Category / Money Management

Money Management

6 Reasons Why Investing In Certified Pre-Owned Cars Makes Sense

Buying a car is a huge investment. For this reason, you might be apprehensive about spending on a second-hand car because you are not sure you have a guarantee on quality. It is common to buy a second hand car only to have it quit on you after the first few drives.

However, you should not shy away from buying all second had vehicles. The key to ensuring that your investment in a second hand car will pay off is to buy a certified one.

For a used car to be certified, the manufacturer has to refurbish, inspect and then give certification vouching for its condition and roadworthiness.

Below are some of the benefits you will get from investing in a certified pre-owned car:

  1. Quality Standards for a bargain

For a car to make it to the certification program, it has to be in good shape. Car manufacturers work with specialists to select the best looking and best running used cars that will not present any problems.

After the manufacturer refurbishes the vehicle, it will have restored it to an ‘almost new’ state. To buy an ‘almost new’ car for a fraction of what you will use on a new car is truly a bargain.

  1. Warranty

An ordinary second hand car has no warranty. On the other hand, certified pre-owned cars have a warranty extension that includes a guarantee on the power train (that is, the parts that power the car and allow it to move, such as the engine)

  1. High inspection and reconditioning standards

The manufacturer stakes its brand name on the vehicle. For this reason, before release of the vehicle into the market for resale, it has to be subject to rigorous inspection.

You can therefore have the assurance that by the time the manufacturer allows issuance of a guarantee on a used vehicle, each part has undergone careful inspection and certification.

You can find out more about what constitutes a rigorous inspection by referring to the 150 or 300 point inspection lists.

  1. 24/7 roadside emergency assistance

You will get the added benefit of road side emergency service. As every car is bound to experience technical problems, knowing that you can call the manufacturer for assistance is of great comfort.

  1. Low interest car loans

Even one percent extra on a loan amount can interfere with your ability to repay your loan in the long term. A deal that offers you lower interest is therefore one to jump on.

As the car is almost in new condition, the bank will offer you a loan with better interest rates hence your loan will be significantly lower.

  1. Free servicing and Maintenance

Car maintenance can be quite costly. As your car will come with a warranty, the manufacturer could allow free servicing or free part replacements for a certain period or for a certain mileage limit. This will save you a lot of money.

Based on the above, you can see that investing in a certified pre-owned car is safe and cost-effective decision.

About the author

June Hempi has 10 years’ experience working as a loans officer. She has issued many loans for certified pre-owned cars to many satisfied customers. Read more on her website to see what she has to say.

Money Management

January Financial Housekeeping

It’s January. The holidays have come and gone, and you are starting to settle back in to your normal work, family, and/or recreational routine.

With things getting more back to normal, now is a good time to take care of some financial action items to get organized and optimized for the New Year.

Below are 3 such housekeeping items that you may want to take a look at this month:

1.      Update Your List of Financial Accounts

In today’s competitive banking/financial environment, it seems like people are accruing more and more financial accounts. For example, it’s not uncommon for people to have at least 5 credit cards, 2-3 bank accounts (one savings, one checking, one joint account), and multiple investing accounts. Generally, this accumulation of accounts happens because we often open up one account and then find another better deal elsewhere or an enticing sign-up bonus.

Regardless of how the accounts were accumulated, you need to maintain a listing of all of these accounts, both from a perspective of knowing your current net worth and also in the unwanted event that you are injured or killed and someone else needs to access/manage your accounts on your behalf.

Because of this, a wise move this month would be to create (and share with your wife, significant other, parents, siblings, etc) a Google Doc Spreadsheet that lists out what types of accounts you have at various financial institutions.

2.      Reduce Your Credit Card Interest Rate

With it being January and Christmas behind us, you might have accumulated a little bit of credit card debt from your holiday purchases. If so, and you are paying a very high interest rate on your credit card, now might be a good time to do several things. First, call up your credit card company and simply ask for a lower interest rate. Second, if you have a fairly small balance that can be paid off within a year, think about switching to another card that features a 0% balance transfer offer.

