Basic details: 39M at retirement, 40 now. I live in New York City. Married, one kid. Worked a 15-year career in tech. I FIREd last July with $2.3M in investments, zero debt and a paid-off place. Technically, this one-year update is a little late, but I have an excuse: I've been having too much goddamn fun! OK, let me put this out there to start with: I'm a complete fraud. I'm not living off investments. The plan was for my wife to quit in 2022. But then the markets dropped, and she didn't like the idea of giving up her paycheck while our net worth was decreasing. Her job is easy, low-stress and 80% working from home, and she wants to keep working at least until the stock market recovers. Her salary plus the dividend payouts from my taxable account cover our expenses, plus we get that sweet employer-paid health insurance. I'm down about $400,000 from my all-time high, but I'm not stressing at all. I was planning to withdraw between 2.5% and 3%, which should survive a dip like this, but I'm not upset about not having to put that to the test just yet. I've done my best not to pressure my wife either way. If she wants to join me in retirement next year so we can travel more, or if she wants to keep working a while longer and let our net worth grow, both those options are perfectly fine with me. While she's working, I'm the stay-at-home dad to our son. Over the summer, I repainted his room, took him to the beach, took him on hikes, and spent many hot days at the pool. Now that school is back in session, I walk him to school, read books and do Legos with him, and help with his homework. It takes a lot of time, but I'm grateful that I have that time. I can be there for him without any competing obligations. I hope that gift of presence is something he'll benefit from and remember fondly when he's older. Between COVID, my wife's work schedule and my son's school schedule, I haven't done lots of traveling. Even so, I feel like I've made the most of the past year. I went to the Delaware Water Gap and Acadia National Park to enjoy spectacular scenery and great hiking. I've explored hidden treasures in the Hudson Valley like Croton Gorge Park, Innisfree and Untermeyer Gardens, and took a weekend trip to Riverhead out on Long Island to see old shipwrecks on the beach and stargaze at the Custer Observatory. Around the house, I'm exercising more, listening to more music, reading a lot of books and catching up on long-overdue deep cleaning and decluttering projects. I'm handling all the cooking and most of the household chores. I'm growing a flower garden with native pollinator-friendly species, and a vegetable garden where I've grown green beans, peas, tomatoes, cucumbers and corn. It's not a money saver, it would definitely be cheaper to just buy produce from the supermarket, but there's something incredibly satisfying about eating food you grew and picked yourself. Now that I've had some experience of it, what strikes me about retirement is how normal it seems. It feels like nothing special, just my life - a life where I can run errands, do a workout, or sit in a coffee shop with a book in the middle of the day on a weekday. It's hard to remember that I once had to commute in to an office and sit at a desk five days a week. The sharpest reminder of my unusual circumstances is trying to make plans with non-FIREd friends. It's almost a little frustrating that I'm free on weekdays and they're not. There are so few weekends, and they fill up so fast! Admittedly, FIRE hasn't made my life a nonstop orgy of unicorns and rainbows. I still have petty frustrations and crappy days. But let there be no mistake: early retirement is great. I love that every day is my own, to do with as I see fit. I can weed my garden, or listen to a podcast, or clean out my attic, or go for a long walk on a beautiful morning as the mood strikes me, and I don't have to answer to anyone's expectations about my schedule or my productivity. I haven't been bored for an instant. The hardest part is deciding what I want to do with each day, when there are so many choices! Happy to answer questions and comments. I'll also accept GFY's. submitted by /u/TheOrchardFI [link] [comments]

  • Daily FI discussion thread - Thursday, September 15, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 15, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • how much money did you have in the bank before you started to ease off the gas pedal a bit and started to spend more?
    by /u/grapefruithumper (Financial Independence / Retire Early) on September 15, 2022 at 2:42 am

    I understand it's a marathon and not a sprint but been feeling a bit lost lately and saving for the sake of saving is kind of driving me nuts. I do spend a bit but not as much as I'd like without feeling guilty. I don't know which milestone I should hit in my savings before I ease up and spend a bit more. Has anyone gone through this? Thanks submitted by /u/grapefruithumper [link] [comments]

  • Daily FI discussion thread - Wednesday, September 14, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on September 14, 2022 at 9:02 am

    Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

  • 10 Apps That Pay Me Money Every Day (Spend less than 10 mins a day? )
    by Jason Tai (Money Making Ideas on Medium) on September 13, 2022 at 3:51 pm

    Who doesn’t want a little more money every day? These 10 apps will help put some extra spending cash in your pocket without having to put…Continue reading on Medium »


10 Commandments of Options Trading Strategies

Options Trading/Strategies

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This blog is about the 10 Commandments of Options Trading Strategies.

