Evidence-Based Doomsday Prepping and Personal Finance

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I dug into the longread Doomsday prepping for less crazy folk today. The title pretty much says it all – I prefer to call it “evidence-based doomsday prepping”.

Effective preparedness can be simple, but it has to be rooted in an honest and systematic review of the risks you are likely to face. Plenty of excited newcomers begin by shopping for ballistic vests and night vision goggles; they would be better served by grabbing a fire extinguisher, some bottled water, and then putting the rest of their money in a rainy-day fund.

[…] I also found that to come up with a rational threat model, we need to think of “risk” as a product of both the probability and the consequences of a given event. By that metric, stubbed toes and zombie outbreaks are equally uninteresting; one of them has nearly zero significance, the other, nearly zero odds.

Strangely enough, my favorite part might have been the section on getting in shape and losing weight, as it very closely matched my own experiences and opinions on the topic. But since this is my money blog, I’ll talk about the personal finance aspects. If you’re going to build a resilient lifestyle, you’ll need some assets and figure out how to protect them.

Good ole’ emergency fund. The most likely “disaster” you’ll face is probably unemployment. Forget retiring at age 30, you’re just trying to survive having no income (or a severe cut) for 6 months. If you can figure out how to build a stash of 6 months of living expenses, you’ll already be way ahead of most people and have a rough blueprint for eventual financial freedom anyway.

Cash. You should be prepared to not have access to banks or ATMs for a short period of time. It could be a huge systemic crisis, or you might simply have a bad case of identity theft. Cash is still mighty handy for anything other than an extremely severe event – although it might be good to smaller bills.

For short-term survival, simple solutions work best: just keep about 2-4 weeks’ worth of cash somewhere at hand; have enough money on you to get you back home when traveling, too. Of course, be mindful of the risk of burglary, so if you’re keeping the funds at home, pick an unobvious location for the stash; more about that soon.

Break-ins are difficult to prevent, especially in suburban single-family homes with secluded backyards and street-level windows and doors; tall fences and window bars can work, but they are expensive and tend to draw the ire of your neighbors. The most cost-effective solution may be to keep your windows and doors closed when away, but beyond that, just optimize for hassle-free outcomes. You can leave some less important goodies in plain sight – say, some cheap jewelry, a modest amount of cash, and a beat-up phone – and put all the real valuables in a much less obvious or less accessible spot. A heavy safe will usually do; diversion safes fashioned into books, cans or clocks are pretty cool, too – if you trust yourself not to accidentally throw them away.

Banking. The author suggests splitting your money between two unrelated banks. This practice could easily extend to your brokerage accounts.

As for the remainder of your money, I suggest splitting it across two largely unrelated financial institutions with different risk profiles – say, a big national bank and a local credit union.

Gold. Before you follow the safety box suggestion, know that banks aren’t responsible if they lose the contents of safe deposit boxes. Serious preppers recommend paying for a reputable, international vault to store your gold – I imagine it to be dug deep into the mountains of Switzerland – but as noted that is expensive and reserved for those with a high net worth.

Because of its very high value-to-volume ratio, physical gold is stored and moved around very easily, but keeping substantial amounts at home can be ill-advised; theft is a very real risk, and most insurance policies will not adequately cover the loss. Safe deposit boxes at a local bank, available for around $20 a year, are usually a better alternative – although they come with some trade-offs; for example, the access to deposit boxes was restricted by the government during the Greek debt crisis in 2015. Non-bank storage services do not have that problem, but cost quite a bit more.

Bitcoin. Cryptocurrencies aren’t discussed at all, but they are meant to be independent of governments. If you put your keys into a hardware wallet, this is another store of value that could have an infinite “value-to-volume ratio” and possibly easier to move than gold or cash. Will Bitcoin be more or less valuable in a crisis? I don’t know. The answer also might change over time.

Stuff. Yes, yes, guns and ammo. But for the most likely scenarios the best thing you could have done was to take a bit of your money buy some everyday stuff: keeping your gas tank half full, keeping a full propane tank, packing a simple Go Bag with clothes/first aid kit/energy bars/extra prescription medicine, a few crates of water, and so forth. Fire extinguishers, fire ladders, smoke and CO detectors in every room could be the best money you ever spent. You might also throw in a will and an advanced health directive.

