Money, Cash, Funds

...starting Feb. 1, the state may issue IOUs as tax refunds to millions of Californians. It may also issue IOUs as payment to local governments, state vendors, judges and lawmakers and their staffers

(from The Wall Street Journal). It is best to have as little taxwithheld as possible. Put the money in an FDIC insured bank account to earn interest on the money; you must simply be sure you do not spend the money you later owe. Governments are clearly not reliable banks.

Labels: taxes

When getting a rental car, always check the car's registration sticker and make sure it will be valid for the time you'll have the car. If it is expired, you may be pulled over and/or ticketed. Major rental car companies sometimes don't automatically put the new sticker on the license plate.

Quotes from these four major auto insurance companies varied by over 50%:

• Geico
• Mercury
• Progressive
• State Farm

Shopping around saves.

Useful tool to determine the real value, or buying power of money (not merely its numeric, or nominal value). For example, $100 in 1995 could buy then what took $124.42 to buy in 2005. Inflation affects the value of a raise in salary, an interest rate or any money spent, borrowed, invested or earned.

Average gas prices in the US have gone up almost 10% in the last month, and about 33% in the last year. The average American driver therefore will spend around $433.80 more on gas this year than last year.

An average ten mile trip today costs about $1.40 ($2.895 / 20 MPG = $0.14 per mile); a year ago it cost around $1.09. In some cities it costs more (e.g., New York ~ $1.60, Los Angeles ~ $1.70, Chicago ~ $1.50).

Drivers are expected to drive 1000 miles a month, 12K a year. This translates to ~$144.75 a month, ~$1,737.00 a year at todays prices, ~$1,303.20 one year ago. Steps to improve gas mileage include:

• replace air filter
• keep tires inflated properly
• use correct grade of oil
• don't speed
• avoid idling and extra weight
• use cruise control and overdrive

A new car may get 20 miles per gallon (MPG). Average price of a gallon of gas in the US: today = $2.895, one month ago = $2.640 and one year ago = $2.172 (losangelesgasprices.com).

In other words, the burden of paying Helpers may cause American equity investors, overall, to earn only 80% or so of what they would earn if they just sat still and listened to no one

(from Warren Buffet via I Will Teach You To Be Rich).

In fact, by a wide margin over time, stock prices have risen more quickly than home values, even on the East and West Coasts, where home values have appreciated most

(from The New York Times).