Option strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options’ variables. Call options, simply known as calls, give the buyer a right to buy a particular stock at that option’s strike price. Conversely, put options, simply known as puts, give the buyer the right to sell a particular stock at the option’s strike price. This is often done to gain exposure to a specific type of opportunity or risk while eliminating other risks as part of a trading strategy. A very straightforward strategy might simply be the buying or selling of a single option; however, option strategies often refer to a combination of simultaneous buying and or selling of options.

Options strategies allow traders to profit from movements in the underlying assets based on market sentiment (i.e., bullish, bearish or neutral). In the case of neutral strategies, they can be further classified into those that are bullish on volatility, measured by the lowercase Greek letter sigma (σ), and those that are bearish on volatility. Traders can also profit off time decay, measured by the uppercase Greek letter theta (Θ), when the stock market has low volatility. The option positions used can be long and/or short positions in calls and puts.

Below are the 10 Commandments of Options Trading:

  • Thou shall always take 100% daily gains or 200% all time gains.
  • Do not fall into temptation and buy during the first 30 minutes of market open. (Selling positions is still permitted)
  • Thou shall not buy calls on green days.
  • Thou shall not buy puts on red days.
  • Avoid greed and do not buy consecutive options on 1 company.
  • Give thyself at least 3 weeks time to play the option.
  • End your suffering and sell if down 50% all time on an option play.
  • Avoid gluttony and do not day trade options. (Swing trades allowed)
  • Be fruitful, multiply earnings and sell covered calls if holding any.
  • Celebrate and binge drink after big gains (or losses)
  • Off topic, but relevant – You absolutely need to be doing a 401k or IRA as well as investing in crypto: 401ks and IRAs offer fantastic tax advantages that straight investing does not. Also if you have an employer who matches you are leaving money on the table by not taking advantage of that. It’s foolish. Crypto is great and should definitely be in your portfolio but it should not be your whole portfolio.
    Sources:
    1- WallStreetBets
    2- Wikipedia

Finance and Binance Breaking News – Top Stories

Loans Debts Mortgages Finances Calculators – Unit and Currency Converters

Loans and Financial Calculators

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At some stage, we all need or want more money than we have. Funding a new set of wheels is the number one reason to take out a personal loan. Perhaps unsurprisingly, men are more likely than women to take out a personal loan. According to our survey, 69.05% of men said they’ve taken out a loan compared to 62.09% of women.

What to expect when taking out a loan? what is the total cost of a loan? Use these calculators below to find out.

  1. Unit Converter
  2. Currency Converter
  3. Financial Calculator
  4. Loan Calculator
  5. Loans Comparison Calculator
  6. Car Auto Loans Calculator
  7. Mortgages Comparison Calculator
  8. Mortgage Calculator
  9. Reverse Mortgage Calculator
  10. Compare Mortgages & Loans
  11. Credit Card Dues Calculator
  12. Credit Card Repayment Calculator

Unit Converter

With this Quick Unit Converter Calculator you will be able to convert all types of units from Metric to Imperial systems & Vice-versa in seconds.

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Currency Converter

This FREE currency converter calculator will convert your money based on current values from around the world.

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Financial Calculator

If you are looking for an all-in-one solution to help you prepare for the AWS Cloud Practitioner Certification Exam, look no further than this AWS Cloud Practitioner CCP CLFC01 book below.


