I got mad at my wife couple months ago when we received two speeding citations in the mail in one week. She was caught by a speed camera on two consecutive days as she was driving to her school destination. I told her to stop speeding! Then, I had to eat my own words when I received a speeding citation in the mail last week for going 69 in a 55 mph zone. I was also a victim of a speed camera. I apologized to my wife for yelling her at couple months back.

Our total fine for the three citations were $120, only $40 each. Nothing to go bankrupt on, but it’s $120 out of our pockets. It’s $120 that we can use towards something else, something that we need, like a new coffee table that we’ve been shopping for as of late. But instead, we had to pay the government for speeding above the limit. We didn’t even get a chance to talk our way out of the speeding tickets. We were definitely being dumb with our money. In Maryland where we currently reside, the total revenue from speeding cameras almost reached $77,000,000 in 2011. That’s a $77 million industry! Some 1.9 million citations were issued last year in Maryland. And that’s only in Maryland! That means, there’s a ton of drivers out there that are speeding like crazy and wasting money by getting caught by these speed cameras. Do yourself a favor and drive slower. Don’t be dumb with your money by driving too fast.

This is the latest edition of our new series called MoneyFail.

photo: speed camera citation, charles

I took a loan out of my online savings account and paid off my car loan with it. I was budgeting for 2012 and realized that I only have about $4,000 remaining on one of my car loans. The interest rate on that car was a whopping 4.99%! I have been paying a little extra every month to help pay it off quicker. After running some preliminary calculations, if I continued to make my normal payments, it would cost me an additional $97 by the time everything is paid off. It’s not a lot but it is something to think about.

I currently have about $14,000 in my online savings account with Discover Bank. I have no plans to use any of it in the next 12 months so I figured I would give myself a loan to pay off the car loan. I would still have about $10,000 in my savings account for emergency purposes and save $97 in interest at the same time.

However, I earn 1% interest from my online savings account. So the amount I took out would not be earning this interest. I have to subtract this earning from my total savings from this loan. Every month, I will pay my normal $450 back to my online savings account until it’s all paid off.

Even so, I still save some money through this transaction. At the end of the term, I will have all my money back in my savings account and save $78 in 10 months. It’s not going to make me a millionaire, but does help me pocket some nice chunk of change. If you have enough savings saved up, you can borrow money from your account to pay off any high interest debt you may have. It’s guaranteed savings.

Today, as I was driving home from work, my low gas light on my Nissan Rogue came on. My plan was to get gas from one of the gas stations near my house, which is often 5-10 cents cheaper than other locations around the area. There are two gas stations right at the corner of the intersection where I turn to go home. Normally, the gas prices are exactly the same and I choose the station that is more convenient. When I’m on my way home, I choose Hess but when I leave from home, I choose Royal Farms.

But today, Royal Farms gas price was 5 cents cheaper than Hess. I had two options:

A. Get gas at Hess and pay $3.24 per gallon. My normal fillup is around 15 gallons.

B. Get gas at Royal Farms and pay $3.19 per gallon. However, to get there, I have to wait through one set of traffic light and wait another set of lights on my way home. At worst scenario, that would be an additional 90 seconds if I were to get stuck at both red lights.

I decided to save money and get gas at Royal Farms. As I was pumping, I realized that I would only save 75 cents for the entire fillup. Then I proceeded to lose 90 seconds by having to wait at both lights. So on my way home, I opened my calculator app on my iPhone and proceeded to do the math.

75 cents per 90 seconds equates to $30 per hour. $30 per hour equates to $62,400 per year!

If I feel that my time is worth $30 per hour, then my decision to get gas at Royal Farms was good.  If my time is worth more, then it was a bad decision. For me, if Royal Farms was 5 cents cheaper every day, then I would choose to pay for gas there all the time. If the two gas stations were few miles apart, then cheaper gas would become more expensive. But since the two gas stations are equal in price most of the times, I don’t think saving 75 cents for 90 seconds of my time is not worth it. For $1.50, I wouldn’t mind doing it.

What do you think? What’s your price cutoff point?

Motoring is a significant expense in our lives and it isn’t one that’s going to go away any time soon. With many of us spending upwards of $7,000 on our cars every single year, this is clearly an area where it’s worth doing what we can to get the most out of our expenditure. It might sound a little counterproductive, but making investments in your car now can actually help you save in the future. This can have an impact on everything from your ability to get the cheapest car insurance to the amount you spend on gas, so a few small investments could well be worth it.

