Why I Didn't Do Rooftop Solar, and What I Did Instead

I've long dreamed of getting solar panels to power our home. I think home based solar is an important part of solving our climate and energy problems, and I also like the idea of having quiet, instant backup power when there is an outage. 

Recently I dug deeper and got a detailed proposal from a solar power system installer.

As in all things, there are pros and cons.

A Modest Accomplishment

I recently received the following text message from our bank: "Checking withdrawal posted for $876.10". This was the final payment on our home and land loan, and we are for all intents and purposes debt-free. Now in our mid-fifties and after thirty years of marriage, we are the proud owners free and clear of our home and land, three old cars, an old travel trailer and three kayaks. We've also managed to build an emergency savings account and invest a bit for retirement. Here I'll reflect on how we accomplished that.

A Comprehensive Overview of Prepping Using a Sensible Strategy

Although I own neither a survival knife nor an underground bunker, I am indeed a prepper.

But how, you ask, can someone be a prepper without an underground bunker?

The answer, my friends, is simple. After thorough application of my powers of prophecy, I remain wholly unconvinced that a bunker-worthy apocalyptic event is eminent.

Full disclosure: Although they haven't been officially tested recently, my powers of prophecy are likely rated in the "poor" to "fair" range.

You doubt my credentials? 

What more proof do you need?

Nonetheless, I've been studying and applying the prepping concept for years, and aside from the insufferable agony of running out of hazelnut flavored creamer, six weeks without restocking groceries would be easy peazy. Granted, I never served in the special forces, but I do have my canoeing merit badge and was only a couple ranks shy of Eagle Scout. Or was it three? Four max. Clearly my qualifications are formidable. So let's get on with it.

A Retirement Planning Adventure

Retirement planning is, to me, a confusing and daunting endeavor. However, recently I stumbled across an article about retirement financials from the Stanford Center on Longevity. The Center works on issues people face around mobility, financial security and mental ability as they age. There is some evidence that I fall into the category of "people who are aging." Thus, I think it's pretty cool that we have our own Center at Stanford.

In any case, here's a link to the specific article. It suggests a strategy for managing your income stream during retirement. I found it enlightening and it inspired me to embark on a...

[movie announcer voice]
Retirement Planning Adventure
[/movie announcer voice]

In other words, I made a spreadsheet.

The Steps to Building a Tiny Fortune

Kate and I have managed to accumulate a small fortune, and by "small" I mean tiny, miniscule. These are the things we've done to get there.

• I have packed my lunch for well over 20 years. Kate has packed hers for nearly 15.
• About 15 years ago we realized that if we saved a little each month, in less time than you think it can add up to a decent little sum.
• About 15 ago years we started keeping an emergency fund for unexpected expenses (see above).
• We never had kids. That helped a lot with the two items directly above.
• We buy used cars and put a lot of miles on them.
• I've learned how to negotiate a reasonably good price when buying cars (thanks Dad!).
• I sell our old cars on Craigslist, rather than trading them in.
• We've either paid cash or made significant down payments on land, homes, and cars, and have never been "upside down" (loan balance > asset value).
• We've never borrowed money except for land, homes and cars. Well, there was an awfully nice tractor that I REALLY needed.
• We recognize that where you bank makes a difference. Doing so can save beaucoup bucks on fees, interest rates and penalties. Clark Howard recommends a small community bank or credit union. You might find a credit union here: www.ncua.gov
• We've managed to get good interest rates on car loans and mortgages.
• Almost every electronic device we own (e.g. computers, tablets, cameras, etc.) was purchased either used or refurb, and they are kept for a long time. They are a notch or two below "top of the line".

Home workstation: refurb base model
Lenovo laptop, used monitor.

• We haven't paid credit card interest in many years, and use reward cards to get a little money back.
• Neither of us spends much money on clothes or jewelry. This is probably the most surprising fact in this list, since we are widely admired as trendsetters in the fashion realm.
• We have non-contract cell phone plans. She has a flip phone, I have a "feature" phone.
• All our homes have been smallish. We lived in a single-wide trailer for 7 years (and loved it!).
• We almost never eat out or go to movies or shows.
• I comparison shop and deal hunt obsessively.
• We both have good jobs with decent salaries and good benefits. 
• We both went back to school later in life to enhance our job skills.
• Our furniture is either homemade, hand-me-down, a Craigslist purchase, or inexpensive "assemble yourself".

A table I made. And a cat.

