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Save Money on Gas – Buy a Scooter

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Buy a scooter… don’t be afraid

While I’m fully aware a lot of people think driving a scooter is wimpy, dorky, etc., I’ll also challenge those closed minded, old-fashioned opinions as being too concerned with what others think.

It makes sense. Our ability to think outside the box has been beaten out of us by a consumeristic culture and persuasive advertising.

Despite numerous benefits and few draw backs – unless you’re a college student – owning a scooter is relatively uncommon in most parts of the United States – not so in other parts of the world.  When considering the pro et contra, buying a scooter can stack up quickly into an economically wise purchase.

Scooters, moped, and motorcycles

In the interest of this article, scooters are synonymous with mopeds and defined as follows:  a 2-wheeled vehicle with a saddlelike seat mounted on the footboard and being propelled by a motor – and for the purpose of economy let’s focus specifically, but not entirely, on scooters of the 50cc motor variety (to be further explained later in the article.)

A scooter ≤ 50cc and a motorcycle ≥ 51cc. CC = cubic centimeters and refers to engine size (volume of air and fuel mixture intake in a cylinder bore.)

Although some states differ, most states consider any motorized bike 50cc or less to be a scooter and any bike 51cc or higher to be a motorcycle… a very important distinction because many of the benefits below do not apply to motorcycles.

Since scooter/moped laws differ from state to state be sure to check your applicable state laws pertaining to helmets, insurance, registration, etc.

Let’s take a look at some benefits, along with a few buying tips, as seen through the eyes of this fledgling scooter owner; but first, some helpful details about my scooter.

My scooter

My scooter is a 2009 JCL model MP50B.  I purchased it in mid April 2010 for $600 despite a KBB value of $710 at the time of purchase – I love a good deal.  The bike had been driven only 385 miles, was in pristine condition, and ran like a top.  One month and 450 miles later… everything is on the up and up and I couldn’t be more pleased with my purchase.

Save money on gas

Driving a scooter will save you a boat-load of cash on gas.  Let’s look at the specifics of how much I have saved in just one month.

Since purchasing my scooter one month ago (at time of writing) I have driven 450 miles on 4 tanks of gas.  The tank is 1.32 gallons and the scooter gets 100 mpg, using an average gas price of $3.00/gallon I have spent $13.50 on gas compared to the $90 I would have spent driving my 2000 Jeep Cherokee Sport, which gets a mere 15 miles to the gallon.

Conclusion?  My scooter gets 6.667x better gas mileage than my Jeep and should pay for itself in one driving season in gas savings alone.

Save money on vehicle maintenance

Every mile I drive the scooter means one less mile on my Jeep.  Maintenance and parts for my Jeep are much more expensive than for my scooter.  I can perform maintenance on the scooter myself and replacement parts are much less costly.

Save money on insurance and registration

Again, although some states may differ, in Michigan a 50cc scooter does not require insurance coverage.  The only cost associated with driving my scooter, other than gas, maintenance, and repairs… is the registration tag.  Michigan charges $15 for a 3 year registration sticker.  That’s it folks, $5/year.

Save money on a helmet

In many states a 50cc scooter rider is not required to wear a helmet.  While many choose to wear a helmet anyway, they are not required to by law.  This could obviously draw a lot of comments, but putting aside all that debate, the fact remains… many state laws do not require a helmet on a 50cc scooter.

Buy a scooter used

Just as purchasing a slightly used vehicle is often a better decision than buying new, the same is true for scooters.  Here are my tips for those looking to buy a scooter used:

  1. Do not buy a scooter from a college student. No offense young’ens… but I was a in college a few years back, which is precisely why I’m telling people not to buy a scooter used from a college student.  Sure, there are always exceptions to the rule but there is a reason their insurance premiums are high, so use common sense.  🙂
  2. Buy a scooter from older folks. Many RV’ing retirees buy scooters for buzzing around RV parks and campgrounds while traveling.  The truth of the matter?  They don’t usually end up using them much and tend to take great care of their possessions.  This means low miles, routine maintenance, fewer wipe outs, and no beating on the scooter.  Find a good price and you have yourself a recipe for a good buy.
  3. Use KBB to estimate buying price. Before you go test drive a scooter, be sure to check out the Kelly Blue Book Motorcycle Retail page to determine a solid buying price.  Simply pick your year, make, model and size to reveal what a low-mile bike in excellent condition is worth.  Print the page and take it with you as a bargaining chip (unless they’re asking less than the bike is worth of course.)
  4. Use Craigslist. Beyond the obvious benefit of using Craigslist, I recommend using a CraigsList search/notification app.  Said application will allow you to input a search term – like “scooter” – and set up alerts for all newly placed relevant ads so you can be the first to contact the seller.  That is precisely how I found my, virtually brand new scooter for such a great price.  I was the first to call, first to visit, first to make an offer, and it paid off.
  5. DO NOT FINANCE. If you don’t have the money saved and previously budgeted… don’t buy anything.  Period.