Security
One of the most important areas you can invest in your car is in its security. Some cars come equipped with things like alarms and immobilizers, but others don’t. It might cost a few dollars to get them fitted to your vehicle but, unlike other modifications that you could make to your car or purchase useless options, these should have a beneficial impact on the cost of your insurance. After all, a car that has more security is harder to steal – and often easier to trace if it is stolen – so this is something that car insurance companies look for when deciding how much you need to pay for your policy.

Repairs
It’s been said elsewhere many times but it certainly stands repeating: making minor repairs on your car as and when they arise can save you a significant amount of money in the long run, so don’t delay. A repair that costs you $100 now might end up costing thousands further down the line if it’s left to get worse – and some damage can even end up causing accidents, such as cracked windshields, worn down brake pads and rusty engine parts. Additionally, you will be able lowering your effective car payments in the long run.

Maintenance
This means that investing in your car’s security is also worthwhile. Take air filters as an example. Ideally, these should be changed every 25000 miles or so to keep them working as efficiently as possible. If you don’t do this, your fuel efficiency will start to drop and could reduce by as much as 10 or 15%. With gas prices currently high, this could be adding quite a lot to your fuel bill. Another area for action is your tires: these are at their most effective when fully inflated so check your car’s handbook to find out how full they need to be and, if necessary, pay for a service to get them checked. If the tires aren’t properly inflated your fuel efficiency can drop by around 5% as well as meaning that the traction won’t be working properly – both things that could potentially cost you more in the long run.

Overall, all of these investments add up to make your car safer, which isn’t just a bonus for your car insurance costs. It also makes you less likely to have an accident that could hurt you or someone else, and will keep your car in good working order for as long as possible. At a time when many of us are looking for ways to save cash, it turns out that spending some money now could actually save us quite a bit in the future.

When I was in the market for a new car a year ago, I wanted to make sure I got just enough car to be comfortable. I didn’t want the extravagant extra options that I don’t really need or need to use. It was my way of keeping the costs down and being happy with my new car at the same time. My Nissan Rogue provided me with just that. By purchasing a near bare-minimum in options, I was able to save over $6,000 in additional costs for impractical options. Not only that, you’ll also save in motor insurance policy due to lower value of the new car. Avoid these 5 useless options in new cars and you’ll be on your way to saving more money.

1. Upgraded Audio System – The upgraded audio system is one of the most commonly purchased upgrades that people finds themselves purchasing after being convinced that the one that is standard for the car is of poor quality and that you will receive much better sound with the upgrade. The truth is that if the audio system was not a great quality audio system the car manufacturer would not have included it in the car. More times than not the audio system that is included in a new car is good enough for just about anyone, and there is no need to spend the extra thousands of dollars for the upgraded version. In my Rogue, I did not opt for upgraded sound system. Instead of 8 speakers with an Amp, I just have 6 speakers. Instead of 6-CD changer, I just have 1-CD. I decided that I didn’t need the extra 2 speakers and 5 additional CD slots, especially when I use my iPhone for all my music needs.

2. Front Camera / Parking Sensors – I guess if you have a hard time parking and are always running over the curbs in parking lots, or bumping the cars when parallel parking, then front camera and parking sensors will be useful. But really, if you have a hard to parking your car, then you are probably not a very good driver. A good driver is a combination of driving skills, defensive driving skills, and parking skills. If you don’t possess any of these skills, then you are a bad driver and shouldn’t be spending a lot of money in new car purchases.

3. Sunroof/Moonroof – My previous car, Mazda6 had a sunroof/moonroof (more technical term is moonroof these days) and I rarely used it. In fact, I hated using it. Not only did it make a horrible noise from wind resistance, it didn’t allow additional fresh air either. It was pretty much a useless option I rarely used. The only cool thing was that I was able to look over to the sky above me when I’m at a stop light and was bored. Additionaly, when you keep the moonroof open, you also lose some gas mileage as the wind drag makes it harder for your car to move forward with efficiency.

4. GPS Navigation – I think this is self explanatory. Although in-dash integrated navigation devices are more powerful than the handheld portable ones you can buy from Best Buy, they are ridiculously expensive. Not only that, it costs additional ridiculous amount of money to upgrade to a newer map. The handheld portable ones are just as useful and much more cost effective. Opt out of in-dash GPS navigation system if you can.