• It's not that I know how to fix a lot of things, but I'm not afraid to try and can often figure it out. I change the oil in both our cars [this, in my opinion, is a basic skill that everyone should have].
• Instead of zipper seal bags, I use fold top sandwich bags and clip them with a close pin. This saves me about 50 cents per month. In ten years, that's $240 dollars!!!
• For many years we have bought mostly generic brands at the grocery store.
• We have a highly refined system for grocery shopping.
• We don't buy expensive gifts for each other.
• I always shop from a list.
• I recently called the satellite TV company when they yet again raised our rates, informed them I was ready to switch to the OTHER satellite company (and I was) and they matched the price, saving us $700 over the next two years.
• We've never been to Europe, Hawaii, or on a cruise. We did buy a second home on wheels, but it's 14 years old and we paid cash.
• We get cheap haircuts and neither of us spends much time at the spa.
• Both of our parents have generously helped us out from time to time.
• Over 20 year ago I read Your Money or Your Life and it profoundly changed my thinking about money and consumption. Later I read The Millionaire Next Door and The Automatic Millionaire (note that it's rather unlikely that we will ever be millionaires, but the lessons were useful). I have listened to literally hundreds of hours of podcasts of the Clark Howard Show.
• Things we've never bought: silk sheets, expensive art, appliances by Cuisinart, audio equipment by Bose.
• About 15 years ago we began making automatic deposits into retirement accounts (I think I started at $10/month), and have gradually increased the monthly contributions over the years.
• We never had kids.
• We've never had to pay for childcare, piano lessons, summer camp, pediatricians, 529 funds, or car insurance for someone under 18. We have paid for some high end dog food and a fancy vet, but I'm pretty sure we came out ahead on that deal (looking at it from a strictly financial standpoint).

My tractor. Splurge? Or necessity?
Admit it, you want one, too.

Ultimately I believe it's possible for someone to make significant changes in their financial situation by making many small decisions over a period of a decade or two. Of course, income level may place significant constraints on the degree of that change. That said, I don't believe it's bad to splurge on things that provide great joy, be it silk sheets, Caribbean cruises or top of the line electronics. Certainly both of us make occasional splurges (but let me tell you, that tractor is SWEET!).

Nor is it to suggest that personal circumstances or crises can't blow it all to hell, in spite of one's best efforts. I hope there's not a hint of judgment here. There are also many times I regret the "not having kids" thing, and I am deeply envious of the joy and love they bring to those of you who chose differently. My goal is just to say that we've made a modest accomplishment, and these are some of the things we did to get there, but I realize that a lot of it is due to the luck of circumstances [June 2021 update: It's also clear to me now how the unearned privileges of being white have benefited us profoundly].

But in any case, here's a pair of cheap earbuds that sound decent: http://www.cnet.com/products/panasonic-ergo-fit/

You're welcome!

Prepared or Paranoid?

Having descended even further into the black depths of internet paranoia (see The Urban Prepper, for example), I decided to make a Bug Out Bag.

A Bug Out Bag (a.k.a. "Grab and Go Bag" or 72- hour kit) is a set of evacuation supplies you would take if you had to leave the house in a hurry (e.g. earthquake, wildfire, flood, etc.). It should contain all the food and other items you would need to survive for a few days.

It should also, according to many, contain all the weaponry you need to fight off zombies or space aliens. Since all the reports of zombie and space alien sitings are unconfirmed, you'll have to speculate on the best weaponry. After extensive study (I watched Signs and War of the Worlds, as I felt space aliens were more likely, plus I'm just not a fan of zombie movies) I decided to include a fully loaded Super Soaker.

Readiness

There are many different degrees of preparedness, from the standard 72-hour kit recommended by the American Red Cross, to those who plan for survival in the case of complete social and economic collapse (often referred to as SHTF, or when the "S@&* Hits the Fan"). To each his or her own, of course, but surely there is some value in considering how to deal with various difficult situations.

From 9/11 to Katrina to the tsunami and nuclear disaster in Japan, there are many possible events that could disrupt utilities, transportation, communication and more. Closer to home and higher on the probability scale are situations like Hurricane Fran, or ice and snow storms that leave large numbers without power for several days.

In this post I will describe my own level of readiness for different situations. In each case I try to consider hygiene, shelter, food, water, first aid, pets and how to pass the time.

This is How I Grocery Shop

Over the years, Kate and I have developed a highly efficient system for grocery shopping.

Cut.

Take two.

Over the years, I have developed a highly efficient system for grocery shopping, and Kate, failing to read the fine print in the marriage vows, has been forced to humor my silliness.

