Is America ‘over-reacting’ to the Toyota recalls? In my opinion, absolutely.

Don’t get me wrong, if you have one of the recalled vehicles, you darn well better get your butt down to the dealership for the fix. However, it seems like the media is just plain over-reacting to the Toyota recall. I have to agree with Ed Wallace here, it feels like a witch hunt.

Go ahead and run some searches on ‘Ford Explorer recall’, I’ll wait. Check out some of the ‘safety’ recalls, some of them are pretty scary. Why are we not still outraged by something like t his? And how many people forgot about the outrage over the rolling SUVs? Be honest. I’m not trying to crap on Ford, just pointing out serious safety recalls happen all the time. They’re just usually not so dramatic or announced by the media.

And I absolutely don’t think Toyota handled this as well as they should have. At the first signs of trouble, there should have been better communication and investigation of the problem. I’m not saying they’re blameless or that I’d run right out now and buy a 2010 model, fixed or no. I’m just tired of hearing about it.

Popularity: 10% [?]

There was an interesting article on The Consumerist yesterday regarding a customers claim that Cuisinart refused to follow Maine’s extended warranty laws.

I had no idea that Maine had such strong warranty laws, but then again, I don’t live in Maine. It is worth your while to look up the appropriate commerce laws in your municipality. I know California has it’s own warranty laws. I haven’t found anything regarding most consumer purchases here in Virginia, but we do have a Lemon Law for vehicles. And then, of course, there’s the Federal Laws on Warranties.

Of course, you still need to at least skim the warranty yourself. Some warranties only cover certain parts of say, your car or your computer. Some cover everything, but only for a short period of time.  Some require you to have the item repaired/refurbished so many times before the item is replaced. Some require you to attempt to return the item to it’s place of purchase first.

So, where am I going with this? It’s all about protecting yourself and your purchases. A few days ago, The Consumerist ran another story where a customer nearly bought a freezer that didn’t have a warranty because the manufacturer had gone out of business. If he was lucky and the freezer failed within 30 days, he probably would have been covered under the store return policy, but if he discovered a defect 6 months from now, he’d be screwed. How much would that suck?

Anyway, after any major purchase, you should take a few minutes and check out the warranty and other paperwork that came with it. You might want to write down the important details (limitations, date it ends, contact #, etc.) on a separate note so you have quick access to it without having to slog through all that legalese again.  I also highly suggest you staple the Cliff Notes version and your receipt to the warranty and either attach it to the item in question (if it’s a large appliance) or have a designated spot where you keep all your manuals/warranties/etc.

Popularity: 10% [?]

Normally I’m a big proponent of junking older, unsafe, gas guzzling cars, so quite a few people were surprised to hear me ranting about how much I dislike the Car Allowance Rebate System (otherwise known as Cash For Clunkers).

So yes, I hate the program and here’s why.

• It doesn’t apply to used cars. This is my big reason. Most of us are well aware of how much value is lost from a new car by the simple act of driving it off the lot. I know a few  people in the market for a ‘new’ car who refuse to use the rebate simply because they can buy a 5 year old car with better mileage for $10,000 less than a new one.
• The price limit is way too high. $45,000? That was the cost of my college education. Who the hell can afford that kind of car? And if you can afford that kind of car, you’re probably making enough money that you should pass up the rebate in favor of someone who needs it. How about a limit of $30k. Still more than I would ever pay for a car, but sometimes you have to bump up a luxury level to get all the airbags and safety features.
• Possible $50k/$75k (single/joint) income limit. [Link] No, I’m not jealous that we wouldn’t qualify. I just think that we’re still encouraging people to spend more on a car than we should.  For every smart person buying a barebones Camry at $20k, there’s a moron buying a luxury $45k SUV, which would now represent 90% of their yearly income.

Obviously, my biggest beef is that it’s encouraging people to make stupid car decisions. In the long run, that’s going to do far more damage than positive effects of ‘stimulating’ the economy.

So what do you think? Greatest idea EVER!!!!1!! Dumbest idea in a long time? Something in between?

Popularity: 25% [?]

Let me just say up front that I’m not advocating buying (leasing) a new car every time a new model comes out. I am, however, saying that money shouldn’t be the ONLY factor in some decisions.