Insurance. I was surprised that there wasn’t a more detailed discussion of insurance. If we’re talking real-world life-altering disasters, either getting hit by a car or hitting someone else with your car has got to be one of the more likely ones. Do you have adequate health insurance? disability insurance? auto (liability) insurance? homeowners? flood? earthquake/hurricane add-on? Don’t forget these 11 reasons to buy an umbrella liability insurance policy.

Bottom line. There are many simple things that you can do to make your life more resilient that doesn’t involve building your own underground bunker, and many of it meshes with basic personal finance advice. Here’s a nice ending line to keep things in perspective:

In the end, ladders, cars, and space heaters are a much greater threat to your well-being than a gun-toting robber or an army of zombie marauders could ever be.

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

Four Pillars of Retirement: Money, Purpose, People, and Health

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While it is understandable that most talk about “retirement planning” concerns money, a truly successful retirement requires more than that. Coincidentally, the same week I was pondering the Components of Happiness, I also stumbled upon a 6-year leanFIRE update from LivingaFI. It was a very honest and thoughtful story of someone who carefully planned and quit their job at age 37. I usually focus on my reason for financial indepedence as “spending my time as I wish”, but now I realize that it may help to specifically address certain areas regularly.

For your consideration, here are The Four Pillars of Retirement*:

  • Money: You need enough money to pay for housing, transportation, food, healthcare, and everything sold at Walmart/Target/Amazon/Costco.
  • Purpose: You need to feel that you are useful, moving forward, pursuing a goal, and/or making the world a tiny bit better.
  • People: You need love. Love and social interaction from your life partner, children, family, friends, and/or animal companions.
  • Health: You need to feel physically healthy, or be at peace with your level of health.

Imagine each pillar as one of the legs of a square table. We have to maintain and shore up any cracks before it gets serious. If you are lacking in any one of these pillars, your retirement gets wobbly. If any two are crumbling, that’s enough to make the entire thing tip over.

Most people say that they hate work, but working takes care of more than just the money pillar. In addition to income, work can provide a sense of purpose and self-worth, as well as a wide social circle. Some people just like having something fixed to build their routine around; they flounder with “nothing to do”. People often imagine retirement as a perpetual weekend – playing golf, eating out, travel, shopping, etc. – but it can get weird when all your friends are still working. Here is a WSJ article on how leaving work can put a lot of strain on couples.

It can be difficult to get out of the “I must be busy and productive” mindset. When you retire, use the opportunity to sit in the quiet and ponder what is most important to you. Choose your hard thing.

Finally, even if you have done all you can to be prepared, life still happens. The author of LivingaFi had nearly $1 million in assets, reasonable expenses, a committed life partner with a similar level of assets, lots of outside interests, and good health. This is not judgment, but a scary reminder for all of us: jobs, bull markets, relationships and good health can all end faster than you think. Your actions matter, but luck matters too. For example, the Social Security Administration says that a 20-year-old worker has a 1-in-4 chance of being disabled before retirement age. (Where available, we should buy adequate life, health, and disability insurance.)

My biggest blind spot was that if you have children, any one of them may also develop a health condition or other special needs that may require additional financial support indefinitely. I really didn’t appreciate the hidden struggles that so many families go through that is no fault of their own. I also didn’t fully appreciate how lucky I was to not have to deal with any of these things while growing up as a kid.

If you accept that luck matters in your investments, then the optimal choice might be to retire earlier with a more modest amount so that if things go well, you get more retirement years, but if things go badly, then you fall back on some part-time back-up work. Being willing to be flexible can pay off. You have to balance your odds of running out of money with the odds of running out of time.

On the other hand, if you are a high-earner, it might be better to work “One More Year” while you work on planning for the other pillars. Finding a new purpose, finding new friends, finding a new routine, it can be quite difficult. Looking back, I am thankful that we did not attempt to retire early and instead adjusted our hours (and income) downward while still keeping our foothold in the workforce. I’m still working on these pillars myself, but our middle path has worked well for us.

(* A nod to the classic The Four Pillars of Investing, one of the first investing books I ever read and reviewed here way back in 2004.)