Like most things in my life, it begins with a spreadsheet.

The spreadsheet contains all the items we normally and occasionally purchase at the grocery store.

The items are grouped as they are found on the aisles of the grocery store.

Seriously. I would not joke about something like that.

We buy groceries once every two weeks, and admittedly, it makes for a bit of an epic trip. Before heading out, we do a thorough review of all the items on the list, highlighting the items we need to purchase on that trip. We prepare for the event with a light stretching routine and good hydration.

We've gotten used to judging how much of each item we need to last for two weeks. That includes non-groceries like laundry soap, toiletries and batteries.

Admittedly, we shop at what some would consider the "evil empire" of corporate America. In our perhaps rather weak defense, of the grocery store options in our area it is hard to beat in terms of selection, price and quality.

If you've read this far, I expect two questions have come to mind. Why? (or perhaps WHYYYY?!!!). And secondly, How?

You can bet that we always have
ingredients for chocolate cake on hand!

My theory is that this approach saves us time and money. Unfortunately, I have no actual data to support that theory. But I can say that impulse trips to the grocery store are exceptionally rare. I can also report that we almost never run out of things. We don't run out of mustard. We don't run out of laundry detergent. We don't run out of toothpaste or sugar or chicken noodle soup or cereal. When we get low on something, it gets highlighted on the list and we buy enough to last two weeks.

As for "How", one issue is perishable items. It might surprise you, however, how many produce items will remain in good condition for two weeks. Apples, potatoes and carrots are easy. But even other items will last most of that time if carefully stored. Bananas are an exception, so I just buy a few each trip and enjoy them for a few days then wait until next time.

[Note: My goal for this year is to make weekly trips to our new farmers market].

Milk usually lasts two weeks, and we also buy soymilk which lasts much longer if unopened. In a house with children that consume larger quantities, that might be a challenge.

Most everything else can be frozen if needed. It helps that we have a large fridge with ample freezer space.

I suppose this approach would be challenging if you liked to experiment a lot with new recipes that called for unusual or very specific ingredients. In our house, Kate does most of the cooking (I'm a VERY lucky man!) and she is quite creative at using standard items in new ways. We also have several favorite recipes that we make a point to always keep the ingredients on hand (e.g. Kate's green bean casserole, which you might think, "whatever", but if so you've never had Kate's green bean casserole).

So there you have it, another of your questions finally answered. Copies of my spreadsheet are available for only $9.95 plus shipping.

Why I Always Decline the Extended Warranty

The short answer is "because Clark Howard says so" and perhaps that is enough said. But here's more food for thought.

An extended warranty is essentially an insurance policy. Now I'm a big fan of insurance, and in fact that's an area where Kate and I sometimes disagree (I want more coverage, she thinks it's a waste of money). But consider that the purpose of insurance is to reduce the risk of severe financial harm (e.g. house fire, car accident, expensive medical issue).

In most cases, the loss of a consumer good (e.g. laptop, cell phone, camera, refrigerator, breadmaker) is not going to cause "severe financial harm". It could cause inconvenience and frustration and perhaps a brief financial setback, but likely not severe harm.

It could also be argued that, if the loss of a particular product WOULD cause someone a major financial problem, perhaps they shouldn't purchase that item in the first place, or should consider a less expensive alternative. Laptops, for example, can be purchased for $300 or $3000. Same with refrigerators and TVs. I don't even need to mention Craigslist, ebay and manufacturer refurbished.

Now there's a good chance that, of the two people who read this post, at least one of you has benefited from an extended warranty. You paid $30 bucks for the warranty, and got a new phone for free after you dropped it in the...puddle on the street, let's say.

But think back over all the times you have purchased the warranty and estimate all the money you spent. Now compare that to what you would have spent on repairing or replacing any products that broke. I believe the data would show that the vast majority of consumers who buy warranties spend more on warranties that they would have spent on repairing or replacing broken products.

There is also the question of when to purchase the extended warranty. Do you accept it every time it's offered? The store will offer you one on everything from $15 toasters to $1500 TVs. For it to even begin to make sense to engage in that gamble (that's essentially what it is, and like casinos, the house almost always wins) one would need a criteria, such as declining it on purchases below a certain amount, or for products that are generally very reliable (e.g. TVs).

However, let's say you decide it's worth it simply to reduce the risk of inconvenience and frustration should you drop your smart phone in the puddle. You could decide that's something you'd like to insure, and that is of course perfectly reasonable.