This FREE 10 in 1 Financial Calculator provides: Loan Calculator, Mortgage Calculator, Credit Card Dues Calculator, RD Calculator, Annuity Calculator, TD / FD Calculator, SIP Calculator, Compare loans Calculator, EMI Calculator, Loan Amount & Tenure Calculator

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Invest in your future today by enrolling in this Azure Fundamentals - Microsoft Azure Certification and Training ebook below. This Azure Fundamentals Exam Prep Book will prepare you for the Azure Fundamentals AZ900 Certification Exam.


Loan Calculator

Use this simple and FREE loan calculator to calculate the real cost of any type of loans before accepting and signing. Remember, banks are not your friends.

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Loan Mortgage Comparison Calculator

[loancomparison]

Use this simple and FREE loan and mortgage comparison calculator to compare the real cost difference of any type of loans or mortgages before choosing. Remember, banks are not your friends.

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Car Loan – Auto Loan Calculator

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[fcautoloanplugin sc_size=”large” sc_custom_style=”No” sc_add_link=”no” sc_brand_name=”Enoumen” sc_hide_resize=”No” sc_price=”35500.0″ sc_dwn_pmt=”5500.0″ sc_loan_amt=”0.0″ sc_n_months=”60″ sc_rate=”5.5″ sc_currency=”48″ sc_date_mask=”2″]Auto Loan Calculator

The average monthly car payment in the U.S. is $550 for new vehicles, $393 for used and $452 for leased.
Americans borrow an average $32,480 for new vehicles and $20,446 for used.
The average loan term is 69 months for new cars, 35 months for used and 37 months for leased vehicles.
Gen Xers are the most likely to have a car loan, and carry the highest auto loan balances with a median of $19,313.

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Mortgage Calculator

Use this simple and FREE mortgage calculator to calculate the real cost of a mortgage before accepting it. Remember, banks are not your friends. Always shop around and never forget that you are the boss. Negotiate, negotiate and negotiate


We know you like your hobbies and especially coding, We do too, but you should find time to build the skills that’ll drive your career into Six Figures. Cloud skills and certifications can be just the thing you need to make the move into cloud or to level up and advance your career. 85% of hiring managers say cloud certifications make a candidate more attractive. Start your cloud journey with these excellent books below:

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Reverse Mortgage Calculator

A reverse mortgage is a mortgage loan, usually secured by a residential property, that enables the borrower to access the unencumbered value of the property. The loans are typically promoted to older homeowners and typically do not require monthly mortgage payments.Use this FREE reverse mortgage calculator to know the real cost of a reverse mortgage before accepting it. Remember, Banks are not your friends.

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Interest and Rate of Return Calculator

Yield is also the annual profit that an investor receives for an investment. The interest rate is the percentage charged by a lender for a loan. Interest rate is also used to describe the amount of regular return an investor can expect from a debt instrument such as a bond or certificate of deposit (CD).

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Credit Card Repayment Calculator

How do you pay back a credit card?
Here’s how it works: Step 1: Make the minimum payment on all of your accounts.
Step 2: Put as much extra money as possible toward the account with the highest interest rate.
Step 3: Once the debt with the highest interest is paid off, start paying as much as you can on the account with the next highest interest rate.

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Sources:

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What are some financial software products that do not require you to store data in the cloud?

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For privacy sake, it is very important for a lot of people to not trust cloud providers with their financial data. Below are some free desktop financial software products that do not require you to store data in the cloud.

1- Intrinio

Reliable, clean data, you only pay for what you use, your data stays on your computer.

2- LibreOffice Calc : Calc is the free spreadsheet program you’ve always needed. Newcomers find it intuitive and easy to learn, while professional data miners and number crunchers appreciate the comprehensive range of advanced functions. Built-in wizards guide you through choosing and using a comprehensive range of advanced features.

3- Open Office Calc :

Calc is the spreadsheet application you’ve always wanted. Newcomers find it intuitive and easy to learn; professional data miners and number crunchers will appreciate the comprehensive range of advanced functions.

4- Google Sheets: With Google Sheets, you can create, edit, and collaborate wherever you are. For free. Price:
Free for non-business use
$5/month per user for basic G-Suite
$10/month per user for business license

5- Excel: Well it is Microsoft Excel….Enough said. Excel provides a simple way to download financial data into a preconfigured spreadsheet at the click of a button.