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

Lesser-Known Cheap Basic Prepaid Cell Phone Plans on Every Network – Starting Under $10 a Month

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(Updated 2021. T-Mobile absorbed Sprint, so no more Sprint MVNOs. Tello is now a T-Mobile MVNO, but is still quite affordable. Ting Mobile has new flexible plans that work well for occasional data users, and you can now choose from either the T-Mobile or Verizon network.)

You can get unlimited talk and unlimited texts for $10 a month or less on every major network. That’s less than my bare landline used to cost. The major networks sell wholesale minutes to lesser-known MVNOs (Mobile Network Virtual Operators), which they in turn sell at a significant discount to individuals. Below are the best options by network below (Verizon, AT&T, T-Mobile) along with an alternative. I sort by network because that usually makes it easier to Bring Your Own Device (BYOD), though every MVNO will have a form where you can check compatibility via identification number (IMEI or MEID). Here are the cheapest plans with unlimited talk & text and 5G/LTE high-speed data.

Disclosure: This post includes affiliate links where available. If you make a purchase through the links below, I may be compensated.

T-Mobile NetworkT-Mobile Network Color: Hot Pink

  • Unlimited Talk & Text. Tello Mobile also has an unlimited talk, text, and no data for $8 a month. You need to choose a custom plan to find this option. Upgrade to 1 GB of data at only $10 per month. New user promo: Get 50% off their first 3 months.
  • Unlimited Talk & Text + Flexible Data. Ting Mobile has an unlimited talk and text for $10 a month plus pay-for-what-you-use data for $5 per GB of high-speed data. This may work best for those that want to always have access to data at a reasonable price, but no data during most months. Ting data can also be shared across multiple lines ($10 per line base). Ting now runs on both the T-Mobile and Verizon networks. For T-Mobile, you should be directed their “X1 SIM card”. New user promo: Bring over your own phone and get a free $25 service credit.
  • Higher price, but not MVNO. Alternatively, you can go directly with T-Mobile Connect and get unlimited talk and text with 2 GB data for $15 a month.

Note: I personally use Mint Mobile, which offers unlimited talk, text, and 4 GB data for $15 a month – see my Mint Mobile review for tips and details based on my experiences.

AT&T NetworkAT&T Network Color: Blue

  • Unlimited Talk & Text. Good2Go Mobile offers unlimited talk and text for $10 a month. Upgrade to 1 GB of data and pay $15 month. Buy the SIM card from Amazon for $5 and get $5 credit included.
  • 3 GB LTE data, more expensive. Alternatively, Red Pocket Mobile offers unlimited talk, text, and 3 GB data for $19 a month. After your LTE data runs out, you still get data included at slower 2G data speeds until your month resets. Be sure to choose the AT&T network (GSMA) when you sign up.

Verizon NetworkVerizon Network Color: Red

  • Unlimited Talk & Text + Flexible Data. Ting Mobile has an unlimited talk and text for $10 a month plus pay-for-what-you-use data for $5 per GB of high-speed data. This may work best for those that want to always have access to data at a reasonable price, but no data during most months. Ting data can also be shared across multiple lines ($10 per line base). Ting now runs on both the T-Mobile and Verizon networks. For Verizon, you should be directed their “V1 SIM card”. New user promo: Bring over your own phone and get a free $25 service credit.
  • I previously listed US Mobile, which also advertises unlimited talk and text for $10 a month, but they actually tack on a mandatory $2 month “access fee” on top of the usual taxes and fees. I don’t know of any other provider that does this, as it is basically a secret way to make the price really $12 a month.
  • 3 GB LTE data, more expensive. Alternatively, Red Pocket Mobile offers unlimited talk, text, and 3 GB data for $19 a month. After your LTE data runs out, you still get data included at slower 2G data speeds until your month resets. Be sure to choose the Verizon network (CDMA) when you sign up.

(Note: Now that Sprint has finally completed its merger with T-Mobile, some T-Mobile MVNOs can now access Sprint towers and some previous Sprint MVNOs are switching to T-Mobile MVNOs.)

Here are the cheapest plans with unlimited talk & text and 5G/LTE high-speed data.