But rather than purchasing an extended warranty, consider the idea of a "self-insurance" program. Every time you purchase something that you believe is worth insuring, instead of purchasing the warranty deposit the same amount of money in a savings account designated for repairing and replacing broken items. Over time, odds are very high that you will come out way ahead.

All that being said, I can contemplate a scenario where an extended warranty would make sense. One might, for example, require a particularly expensive item for health, safety or income production. Loss of said item might fall into that category of causing "severe harm". I'd also note that while I firmly subscribe to the "delayed gratification" philosophy, an occasional splurge that provides great pleasure or significantly enhances quality of life (e.g. a refrigerator with exterior ice dispenser) is eminently justifiable, and might need to be insured depending on specific family economics.

But probably not the toaster. Well, maybe this one.

Treading lightly, or rationalizing the vast sums I spend on gadgets and gas

I count myself among those who believe that our current rate of consumption is a path to widespread damage to the ecosystem. Thus I wrestle with the question of how to tread lightly on the earth. Should I recycle more? Stop patronizing certain companies? Buy a hybrid? For all my wrestling, it seems most of my choices fall short.

Two foot overhangs shade windows
in summer, let light in during winter

Case in point, our house is smallish by first-world middle-class standards. It is energy efficient, with passive solar features. Yet we have a bedroom we hardly use, and storage space for belongings we don't need. It's no "McMansion", but it's a bit more than 182 square feet.

I hardly ever buy an electronic device that isn't either used or refurbished. But I have a LOT of electronic devices.

Our vehicles are used and high mileage. Yet they are embarrassingly inefficient. My daily ride is a full-sized F-150, with a powerful, rumbling V-8. [confession: I love it!]

We own a small chunk of forest, complete with flowing stream. We do our best to care for it. Doing so, of course, requires equipment; two chainsaws, three lawnmowers and a string trimmer. Did I mention the small diesel-powered tractor?

If you believe greenhouse gases are causing scary and severe changes to the earth's climate (and I do), then you would certainly have cause to point a finger in our direction.

I bemoan the fact that so many of the goods I purchase (tires, toilet paper, hiking boots, the aforementioned electronics) are manufactured in far off lands by workers who may be treated unfairly and paid poorly, in factories that surely spew pollutants into the air and water. And yet I continue to buy tires and and toilet paper and hiking boots. And electronics, definitely more electronics.

I find the endless aisles of cereal and scented candles and bath towels and kitchen gadgets to be both nauseating and alluring. I have a suspicion we could turn off all the factories and have still have an ample supply of toothpaste and legal pads and patio furniture for the next decade or so, especially if we all took better care of what we have.

I've done a fair amount of paring down material possessions. And yet a certain major on-line retailer makes regular appearances on my credit card statement and once a day I peruse the Deal News website. OK, maybe twice a day. Three times max. I could certainly manage to go a bit further on the "paring down."

I do at least maintain delusions of self-sufficiency, harvesting firewood and venison from our forest.

Expense is a major barrier to living a "sustainable" lifestyle. Right now there is a wire connected to my house that runs straight to the mountain-removing coal mining of West Virginia. While I would love to sever that line, solar panels ain't cheap. Falling short, once again.

Another justification (rationalization?) is that, even if I lived in a Tiny House and drove a hybrid and ate locally grown lentils and rice, the overall impact would be the same as beating an oil tanker with a hammer. "Let's vote with our dollars and stop shopping at 'Save-A-Wad'" is a nice idea, but the companies, I fear, have gotten too big to notice.

In the end, though, I do believe that actions are important. Yet so are conversations. And creating models. And education. And raising the next generation. And the work we do with the time and resources we have. And living a life that is comfortable and satisfying, in pleasant surroundings, with good food and enjoyable pastimes, so we have time and space to rest and recharge and get back to doing good work.

And ultimately, the change we need to solve the sustainability problem is exponentially more profound than the choice between a Prius and a pickup. [Did you hear the new F-150 will be all aluminum?!! Sweet!]

And so, I will continue to buy my electronics refurbished, DVDs at the pawn shop, and cars on craigslist. My next truck will be another gas guzzler, but I will strive to make more visits to the farmers market, and fewer to the super store. And I'll continue to believe that someday, perhaps not in my lifetime, we'll have a world where waters flow clean, forests grow tall and deep, and poverty and hunger and violence are history. Achieving that goal is an unfathomably monumental task. But I remain hopeful that the small steps we take today will move us just a bit closer.