6- Money Manager Ex

Money Manager Ex is a free, open-source, cross-platform, easy-to-use personal finance software. It primarily helps organize one’s finances and keeps track of where, when and how the money goes. It is also a great tool to get a bird’s eye view of your financial worth.

Money Manager includes all the basic features that 90% of users would want to see in a personal finance application. The design goals are to concentrate on simplicity and user-friendliness – something one can use everyday.

7- Xero: Xero backs up your data and protects it with multiple layers of security including industry-standard data encryption and secure data centres. We also offer two-step authentication as an additional layer of protection for your Xero account.

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8- Smartsheet Smartsheet is a Software-as-a-Service (SaaS) company focused entirely on its core cloud-based work automation platform. Their competency is in simplifying tasks and including many diverse types of output. Since all their efforts revolve around a single product and its extensions, there is strong user support. 

Resources:

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1- Quora

2- Top 20 budgeting financial solutions

Top 10 Financial Tips for Young Adults in USA and Canada

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This blog is geared towards young adults, particularly young first and second generation immigrants like me who don’t have any real estate and assets inherited from their parents here in Canada and USA. In this blog, I will help answer the following questions below based on my own experience and extensive research:

I- What are some financial tips for middle class people? What is the best financial advice for middle age people?

  • Work Hard first and foremost and do well at your job. If you are not working hard at your job, you will lose it and any advice below won’t matter.
  • Live a healthy lifestyle. Your health is your most important asset: Any advice below will be useless if you don’t eat healthy, exercise and have a stress free life. Get medical insurance and get a health check up done once every year
  • Live within your mean; within your budget; Don’t spend more than you earn.
  • Use your credit cards, but always pay them off at the end of the month.
  • Never miss a credit card payment: It will affect your credit negatively and cost you money.
  • Don’t buy a car unless you really really need one. If you do need a car, don’t buy old cars; You will end up spending more in the long run. Buy new cars at bargain price.
  • Take public transit or bike to work: You will save money and exercise and read a lot in the process.
  • Rent empty rooms in your apartment or house, and use that rental income to pay off your mortgage.
  • Get a side job in an area you are passionate about: If you like team sports, you can become a referee or coach and make extra money. You can help people fix their web site if you are tech savvy; You can buy and sell used items on facebook marketplace or kijiji or craigslist for a profit; you can be a tutor on week ends or evenings, etc…
  • After paying all your student loans and more importantly your credit cards debts, save money every single month automatically in your TFSA, RRSP , Roth IRA, 401K accounts.
  • Negotiate everything involving money coming in and out of your pocket. There are no rules set in stone about interest rates or pay grade; Negotiate, Research, Negotiate again until you get the best value for anything you are buying. Don’t be a jerk though and don’t come across as cheap: Learn when to stop and accept and appreciate a good value.

II- How do I improve my personal finances?

  • Work hard. The harder you work, the more likely you are to become financially independent. 
  • Diversify your income. You should never rely on one source of income, you should try and diversify your income streams. On top of your monthly salary at your main job, try to get rental income by renting empty rooms in your house or apartment. Get a side job in an area you have some expertise. Example: Tutoring, Team sport referee, Dance instructor, Handyman, Cleaner, salesman, etc…
  • Cancel recurring paying for things you don’t need (Netflix, Spotify, cable, etc…) ; They add up.
  • Save as much as possible into your TFSA and RRSP, Roth IRA Account and let them compound.
  • Don’t stress too much about anything, particularly finances; Stress is harmful.
  • Have self control: Resist the temptation of buying things that you don’t need.
  • Start investing early and focus on compounding. Always think about long term. Have your money earn money.
  • Read, read and read: Education will help you make and save a lot of money.
  • Exercise and invest on your health which is your most important asset.

III- What should I invest in as a 18-45 year old?  How do I become financially stable in my 20’s?