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

Mint Mobile Review: Now $15 a Month for 4 GB, $20 a Month for 10 GB 5G/LTE Data

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards and may receive a commission. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

Update 2021: I just renewed with Mint Mobile again. I’m still happy with the service, including the new faster 5G speeds and increased data limits (added automatically without raising the price). I now pay $20/month for 10 GB 5G/LTE data (up from 8 GB). I also consolidated all the important info from my previous Mint Mobile posts into the full review below.

Full review:

Mint Mobile is a prepaid cellular MVNO which runs on the T-Mobile network. They offer very competitive pricing on 5G/LTE data plans, as long as you “buy in bulk”. To switch, they will send you a SIM card to place in your existing phone. New customers can get the lowest price for the first 3 months for a lower upfront commitment. After that, you’ll need to renew for 12 months. Here are the current plan options:

  • 4 GB 5G/LTE Data + Unlimited Talk/Text for $15/month
  • 10 GB 5G/LTE Data + Unlimited Talk/Text for $20/month
  • 15 GB 5G/LTE Data + Unlimited Talk/Text for $25/month
  • Unlimited* 5G/LTE Data + Unlimited Talk/Text for $30/month (*Throttled after 35 GB)

I like that Mint Mobile acts like Vanguard in that I keep automatically getting more for my money without me having to be a new customer. $15 a month used to get me 2 GB of data, then 3 GB, and now 4 GB. $20 a month used to get me 5 GB of data, then 8 GB, and now 10 GB.

After you run out of 5G/LTE high-speed data, Mint Mobile plans still include “unlimited” slow data at 2G speeds (128kbps). This is nice to keep your messages and e-mail even if you accidentally binge-watch something on Netflix over cellular. All plans also include free international calls to Mexico and Canada.

Bring your own phone. You can bring your own unlocked GSM phone including both Android and Apple iPhones. Input your zip code first and then they will help you check your phone compatibilty. The most reliable way is to look up your IMEI number in your phone settings. Alternatively, they are offering the new iPhone SE for $15 a month, which means you can get a new phone + service for $30 a month total.

eSim now available. If have an iPhone that supports eSim (iPhone XS, iPhone XS Max, iPhone XR to the current iPhone 12 line-up), you can now switch to Mint without even waiting for a physical SIM card. Look for the eSim option during the sign-up process. Android support is supposed to come mid-2021, but unfortunately there are currently no plans to support the Apple Watch.

Number porting tip. Don’t forget to collect the following info from your existing carrier before starting the transfer process: Account number, Account PIN/password, and zip code on bill. Other than that, I was able to swap SIM cards and activate everything in under 10 minutes.

Upgrade to a higher data plan later and only pay the difference. During the pandemic, I found myself eating through a lot more cellular data. After I bumped into my data cap (3 GB at the time for $15/month) for the second time, I contacted Mint to upgrade to their next tier (8 GB at the time for $20/month). They allowed me to upgrade to the higher data plan for the rest of my 12-month term by only paying for the future difference. I did not have to retroactively pay to upgrade the entire term, or even renew for a new term.

What’s the catch? Any drawbacks? I did not experience any “catch”. Otherwise, I wouldn’t have kept renewing with Mint for three years in a row. If I’m being picky, here are potential drawbacks:

  • As with all MVNOs, you don’t get the roaming that you get when you pay full price from the Big 3 carriers of Verizon, AT&T, or T-Mobile. However, I never noticed any ongoing issues with cell coverage. The only time that I remember lacking service was during a large public event (remember those?) – a music concert in a stadium.
  • As with any time you switch carriers, the porting process can sometimes be a hassle. You’ll need to call your existing carrier and get a secret passphrase, which might involve a phone call and some hold time. Mint tries to do everything online, but does have a phone number and human reps if needed.

How’s the 5G data speed? If you have a 5G-capable phone and 5G towers around, you can get download speeds that rival or perhaps exceed your home internet connection. I did various tests with the SpeedTest app and sometimes had blazing 5G speeds (200 Mbps+), while sometimes the 5G with only one bar was slower than normal LTE (50 Mbps). Supposedly, Mint will automatically allow to connect to whichever is faster, 5G or LTE.

Can I use my phone as a WiFi hotspot? All Mint plans include free hotspot tethering up to your data allotment (5 GB hotspot on unlimited plan).