Why a cutting-edge hipster like me doesn't have a smartphone

I consider myself fairly tech-savvy. After all I tweet (@pgmckenzie), PLUS I have a blog and a dual-monitor set up on my desk. But I'm still using a feature phone, the kind with a slide-out keyboard (you know, like the Brady Bunch kids used to text their friends while dancing to 8-tracks).

I've thought long and hard about getting a smartphone. I've envied those who have them. I've done extensive comparison shopping. And these days you can pick up a basic Android phone for a c-note and use a pay-as-you-go plan at around $50 per month. Relatively speaking, that's a great deal. And it's patently obvious to everyone that I could afford it, what with all my expensive clothes and designer watches.

My phone and iPod Touch

But instead of using one convenient, modern, sleek device that does calls/texts, internet, photos and GPS, I have four stand-alone gadgets; my aforementioned slider phone, a second-gen iPod touch, a very basic point-and-shoot camera, and a refurb GPS I just bought on eBay for thirty bucks (with free shipping!).

Is it less convenient to have four devices (older ones at that) instead of one? Most definitely. There are times I wish I had my camera with me, but it's at home. My 2006 model GPS has 2006 maps, and the touch screen is small and a bit clunky. As I do more texting, the slider phone is getting tiresome.

But here's what it boils down to. My set up is not great, but in most cases it's good enough. It's also a collection of four amazingly powerful devices that most people could not even contemplate fifteen years ago. They are devices that were cutting-edge and transforming when introduced. And it saves me about $15 bucks a month, compared to the $50 pay-as-you-go plans (and I'll bet many of you are paying much more).

Fifteen bucks may not seem like much, but consider this: $15 per month invested in a retirement account with a return of 4% per year (a very conservative rate) ends up being worth almost $5500 in 20 years. That's a gain of almost $2000.

And of course, there's one huge advantage to not having a smartphone; I don't have to read e-mails when I'm out of the office.

There's also something to be said for getting excited about a "new-to-me" device purchased at 20 or 30 percent of the price when new (again, more to put into that 401-K).

This is not meant to be an indictment against those of you with smartphones. Your needs may differ. Besides, I'm glad you have them so I can ask you to look things up for me when we're out and about and there's no wifi for my iPod Touch. And undoubtedly, one day I will join you (although it will probably be a used iPhone from eBay).

My collection of designer watches.

How I Built a Library of Great Music for Almost Nothing

I clearly remember my first efforts to build a music library.  I must have been eight years old, listening to the year-end countdown on the local AM radio station. When they reached number one, my dreams came true as they started playing "Silly Love Songs" by Paul McCartney. I hit the record button on the cassette recorder, put the microphone up to the radio speaker, and I was in business!

Now almost forty years later, I have my first iPod and am working on building a mostly new music collection from scratch, without spending loads of cash on iTunes. Doing so takes a fair amount of effort.  It also requires being satisfied with a lot of unknown artists. Nonetheless, I've found some great tunes and my collection has surpassed 1500 songs. And no, it's not just sitar music. Here are my sources and methods:

• Classical music - Kate and I enjoy classical music, especially on long road trips.  On Amazon you can pick up "albums" containing dozens of pieces for two or three dollars.  We have enough to last us through a trip to Iowa, and I've spent less than ten bucks.
• Free songs of the day - Several sites offer a free song each day, including Google Play, KEXP radio, and Rolling Stone Magazine.  
• Free stuff on Amazon - Amazon has thousands of free songs and adds new stuff on a regular basis. I check it daily.  Here's a link (note you have various sort options and can browse by category):   Amazon Free Music.  They also have a "Free Music from Rising Artists" feature which is updated monthly with a dozen or so new songs.
• iTunes - Every Tuesday iTunes posts a couple of free songs.  Not as generous as Amazon or Google, but I've found some stand out selections.
• More from Google Play - In addition to their free song of the day, Google will occasionally have other free song offers and special deals.  I've found some great songs for 25 cents a piece, for example.
• Other deals from Amazon - Amazon frequently runs sales, such as 25 cent songs, or albums for a buck or three.  Again, I check daily.
• Dealnews - I regularly peruse the Dealnews website (because I'm a little obsessive about that!), and often find free music deals from other sites not mentioned above.  They also post special Amazon offers where you can enter a coupon code for a free song or two. 
• Used compact discs - I've recently discovered that my local pawn shop carries a huge selection of completely disorganized CDs for a buck a piece.

For more ideas, here's a link to a great article from Lifehacker (be sure to peruse the comments, as well):

http://lifehacker.com/5928183/how-to-legally-boost-your-music-library-without-spending-a-dime