It's Easy Being Green

A new study out this week is showing that the post-Christmas rush to spend gift cards is apparently non-existent. It’s a sign that everyone is dealing with a continually weakening economy. Our nation’s biggest retailer, Wal-Mart, has been closely watching the way people have been spending their holiday gift cards this month. It turns out people are either holding on to them and saving them for harder times or they’re spending them on basic necessities.

Wal-Mart has indicated that most gift card purchases in their store are going toward food staples like pasta, cereal and canned goods. Even other major retailers are seeing similar trends. Upscale clothing retailers are seeing more people spending their gift cards on socks and underwear then on that new $100 pair of jeans. People are walking right past those plasma screen TV’s, video games, CD’s and other superficial items and picking up the necessities.

This sign doesn’t make me worried. I feel like we’re in a good position to weather a recession should our country really slump into one. We are always stocked up on the basic food items and are continuously looking ahead. What do we need and what do we really need to not spend the money on? One thing we could do better is save. It’s hard right now at this point in our life to really shunt money away into another account. Our retirement savings has been underway for the last 5 years now and we do have about $2,000 in a savings account that never moves. But, I still don’t think that’s enough and would like to have a bigger pad.

In the meantime, I think this latest economic trend shows consumers finally realizing what’s important and what isn’t. You need the basics to live. All the rest are just accessories of our lives that for some wild reason, we feel like we need to drag around with us. I’m glad we’re getting a bit of a reality check. I don’t think our nation has really had to scrimp or save for awhile. While I’d like to think it will get people into the habit of planning financially and making hard decision on what they need and what they don’t, I know it will just return to the same old consumer economy a few years down the road.

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If you haven’t already read my post below on the Mortgage Meltdown and Credit Crisis you should.  This is an illustration of what amazes me about American’s current financial status and the desire for more.  We were watching TV this morning and an ad came on for “cashcall.com”.  They were advertising small consumer loans, presumably to pay your house payment or other items you’ve already fallen behind on like bills and stuff.  Then, the fine print pops up for less than one second at the end of the commercial.  I was able to freeze frame it thanks to my DVR and took a picture using the digital camera:

It’s a little hard to read but let me break it down for you.  The fine print says a typical loan of $2,600 has an APR of 99.25% with 42 months of payments at $216.55 per month with a $75 origination fee.  If you break that down, you’re paying $10,070.00 for the whole loan spread over three and a half years.  That means you paid $6,495.00 in interest alone on a $2,600 loan.  That also assumes you don’t make a late payment or get hit with other fees in the process.  What a bunch of crooks!  I hope consumers steer far away from companies like this!

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You’d have to be like an ostrich with its head stuck in the sand if you haven’t heard one bit about the current state of our economy. Houses are foreclosing at record rates, new homes aren’t selling and there’s already an 8 month glut of unsold homes sitting on the market. Add to that the staggering amount of debt a lot of Americans are carrying around and the situation begins to take on some epic proportions.

I just finished watching an interesting documentary called “Maxxed Out“. While I was unsure about it during the first ten minutes, it actually turned into a pretty interesting piece looking at the real impacts of our love for credit. The impacts are extremely sad and disheartening and your left feeling like everyone is just preying on people, waiting to make a quick buck off of them. How did we ever get to that point where people became so engrossed with greed that they will absolutely crush the people underneath them to better themselves? Some would say it’s simply survival of the fittest. Luckily, I’ve never been too wrapped up in the rat race. I was for a time but quickly had a thought about two years ago that it just really wasn’t worth it. I’ve now paid off debts and am in the process of cleaning up my credit. We want to be able to bite while the housing market is down over the next year and get us into a home, so we can finally stop throwing money down the drain in rent every month.

Our government now wants to toss several hundred dollars at each of us so we can go out and “spur the economy”. While I’m honestly not going to sneeze at an $800 check headed my way from the federal government, I’m also not going to go spend it willy nilly like our President and representatives would like me too. Do we really need that new plasma screen TV? No! What you need is to spend more time with your family, get out and enjoy the fresh air or do something good for yourself and our environment. I’m hoping that most Americans will use the money to pay off a debt or throw into their savings account. I know how difficult it is to achieve that financial goal of 3 months worth of pay sitting in your savings account in case of emergency. This just makes it even easier to get there. If you can save 10% of your paycheck, in just a year you will be close to having one month’s worth of pay saved up. That’s not too hard, especially when you add in the “economic incentive” check that will show up in your mailbox.

I know people who just aren’t being smart right now, who still think they’re going to make a mint off someone else. That’s just not going to happen and people really need to buckle down, analyze their spending and be smart about what their paying for. The feds just cut another key interest rate by 0.75% so now would be the time to look at refinancing major purchases like homes and cars. Haggle with your credit card companies to see if you can get a lower APR and save yourself some money on all those interest payments. There’s a lot of websites out there that can help you shop for better deals in the banking system like Finance Genius. If you shop around, you could potentially save yourself hundreds if not thousands of dollars in finance charges and interest. Do something good for yourself in 2008 and become financially fit.