3.      Calculate What Percentage of Your Income You Saved Last Year and Your Goal For the Current Year

Our financial housekeeping step for the month of January involves figuring out what percentage of your before or (preferably) after-tax income you saved last year and also what your target is for this coming year. These are good things to know in order to plan for retirement and see if you are saving effectively. 

Money Management

Payday Advance Loans Online – A Great Loan Option for Those with Bad Credit

slide_04

Sometimes in life, you will need money fast. If you have bad credit, this can be a real problem. However, you don’t have to worry, as you should be able to get a payday loan online, without having to go through a credit check.

It’s Easy to Get a Payday Loan

There are only very few requirements to be able to receive a payday loan. These are:

  • You must be at least 18 years old.
  • You must hold a valid bank account.
  • You must a citizen of this country.
  • You must be employed or have proof or regular income.

What to Expect

You need to know how these types of loans work. Basically, when you apply for payday advance loans online, you will ask a lender to give you some money using your paycheck as collateral. The lender knows how much you earn and calculates how much of that is disposable income, against which they borrow you some money. There are limits to how much this can be, as you must be able to pay it back. However, there are no limits on how you can use the money.

When you apply for your loan, you will have to give the lender the details of your bank account into which your salary is paid. This is because your loan principle and interest will be taken straight out of your bank account on the agreed payment date. Usually, this is either the payday straight after the day you asked for your loan, or the one after that. Some companies do allow you to defer your loan for additional months, but you will then have to pay the interest every month.

How to Find a Payday Loan Online

There are many lenders available right now that offer payday loans. Indeed, if you were to check your spam inbox, you are likely to see several emails relating to this type of lending. This means that you do have to spend a little bit of time to find the one that is right for you. The APR and other fees for payday loans can vary greatly, ranging from 600% to 2,500% APR, and that truly makes a huge difference. Although you are facing a financial emergency, you need to take your time to find the lender that will cost you the least.

The good thing as that these loans will generally be paid out to you the very same day, so long as you are within business hours, although some banks will take electronic deposits outside of those hours as well. Hence, you should have the time needed to compare the market and find a lender that is reputable and will give you the highest amount at the lowest rate, without leaving you in financial dire straits the very next payday.

Always consider whether there are other options out there as well. Borrowing money is always expensive and if there is any way to avoid it, you should.

Money Management

How Would $1,000 Change Your Life?

energizer bunnyIf you were given $1,000 and could do whatever you want with it, what would you do? That much money could change your life. Would you just throw it away on a TV or furniture? Or would you save it? Just think about what that money could do for you.

Security

If you put that money in a savings account, and add a couple of bucks a week, you would be well on your way to a great emergency fund. With an emergency fund you wouldn’t be forced to borrow money if you got a flat tire or you got sick and had to go to the hospital. How would that feel to you, knowing that if something unexpected happened, you would have something to fall back on? How much less stress would you have in your life if you didn’t have to worry about every little bump in the road? A little security will help you feel so much better in life. Although you could always apply for an online loan if you had to.

Energizer Bunny

Yea that’s right; I brought up an energizer bunny analogy. Think about it, if you had financial security in your life, wouldn’t you want to keep it in your life? That $1,000 would be the catalyst to start your journey to financial security forever. You would think about ways to keep that money by reading up on personal finance and starting a budget. That money would keep you going, and going, and going, to a better financial life.

You Can Do It

That reality is in your grasp. Just by putting a few dollars away each day will quickly add up to $1,000 and you won’t even notice that money missing. Every Sunday just put away $20. In a year you will have the security to not have to worry about bumps in the road of life and you’ll have the motivation to make your life financially better.