Part of the reason we decided to purchase my (late) Toyata Matrix was because our old Ford Explorer simply wasn’t as safe as newer cars. Sure, the excellent gas mileage and cheaper repairs were a nice bonus, but the truth was that the Explorer was a tipping hazard, had outdated airbags, the brakes kept going and it lacked the newer safety features like curtain airbags, side reinforcements, auto door locks, etc.

It’s kinda hard to tell from the picture I posted, but I used pretty much every single one of my shiny, new safety features.

The crash was 100% not my fault. Some d-bag didn’t attach the hitch to his car correctly, and the trailer (hitch and all) fell out of the back of the car while we  in the left-most lane, trying to merge onto I-95 around exit 169.  If you know Virginia, you know that this is a very busy road with 5 lanes of traffic at this point.  Sometimes it doesn’t matter how great a driver you are,  shit happens. I’m lucky I was able to steer the crash into the shoulder rather than back out into traffic.

Buying the Matrix was a strain on our budget. We ended up borrowing around $12k and making $275 payments. If we kept the old car, we could probably have put the hardwood floors in last month, but I wonder how much money we’d be paying on my long term medical bills if I had rolled the Explorer. My life insurance policy is only work about $44k, but I’m sure Mr. would rather have me than the money.

How much is your safety worth? Car payments aren’t fun and neither is scrimping to buy a used car in cash, but sometimes it’s worth it. Your 15 year old car may be all paid off, but you honestly need to think about more than just money when it comes to the safety of you and your loved ones.

Popularity: unranked [?]

I miss the days when it was free to park in my own driveway. Unfortunately for me, there are a lot of hidden costs with keeping a car in a city. If you don’t have a car but are thinking about buying one, consider all the costs before you jump in that new convertible.

• Parking – If you own a house, you may be lucky enough to have a driveway or have street parking privileges. I envy you. Apartment living can mean having to pay a monthly fee to park in the apartment parking lot or you may have to rent out a space in a commercial parking garage. To add insult to injury, many work places have limited parking, so you may have to pay them to park in their parking lot or rent out another spot in a nearby parking garage. The price for parking among my friends ranges from $10-1000 a month, so this is a big thing.
• Registration Fees – Aside from the DMV fees, you may get hit by a yearly county registration fee which are more common in urban areas. While some counties have set fees, Arlington bases yours on the model and year of your car. We went from $50 for the old car to $400 for the new one.
• Insurance Rates – Rates vary depending on location. Guess which locations have higher rates.
• Gas – Of course everyone needs to buy gas, but city driving gets much lower MPG. One tank of gas will get our little Matrix about 420 miles on the highway but only about 300 piddling around town.

Thankfully, urban areas are much more likely to have good, reliable public transportation systems. Mr. Frugal Urbanite rides the Metro to work everyday, avoiding the ridiculous parking fees, and his job actually reimburses him for it. Sweet, no?

There’s also is also ZipCar for those of you living in select cities. ZipCar allows you to rent a car for as little as a few hours with a convenient system, so if you just want to run a few errands, you have the freedom of a car without paying for the time you won’t use. If we didn’t visit friends and family in other states all the time, we’d probably forgo our car and use ZipCar (there’s one spot right across the street.)

Popularity: unranked [?]

The Frugal Urbanite is NOT an insurance professional.

I see all these commercials on tv promising to save people hundreds of dollars on insurance, and all I can think in response is ‘yes, but does it cover everything they need?’

Murphy and I are well acquainted and thus I have near paranoia of being without the proper insurance. Thankfully, Mr. Frugal Urbanite works in the civil service and we have a nice, fat, government benefits package now. That wasn’t always the case, and I’ve got some bruises on my credit report to show for it.

You can’t afford to not have insurance. Sure, those premiums are high, but unless you can afford to pay for out of pocket for everything you’re not insured against, you can’t afford to skip the insurance.

Insurance You Need:

• Auto – Liability: In todays sue happy world, you can take a hit even if that accident wasn’t your fault, and most states require liability anyway.
• Health: At the very least you need a catastrophic (high deductible, high cap) plan. I highly recommend a comprehensive plan (office, prescription, emergency.) If your employer doesn’t offer it, or you are freelance, you may be able to obtain insurance through your alumni association, local or federal government or a private firm.
• Homeowners/Rental: There’s no excuse for not having this, short of living hand to mouth. Remember to take pictures and document major purchases and store those files in a safe place outside your home.
• Life: If you have family, you should have life insurance, even if it’s just enough to take care of your funeral.

