"The other day, I was at Costco. Someone asked me if I wanted to upgrade my membership to ‘Executive Membership’ — it’s $50 more, and they told me that I would get a higher rebate rate. And based on my purchase from last year,  I would end up getting more money back. Of course I upgraded my membership." –   a newly retired neighbor.

"I got a check from Costco American Express Card. For six months of purchase, I’m getting almost $300 back. But the money will be right back to Costco since I will spend most of the money at Costco anyway". — A middle-age software engineer.

I also enjoy shopping at Costco. I haven’t really met anyone who doesn’t like Costco. However, be careful about your spending at Costco. The final bill of each Costco shopping trip could easily go above $100. Treasury hunt in Costco is fun, but you could also end up buying a lot of stuff you don’t really need.

We should all tighten up our belt during this difficult economic time to prepare for a rainy day.

Next time, before you go to Costco, set a monthly "Costco budget". You’ll be surprised that how much money you’ll save.

Apparently, a delivery truck had hit my car from behind. The driver tried to flee the scene. But, a couple of neighbors nearby heard the accident. They rode their bikes to caught the driver, and called police. The driver claimed that he didn’t know his truck hit my car.

I immediately contacted the trucker driver’s insurance company. After reviewing the police report, they agreed that it was the truck driver’s fault. However, they had estimated that it would cost more for them to repair my car than paying me some cash based on the market value of my car. They declare my car as Total Loss.

Before this accident, I even didn’t know that insurance company could just declare a car as total loss even though my car was still drivable. I really liked my car. But, I had no choice when they declared it as "total loss". (I could still get my car back if I pay some money to the insurance company to buy my car back, but it will forever be labeled as a savaged vehicle, which essentially has no re-sell value.)

I’m the victim, but I cannot even decide if I want my car to be repaired or getting a cash compensation. In my opinion, there is something wrong with our insurance law and regulations. But, that’s a different topic. I shall not digress.

I spent the next 12 weeks to negotiate with the insurance to settle the total loss amount. It was worse than having a root canal. The insurance company applied every single dirty tactic you could imagine. But, I did my homework. I was firm, strategic, and tough with them.

In the end, I reached a settlement with them at a cash value that was over $1,000 higher than what they offered. And this is for a car that has a market value of about $6000 according to Kelly Blue Book.

If you’re in similar situations, below is my top tips for negotiating with insurance companies settle your Total Loss case, and not get ripped off by the evil insurance companies!

• never accept the initial offer by the insurance company
• they’ll tell you that they have asked a 3rd-party company to estimate the market value of your vehicle. And they cannot change the estimate. Yes, they can! Do you research. Search online. Search your local papers. Search craigslist.org. Find comparable cars that are selling at higher price. Show them. They must consider what you find.
• go to your state insurance commission’s web site. make sure you have a thorough understanding of your state’s law/regulations that protect consumer in total loss case. You need to know your rights.
• when they offer you a rental car for 2 weeks, ask for 2 months or longer. it’ll take a long time to resolve a total loss case. In my case, the process took 3 months. You need a vehicle to drive during this time. 
• if the appraiser is being unreasonable with you, don’t be afraid to ask that "I need to talk to your manager". Keep escalating. The appraisers are trained to give you a hard time so that you will give up the fight. Don’t let them get into your skin. Be firm, and be tough. It’s your car. You’re the victim. You desire a fair compensation.
• do your homework. you should figure out the fair price for your car — that’s the amount that you want to get compensated by the insurance company. Make sure you include tax, and other fees. They need to pay you the total amount that you need in order to buy and register a replacement of your lost car.

In this economy, a lot of insurance companies are having financial troubles (just look at AIG). They’ll try to squeeze every single cent from consumers. You need to stand firm and protect your rights. It’s up to you to get fair compensation for your lost vehicle. Don’t give up. Have a good fight!

Fresh off the press! I just published How I successfully negotiated with auto insurance company to settle Total Loss and got $1,000 more back Premium Report. Check it out!

If you’re looking to buy something, I highly recommend Bebe au Lait: Ivory Eyelet . My life loves it. All of her friends love it.

• it’s practical. Every mom needs it. Now, my wife can feed the baby anywhere, even while she is walking in Costco.
• It has a designer look and feel. It looks good.
• If you buy it at maternity boutique store, it costs $50-$60 dollars. But, at amazon, you can get very good price.

Bought a small house two years ago. Got a 5-year ARM at 6% interest rate — had a growing family with young kids, planned to upgrade to a bigger house in 5 years.

Can we sell the house within the next three years and still make a profit? Given the recession and layoffs, we want to stay conservative, maintain our cash position, and delay the upgrade to a bigger house. Will LIBOR rate goes up a lot in three years that we have to pay a higher rate when our mortgage rate becomes adjustable? Some worries.

What I did:

I’ve been watching mortgage rates daily. Late last week the rate came down a little bit. I locked in 5.875% for 30-year fixed. I know some folks has much lower rate than this when they re-financed earlier this year, but I think it’s a decent rate. I don’t want to wait for lower rate — the economy will get worse.  In the 70′s when we had stagnation, mortgage rate was as high as 10% – 12%. 30-year fixed at 5.875% is pretty low from historical standpoint. It also gives me peace of mind, and removes one uncertainty from my personal finance.

Some people suggests that I should wait — I still have three years to go. Essentially I’m holding a 3-year option to sell the house or refinance. But, I’m not sure how soon the housing market will recover and how mortgage rate will change. We’re facing the more severe financial crisis since Great Depression. I’m not placing a bet with my own house.

What would you do?

• Starbucks 4Q profit drops 97 pct on closure costs
• According to Nouriel Roubini, a New York University business professor who had correctly forecasted the current financial crisis, "There is going to be negative growth all the way to the end of 2009. The surprises from now are going to be on the downside, for the economy, for earnings, for the financial system."

The good news: Retailers are under a lot of pressure. Consumers will see a lot of good deals — look for the best deals before you spend your hard-earned money!

• Costco.com is offering 24 hour Fitness 2 Year Adult Membership Certificate for $289.99 . That’s $12/Month!