Money Questions and Answers

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.

Rent Poor? How Spending on Housing Is Crippling Your Budget

by Hank Coleman

According to the 2016 State of the Nation’s Housing Report from the Joint Center for Housing Studies of Harvard University, over 21 million people spend more than 30% of their income on housing. This suggests that millions of renters in the U.S. are cost burdened or “rent poor” because financial experts typically agree that housing should take up no more than 30% of an individual or family’s income.

A report from CNN Money confirmed the financial burden of being “rent poor,” as poor Americans spend approximately 72% of their income on housing, leaving them with little leftover funds to cover utilities, car payments, auto and health insurance, food, and other necessities.

Housing prices are increasing as the economy improves, which correlates with rising rental prices as housing demand outstrips available supply. This means that if you currently spend more than 30% of your income on housing – whether it’s rent or mortgage payments – then finding ways to lower your housing expenses is crucial for stabilizing your financial situation to ward off the negative consequences of rising rents and mortgage interest rates. Saving money on housing also creates new opportunities to save up for a down payment, pay off your loans more quickly, or even save up for a vacation.

What to Do if You’re Rent Poor

If you’re currently “rent poor,” then here are a few ways to cut back on your housing expenses:

Take On a Side Job

Sometimes, the problem isn’t expensive housing as much as it is underpaid jobs. If your present job doesn’t pay you enough to live comfortably in your area, then you might consider taking on a side job to supplement your income. This can be a challenge for anyone who works more than 40+ hours per week, but if you have a flexible or part-time schedule, then consider the following side gigs:

Drive for Lyft or Uber

Sell your services on Fiverr

Launch an online business

Selling blood plasma

Pet-sitting and dog walking

Create a Passive Side Income

If you have limited hours available, then instead of a side job, you could develop a passive income stream to make money with minimal maintenance the long run. Creating a passive income requires more work upfront, but over time, this income stream will grow more independently, allowing you to minimize your housing-to-income ratio.

5 Rules of Being Successful in the Stock Market

by Guest Contributor

Top 5 Website for Stock Market Quotes 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.

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

5 Ways Preventative Pet Care Can Save You Money on Vet Bills

by Hank Coleman

Pet Preventative Care Can Save You a Fortune on Vet Bills

The annual cost of veterinary bills varies widely, depending on the type of pet you have (and how many you own), their age, pre-existing conditions that may require additional treatments, specialized vaccinations and medications you might need (such as mosquito-prone areas), and where you live. But, you can save a fortune on veterinarian bills if you practice good pet preventive care. Get reimbursements of up to 100% of your vet bills with pet insurance! On average, you can expect to spend a couple hundred dollars per year on a dog (cats are relatively similar, too), but it’s important to set aside an emergency fund for unexpected veterinary expenses. Pet Preventative Care to Save Money on Vet Bills To lower your … 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.