Insurance You Should Have

• Dental: Unless you have a dentist who’s willing to work out a payment plan, you’ll want dental insurance. A single cavity can cost hundreds of dollars and woe betide you if you have a real dental emergency.
• Auto – Collision: If the Blue Book value of your car is less than 2 years worth of premiums, then you might consider skipping this. If not, can you afford to buy a ‘new’ car if your current one was wrecked?

Insurance You Might Want

• Vision: If you have 20/20 vision, this is optional. But make sure you can pick it up later if your eyes deteriorate.
• Travel Insurance: If you are going on a major vacation (the kind you save up for years for) this might be a good choice. Otherwise, skip it.
• Private Mortgage Insurance: If you are buying a house, your loan bank might make you get this if your initial down payment is too low. Solution, save up more before applying for a mortgage.

There are tons of other kinds of insurance out there (most of which are not worth your money) so it’s worth your while to get out there and discuss this all with a financial adviser. Don’t wait until after a financial disaster to get your insurance in order.

Popularity: unranked [?]

A sewing machine can save you a ton of money! The initial investment can be pretty big (depending on how well you shop) but you can avoid alteration and repair costs for years to come.

I don’t know about you, but I need alterations on almost all of my ‘good’ clothes. At the very least, my pants need to be hemmed, and I used to get it done at the cleaners for $15 a pop. That doesn’t seem to bad at first, but over the months it begins to add up.

Even if you’re a perfect size 6, sewing machines are great for things like fixing that tear in the crotch in your sweatpants and sewing the lining in your pockets so your keys stop falling through.

Sewing machines are also incredibly useful for frugal decorating. You can make amazing placemats, tablecloths, curtains, throw pillows and other decorative touches for a fraction of the cost of buying them in a store. Most projects just require you to be able to sew in a relatively straight line.

If you do decide to take the plunge and buy a machine, keep these tips in mind:

• You need quality. When in doubt pay a little more because a machine that breaks down all the time won’t do you any good.
• You don’t need 57 stitches. As long as you’ve got a straight (running stitch) and zig-zag, you’re golden.
• If you want to buy new, look for Brothers or Janome brand.
• If you are buying used, look for vintage Singer. Try stores that specialize in sewing machine repairs for refurbished machines at a fraction of the new cost.
• Other great places for used machines are: Freecycle, Craigslist, Rummage Sales, Estate Sales.
• For instructions on how to start machine sewing, try looking for classes at your local library, community college, church or community center. Great online tutorials are only a quick Google search away.

And for those of you who already own a sewing machine and know how to use it, were you aware of all the great, free patterns online? Try BurdaStyle or Craftster to start off with.

Popularity: unranked [?]

Part of being frugal is taking care of what you have so you have. Jewelry, especially things like engagement and weddings rings, are a big purchase and it makes sense to take care of them and all your other goodies.

If you are buying a new piece, ask about an insurance/repair plan. For a onetime charge of about $150 (depends on your jeweler) they will inspect your ring every six months, clean it, do any necessary repairs/resizing, and (depending on your plan) replace lost gemstones do to ring damage. For a piece you plan to wear everyday, like an engagement ring, this is probably a good purchase. For less expensive pieces or pieces worn only on special occasions, you may decide this is unnecessary. Additionally, you MUST bring your jewelry in for the inspections. If you forget, you may forfeit the benefits of the plan.

In any case, you should make sure your jewelry is covered under your renter’s or home insurance. Diamonds (and sometimes other high carat weight gemstones) should come with certification information listing their weight, cut and grade. Store these in a safe place (not in your home.) In addition to storing the information, keep photographs of your major jewelry pieces. These pictures should be taken on a plain background with either a ruler or coin in the photo to show approximate size. Store these with any gemstone certification papers, either in a safe deposit box or fireproof safe.

As for day to day care, have one and only one place where your jewelry goes. When you take any jewelry off, immediately place it in this one place, even if it means walking halfway across your home. This will prevent incidents where jewelry is lost because it was put in a “safe place.”

Once a year, go through all your jewelry and check for loose stones, damaged clasps or backings, damaged chains and other potential problems. If something needs fixing, do it before your necklace falls off somewhere in the street or that pearl goes rolling off down a air vent. If you don’t like the piece well enough to pay for the repairs, consider selling it or having it remade into something else.

You wouldn’t buy a house and then not insure it or let the wheels fall off of your car out of neglect, so treat your jewelry with the same respect you treat any other major purchase.

Popularity: 3% [?]