Purpose

I started this blog with the goal of documenting our creation of enough passive income by July 2012 to achieve true financial freedom - a great lifestyle funded by money that comes in whether we work or not.

We didn't make it...at least partially because I now believe that work provides a lot of benefits both to the one working (physically, mentally, emotionally, and even spiritually) and also to the one being served.

I still am very interested in investing and the world of finance, so I will try and pass along any interesting opportunities I see, but I have a newfound love for active income as well.

Saturday, May 31, 2008

Improving Gas Mileage - Installment 3

This one is near and dear to my heart since I sell synthetic oil. In fact, the (used) car I just recently bought, one of the first things I did was change the engine and transmission oil over to synthetic.

As I mentioned before, I sell AMSOIL, so take that into account when reading this. If you are interested in learning more about AMSOIL specifically, I am providing a link here and at the bottom of the page. Consider yourself warned :)

Improvement #3 – Use Synthetic Oils

Going from conventional oil to a high-quality synthetic oil should give you a 1-4% improvement in mileage for each component (engine, transmission, and differential) that you put it in. This is based upon testing as well as my personal experience with AMSOIL. If you change all three (assuming you have a differential), I would expect about a 5% improvement.

Let’s talk about each component individually:

Engine oil

Potential savings: $26 – 118 (1 – 4.5% improvement)

Cost: No extra (for most) with AMSOIL up to $100

Cost of my recommendation:
- $0 (most people spend less with AMSOIL)


This is discussion is going to refer mainly to AMSOIL synthetic oils for several reasons:
1) I think it is the best.
2) It is the synthetic oil I am most familiar with.
3) The one-year/25,000-mile engine oil change guarantee (for personal vehicles) makes it by far the most economical option for synthetics.

Other synthetic oils will give similar benefits (though most not as much), but AMSOIL has the most independent testing done on it that I know of, and they really focus reducing friction in the engine, which leads to better fuel economy (as well as better engine protection).

I started using AMSOIL when my wife and I were each driving 25,000 to 30,000 miles a year. To find out I could change oil once a year instead of every month or two and save money at the same time made me ecstatic (well, ecstatic for an engineer). I couldn’t believe more people (like me) hadn’t heard about it, so I started selling it as well.

Starting from “scratch”, makers of synthetic oil can design it to do almost exactly what they want (if the maker chooses to do that instead of just maximizing profits), making it better at all of the jobs oil does.

As I alluded to above, synthetic oils generally reduce friction in the engine by not having the various contaminants in traditional motor oil. Reducing friction improves fuel economy by having less of the engines energy wasted overcoming friction. It also has the nice side benefits of reducing engine wear and generating less heat.

The automakers are finally starting to catch on (seeing that it helps them meet average fuel economy standards mandated by the government): many cars now come with and recommend semi-synthetic or full synthetic oil changes.

The average full synthetic oil is better than the average semi-synthetic in terms of fuel economy (no contaminants being better than less contaminants).

According to a May 2008 Lubes ‘n’ Greases article, you can also improve fuel economy by going from 5W30 or 10W30 to 0W30 (0.3 to 1.0% improvement, respectively) or 5W20 to 0W20 (0.5% improvement). 0W30 or 0W20 oils are typically only available as full synthetic oils.

Without going into technical detail, in a high-quality synthetic, there is no disadvantage in switching to the 0WXX oils.

Just the other day, I talked to a mechanic that sells AMSOIL. He had just installed AMSOIL engine oil (5W30) in his wife’s Pontiac G6 (two years old, about 40,000 miles). The mileage went from 28.5 mpg to 29.4 mpg using the mileage computer. That is a just over 3% improvement (right in the range we would expect) and will save her over $70 per year in gasoline. At the same time, it costs no more (per mile) for her oil changes.

My recommendation:

Use AMSOIL 0W30 or 0W20 premium synthetic motor oils. You should be able to get the oil and have it installed for around $100 and it lasts a year. For someone driving 15,000 miles a year this compares to 5 oil changes at probably about $30 each, for $150 total, not to mention the time involved to get it changed.