5. Roadside Assistance – Many dealers are including this option as part of your warranty. Unless it’s free, don’t be fooled. If you’re fully insured through your insurance company, you most likely already have car breakdown cover in your policy. Don’t pay a single penny extra for additional roadside assistance.

If you bought your car for investment reasons, then most likely, you’re in the red. Cars or any other mobile vehicles are the worst investments you can make. People often buy cars because they need to get from one place to another. And  most likely, the value of your car depreciated since the day you drove it off the lot. And if you’ve owned your car for a couple years now, you’ll soon will have to fork over some additional money for big maintenance costs such as replacing tires, scheduled maintenance service, etc. These costs, if you’re not careful, can dramatically increase your effective monthly payment on your car. The more you pay for your maintenance costs, the higher your effective monthly payment. However, there are ways and methods to increase the life of your car and keep your wallet fat.

1. Oil Change – Jiffy Lube among other auto shops declare you change your oil in your car every 3,000 miles or 3 months, whichever comes first.  It doesn’t hurt your car to change oil of your car more than you need to, but it’ll definitely hurt your wallet. If you read your owner’s manual, you’ll be pleased to find that you really don’t need to change your oil for 5,000 to 10,000 miles. If you like to use synthetic oil, it’s possible that you’ll last 10,000 – 20,000 miles between oil changes. I currently change my oil every 7,000 miles on my Rogue (my buyer’s remorse) and 8,000 miles on my wife’s Accord.

2. Premium Gas – People often think that by using premium gasoline, they’re doing their cars a favor with higher quality gas. But they’re wrong. Not only is the gas mileage improvement is very minimal, the additional cost doesn’t justify the benefits. Don’t pay this higher cost unless your owner’s manual says premium fuel is “required.” But if premium fuel is just “recommended,” you can still buy regular and will run perfectly fine. The only difference you’ll most likely see is smaller wallet after every fill-up.

3. Air Filter – This item is one of those that you’d most likely forget about if your mechanic never mentions it to you. At about 20,000 miles, the air filter under your hood will begin to get dirty. While you can still shake the dust off and make it last a few thousand miles longer, it’s still wise to replace them within 25,000 miles. After that, your gas mileage will start to become penalized.

4. Open Windows – During the summer seasons, you might be more inclined to roll your windows down while driving, thinking it might save gas as opposed to turning the AC on. While the thought is partially true, I still prefer to use AC as often as I can. Generally, at speeds above 40 mph, the drag resistance from open windows causes more loss in gas mileage than using air conditioning. Having the sunroof open also creates similar drag resistance that hurt gas mileage.

5. Insurance – There’s a good chance that you are either paying too much for your auto insurance or have too much coverage. If you are the sole owner of the car (no payments), then you are not required to pay for collision and comprehensive coverage.  Collision coverage covers the cost of car damages as a result of an auto accident, up to the value of the car. Comprehensive coverage covers damages caused by everything else, such as natural disasters and hitting an animal. If the annual cost of each of the coverage is more than 10% of the total value of the cost, then ditch this useless insurance coverage. Also, shop around for cheaper insurance. More often than not, you’ll find a cheaper insurance quote elsewhere.

Everyone knows that car insurance is something they need to have, but in a security conscious age when we’re also watching what we spend, what can we do to help reduce car insurance costs? This article looks at five security factors that can not only improve the security of your car but also help to lower your car insurance costs.

1. Where you park it
Where your car is parked is something that insurers take into account when calculating how much you pay for your car insurance. As you might expect, parking it in as secure a place as possible will definitely be beneficial for your auto insurance quotes. For instance, many people park their cars on the road on a regular basis. In some places, this can’t be avoided and so there is little you can do about it, but many people have the option of parking their car on a drive or in a garage. This will make your car much more secure as it is less likely to get clipped by other, passing cars on the road.

2. Car alarm
Having a good alarm for your car that alerts you if anyone tries to tamper with the vehicle is another good option for people looking to improve their car’s security and reduce the amount they pay on insurance. Some cars come with alarms already installed, but if yours doesn’t then you can usually get one fitted fairly easily at your local garage.