7-day money back guarantee details. It is important to note that their “7-Day Money Back Guarantee” starts at activation, not order date or ship date. So activate, and make sure the coverage works for you within those 7 days. If not, you can request a full refund online (minus shipping if any). You don’t even need to ship back your SIM card.

Bottom line. Mint Mobile works best for my needs, as I get unlimited talk, text, and 10 GB of 5G/LTE data for $20 a month. Other recs? If you want to unlimited talk and text only, you can find from Tello for only $8 a month (now a T-Mobile MVNO). If you want unlimited data on Verizon towers, look into Visible Wireless at $25 to $40 a month.

Also see:

Disclosure: This post includes affiliate links. If you make a purchase through the links above, I may be compensated.

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

Health Care Flexible Spending Accounts: Don’t Lose Your FSA Money

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Updated for 2020. Here’s my annual year-end reminder – to myself, really – to get back all the money sent into Healthcare Flexible Spending Accounts (HC FSA) before it disappears forever (see possible extensions below). The maximum salary deduction limit is $2,750 for 2020. You choose your deduction amount during Open Enrollment season, but it can also be adjusted during “qualifying life events” like the birth of a child, marriage, or divorce.

Quick ideas. If you didn’t exhaust your funds with insurance copays or deductibles, here are eligible items that you can still buy over-the-counter without a prescription. Just order things online and then submit the receipt. Amazon even has a special FSA-eligible page that accept FSA/HSA debit cards, complete with an “under $25” and “little-known eligible items” section. (Tip: Use this time to stock your hurricane/earthquake/snowstorm emergency kits.)

Edit: For 2020, the CARES Act added back over-the-counter drugs without a prescription. Certain menstrual care products, such as tampons and pads, are also now eligible medical expenses.

Certain over-the-counter (OTC) items such as cough medicines, pain relievers, acid controllers, and diaper rash ointment require a prescription for reimbursement. This is an added hassle, but worth a quick ask if you have a doctor appointment anyway.

When getting a receipt, make sure it clearly includes the following:

  • Date of service or purchase
  • Name or description of the item
  • Amount of purchase

Deadline extensions. Employers have the option of adding one of the following:

  • Some plans allow a grace period until March 15th of the following year as opposed to a December 31st deadline to use your funds, but it may only apply to claims and not late purchases. Check with your employer.
  • Some plans allow participants to carry over up to $500 in unused FSA funds into next year. Check with your employer.
  • Due to COVID-19, companies were given the option of extending the grace period for 2019 HCFSA funds until the end of 2020.

Big, exhaustive lists. Some of these are searchable by keyword as well.

Finally, only your FSA administrator can provide you with the exact guidelines for reimbursement according to your plan. I learned this the hard way when our FSA administrator switched one year from in-house to Conexis (now since acquired by WageWorks). Wow, Conexis was a pain. I had to submit some claims three times before finally getting approved. If you count the time wasted, I probably lost money by participating in the FSA at all. The skeptic in me suspects that this bureaucratic nightmare is part of their business model. (Remember mail-in rebates?) Guess who gets to keep unreimbursed FSA funds? The employer, which can then use the money to pay for… the FSA administrator.

Got a Health Savings Account (HSA) and think you are ineligible for an FSA? Look for a “limited-purpose FSA” option that is restricted to dental and vision care services. These have the same max annual salary deduction.

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

Consumer Reports: Top 10 Most Reliable Car Brands and Models 2020

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Consumer Reports provided some updated results from their 2020 Car Owner Survey in the public articles Who Makes the Most Reliable Cars?, 10 Most Reliable Cars, and 10 Least Reliable Cars. There are a few minor surprises, including a new brand in the top spot. Here are some highlights and a partial excerpt of the Top 10 most reliable brands.

  • Most reliable: Mazda is the new #1, up from #2 last year.
  • Most improved ranking (in the Top 10): Honda and Buick.
  • Biggest ranking drops (overall): Mini and Lincoln.

