If you haven't gotten hooked on compact fluorescent light bulbs (CFLs) yet, it's time to plug in to the one of the biggest money savers out there. After all, it's not often you can invest $1, gain more than $80 in return, and still remain on the right side of the law.
For those who question my math (I appreciate those of you who don't work on blind faith), here goes.
The cost of CFLs has plummeted significantly in recent years. Partly this is due to increasing demand. And partly, I hate to say, it's because that big-box store that us liberals love to hate took on a massive campaign to sell 100 million CFLs in 2007.
Of course, the only way said big-box store could do that was by dramatically lowering the price, since their average customer is not the type to shell out $10 for an environmentally-friendly light bulb, even if it would eventually save them money.
The result: Wal-mart (there, I said it!) now sells its "Great Value" 23-watt CFLs (the equivalent of the traditional 100 watt incandescent) for only $8.00 for a 4-pack. That's only $2.00 per bulb!
Yes, that's about $1.00 more than you'd pay for a similar incandescent bulb. But consider the payoff: These bulbs last for up to 10,000 hours, at least 8 to 10 times longer than a traditional incandescent bulb. Over time, you'd need to buy at least 8 of those "inexpensive" $1.00 bulbs to last as long as one long-lasting, $2.00 CFL. That's a lifetime savings of at least $6.00.
The real money maximizer, however, is the energy savings. A 23-watt CFL bulb uses 77% less energy than a 100-watt incandescent bulb while giving off the same amount of light. Over it's 10,000 hour life, that's 770,000 watt-hours saved. Assuming an average energy cost of 10 cents per kilowatt hour, that's $77 less you'll spend on electricity over the lifetime of just one bulb.
Imagine the savings that could accrue over time if you changed all the light bulbs in your house.
While some people complain that the light from CFLs is too harsh, this is really only a problem when the bulbs are placed in exposed light fixtures. When protected by a lamp shade or other covering, they light a room just as pleasantly as the standard, energy-guzzling incandescents.
CFLs do contain a small amount of mercury, so they should be properly recycled at the end of their lives. To find local recyclers, visit Earth911 and search for CFL recyclers by zip code.
Wednesday, January 30, 2008
Sunday, January 27, 2008
Protect Yourself From the Bailout
There was an excellent--and quite refreshing--editorial published in the Boston Herald on Thursday: Bad borrowers send rest of us to poorhouse.
Columnist Michael Graham doesn't focus on why the bailout is a bad idea for the economy as a whole (it is, but that's another story entirely). Instead, he draws attention to the injustice of using the tax dollars of responsible Americans to bail out those who bought more house than they could afford.
All I can say is "Amen!" And I'm not even religious.
After all, we don't bail out gamblers who get themselves into debt. But if you choose to gamble on future interest rates by taking out an ARM, why is it someone else's responsibility to bail you out if your gamble goes bad?
It's important to remember here that although those who lose their homes will no longer be homeowners, they will not become homeless. There's a glut of rental properties in most parts of the country, and right now it's far cheaper to rent than to own. Even in spendy Seattle, I calculated that my most recent rental house would cost me 2.5 to 3.0 times more each month if I owned rather than rented--assuming, of course, that you factor in a 30-year, fixed-rate loan and add in the costs of insurance, property taxes, and a few thousand a year for maintanence and repairs.
I mention all this in a post about personal finances because there are a myriad of ways the bailout is bad for your pocketbook (look for more in future posts). To protect your hard-earned tax dollars, the most important thing you can do right now is tell your politicians what you think. Tell them at the state and federal level, because some states are trying to craft their own localized bailouts.
And while you're at it, write or call the Democrat and Republican candidates too. With the exception of Ron Paul, all the candidates on both sides of the political fence are supporting some form of a bailout. Those who got themselves in over their head are the minority, but they're the ones who are screaming the loudest right now--and the politicians are listening. It's time for the rest of us to shout back.
Columnist Michael Graham doesn't focus on why the bailout is a bad idea for the economy as a whole (it is, but that's another story entirely). Instead, he draws attention to the injustice of using the tax dollars of responsible Americans to bail out those who bought more house than they could afford.
All I can say is "Amen!" And I'm not even religious.
After all, we don't bail out gamblers who get themselves into debt. But if you choose to gamble on future interest rates by taking out an ARM, why is it someone else's responsibility to bail you out if your gamble goes bad?
It's important to remember here that although those who lose their homes will no longer be homeowners, they will not become homeless. There's a glut of rental properties in most parts of the country, and right now it's far cheaper to rent than to own. Even in spendy Seattle, I calculated that my most recent rental house would cost me 2.5 to 3.0 times more each month if I owned rather than rented--assuming, of course, that you factor in a 30-year, fixed-rate loan and add in the costs of insurance, property taxes, and a few thousand a year for maintanence and repairs.
I mention all this in a post about personal finances because there are a myriad of ways the bailout is bad for your pocketbook (look for more in future posts). To protect your hard-earned tax dollars, the most important thing you can do right now is tell your politicians what you think. Tell them at the state and federal level, because some states are trying to craft their own localized bailouts.
And while you're at it, write or call the Democrat and Republican candidates too. With the exception of Ron Paul, all the candidates on both sides of the political fence are supporting some form of a bailout. Those who got themselves in over their head are the minority, but they're the ones who are screaming the loudest right now--and the politicians are listening. It's time for the rest of us to shout back.
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