Differential fluid

Potential savings: $175 – 700 (1 – 4% saved for 100K miles)

Cost: $75 $25 for fluid
$50 to get it changed


To me this is a no-brainer for vehicles that: 1) have a differential, and 2) do not have synthetic fluid from the factory. Most newer vehicles have synthetic, but check your manual – if it states that synthetic is required, it probably had it from the beginning; otherwise, probably not.

Note: If you are changing over from conventional to synthetic and you had leaks at the differential, you will want to get the seal replaced at the same time. This would likely be done anyway, but synthetic fluid is expensive to let leak out!

If you do have synthetic from the factory, make sure you change it when required with something optimized for superior fuel economy.

My recommendation:

If you have a differential, and it does not have synthetic fluid in it, get it changed now. If it has synthetic, just make sure you get a synthetic optimized for fuel economy when the manual recommends changing it.

Transmission fluid

Potential savings: $175 – 700 (1 – 4% for 100K miles)

Cost: $220 (automatic) $120 for fluid (typical car)
$100 to fully flush out
$75 (manual) $25 for fluid
$50 to get it changed


Cost of my recommendation:
$50 – 150 (automatic – at next service)
$75 (manual – if not synthetic already)


The potential gas savings in the transmission are similar as for the engine and differential, but the cost for changing over an automatic transmission is significantly greater.

In my view, automatic transmissions are still the least reliable part of the drivetrain, so the protection a good synthetic provides against wear can help reduce transmission problems down the road. This is another good reason to change your transmission over to synthetic.

Most automatic transmissions hold 10-15 quarts, and a good synthetic transmission fluid will run around $5 to 6 per quart more than normal transmission fluid.

Note that there are two different transmission services – 1) drop the pan, clean the filter in the pan, then top off the fluid, or 2) flush all of the fluid out (after dropping the pan and cleaning the filter).

The first usually changes only about 1/3 of the fluid in the transmission, so don’t mistake it for a full fluid change. When switching to synthetic, you will want to do the second option – the full flush – to get all of the old fluid out.

Because of the expense of completely changing all of the transmission fluid, I recommend waiting until your next scheduled full fluid change so that you are only paying to upgrade the fluid. If your manual only recommends the first option above, I would substitute the full flush for the next service.

Again, I have the most confidence and experience with AMSOIL, so that is the fluid I would recommend (surprise, surprise). I have not seen significant test data published by the other manufacturers that would allow me to recommend them as well, but there may be other good ones out there. AMSOIL has their own 100,000 mile guaranteed drain interval for automatic transmissions, or they say to use the manufacturer’s recommendation if it is longer.

My Recommendation:

Automatic transmission – At the next scheduled transmission service (preferably the full change), go ahead and switch over to synthetic. The additional cost could be anywhere from $50 ($5 per quart times 10 quarts) to $150 (my $220 estimate for full conversion compared to $70 for a “typical” transmission service).

Manual transmission – Since the service is much cheaper (usually about $50 to change and $25 for the 2-3 quarts of fluid), I recommend doing this as soon as possible. As you can see, there is a very good payback on fuel savings (not to mention better protection for your transmission!).


As promised, here is a link to the AMSOIL store. Because there are lots of different kinds of fluids, feel free to call me at 816-896-6566 if you have any questions!

The next three don't require as much explanation, but are no less important. Stay tuned...

Friday, May 30, 2008

Improving Gas Mileage - Installment 2

In a deperate attempt to keep up some momentum here, I am posting

Improvement #2 – Check Your Tire Pressure

Potential savings: $10 – 78 (0.4 – 3% improvement)

Cost: $0 – 75 and time to check and fill up tires

Cost of my recommendation:
$75 one time for a compressor (if you don’t have one)


Tire air pressure has a significant impact on gas mileage. Tire pressure decreases as a small amount of air leaks out over time or as temperature drops through the year. According to the US Department of Energy and the EPA, gas mileage decreases by about 0.4% for each 1 psi drop in tire pressure.

So if your tires are 10 psi low, your gas mileage will decrease by 4%. If you are getting 25 miles per gallon (mpg), that 4% translates into a 1 mpg loss. Low pressure will also lead to increased tire wear - you will have to pay to replace your tires sooner.

At the same time, overinflating tires can be a safety issue. An overinflated tire has less contact with the road and can be more unstable in braking or turns.

You can usually find your recommended tire pressure inside one of the two front doors, the glove compartment door, or the owner's manual (NOT on the tire itself, as I used to think).