A few quick thoughts:

  • Despite providing these brand rankings, Consumer Reports recommends that you shop by vehicle and not just by brand. Reliability problems often occur with a new model with a new engine and/or drivetrain system. This is why Toyota is very incremental with their changes – to maintain reliability.
  • The best new car for Uber/Lyft/DoorDash etc. drivers must be the Toyota Prius. Top reliability scores + top gas mileage + reasonable depreciation = lowest per-mile cost of ownership. (A used one might be even better, as the battery actually has a working life of 10+ years…) If you drive a lot and just want to get from A to B at the lowest per-mile cost, buy a Prius.
  • Everyone seems to love their Teslas, but the reliability scores are rather poor. Is it because most Tesla cars are still rather new and Tesla is fixing all these issues under warranty? I also wonder what parts exactly are breaking down since electric vehicles cost less to maintain overall partially due to having much fewer parts than internal-combustion vehicles. You would think the reliability would be higher by default.
My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

Consumer Reports: Electric Vehicle Total Cost of Ownership Savings Breakdown

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Consumer Reports is well-known for their annual survey of customers about their cars’ reliability and ownership costs. While electrical vehicles usually cost more upfront, they also cost less to fuel, maintain, and repair than traditional gas-powered vehicles. But CR has now released much more detailed data about real world results. Here are some highlights from their summary article and full report.

A CR study shows that total ownership cost savings can more than make up for an electric vehicle’s typically higher purchase price.

Maintenance costs. Here are the average maintenance and repair costs over vehicle lifetime.

  • BEV (Battery-Electric Vehicle): $0.03/mile
  • PHEV (Plug-in Hybrid Electric Vehicle): $0.03/mile
  • ICE (Internal Combustion Engine): $0.06/mile

The difference increases with the age of the vehicles, breaking down roughly to 2 cents per mile for the first 100k miles and then 4 cents per miles in the second 100k miles.

Fuel costs. Most EVs cost on average $800 to $1,000 less to fuel up for each 15,000 miles. This adds up to $8,500 to $11,200 savings over the lifetime of the car. (Prices vary, but most are within 10% of this average. Places where gas costs more is also often where electricity costs more.)

Resale value. It’s basically a tie. Both compact and luxury cars of both EV and ICE types lose about 55% of their value over first 5 years, on average.

Here’s my super-simplified take. Take any EV upfront price premium, and offset it with:

  • Maintenance and repair savings. About 2 cents per mile savings in the first 100k miles, and 4 cents per mile savings after that.
  • Fuel cost savings. Calculate yourself using your miles driven, local gas price, MPG, local electricity price, miles/KWh. Lots of fuel calculators out there.
  • Depreciation. This will likely be a wash, so no savings.

In the end, that EV price premium is still the most critical factor to your bottom line, but it is nice to have some hard numbers especially about the difference in overall maintenance and repair costs.

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

Coinstar Promo: Redeem $30 of Coins Into Amazon Gift Card, Get $5 Bonus Credit

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Here’s a way to both help keep physical coins in circulation and get a little bonus for yourself. If you redeem $30+ worth of coins into Amazon gift cards at your local Coinstar kiosk, they will add a $5 Amazon promotional credit code (valid on products sold by Amazon). Promotion expires November 30, 2020 and the promotional Amazon credit expires December 21, 2020.

You also don’t have to pay any fees using the Amazon gift card option, whereas the cash option hits you with a big 11.9% fee (the last time I checked it was under 10%!). I would have a hard time paying that fee… I’d rather pay the money directly to my kids for rolling up those coins! There are still some banks and credit unions that offer free coin counting services for customers.

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

DIY Home Office Idea: Amazon Door Desks

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One of the reasons that Amazon, Walmart, and Costco have taken over retail is their relentless focus on low prices. This is both obvious and not-so-obvious, as it means turning down easy profits in the short-term in exchange for growing customers. Amazon operated on a “let’s barely break even” basis for years while it mowed down the competition.

One of the symbols of this lean culture is the “Amazon Door Desk”. The story goes that Jeff Bezos needed some desks but traditional ones were too expensive, so he made desks from unfinished doors and some 4x4s instead :

It was the summer of 1995, back when Jeff Bezos could count his Amazon employees on one hand and those few employees needed desks. Bezos’ friend and employee number five, Nico Lovejoy, says Bezos himself found a scrappy, cost-effective solution right outside their doors.