Wear a helmet

Yes, even if you don’t have to, and yes, even though I listed it as a possible money saving benefit above.  If you’re not going to wear a helmet, consider purchasing a windshield, and a the very least be sure to wear some type of eye protection like eye glasses, sunglasses, or Dumb and Dumber scooter goggles.  😉

Perform regular maintenance

To ensure optimal operation and to extend the life of your scooter be sure to follow the maintenance schedule supplied by the manufacturer.  Most everything is routine like checking/replacing engine oil, gear oil, air filters, tire pressure, etc.  You will not need to hire a mechanic unless you’re diametrically opposed to elementary mechanical maintenance.

Dress warm and carry extra clothing

Even in a northern state of Michigan, I can easily get 7 months of ride time each year, but not without proper winter gear.  If you choose not to wear a helmet, when it’s chilly out you’re well advised to wear a winter cap; while you’re at it… don’t forget the gloves.  Be sure to wear a jacket that seals off your neck and wrists, since failure to do so can turn a cool ride into a freezing cold ride really quick.

Scooters are cool

Don’t let anyone fool you.  When you drive a scooter you save money hand over fist, you get to ride down the open road, and of course… chicks dig guys on scooters.  Just ask my wife.  😉

What are you waiting for?  Go open an Capital One 360 savings account, label it “Sweet Scooter Fund,” and start saving for your soon purchase!

Saving Money – An American Virtue Reborn

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Saving money is trendy again

I recently read a magazine article talking about how the recession has brought saving money back into style as people found themselves short on disposable income and easy credit.  The article went on to explain that part of the “new” saving trend was buying more expensive clothes that don’t wear out quickly, and I agree in principle, but would steer clear of “name brands” found in many magazines advertising sport watches in excess of $300.  While the article had some great info, it felt like they were mostly trying to sell overpriced goods and convince customers they deserved a pat on the back for “saving money.”

What really captured my attention was the article’s focus on how this saving trend was “new”, “fresh”, “exciting”, and not “cheap” like saving money has been viewed in the past.  Apparently people believe that for any idea to be good, it has to be new.  Saving money has never meant “cheap,” and there is nothing wrong with saving… however one may view it.

Saving money is virtuous and logical

Saving is a synonym of the word frugal which comes from the Latin root frugalis and is closely related to the words for both fruit and enjoyment.  Nothing cheap about those terms!  Saving money was actually one of the old Roman Virtues, and in times past was also an American virtue.  Somehow, over time, the modern American virtue regarding money has been closer to irresponsible spending than saving.  For many years in America it seemed anyone who paused to think before spending was quickly characterized as a penny-pinching cheapskate.  Thankfully, that trend has reversed again due mostly to the recent financial crisis.

While not buying stuff you cannot afford is part of of what it means to be a saver, it is only half the meaning.

Webster tells us that saving money is about economy and the use of one’s resources.  A mindset of saving will often lead you to avoid spending even if you have the money saved, perhaps because you are saving for something else or you just feel the purchase would not be worth your life energy.  The essence of saving is simply spending less than is necessary to get what you want, which is hard to do if we are unaware of exactly what we want.  As strange as that may sound, most people never set savings goals for themselves.  Have you set savings goals for yourself?  What are they?

Saving money for specific goals helps you avoid pitfalls

What do you really want in exchange for your life energy?  I’m not referring to the general stuff like food, a roof, some wheels, and a few vacations… I’m more interested in the specifics.  Where exactly do you want to live and in what type of home?  What toys do you want most?  What is most important to you in a vehicle?  Where do you want to go on vacation and when?  Do you want to retire and at what standard of living?  No one can have everything, so we all must decide which things we want most.  If you never ask yourself such questions, there are a couple of financial pitfalls we tend to run into.