3. Steering lock
Another good way to make your car more secure and harder to steal is to get a decent steering lock. These are relatively inexpensive to buy and make it much harder for anyone else to take your car, so they are definitely worth investing in. They’re useful whether your car is parked on your drive or in a public car park as they help to secure your car wherever you are. It’s certainly worth telling your insurance company if you have one as it might make it more likely that you’ll be able to get a good, cheap car insurance quote.

4. Wheel locks
This is a security addition that is very useful if you have alloy wheels: a good set of wheel locks. Alloy wheels are more likely to be the target of thieves than ordinary wheels and having them on your car can also add to your car insurance costs as they count as a modification. You can help to combat this, however, by using wheel locks that make it much harder for the alloy wheels to be removed.

5. Immobilizer
Finally, if your car has an immobiliser (a special, extra key that the car won’t work without), this is something else that you should tell your insurance company as this might also help to bring down your car insurance costs.

Overall, security is not the only factor that dictates how much you pay for your motor insurance, but it’s definitely an important component of it. Having a car that’s safe and secure is naturally beneficial and gives you peace of mind; the fact it can help to reduce the amount you pay for your insurance is really just the icing on the cake.

*Note: This article was submitted by a virginmoney.com representative.

I have lived in the Baltimore/DC metropolitan area for over 25 years and I always believed that we had the worst drivers in the country. We can’t merge or change lanes effectively and don’t know how to use turn signals. When the weather changes ever so slightly, our driving dyslexia turns on at full speed.

Fortunately for me, my opinion isn’t biased at all. Allstate recently released their seventh annual “Allstate America’s Best Drivers Report” and has DC as the worst of all major cities included in the study this year. In addition, Baltimore didn’t fare that much better as they were in the bottom 5.

Allstate offers the following 5 tips in becoming a better driver.

1. Minimize distractions - Engaging in any other activity while driving – talking on your cell phone, text messaging, changing a radio station, putting on makeup – is a distraction.
2. Be aware of road conditions - Ice, snow, fog, rain – all of these weather conditions require extra caution and slower speeds.
3. Leave a safe distance between your car and others around you – Maintain at least one car length space between your car and the vehicle in front of you for every 10 miles per hour of speed.
4. Steer clear of road rage – Reduce stress on the road by allowing plenty of time for travel, planning your route in advance, and altering your schedule or route to avoid congested roads. Remember not to challenge aggressive drivers and stay as far away from them as possible.
5. Maintenance matters – Ultimately, safety also depends on the maintenance of your car. Ensure that your car brakes, exhaust system, tires, lights, battery and hoses are in good working order.

I think these are some excellent advice. I like to add a few to this list.

1. Be aware of other drivers – Defensive driving skills are crucial in avoiding bad accidents. Understanding and anticipating other drivers’ move and reacting accordingly can help avoid unwanted traffic incidents.
2. Don’t rely on mirrors – Mirrors are nice and can help you see better. But they shouldn’t be the last thing you look at before making any turns or switching lanes. I have on occasion relied on my side mirror to change lanes only to get honked at by the car in my blind side.

So please use these advice and become better drivers.

The number of people opting for greener driving choices is growing steadily and the range of vehicles on offer continues to expand. Even if you have a poor credit rating, there are ways in which you can obtain funding for a new hybrid or electric car and there are a number of credit cards for bad credit which will help you rebuild your credit profile. There’s a wide price range of hybrids available and you can pay from around $21,000 for a basic Toyota Prius or Honda Civic, all the way up to almost $50,000 for a Lexus RX 400h. Toyota’s upmarket Highlander is priced between around $34,000 and $39,000. The Nissan Leaf electric car starts at just under $33,000 whilst the Mitsubishi i, due for launch in the US in 2012 is expected to be priced below $28,000. At the top end of the market, the Tesla Roadster comes in at a cool $120,000.

Poor credit rating can be down to a history of not repaying previous loans or debt, or it can simply be because you haven’t taken out any loan agreements before and therefore have no record of repaying, either good or bad. Credit cards for bad credit can be a very useful way of building up your credit profile, either because it’s been damaged in the past, or because it hasn’t yet been established. Also known as credit builder cards, they are a great way of proving that you can manage your debt in a responsible way. Bad-credit cards won’t be suitable in themselves to pay for something as expensive as a new car as you will only be given a relatively low credit limit, perhaps amounting to around $1,000. Interest rates on these cards are much higher than regular credit cards so they are not suitable for borrowing on when you’re not paying off the amount in full each month.

