Guest Contributor on Money Questions and Answers Blog

To Buy or To Lease: Financing Your New Car

When it comes to getting a new car, you have two options – buying it or leasing it. And, according to recent statistics, leasing is becoming an increasingly popular option, with over 30% of Americans choosing this option over buying.

Financing a New Car – Should You Buy or Lease?

However, both of these choices come with their advantages and disadvantages, and we’ll explore these below:

Should You Buy Your Next Car?

If you’ve always bought your cars outright, you’ll have enjoyed the fact you can keep them for as long as you want and can trade or sell them when the time’s right for you. You’ll have probably enjoyed that feeling of ownership too. Equally, if you’re one of the many who’s used an auto loan to finance your new car purchase, you’ll have basked in that feeling of finally paying off the loan and the car being yours.

When you buy a car, you put equity into it, which is your down payment. In contrast, when you lease a car, the money you’re putting into it (which could be thousands of dollars), provides you with zero equity. And, even though you may be paying for the car on a monthly basis, you’re gaining increasing amounts of equity as you do this. Then, once your loan term expires, you have full ownership of the car, which could amount to several thousand dollars, if not more.

Once you’ve done this, you’ll have the peace of mind that you’re driving around in a debt-free vehicle, which you can continue to enjoy or you can use to put towards a new car. And that’s not to mention the fact that you can modify the car in any way you want and aren’t hit with charges if the car has a high mileage.

Nevertheless, there are some downsides to ownership, and a lot of this is found in the responsibility you have for the repairs and maintenance of your vehicle – which can start to add up. However, this might be a risk worth taking, particularly if you have a warranty on the vehicle which runs out at the exact same time as your loan payments do. Because you’re not paying your monthly loan fees anymore, you’ll have extra cash to carry out any necessary repairs.

Furthermore, you’ll often find that the majority of new vehicles on the road today are incredibly reliable, which makes the risk factor much lower. And, if you are concerned about the financial costs involved in fixing your car or truck, you could always weigh up the advantages of taking out a longer warranty.

5 Rules of Being Successful in the Stock Market

by Guest Contributor

Are you looking for the secret guide on how to be successful in the stock market? By now you already know that stock market is very unstable so you need to stop searching because a guide like that does not exist. There are dozens of factors such as inflation, demographics, the economic strength of market and peers, trends, etc. that can change the stock market in minutes.

With this amount of diverse factors, it is hard to come up with a set of rules that can guarantee 100% expected return. However, there are certain steps that can lead to success. Read along to find out the 5 golden rules of becoming the Wolf of the Wall Street.

How to Be Successful in the Stock Market

1. Research, study, repeat

If you chose to invest because you don’t want to study but want to earn money then, unfortunately, you are on the wrong path. The stock market is not the stock tracker on your iPhone. It’s way more than that. Studying the basics of the stock market will help you a) make the right decision, b) you will not be deceived. In the 21st Century, you can get access to well-written books, articles and research reports about Stock Market.

They are free and teach the essentials. If you don’t like learning the theory then turn to examples, study great investors such as Warren Buffett, Philip Fisher, John Neff and many others. If you still think you have space to grow then buy investment newsletters, take classes and go to seminars. This is actually the best way of getting an insight into the stock market, and you can learn the ins and outs of the market.

How Does the LA Economy Compare to the Rest of the Nation?

by Guest Contributor

The city of Los Angeles has come a long way since its quiet start nearly 150 years ago. What started as a small farming community with deep cultural and religious underpinnings grew into a bustling urban center, now well-known for its elite residents and big, cutting edge business environment.

The city’s economy has grown exponentially over the years, thanks in part to a population of more than 10 million people churning out gross domestic product of nearly $700 billion. The companies that call LA home span widely in industry and size, but there is a notable wind of creativity, innovation, and diversity throughout.

How Does the LA Economy Compare to the Nation?