“We happened to be across the street from a Home Depot,” said Lovejoy. “He looked at desks for sale and looked at doors for sale, and the doors were a lot cheaper, so he decided to buy a door and put some legs on it.”

With that, the Amazon “door desk” was born. What neither of them knew at the time was that the scrappy, do-it-yourself desk would turn into one of Amazon’s most distinctive bits of culture. More than 20 years later, thousands of Amazon employees worldwide still work each day on modern versions of those original door desks.

Another employee later improved the basic design with better hardware. They even have instructions on how to build your own Amazon door desk. Unfortunately, they don’t offer details on the parts needed for bracing the 90-degree connections, but here’s what I found based on the pictures (why don’t they sell this as a kit on Amazon?!):

With many more people working from home and kids distance-learning, this may be a good weekend project. I estimated the total cost at under $150, lower if you have access to some reclaimed building materials. I recently scored some donated 4x4s from my neighbor, but no door. Having the legs cut yourself (most stores will cut to order) also lets you adjust the table heights for kids or other specific ergonomic needs.

You’re not being cheap by making your own desk, you are using the same equipment as a trillion-dollar company! My own work desk is a 15-year-old office-supply folding table with scotch tape on it to stop the cheap laminate from peeling. My frugal side is a bit disappointed, as one of these Amazon door desks would have probably lasted even longer.

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

Charlie Munger: Huge Compilation of Annual Shareholder Letters, Interviews, Op-Eds, Speech Transcripts

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Charles Munger is probably best known as the Vice Chairman of Berkshire Hathaway and longstanding investing partner of Warren Buffett. However, he has also been the CEO and/or Chairman of the Board of multiple other companies. This means there many additional sources of knowledge and wisdom beyond just BRK shareholder letters. I recently discovered this huge 1,000 page compilation (PDF) of everything Munger, including annual letters from Blue Chip Stamps, Wesco, and Daily Journal as well as his op-ed contributions and transcripts of speeches. Found at ValueWalk, the PDF includes links to most of the individual sources inside as well. Thanks to all the folks that worked hard to preserve this material.

There was no table of contents, so I started making a list of all the goodies inside:

Annual Shareholder Letters and Meeting Transcripts

  • Blue Chip Stamps, Annual Shareholder Letters, 1978-1982. Blue Chip Stamps was merged into Berkshire Hathaway in 1983.
  • Wesco Financial Corporation, Annual Shareholder Letters and/or Meeting Notes, 1983-2010. Wesco Financial was officially merged into Berkshire Hathaway in 2011.
  • Q&A sesssion with Charlie Munger July 1st, 2011. An event paid for by Charlie Munger after the Wesco merger.
  • Daily Journal Corporation Annual Meeting Notes and/or Transcript, 2013-2018.

Speech Transcripts, Op-Eds, Interviews, Etc.

  • Opinion Pieces, 1984.
  • Speech by Charlie Munger to the Harvard School, 1986.
  • Resignation of Mutual Savings from US League of Savings Institutions, May 30, 1989.
  • A Lesson On Elementary, Worldly Wisdom As It Relates To Investment Management & Business, 1995.
  • Practical Thought about Practical Thought?, 1996.
  • Investment Practices of Leading Charitable Foundations, 1998.
  • Foundation Financial Officers Group Master’s Class, 1999.
  • A Perverse Use of Antitrust Law, 2000.
  • Philanthropy Round Table, 2000
  • Optimism Has No Place in Accounting, 2002
  • The Great Financial Scandal of 2003
  • Herb Kay Undergraduate Lecture at the University of California, Santa Barbara Economics Department, 2003.
  • Munger speech at University of California, Santa Barbara, 2004.
  • The Pyschology of Human Misjudgment,
  • Charlie Munger – USC Commencement Speech 2007
  • Sacrificing To Restore Market Confidence, 2009.
  • Basically, It’s Over. A parable about how one nation came to financial ruin, 2009.
  • Wantmore, Tweakmore, Totalscum, and the Tragedy of Boneheadia: A Parody about the Great Recession, 2011.
  • A Conversation with Charlie Munger and Michigan Ross Dean Scott DeRue, 2017.
  • Charlie Munger, Unplugged, 2019.
  • Foreword to the Chinese Edition of Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger (by Louis Li).

