More Love for the Hoopty

If you’re a regular reader of this blog than you know that I have a hoopty(beat up old car) and think it is one of the better forms of frugal transportation. Trent at The Simple Dollar recently linked to a couple of posts that show why a hoopty is a great,frugal transportation choice.

Do Cars Stop Depreciating After 200K Miles? from Pro Bargain Hunter. My car has over 200,000 miles and I’m not at all worried about it depreciating. I plan to get just salvage value from it when I’m done with it, anything more will just be gravy. I bought my car for $1750 so even a 100% depreciation wouldn’t be that much.

Hybrid vs. Gasoline Vehicle Comparison – Are Hybrids Worth it? from Million Dollar Journey. After reading this post Trent came to the conclusion that the most efficient car in terms of carbon emission and fuel efficiency isn’t a hybrid. It’s driving an old Toyota or Honda into the ground. If you’re concerned about being green consider that by buying an older car you’re keeping it out of the junkyard and helping delay the carbon emissions that would result from manufacturing a new vehicle.

If going without a vehicle isn’t a viable option for you than I would suggest that buying a hoopty is your next best option.

My Food Stamp Experience

Last month I read a post at Living Almost Large titled “Still Hungry with Food Stamps”. It was in response to this CNN article about a woman who found it difficult to feed her and her baby on $280 a month in food stamps. LivingAlmostLarge thought that it shouldn’t be a problem to eat on that amount a month but some of the commenters disagreed with her. Since I’ve been on food stamps myself I wanted to do my own post on the subject and I’ve finally gotten around to it.

I was on food stamps in Texas for three months in 2003. I was employed at the time but not getting many hours and therefore not making much money. I was making just enough money to pay my bills but certainly wasn’t going hungry. Since I worked at a pizza restaurant I had access to free food several times a week. I debated whether to apply for food stamps but decided I should go ahead and take advantage of the program.

It was pretty easy to apply for the food stamps. I just filled out an application and dropped it off at the office. I was called about a week later and after a short interview I was declared eligible for $160 a month in food stamps. I don’t remember the exact details of documentation but I remember being surprised at how easy the process was. I was also surprised at the amount, $160 seemed like a lot to me for one person.

The food stamps were actually in the form of an EBT card which worked like a debit card. The first month I used my entire allotted amount. Some of this was due to buying food for a friend that visited and building up a supply of basic staples. The second month I didn’t come close to using all of my allotted amount. This amount rolled over to the next month resulting in me having much more than $160 to spend on groceries for the month. The third month I got a new job and canceled my food stamps. However, I was still able to use the amount remaining on my EBT card and used it to buy my groceries for the next couple months.

Overall, I would say my experience with food stamps was a positive one. I found a $160 a month to be plenty of money for groceries and I actually bought more expensive foods than I normally would have. I did occasionally get dirty looks when using the card but for the most part no one seemed to care that I was using them.

If I were in the same position again though I wouldn’t apply for food stamps. I was eligible for them so it was legal for me to do so but since I could have easily got by without them I don’t think it was ethical to do so. So far this year I’ve been averaging $100-$150 on food including restaurant food so I’d have to be pretty poor to not be able to afford food without food stamps.

Gas Saving Challenge

David from David Makes Cents and Sean from Financial Ramblings recently had a gas saving challenge.  The goal was to see who could get the larger percentage improvement over the EPA MPG estimates.  David managed to get 32.257 MPG which compared to the EPA MPG estimate of 29 amounted to 12.16% improvement.  Sean got 32.088 MPG which compared to the EPA MPG estimate of 26 amounted to a 23.4% improvement.  Both of these are much better than the EPA’s fuel economy estimate which shows that you can significantly increase your MPG by altering your driving habits.

I didn’t participate in the gas saving challenge but I keep track of my mileage anyway so I can do a comparison.  My last four tanks I have gotten 30.2,32.29,33.22 and 34.42 MPG.  All of them except for the 30.2 amount reflect a large amount of highway driving.  Using the 30.2 figure I am doing just a little better than the EPA figure of 29 MPG for combined driving.  This isn’t too bad considering I was using my a/c the whole time and it also includes two shifts of pizza delivery driving.  If I compare my 30.2 MPG to the new EPA estimate for combined driving of 26 MPG than I’m doing really well.  The new EPA MPG figures are 26 MPG for combined driving, 23for city driving, and 31 for highway driving.  The old EPA MPG figures were 29 combined, 27 city, and 34 highway.  The EPA changed the way it calculates MPG because people complained that the old figures were unrealistically high.  I find thought that the old figures more accurately reflect my style of driving.  You can find EPA estimated MPG for your vehicle at fueleconomy.gov.

May Investment Income

My investment income for May came to $27.66.  This is a very small increase from $27.50 for April.  I didn’t contribute any money to my Roth IRA.  I forgot to include my 401k last month or my income wouldn’t have gone up at all.  My 401k is tiny right now.  I contribute 6% of my pay but I only work two shifts a week and have a low wage so that doesn’t add up to much.

This is not my actual investment income. To get this figure I first add up my retirement accounts, emergency fund, and any other money I consider permanent savings.  What the total of my savings would earn at 6% interest for a month is my monthly investment income.

May Income

Here is a breakdown of my income for May.

Job

$728.39

Online Income

$392.65

Stimulus Payment

$368.00

Gambling

$64.00

Survey/Half

$46.58

Bank/Other Bonuses

$167.99

Interest

$45.24

Gift Card Promo

$52.15

Total

$1865.00

I’m quite pleased with the total. I only worked part time but my online income and other alternative income helped give me a good income for the month. I’ll add more analysis later.