For some, a vehicle is not a necessity. Those who live in a city with readily available public transportation can often do just fine without owning a car. But for those of us who live in rural areas or have to commute a long way to work, having wheels of our own is essential.
A car is usually one of the biggest expenses we incur, second only to our homes. But unlike a house, which usually goes up in value, automobiles lose value. And when you buy one that’s new or nearly new, it loses value very quickly.
When someone is said to be “upside down” on their car loan, it simply means that they owe more on it than the vehicle is worth. This often occurs when someone finances a new car for a term of several years. But it can also happen with used vehicles. Sometimes they lose value more quickly than you can pay the loan down, and sometimes dealers charge buyers more than the car is worth in the first place.
Read more on What to Do When You Are “Upside Down” on Your Car Loan…
Filed under Car Loans by on Sep 6th, 2010. Comment. 
Travel has a reputation for being expensive. And it certainly can be if you feel it necessary to go first-class all the way. But it’s also possible to travel on a budget. You just have to be vigilant about finding the best prices on everything.
Here are some tips that will allow you to travel without spending a small fortune.
* Find the best deals on flights, hotels and car rentals. Sites like LastMinute.com and Travelocity.com are great for finding deals on these travel essentials. But it’s also a good idea to check with individual airlines and hotels, too. Sometimes they offer deals that you won’t find on such sites.
Filed under Budget, Debt by on Sep 4th, 2010. Comment.
You’ve worked hard all year. You’ve paid the legally required percentage of your income to Uncle Sam. When tax time comes, you find that you’re getting a refund. That’s great! But what are you going to do with it?
Few people have trouble finding something to do with their tax refunds. But frequently, that “something” is spending it with reckless abandon. Sure, it feels good to buy some shiny new things. But there are more productive things we could do with that money.
Some refund recipients dedicate all or part of their tax refund to paying off debts. Depending on the amount of debt you’re in and the amount of your refund, this could save you lots of money in interest payments. For maximum impact, it’s best to use your refund to pay down the debt with the highest interest first. If you get that one paid in full and still have some money left over, move on to the one with the next highest interest rate.
Filed under Budget by on Sep 2nd, 2010. Comment.
The college years are a time of learning, and a time for young adults to get a sampling of what it’s like to be out on their own. They are also a very expensive time for parents. By the time they pay for their children’s education, there’s often little left over to help with their living expenses.
Perhaps it’s best for college students to fend for themselves, to some degree anyway. When they’re done with their schooling, they will be out in the real world, so it’s good for them to start learning how to manage money. The college years are a prime opportunity for them to learn how to budget and live within their means before it becomes mandatory for them to do so.
As parents, we are in a position to help our children learn to manage money wisely. But many times it’s just too easy to throw them a lifeline if they have trouble. Here are some tips for teaching university students financial responsibility.
Read more on Tips to Teach College Students to Live Within Their Means…
Filed under Budget by on Aug 31st, 2010. Comment.
Credit cards can be helpful in many ways. They allow us to buy now and pay later, making it possible to buy things we couldn’t otherwise afford. They eliminate the need to carry large amounts of cash, and if they’re stolen the holder is responsible for little or none of the amount of unauthorized charges. And they make it easy to make purchases online or over the phone.
But credit cards can also get us in trouble. If we don’t pay the balance in full each month, we must pay interest charges until it’s all paid. It’s also too easy to keep building up a higher and higher balance, paying only the minimum payment until we’re in debt over our heads. And if we are late with a payment or go over our credit limit, we could be subjected to fees and interest rate increases.
Some consumers apply for store credit cards in an effort to avoid some of these problems. Store credit cards usually have a lower limit than regular credit cards, so you can’t run up an insanely high balance with them. And in most cases, they may only be used at one store or chain of stores, so there is less temptation to use them to buy anything and everything.
Filed under Debt by on Aug 29th, 2010. Comment.
Owning a home is one of the things that is most often associated with the so-called “American Dream.” Those who are chasing that dream often go to great lengths to get a home of their own. And it’s rarely just any home – sometimes it seems as though we’re all in some sort of contest to see who can buy the biggest or fanciest home.