In recent years, LA’s economy has been reported as one of the world’s largest, falling closely behind New York City, but beating Norway, Taiwan, and Belgium based on total GDP. Exports have always played a role in how well LA’s economy thrives each and every year, and a concentration of manufacturing jobs lends a hand as well. When compared to the broader economic state of the nation, LA continues to stand out given its unique mix of industries and its rich population.

Industries that Contribute to LA’s Economy

Most people know LA as the entertainment capital of the world, but some may be surprised to learn that a number of widely varied businesses call the city home and contribute to its growing economy. Business services, education, hospitality and tourism top the list of business sectors flourishing throughout the city.

Five Little Touches That’ll Add Value To Any Home

by Guest Contributor

Simple Renovations That Add Value To Your Home

You don’t need to renovate a house floor-to-ceiling to make it more valuable. There are plenty of little things that’ll help – here are just a few of them. Renovating a home you’ve invested in can be a difficult, stressful task and not just because tracking down the right contractors can be a tall order. You want to squeeze as much value out of your property as you possibly can, whether it’s your home or a property you’re looking to sell quickly. But, not all the changes have to raise your stress. You might be surprised at how much value a minor change can add to a home. In my business of flipping homes, I have found that a … Read more

Bigger Cars on a Budget – How to Afford a Car You Really Want

by Guest Contributor

For those with smaller budgets, a big vehicle may feel out of reach, even if it is greatly needed. Large families, small businesses, big dog owners – there are a multitude of reasons for requiring a bigger car, so how do you afford to get what you really want when you’re counting the pennies? Here are a few great routes to take:

How to Afford a Car You Really Want

Lease your vehicle

Leasing a car might feel like a strange concept to some, but in the long run it works out to be a much more economic means of obtaining a vehicle. Not only can you get your hands on a big car for an easily affordable monthly rental price, you also don’t need to worry about depreciation when it comes to selling the vehicle on.

This means you can get your hands on that SUV or even the latest Range Rover comfortably. You do need to carefully consider your annual mileage and any wear and tear to the car – exceeding agreed mileage and any damage may require further expense when your lease is up.

Personal loan

If you want to purchase your vehicle outright, a personal loan is another option to consider but it’s very important you seek out a loan product offering the best deal in terms of interest over time. It’s likely you will pay more than the car is worth when interest is added. for many paying back a loan on a monthly basis is more affordable and achievable than saving up the full amount for a brand new, big car. For many, using savings and a personal loan is an affordable way to buy a bigger car on a budget.

But, for many paying back a loan on a monthly basis is more affordable and achievable than saving up the full amount for a brand new, big car. Using savings and a personal loan is an affordable way to buy a bigger car on a budget.

When Is Investing In a Roth IRA Right for You?

by Guest Contributor

When Is Investing In a Roth IRA the Right Decision for You?

The following is a guest post by DJ Whiteside, who is the author of the book “Save BETTER!” and writer for My Money Design, a blog where he talks about saving his way to an early retirement and financial freedom. If you’d like to submit a guest post to Money Q&A, be sure to check out the site’s guest posting guidelines.

I know you’ve probably read this before: The financial media LOVES to recommend Roth IRA’s.

Make no mistake: Saving your money in a Roth IRA is a smart move. Pay your taxes now – enjoy tax-free income when you retire!

BUT is it always the smart move for you? In some situations, you might actually be better off going with a traditional IRA instead.

When is Investing In a Roth IRA Right?

Here are the major factors that can help you to understand when a Roth IRA might be a better fit for you over a traditional.

If You Plan to Retire With More

Do you know how much money you’re going to need when you retire?

This is the number one question that you need to ask yourself in order to pick which road you’d like to go down: The traditional-style plan or the Roth.

Generally speaking, if you plan to live on less money than you’re earning right now, then the traditional style plan will work out better. This is because if things are similar to how they are now, you’ll be in a lower tax bracket and likely pay less in taxes.

On the other hand, if you’re going to be fortunate enough to enjoy more money than you’re earning right now, then you’ll be in a higher tax bracket and would owe more in taxes. Therefore, the Roth would be your better bet.