Three Republican senators have attached an energy package to the emergency funding package for the war in Iraq which would give taxpayers a $100 rebate (for gas), repeal tax incentives for Big oil, and permit the Federal Trade Commission to prosecute any retail price gougers. It would also open part of the Arctic National Wildlife Refuge in Alaska to oil exploration as well, which is a sticking point for most Democrats and some moderate Republicans. Democrats are expected to put forward an energy plan of their own. It’s politics as usual.

On one hand I don’t want a $100 rebate, but on the other I know it’ll help a lot of people in the lower income brackets where gas prices have actually affected behavior. I think the $100 should only go to those who make under a certain income level and not to everyone… the exiting CEO of Exxon surely doesn’t need a $100 gas rebate (especially since he probably doesn’t even pay for it in the first place) on top of the several hundred million he’s pocketing in retirement. Would you turn away $100?

I, however, do want to see tax incentives repealed for Big Oil because if the government is willing to help out in times of crisis, it should also be willing to pull the plate away when Big Oil’s had enough at the buffet. In the late 90’s, Exxon’s exploration ventures came at a cost of $40/barrel when oil was selling for $20 (it’s in their 2005 annual report), so I almost understand the need for assistance. Now, though, the market environment has changed in their favor so are incentives really necessary?

Finally, why can’t the FTC prosecute price gougers anyway? Why does there need to be a law for them to do that enforcement? It seems like it should be something someone should be doing anyway.

Please share your thoughts…

I bought the contacts on April 9th, submitted the electronic rebate on April 12th (I waited until I received all the boxes), the $30 rebate arrived in the mail on the 24th. Costco’s electronic rebate arrived twelve days after I submitted it so not only did I get the cheapest price on 8 boxes of Acuvue 2’s, I didn’t even have fight with the rebate company (i.e. waiting on hold for 4 hours) trying to screw me. I didn’t have to clip boxtops, I didn’t have to photocopy forms, and I didn’t even have to waste a stamp mailing the junk. A rebate in twelve days is simply amazing. That’s why I love Costco.

Popular Mechanics put out a piece (it’s 8 “pages” long) comparing all the alternative fuels, making a case for them, a case against them, and their outlook for the fuels. The alternatives they take a peek out include Ethanol (E85), Methanol (M85), Compressed Natural Gas (CNG), Biodiesel, Electricity, Hydrogen, and used cooking oil. It’s an easy read and a good to way to get caught up on all the petrol alternatives out there and how viable each one is according to PM.

Oh, don’t miss this comparison chart (PDF).

Unbelievable. Gasoline is over $3 so motorists in California are taking advantage of a publicly funded patrol service that gives a free gallon of gas to those who run out. For three dollars worth of petrol, people are stranding themselves on the highway, wasting time, inhaling exhaust fumes, for a gallon of gasoline. Forget the part about how this is the most inefficient way to get gasoline because it’s publicly funded (they pay taxes, the taxes pay for a truck, a driver, administrative fees, maintenance on the truck, and then finally the gasoline… certainly that gallon is costing them more than $3), how little do these folks value their time?

I signed up for both the Citi mtvU and the Citi Professional card a month or so ago and a few days ago I requested my first balance transfer check from mtvU to begin the 0% balance transfer arbitrage “game.”

One quick tip… always initiate the request online because if you call them they might tell you they can’t send you a check and you’ll have wasted a good thirty minutes of your life waiting and thirty good brain cells navigating those stupid menus. Just login online and look for the menu choice “Manage My Account,” go to “Balance Transfers,” then Request Transfer(s), and follow the easy to navigate menus. Be sure to double check that there are no finance fees assessed.

Giddiyup and good luck!

(anyone have any tips or suggestions about 0% BT’s that I should know?)

Festival of Frugality is a week away from legally being able to buy alcohol for minors, but until next week, you’ll have to settle for the 20th running over at Money Blog Network.

Wandering Indian Monk will be hosting next week’s compilation of frugal living so get your entries in early. There are two handy forms, one at the Conservative Cat and one at Blog Carnival. If you’re interested in hosting a future Festival of Frugality, please contact me after reading what this Festival is about. There’s a list of future hosts and the next available time slot as well as hosting requirements. Thanks and enjoy!

It’s classic personal finance advice: Buy used and let some other sucker pay the new car premium. So if buying a two year old car, used/certified preowned/whatever, will save you money then buying a four year old car should save you more, right? True. Then, buying an eight year old car will save you even more right? Umm… true. Then why not buy a sixteen year old car? My advice is to never purchase a car that’s long been out of its manufacturer’s warranty period (usually 36k, 3 years or 60k, 5 years) unless it’s from someone you know - say a friend or member of the family. Here’s why…

Diminishing Returns:
It’s common fact that a large percentage of a car’s value is lost when the car drives off the lot (it’s not 50% like the old adage goes, but it’s significant), that’s why they suggest you buy a used car. As the car drives along and experiences the wear and tear of driving, the car loses more and more value according to actuarial tables regardless of how badly or how nicely you operate it. There comes a point where the savings you reap from buying used are outweighed by the age of the car and the investment you’ll need to make to keep the vehicle on the road. I believe that trade off period is somewhere in the 3-5 year range. (remember that a 2003 Civic was definitely manufactured and likely sold in 2002)
(read full article…)