Large houses offer certain advantages. They come with extra bedrooms so that we can easily accommodate overnight guests. They offer lots of storage space. And they’re impressive to look at. But they’re certainly not inexpensive.
Depending on just how large the home is, it can set you back a few hundred thousand dollars or more. Monthly payments can be in the thousands. If you’re independently wealthy, that’s no big deal. But if you’re the average working person, it can make the budget rather shaky. And if you’re living paycheck to paycheck, it’s a disaster waiting to happen.
Read more on Smaller House = Smaller Mortgage = Better Lifestyle…
Filed under Debt by on Aug 27th, 2010. Comment.
Most of us are no stranger to debt. We borrow money to buy homes, cars, stereo systems and even meals at restaurants. If we pay it off quickly, it doesn’t have a negative impact on our lives. But all too often, we let debt keep piling up until it buries us.
When debt gets out of hand, we have some options. But most of those options are not particularly pleasant. Ignoring debt collectors’ phone calls and letters might seem like a solution, but it just makes our lives miserable. And if the debt is secured, repossession is always looming on the horizon. Filing bankruptcy is a possibility, but we may lose some of our property or be required to repay a portion of our debts anyway.
Situations like these often call for rather desperate measures. If you own a car, you might consider selling it and using the proceeds to pay off debts. That is certainly an option, but it’s one that should not be taken lightly. Here are some of the pros and cons of selling your vehicle to settle debt.
Read more on Pros and Cons of Selling Your Car to Settle Debts…
Filed under Debt by on Aug 25th, 2010. Comment.
Being self-employed has numerous benefits. It allows you to have more control over your time than you would working for someone else. It makes it possible for you to make a living doing something you enjoy. And it offers unlimited income potential. But when it comes time to pay taxes, self-employment might seem slightly less attractive.
When you work for an employer, you pay half of your Social Security and Medicare tax, and the employer pays the other half. But the self-employed must pay both the employer and the employee contribution. So in effect, being self-employed doubles the amount of tax you must pay out of the money you bring home to about 30% of your income.
Especially in the first few years of self-employment, it can be difficult to estimate how much you will owe in taxes. Your income may fluctuate from month to month, and it may be hard to even come up with an average monthly or annual income to go by. Many self-employed individuals remedy this by putting money away for taxes as they go.
Filed under Debt by on Aug 23rd, 2010. Comment.
For some, it seems like saving money comes naturally. With very little effort, they build up an emergency fund, college fund, retirement fund and vacation fund. For the rest of us, it’s not quite that easy.
Saving money isn’t the easiest thing in the world to do. We have to spend a large portion of what we earn in order to have the necessities in life. Once all the bills are paid and those necessities are taken care of, we usually have some money left over. But there’s just so much temptation to spend it, that when it’s all said and done, we frequently don’t have anything left to put into savings.
Most financial advisors will tell you to make a budget, and allocate a certain amount out of each paycheck to savings. Then, when you get paid, put the planned amount into savings before you pay bills or spend a dime. In theory, this is a great idea. But in practice, it can be rather scary – especially if you have limited funds and no savings to fall back on.
Filed under Budget, Debt by on Aug 21st, 2010. Comment.
One of the best things about being young and childless is the freedom that it affords. You can go out whenever you like, and come back home whenever you want to. You don’t have to plan ahead. You can just pick up and go.
Having children is a life-changing event in so many ways. Our children become the center of our world and everything we do, we do with them in mind. So we often put going out to do things we enjoy on the back burner, especially when we can’t afford a babysitter.
But everyone needs a night out every now and then. Life can get really boring when you sit around the house all the time, and that can lower your morale. By getting out and enjoying yourself from time to time, you enable yourself to be a better parent. Don’t let lack of a babysitter stand in the way. Here are some ways you can get a sitter for less and still know that your child is in good hands.
Read more on How to Save Money on Babysitting and Still Have a Good Night Out…
Filed under Budget, Debt by on Aug 19th, 2010. Comment.