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It’s warmed up to a balmy 17-degrees outside today but with the wind chill it feels more like 4-degrees.  It was bitter cold last night and the car wasn’t too excited about starting up for the drive home from work.  This morning the house felt more like a meat locker inside…making us realize just how truly un-efficient this rental house is.  If you’re faced with high heating costs or just the aggravation of trying to keep your house at a comfortable temperature, you should think about doing your own energy audit.

It’s pretty simple.  You just need to walk through your house and begin considering where you could be losing heating and cooling efficiency.  Unless you’re doing a remodel or buying a house, there’s not much you can do about existing insulation in your walls and ceilings.  However, if you can find out what the insulation value is inside your walls  you can determine the efficiency of that.  A lot of common home insulation is rated around “R-11″ or “R-19″.  The higher the number, better the insulation is.  Some homes will have r-values reaching into the 30’s or 40’s.  According to the Department of Energy, eco-friendly homes built with straw bale walls have an R-50 value!  You can read more about their test homes and the different insulation comparisons by clicking this link.

The biggest source of decreased heating and cooling efficiency is air leaking in and out of your house.  The home we rent is only outfitted with single-paned windows.  That’s extremely inefficient because there is such a rapid exchange of cold air through these windows into the house.  It’s the opposite for summer, with a rapid exchange of heat into the rooms.  The house is outfitted with honeycomb shades on most of the windows.  If lowered prior to dark and kept closed until the sun is well up, they seem to do a decent job of retaining heat and keeping the chill out.  But if the house was outfitted with double-paned, “Low E” windows it would feel much more comfy in here.

There’s also a set of French doors off the dining room and kitchen that are poorly sealed.  You can see the light coming through gaps in the frame and weatherstripping on the door.  About $10 worth of weatherstripping and caulking and a half hour of work could greatly improve the cold air that moves through these doors.  We also hang curtains over it to keep the cold draft out and place an old rolled up blanket at the base of the door to prevent that draft too.

If you’re faced with any of this dilemmas, you should check out the Energy Department’s Home Energy Audit.  It’s easy to click through and tells you all the potential trouble spots in your home.  Best of all, it’s something you can do in just an hour or two or even spread out over several days.  In the long run it could help you save money and keep your house a little more comfortable.

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The NOAA is predicting a warmer and drier winter than normal this year. That might sound like music to many people’s ears considering the high cost of heating oil and natural gas. But, with those prices on the rise too, it will quickly outweigh the benefit of using your heater less. Here in Arizona the Corporation Commission, which is in charge of governing the state utilities, says they’re actively trying to lower the cost we pay for natural gas. However, they add it’s unsafe to consider alternative heat sources like wood stoves and wood pellet stoves. They say it’s a fire risk and I just can’t imagine why a state commission charged with regulating the local utilities would make a statement like that. Maybe it’s because their pockets are lined with the dollars from the state utilities!

Regardless of whether there’s any real under the table deal making going on between the Arizona Corporation Commission and the utilities, the group is obviously going to protect the utility companies. It’s not a shocker that they would try to steer you away from cheaper, alternative methods to heat your home. I can tell you first hand that our wood stove does a damn fine job of warming up our humble home at night. In fact, our thermostat regularly reads a balmy 72 degrees while we have a fire going.

I know many people who plunk down about $160 for a cord of juniper or oak firewood as their primary heat source. In Northern Arizona, that cord will usually get them through the winter just fine. Imagine, $160 to heat your home for the winter months compared to probably around $50 to $150 a month to heat your home with natural gas. Now which seems more economical? Maybe that price tag is too much for you to shell out at once. In the Coconino National Forest, you can get your own wood cutting permits starting at $20. The permit is good forest-wide so you can harvest dead and downed wood and you’re doing your part to help cleanup the forest and prevent devastating fires. Or, if you’re willing to drive a bit out of your way you can get a free wood permit. There are a few areas on the forest that are overflowing with dead trees, ready to be cut. Secure the permit and you’re on your way to a free firewood extravaganza and you can feel good about the work you’re doing, helping to protect the forest from a massive wildfire.

Many people out there bock at the amount of work involved with cutting your own firewood and splitting it. I look at it of more of a way to connect with the past and learn techniques that will help me get through this world if anything terrible ever happens. What are you going to do when we have an oil shortage and you can’t run that $2,000 gas powered wood splitter? If you’re like me, you learn how to do it by hand with tools that don’t require gas or electricity to run…just good ‘ol fashioned manpower! I found that splitting wood by hand is a great cardio workout and it really builds your arms and chest too. Online, I’ve found several great hand tools that are similar to one I borrowed from a friend and used to split my wood.

There’s the Super Firewood Splitter , the Easy Motion Splitter, and the Wicko Super Spear Splitter. All of these will save your back from the swing of a maul or sledge and potentially offer you more splitting force. It requires nothing more than some calories to burn and some yearly lubing to keep it splitting smoothly!

If you don’t know much about using wood for your heat, head over to one of my favorite resources, Mother Earth News. It’s a great magazine that teaches you the ins and outs of sustainable living and homesteading. Their online article archive is a great tool for anything on the subject of sustainable living. They also have a great article in the archive called A Connoisseurs Guide to Fuelwood. It will tell you just about everything you need to know!

Let me know how you heat your home and any tips on alternative heat sources you might have.  Do you have a special wood splitter or tool that you’ve found works really well?  Let me know!

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