Sure, one year is a long time in your mind, but you’re focusing on the wrong part of this plan. Don’t focus at all on any aspect of this plan. Just do it! Put away $20 a month and don’t even think about it. Set up an online savings account and have it automatically transfer money there every Sunday. Why Sunday you ask? Once again, you’re focusing on the wrong part of the plan. It doesn’t matter what day. Any day is fine. But try to start on a holiday or a special occasion, so it’s easy to remember, and the next year on that same day check the account and you will have financial security start to grow in your life. If you don’t have a way to set up a savings account then every Sunday put $20 under your mattress. Just do it!

Then that little energizer bunny in you will want to learn all that it can about personal finance. I’d personally recommend reading this site but you can look anywhere as long as you look. Just do it!

How would $1,000 change your life?

Money Management

The Simple Truth About Building Wealth When You Have None

When you don’t have wealth it seems impossible to get. The truth is that it isn’t hard to develop wealth. The plan is easy to follow. And it doesn’t require anything more than you already have.

My Story

When I was applying to colleges I had a mentor named Steve. Steve was successful in his field. He had done academically well throughout school.

I had never been a super student. I had many interests outside of school, some of which I took very seriously. For better or for worse, I spent more time on my outside interests than I did on my schoolwork. Consequently, my grades could have been quite a bit better.

By the time I was ready to take college seriously I figured I could use all the help I could get. So I visited Steve.

I asked Steve, “What’s the secret to doing well in school?”. His answer was right to the point: “Take easy classes”.

That answer hit me like a ton of bricks. Could it really be that easy? Was that really the secret to Steve’s success?

Now, Steve obviously couldn’t have established himself professionally if he’d only taken “Wine Tasting 101”, or “Beaches and Shorelines”. He had to take the hard classes too. But his point was clear.

The problem I had was that I spread myself too thin. I had taken all advanced placement course in high-school, and had several activities outside of school, each of which required a major time commitment. I was spread too thin.

So how does this apply to personal finance?

Steve’s approach to school was basically to be honest about how smart he was and then use only a portion of those smarts to get through school. If he’d taken all hard classes he probably wouldn’t have done very well. He wouldn’t have had time to handle 4 midterms all at the same time, or write 4 papers all at the same time, in subjects that were difficult for him. And this is basically what happened to me.

By taking easy classes Steve ensured that he would have enough resources to handle the workload, regardless of what came his way.

The secrets to developing wealth are not really secrets.

  1. Save more than you spend.
  2. Earn more when you can.
  3. Spend less when you can.
  4. Earn interest on the wealth you already have.

If you do those four things, over time you’ll be wealthy. Even if you just do the first one, you won’t be living paycheck to paycheck for long.

The biggest reason people without wealth don’t start practicing those four healthy habits is emotion. If they earn a lot they feel as though they should be able to spend a lot. Or they feel that certain aspects of their lifestyle (a nice car, eating at restaurants or expensive clothes) are necessities. Maybe your tastes aren’t so extravagant. Regardless, if you’re stressing about money then you’re doing something wrong. Until you find out what it is you’ll never find a way to reduce that stress.

The simple (and hopefully not too painful) truth about building wealth is that it doesn’t happen by following some complicated process that’s only available to the wealthiest 1% of the population. The secret to building wealth is simply spending less than you earn.

Once you get the basics down, there are some more complicated things you can do to add some extra punch to your wealth-building power; 401Ks, health savings accounts, etc.. But no matter how much money you earn, if you spend more than you earn, you will never be wealthy.

So Take Heart

If you’re stressing about money, wondering why you don’t have any, thinking that things would be so much better if only you had more money coming in, don’t despair. Things can turn around quickly if you’re willing to let go of unhealthy money management habits and change your lifestyle.

It doesn’t matter how much you earn. The key to building wealth is spending less than you earn, saving money to build up an emergency fund, investing once you develop a cushion, and just letting the wealth accumulate.

If you’re willing to make the lifestyle changes to let that simple process happen, then you will be wealthy. Just have faith that it is possible and that you already have everything you need to make it reality.

Laran Evans is a software developer and entrepreneur looking to help ordinary people develop wealth with Plenty, a better personal finance tool.