First, without focus on what we really want we tend to buy whatever we see… simply because buying new stuff is fun.  We might even buy good stuff, but if it is not what we really wanted, it runs the risk of sitting unused and the life energy we spent to attain the stuff gets wasted.  Without specific savings goals our resources may get unnecessarily consumed, and we eventually miss out on something we would have enjoyed more.  That is not very wise, but most of us have done it more than once… myself included!  🙂

Another common pitfall… not saving as much as we could have had we set specific savings goals.  Without specific financial goals we become comfortable with the status quo.  If our bills are paid and we have some savings… we may never think to save more.  Absent any definitive goals (and the sacrifice necessary to reach them) it is much easier for careless spending to rob us of the things we actually wanted the most but never took the time to define.  The difference between deprivation and sacrifice has been described as the presence of the goal which a sacrifice is made to attain.  Visualizing the purpose of your sacrifice will give you the strength to see it through, to save for it, and is likely to make others wonder how you are able to accomplish so much with the amount of money you earn.

I’m bringing saving back

Finance writer Joe Dominguez looked forward to a time when we would speak of savers with awe and respect (hey, he was writing in the 70’s.)  I think now is the perfect time to bring back the saving trend, but without the $300 watches the magazines are pushing!  🙂  People focused on saving money are typically willing to make sacrifices to meet specific goals.  I set a high goal to save $22,000 towards a house this year.  For me it is attainable, but requires having to say no to some of the fun things we like to do.  My wife and I stick with it knowing that every penny we save brings us that much closer to the house we both want.

Are you bringing saving back?

Have you made a list of which things you want most, and thought about what things might be getting in the way?  Where could you save more and what sacrifices could you make for the things that matter most to you and the things that will help you meet your savings goals without feeling deprived?  We would love to hear about any goals you have set for yourself, or that you have recently achieved.

How To Make Money Blogging

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My Side Hustle

Every so often I make mention of my “side hustle” here on DFA and how it earns money that enables us to repay debt much faster.  Recently several DFA readers have contacted me wanting to know exactly what my “side hustle” is and how I earn money with it.

Well, you’re reading my side hustle now… DebtFreeAdventure.com is the side hustle that is brings in our extra income.  How much extra?  I don’t really want to list specific numbers but suffice to say that it earned enough this month to cover our 1st and 2nd mortgage payments!

Make money blogging

Luckily it is not necessary for me to write a detailed run down of how to start a blog or how to earn money with a blog because others have already done it.  In fact, I would be remiss if I didn’t point you to an awesome new resource to help you do this yourself… if you so desire.

For the last several months Pete over at BibleMoneyMatters.com has been busting his butt to compile a guide that aims to help people make money blogging.  Why listen to Pete?  In just 2 short years he catapulted himself from blogging beginner to a blogger earning enough to replace his wife’s full-time job.

In his own words,

“Over the past 2 years I’ve been blogging 5-6 days a week, generating over 800 pages of content, 6000+ comments and over 1.5 million page views. My site has become more popular than I ever dreamed it could be, and I feel blessed that the site has grown to a point where it is now able to replace my wife’s day job income. That means we’ll be able to afford for her to stay home with our children, which is even more important now that we have our first child on the way!“

Benefits from of earning money blogging

Earning money from blogging is not easy, but it affords you some very rewarding benefits… like:

  • Freedom to work from anywhere – I can work from anywhere, as long as I have a computer (or even a smartphone) with an Internet connection.
  • Control over your own income – The amount I earn is in direct proportion to how hard I work… this is not the case with my full-time job where I earn the same amount regardless of effort.
  • Income diversification – The alternate income acts as a hedge against possible job loss… losing your current job will hurt less if you have developed alternate sources of income.
  • Build savings and/or repay debt faster – Our debt is disappearing much faster thanks to the earnings from DebtFreeAdventure.com.

Another non-monetary benefit is that DFA also allows me to write about my passions.  Even if the site was earning nothing I would continue to write… the money is just a bonus.  Writing about personal finances helps me learn more, stay focused and accountable to our debt reduction plan, and help others along the way.

How can you get started?

Have you been wanting to do what Pete has done, and what I’m doing?  Are you passionate about a subject, eager to learn more, help others, and earn money along the way?  If so then buy Pete’s ebook and learn in one day what it took Pete 2 years to nail down.

If you want to get started blogging for money, check out Pete’s Blueprint For How to Make Money with a Blog.

I have read the ebook myself and highly recommend it to people looking to start an earning blog of their own.