  • As soon as you get paid, transfer at least $100 automatically to your TFSA, or Roth IRA Account every month. Select an aggressive portfolio and forget it. You will likely get a big return after 10 years.
  • If you can afford a 5% down payment for a house, buy one and if you are still single, rent the empty rooms and make sure that your rental income can cover at least half of your mortgage payment.
  • If you have time to research about stocks market, do your due diligence and buy some good stocks. Don’t invest more than $10000 on stocks from your own pocket. Invest in stocks as if it is lost money and you might be lucky down the road.
  • Start saving money monthly in your RRSP, 401K and RESP accounts if you have kids.
  • Invest in your physical, mental and emotional health: Yes I am repeating myself. If you are not healthy, any other advice is useless and you might not even be around to enjoy the benefits of your investments.

IV- What is a financial rule you should never break? What personal finance mistakes should everyone avoid?

  • Easy to say, but hard to do: Never buy depreciating assets on credit. Cars, RVs, appliances, clothes, trips, leasing, etc. You won’t get rich that way.
  • If you’ve ever thought about buying a house, you’ve probably heard it: Don’t take out a mortgage until you’ve saved up at least 20 percent for a down payment. Otherwise, you’ll be forced to pay notorious private mortgage insurance.
  • Save 10 percent of your income.
  • Don’t rent or throw away money. Buy a house and be the landlord.
  • Investing before spending rather than investing after spending.
  • Pay all your bills and dues in time so as to never pay them with heavy interest or penalty!
  • Don’t invest in anything that you don’t understand. Yourself. Not because someone sold it to you or because others are doing it.
  • Don’t focus on the short-term, allow yourself to be unduly influenced by the financial news media, or let news about the market or the economy affect your long-term investing strategy.
  • Save and Invest early and aggressively in your 20’s. Time and a higher risk tolerance are extraordinarily valuable and everyone can make this call when they are younger—or do so for their children/family. This also sort of falls under the “rule” of paying yourself first. This is key to maximizing wealth.

V- How can you attain financial freedom by working 9 to 5 job?

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  • Read , read, read and be curious. This will help you find and execute ideas to make some money on the side.
  • Increase your income streams: On top of your day job, try freelancing on the side for a few extra bucks. Identify where you can provide your freelancing services (Referee in team sports, Handyman, Tutor, Buy and Sell used items for a profit, art, etc..). The more sources you have, the better.
  • Start saving as early as you can.  The earlier you start, the better.
  • Make your money work. Start a business, make investments, do something that makes you more money from what you have.
  • Make money from your existing assets (rent rooms in yours house, Uber or deliver stuffs with your car or truck, etc..)
  • Never spend money on depreciating commodities that doesn’t affect your safety. What you can do with a  used $200 phone, doesn’t have to be bought at $1000 just because it is hip.
  • Don’t jeopardize your safety. If you buy old cars that  break down regularly and put you at risk on highway, all the advice above won’t matter.

VI- What is the best way to invest in real estate?

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  • Whatever you are buying, put at least 20% down to avoid paying extra insurance fees and be stuck with a high interest rate for years.
  • Buy in decent neighbourhood.  It usually means better tenants who will be more likely to  pay their rents and not damage the property.
  • Buy a mix of multi family and single family homes.  It usually results in better tenants and higher equity growth over time.
  • Invest on home inspection: Make sure to use an agent who is able to point out potential problems.  Get a home inspection and don’t buy a property that requires extensive repair.  Especially on your first one and when you don’t have a ton of disposable income.
  • Build: Contact builder who build properties and buy from them, allowing you to get great discount and customize the house for extra rooms and developed basement. 
  • Become Part of a Bigger Deal:  By partnering up with others interested in investing and pooling your resources to make a larger deal happen. Do some research online on how you can do this for either a commercial or residential property, which in some cases, requires an investment as small as $1000. The good thing about these deals is that you can hedge your bets by placing multiple investments into various properties.
  • Real Estate Investment Trust: Also known as a REIT, you can invest in a publicly traded trust that uses the capital of its investors to acquire and operate properties. You can find REITs in the major Wall Street exchanges and it requires companies to shell out 90% of their taxable profits through dividends to investors in order to retain their position as an REIT.
  • Rent A Portion Of Your Existing Home via Airbnb or VRBO: I prefer those options because you it is short term and you can always stop renting when you have family visiting. This gives you a lot of flexibility.

VII- Is it worth taking out a loan to pay for a house?