This should keep me busy for a while!

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

Groupon: Costco New Membership Deal ($40 Costco Gift Card)

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Here’s a new Groupon deal for a new Costco Gold Star Membership where for the regular price of $60 you can get the following:

  • 1-year Gold Star membership ($60 normally), with auto-renewal of the Costco membership using a Visa® credit or debit card.
  • Membership card for the Primary Cardholder and one additional Household Card for anyone living at the same address, over the age of 18.
  • $40 Costco gift card (valid towards any purchase, including gas)
  • Online coupon: $40 off any order of $250+ on Costco.com

Valid only for new members and those whose memberships expired prior to April 1, 2020.

Save even more on your Groupon with a cashback shopping portal. Many offer new customers bonuses if you make a qualifying purchase, including Rakuten (formerly eBates) ($10 bonus), TopCashBack (varies), and BeFrugal ($10 bonus). I have cashed out of all of these in the last 12 months.

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

Online Shopping: Are You Being Tricked By These 15 Dark Patterns?

My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards and may receive a commission. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

During these stressful times, many of us are doing a lot more shopping online (unfortunately for local retailers). The competition to get you to spend as much as possible has evolved to take full advantage of all of our psychological weaknesses. This Wired article discusses The Subtle Tricks Shopping Sites Use to Make You Spend More, including the deceptive tactics called “dark patterns”. They linked to an academic study Dark Patterns at Scale: Findings from a Crawl of 11K Shopping Websites, which carefully broke things down into the following 15 dark patterns which usually target at least one cognitive bias.

If you’ve bought anything online recently, you should recognize many of these tricks, but there were a few that were new to me. I was intrigued and tested out many of the sites myself. I no longer plan to shop at certain retailers like Proflowers and CellularOutfitter due to their use of certain shady tactics.

“No, I don’t want become smarter and wealthier”

  • Confirmshaming: Using language to steer your choices
  • Cognitive bias: Framing effect

“YES! vs. no

  • Visual interference: Steering users using visual design.
  • Cognitive bias: Anchoring, Framing effect

“Uncheck the box if you prefer not to receive lots of spam”

  • Trick questions: Steering users using confusing language
  • Cognitive bias: Default, Framing effect

“Do you really want to cheap out on the flower bouquet for your mom?”

  • Pressured selling: Most expensive option is the default.
  • Cognitive bias: Anchoring, Default Effect, Scarcity Bias

“Free shipping with (trial) membership!”

  • Hidden subscription: Charging a recurring fee which isn’t clearly disclosed.

“⏲ Sale ends in 00:15:36 ⏲”

  • Countdown timer: Suggests that deal or discount will expire soon using countdown timer
  • Cognitive bias: Scarcity bias

“Only 3 left in stock. Order soon!”

  • Low-stock message: Suggests that limited quantities are available
  • Cognitive bias: Scarcity bias

“🔥 Selling Fast! 🔥”

  • High-demand message
  • Cognitive bias: Scarcity bias

“‼ Sale ends soon! ‼”

  • Limited-time message
  • Cognitive bias: Scarcity bias

“43 other people are viewing this item” or “Joseph in Maryland just bought these masks!”

  • Activity message: Informs that someone else did an activity or purchase
  • Cognitive bias: Bandwagon effect

“These yoga pants are the most comfortable ever! – Jane from IA”

  • Testimonial
  • Cognitive bias: Bandwagon effect

“Care & Handling Fee: $2.99” (Looking at you, Proflowers!)

  • Hidden cost: Adding new fees or charges at the last page of checkout, after you have submitted address and payment details.
  • Cognitive bias: Sunk cost fallacy

“You must create an account to continue.”

  • Forced enrollment: Must create account or share information to complete task
  • Cognitive bias: Sunk cost fallacy

“Oops, how did that item end up in your shopping cart?”

  • Sneak into basket: Additional products placed in shopping carts without consent, like accessories (CellularOutfitter) or warranty/insurance.
  • Cognitive bias: Default effect

“Please call 1-800-NOT-OPEN between 1:34 and 1:36 AM to cancel.”

  • Hard to cancel: Easy to sign-up, hard to cancel.
My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.