These are recommended pressures when the tire is cold, so always check your tire pressure before you drive anywhere.

The cheapest way to check your tire pressure is to carry a tire pressure gauge in your car and check the pressure in the tires once every week or few weeks.

There are a couple of good products out there that make it easier to monitor your tire pressure:

A) Tire pressure stem caps - Tire pressure stem caps screw on to your valve stems (you know - those little things you use to check tire pressure) and turn yellow or red when your pressure gets low. These are also great to keep an eye on the pressure in your spare tire.

B) Automatic tire pressure monitors - These systems add sensors inside each tire and display the pressure of each tire on your dash. A number of new cars now come with this option. They are more expensive to buy and install but much more convenient!

Because most places seem to charge for air now, I have my own air compressor to air up our tires. If you don't have an air compressor, you may want to invest the $30 or so in an air tank.

You can fill this up at your local gas station and keep it in your garage to air up your tires if you need to. You could also invest the $75 or so for small air compressor to take out the middle man.

Having an air compressor is my personal recommendation to make it easy to air up your tires. And let's face it, the reason most of us (well, at least me) don't do this as often as we should is that it is too much hassle (and most gas stations charge for air now).

There are also small air compressors that can run off your car battery - they take a long time but are great in a pinch.

My recommendation:

For the convenience (and increasing the chances that you will check your tire pressure more often), get a small air compressor for your garage. Don’t carry it around with you in your car, though (see Improvement #6).

This improvement was pretty straightforward, but there will be a lot of new information (for most people) in #3 - Use Synthetic Oils. That should be up tomorrow!

Thursday, May 29, 2008

Improving Gas Mileage - Installment 1 of 6 (or so)

With gas now at nearly $4 per gallon, I just couldn’t stand it anymore. I finally had to write down the things that I know can help you improve your gas mileage.

Gas prices have certainly been in the news alot lately, and though (like many of my subjects as of late) it is not directly related to passive income, I feel it is something that a lot of people are interested in, so i am going to share my knowledge (limited as that may be :) ).

Some of these you will know, maybe some you won’t, and maybe this will help give you a reason to do some of those things you know you should!

In this day of ever-increasing gas prices, there are lots of gimmicks out there that promise to increase gas mileage. The purpose of these tips is to cut through the fluff to show you the things you can do that are PROVEN to improve gas mileage. I’m an engineer by training, and I don’t like to present facts without seeing that they are backed up with some sort of proof.

Also know that I have chosen improvements that are easy to implement, produce quick results, and are safe. There are a number of other improvements that did not make the list because they do not meet one or more of the above criteria (for example: over-inflating tires and drafting both improve fuel economy if done right, but are safety hazards).

The improvements are ordered from easiest and highest impact to more difficult to implement or lower impact.

So without further ado, here they are:

1) Maintain Your Fuel System (today's installment!)
2) Check Your Tire Pressure
3) Use Synthetic Oils (engine, transmission, and differential)
4) Drive more “Efficiently”
5) Breathe Easier – Change Your Air Filter
6) Lighten Your Load


You’ve probably heard most (if not all) of these before, but I want to put some real numbers to each of these improvements for you so that you can make a very informed decision about how to implement these ideas.

Each of these six posts will give you the details on one of these subjects – approximate costs, potential savings, and the reasons behind the savings.

I have based the savings and cost analysis on a typical year (except where noted) for the “average driver”, driving 15,000 miles per year, getting 20 mpg, and paying $3.50 per gallon (I still can’t believe that) for gas.

My Recommendations

At the end of most sections, I include my recommendations for the best bang for your buck on each improvement (where applicable). These are the same recommendations I would make to friends and family and if anything don’t go as far as I personally would.

These recommendations are based on what? My experience. That’s all I can talk about. They may not be right for you, which is why I try to provide some discussion on each topic so that you can make an informed decision for yourself. Fair enough? Great!

Onto the “nitty gritty”…

Improvement #1 – Maintain Your Fuel System

Potential savings: $39 – 184 (1.5 – 7% improvement)

Cost: $10-115 and a little time

Cost of my recommendation: $20
- $20 for AMSOIL additives
- Nothing for TOP TIER fuel (in most places)

This really falls into two parts – a) trying to restore your fuel system to its new and clean condition, and b) maintaining that cleanliness.