However, the important thing is that they are a useful tool to rebuild your credit score and in time, will help you to access better borrowing deals. A personal loan would be a more appropriate way of paying for a new hybrid or electric car. If you have a poor credit profile, you may still be able to get a loan, although it is likely you will have to pay a higher rate of interest than if your history of credit was good. Interest rates vary between 16.6% and well over 400% depending on the provider. You must either be a homeowner because the loan will be secured against your property, or failing this you will have to have a family member or friend who is a homeowner and is willing to sign as a guarantor for you.

Additionally there are a number of different types of finance deal available to car buyers. These are offered by car dealerships themselves, but you are of course completely free to shop around. Personal Contract Purchase (PCP) means relatively low monthly payments. However in order to own the car at the end of the agreement, you would have to make a larger payment. You don’t have to do this and if you’re the sort of person who regularly changes their car, you may well decide not to. With a PCP plan, effectively your monthly payments are covering the depreciation of the car along with interest on the outstanding balance. Another type of finance arrangement is through Hire Purchase. This is a straightforward loan secured against the car itself. Your monthly repayments will, over the agreed time period, pay off the whole cost of the vehicle and it becomes your property once the last payment is made. With any type of loan or finance plan, it is important to keep up repayments. If you are having problems with this you must contact your provider at the earliest opportunity.

Note: This is a guest post from a representative of moneysupermarkets.com

Last week, we witnessed our first accumulating snow this winter in the Baltimore area with a whopping 1 inch of snow. The temperature was way below freezing so everything that fell, stuck onto the ground. 1 inch of snow had the same effect as maybe 3-5 inches of snow. Schools closed early and some even opened late the next day. Traffic became a gridlock in all parts of the highway as people simply just forgot how to drive. My mom told me it took her 2.5 hours to drive home from work that normally takes about 35 minutes. Whenever the weather is bad, I normally take extra caution as to be as safe as possible for me and for other drivers around me. Here are some tips I offer for safe driving in the snow.

1. Drive Slow – It can be a lot of fun driving fast in the snow. I tried it when I was a teenager. It was snowing very hard at night when I was driving home. I was literally 4 houses away from home when I decided to drive faster to see how much fun it would be. I hydroplaned and hit my neighbor’s parked corvette. I know driving slow is a no-brainer, but I see so many SUV’s and trucks just whizzing by as if they’re invincible in the snow. There’s no need to drive fast in the snow. Be careful and just drive slow.

2. Don’t Change Lanes – Try not to change lanes too often when it’s snowing. Usually, it’s the areas in between lanes that are the most slippery because they are less frequently driven. Changing lanes I believe makes you most vulnerable to hydroplanes, especially when you hit that one spot of ice or thick snow. You could lose control and hit a nearby car or guardrail and fall into a ditch. If you must change lanes, make sure there are no cars around you and go ever so slowly, without hitting on the brakes. Just let go of the gas and change lanes cautiously.

3. Don’t Follow Too Closely – Sometimes, following the car in front of you can have its advantages. The car in front paves a way for you. But if you follow too closely, that could be dangerous at the same time. Give yourself plenty of distance between you and the car in the front.

4. Have Plenty Of Washer Fluid – I use the windshield washer fluid religiously when it’s snowing. The salt residue that splatters onto my windshield becomes impossible to wipe with just the wipers. The snowflakes don’t provide enough moisture to get the residue off. Use your washer fluid so that you can see clearly when driving in the snow.

5. Use Lower Gears – Using lower gears will eat up your gas, but it’s safer. If I’m driving about 40mph, I will shift to gear 3. If I”m going 30 mph, I will use 2. When I’m approaching a downhill portion of the road, I will shift down to gear 1 and drive extra cautiously. The lower gears provide that extra protection without having to use the brakes to come to a slower speed. For automatic transmissions, just use D1 or D2 to shift down to lower gears.

6. Pump Brakes – When coming to a stop such as to a stop sign or  a red light, pump your brakes. Don’t slowly and gradually press on the brakes as you would normally. That could lead to skidding and hydroplaning out of control. Tap the brakes quickly for 1-2 seconds, let go, and then tap the brakes again. Repeat the process until you come to a full stop. This means that you need to start the braking process much earlier than you normally would.

7. Practice Defensive Driving – Read my previous post on defensive driving tips. These tips along with the previous six listed here will help you become a safer driver in the snow.