  Year 1 Year 10
Time to Sell
John Doe 1
Buys 1 house cash putting 20K down and invest 80K
Gets $800 per month from the $80K savings
easy life and always has plenty of cash
$96,000 in rental income
sells his one house for $200,000 and nets $100,000, so his total gain was $196,000, not bad. His $100,000 investment has nearly tripled!
John Doe 2
Borrows and Buys 4 houses with 100K putting down 20K for each
Gets $200 per house per month but spends it all towards the principal of the loan, so gets $0 per month
Must keep his full time job and has a struggle keeping up with expenses
around $24,000 in rental income
sells his 4 rentals for $200,000 each netting $100,000 each for a gain of $400,000, so his total gain is $424,000, so his investment has more than quadrupled!

Who won?

VIII-  What are some rookie mistakes of first-time house buyers?

  • Rushing to accept any financing offer because of the excitement to own your first house: Not good. Get various and competitive financing offer from different institutions and negotiate to get the lowest possible interest rate.
  • Don’t just focus on the aesthetic part of the house; Most first houses are never your dream house:  Focus on features that will make the house  easily and quickly sellable (Number of rooms, size of rooms, garage, easy to maintain, location, etc..).
  • Don’t buy an above average size and price house for your first house, go to the lower end and get a size that is proportional to your family size.
  • Using a family or friend for a realtor: Don’t do it. This is your first most important investment and don’t mix it with feelings and emotions.
  • Location, location, location: Buy where you can easily access public transit so you don’t have to spend all your savings on driving to work. In the same token, buying closer to public transit will help you get renters easily if you have empty rooms available.
  • Inspection, inspection, inspection: Get the best home inspector available. Some of them are really bad. Look for home inspectors reviews before hiring them. If the home inspection misses important defective stuffs like dry rot on the siding, you will end up spending thousands of dollars to fix them.

IX- What’s a realistic down payment percentage for a first-time home buyer?

  • As a buyer, if you have  enough money for a 20% down payment and closing costs and has something left over for cash reserves, 20% is fine. But if you carry any consumer debt with rates higher than that of a mortgage, it is far better to pay those more expensive items off with available cash than to put it into a home down payment.
  • When you get a conventional mortgage with a down payment of less than 20 percent, you have to get private mortgage insurance, or PMI. The monthly cost of PMI varies, depending on your credit score, the size of the down payment and the loan amount. 

X- Resources & Definitions:

1- Quora

2- CRA

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3- What is RRSP: An RRSP is a retirement savings plan that you establish, that we register, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan. (Applies to USCanadaonly)

4- What is TFSA: The Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are 18 and older and who have a valid social insurance number to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn.  Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not deductible. (Applies to Canada only)

5- What is RESP: A registered education savings plan (RESP) is a contract between an individual (the subscriber) and a person or organization (the promoter). Under the contract, the subscriber names one or more beneficiaries (the future student(s)) and agrees to make contributions for them, and the promoter agrees to pay educational assistance payments (EAPs) to the beneficiaries. (Applies to Canada only)

There are two different types of RESP available: family plans and specified plans.

6- What is Roth IRA? A Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA. (Applies to USA only)


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  • You cannot deduct contributions to a Roth IRA.
  • If you satisfy the requirements, qualified distributions are tax-free.
  • You can make contributions to your Roth IRA after you reach age 70 ½.
  • You can leave amounts in your Roth IRA as long as you live.
  • The account or annuity must be designated as a Roth IRA when it is set up.

The same combined contribution limit applies to all of your Roth and traditional IRAs. 

A traditional IRA is a way to save for retirement that gives you tax advantages (USA)

  • Contributions you make to a traditional IRA may be fully or partially deductible, depending on your circumstances, and
     
  • Generally, amounts in your traditional IRA (including earnings and gains) are not taxed until distributed.

7- 401K: A 401(k) is a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts.

  • Elective salary deferrals are excluded from the employee’s taxable income (except for designated Roth deferrals).
  • Employers can contribute to employees’ accounts.
  • Distributions, including earnings, are includible in taxable income at retirement (except for qualified distributions of designated Roth accounts).
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