Not only can this significantly improve gas mileage (average of 2.3% in testing – I have gotten confirmed reports of up to 8.8%), but it can improve the responsiveness and drivability of the car – in other words, help it drive “like new” again.

A) Clean your fuel system periodically

Most gasoline sold today contains only the minimum amount of detergent additives – you know, the things that keep your fuel system clean – that are required by law. This is not enough, as many automobile manufacturers have discovered (see the second part of Improvement #1, below).

Unfortunately, over time, deposits build up in your fuel system causing inefficiencies in your engine. Not only that, the deposits tend to build up differently in different cylinders, so one cylinder might be getting too much gas and another not enough while your car thinks everything is working normally.

This usually increases pollutants considerably as well. Why? Today’s engines are actually very finely tuned to emit very few pollutants IF THEY ARE RUNNING RIGHT. Once the deposits build up and the fuel mix varies between cylinders, pollutants can increase significantly.

So what do you do?

Use a fuel additive to clean out the system periodically. I have seen testing showing 15% reduction in fuel flow in an injector in only 3,000 miles.

The problem isn’t necessarily the decrease in fuel flow (though it’s not good) – the real problem is when one cylinder is getting 85% flow and another is getting 95%. Your car assumes they are all getting the same when, in fact, one may be getting way to much and one may be getting way too little, which causes each to operate VERY inefficiently, lowering your mileage

Unless you have a brand-new car, your fuel system is not perfectly clean. Try an additive to restore power. I recommend AMSOIL based upon the extensive third-party testing that has been done. (I do sell AMSOIL products, but I only do so because I have determined them to be the best products out there based upon independent tests.) There may be other good ones out there, but I have not seen anything comparable.

AMSOIL recommends adding fuel additive every 4,000 miles to keep the fuel system clean. Depending on what kind of gas you are using and how much you care about your car, you can always either wait until you notice a drop in performance (I don’t recommend this – it is tough to notice because it happens so slowly) or try it again after 6 months or a year and see if you notice an improvement.

My recommendation:
Use AMSOIL or another very high-quality fuel additive at least every 6 months.

(For more information on the AMSOIL additive, click here or feel free to contact me directly.)


B) Use TOP TIER gasoline

OK, this doesn’t actually improve gas mileage but it theoretically helps maintain it. A group of automakers (BMW, GM, Honda, and Toyota) jointly developed these standards because they determined that the federally-mandated levels of additives were not enough. The TOP TIER designation was created to help keep the fuel system properly clean.

As of January 2008, this was the list of TOP TIER retailers in the US and Canada. All grades of their gasoline must meet the TOP TIER standards to make this list:

QuikTripChevronConocoPhillips76ShellEntec StationsMFA Oil CompanyKwik Trip/Kwik StarThe Somerset RefineryChevron-CanadaAloha PetroleumTri-Par Oil CompanyShell CanadaTexacoPetro-CanadaSunoco-Canada

As my friend Kevin Burns summarized: “Use red gas stations or Shell.” I’m not sure that works in all parts of the country, but where I am it works pretty well. Thanks, Kevin!

I try and use gas from this list whenever I can, even if it costs a couple of cents a gallon extra, but usually it doesn’t (but not if it costs 10 or 20 cents extra – then my frugality kicks in!).

Even if there is no hard data behind it, the automakers would not go through all of this trouble unless they saw significant benefit to the end user in it, so sign me up – I am sold on TOP TIER gasoline.

(Unfortunately, a similar standard for diesel fuel does not exist to my knowledge.)

Do I need to do both of these?

Yes – at least initially you need to use a fuel additive to get the fuel system clean. Then if you ALWAYS use TOP TIER gas, that should be enough.

Again, you could always check after 6 months or a year by adding more fuel additive. If you notice an improvement, then you probably ought to use the fuel additive on a regular basis. If you don’t notice an improvement, then TOP TIER gas is probably enough (at least until you notice a drop in performance down the road).

Here is what I recommend:
ALWAYS use TOP TIER gasoline unless it is much more expensive in your area or just not available.

Whew! Well, that's it for today's installment. Most of the rest will be shorter (but no less informative, I am sure!). I will plan on putting those up over the next few days so check back often!