June 2017 - WiseDollar

Archive for June 2017

3 Money Strategies for Car Buying

June 28, 2017 Wise Dollar Money Management No comments

If you’re looking to buy your first car, you’ll want to prepare financially for the investment and be sure you’re buying wisely.

Some people believe that buying a new car is never a good investment. This is because it immediately loses considerable value the moment you drive it off the lot. These can leave you upside down in the amount you owe the bank versus the value of the car.

Others consider that new cars come with service programs and are less likely to have engine problems. So, they think new cars are worth the risk.

Still others always buy late-model used vehicles while other car buyers value driving a classic.

Whichever type of car you’re shopping for, the money strategies are basically the same. Here’s what you need to do to prepare for buying a car.

Save Up

You can work hard and save up until you have enough cash on hand to buy the car you want straight out. This is probably the most optimal money strategy for car buying since it could save you big money in the long run on interest charges.

Saving up for a car also eliminates factoring in a car payment in your household budget.

For an idea of how much you should save, head over to Cars.com for a retail value on the car you have in mind. This will give you a savings target.

Explore Financing Options

Not everyone can or is willing to wait as long as it takes to save for a vehicle purchase. Hundreds of financing options are available for car purchases. Some of these include financing directly by car dealerships, loans from banks and credit unions, and third party financing opportunities mostly for buyers with troubling credit history.

These financing options will cost you more in the long run because you will pay interest on the loan on top of the cost of the car. Shop for a great interest rate, and if you can, let various lenders compete for your business to get the best rate possible.

Before you finalize the sale, you can estimate your payments at Cars.com to be sure the purchase fits within your budget.

Rent to Own

Renting to own cars is probably the most expensive way to buy a car. But, some people with poor credit don’t have other options available. Almost every town has a small car lot or two that sells cars this way.

Interest rates on these types of car purchases tend to be very high. Plus, payments are sometimes required weekly or bi-weekly. But, this scenario does make it possible for some people to buy a car who wouldn’t otherwise qualify.

When you get ready to buy a car, make sure you explore all of the options and choose whichever one makes the most sense for your financial situation. No two situations are the same, which is why there are so many choices to help you buy your first car.

How did you pay for your first car?

Photo courtesy of: MatanVizel

5 Signs You?re Ready for a Career Change

June 28, 2017 Wise Dollar Lifestyle One comment

It can be difficult to know when the time has come to seek out a new career. Many people become comfortable in their jobs, afraid to make a change even if they aren?t particularly happy with the work they are doing. So how do you know when it is time for a career change? The following five signs should lead you in that direction.

1. You Need to Make More Money

This one is obvious ? if your living situation demands that you need to make more money than your current position allows, a career change?is necessary. It might be possible to look within your current career path for increased earning opportunities, but often you will have to make a complete change to find the money you need. Keep an open mind and think outside the box to find ways that you can earn a higher salary.

2. You Hate Monday Mornings

Most people have a negative association with Monday mornings, but you should think about a career change?if you truly come to hate this point of the week. If you find that you are absolutely miserable when you head back to work, this is a sure sign that you need to find a new career path. You are going to spend a huge percentage of your life at work, so you want to make sure that time is spent in a reasonably enjoyable manner.

3. You Need a Challenge

Sometimes, the need for a new challenge is enough to motivate you to find a new career path. If you feel bored throughout your work day because your tasks are too simple and repetitive, think about how you could leverage your past experiences into a new position. Since you have mastered your current job, there is almost certainly a new opportunity waiting out there if you are willing to look for it.

4. You Have More to Offer

If your educational or employment background suggests you are capable of more than you are doing in your current position, it might be time to seek out a career change. Many people fall into a job just because they need a paycheck, and they wind up sticking with that job even though they are qualified to do more. Don?t let complacency get in the way of career advancement. Take a close look at your own resume and think about ways it may be valuable to employers in a wide range of industries.

5. You Have Offers

When new job offers begin to land at your feet based on your performance in your current position, it would be a mistake to ignore them completely. That doesn?t mean that you need to go running for the first new offer you receive, but consider them carefully and weigh the pros and cons against your current position. The fact that other people are interested in your abilities proves you are doing a good job, and one of these offers may be the perfect way to elevate your career moving forward.

Is it time for you to look for a new career? Have you made a career change in the past? Why?

Photo courtesy of: caio_triana

3 Reasons Women Manage Money Differently Than Men

June 26, 2017 Wise Dollar Money Management One comment

In today?s focus on equal rights and race versus gender versus quality talent a lot more focus is being put on what the differences are between people and why they become who they are. Does being raised in poverty affect your adult pay or when will the pay gap end between male and females? A lot of great questions and a lot of studies being done to give answers and find solutions.

One of those questions is do women manage their money differently than men? In a way yes, and in a way no. It?s like asking do you manage money differently than your neighbor? In a way yes, and in a way no. That being said there are a few differences in how the sexes manage money. Here are a couple reasons why women manage money differently than men.

Pay Gap

It is known that women make about 79 cents for every dollar men make. This can add up over time and really affect long term savings and investments. If you make thousands less than your co-worker, whether male or female, you don?t have as much over the course of the year to spread between savings, investments?and bills.

Throw in supporting a family and that money would be spend differently than someone whose situation is different.

Long-term Thinking vs. Short-term Gains

It is known that males tend to be more aggressive in everything they do and that includes how they manage money. When investing, they are more apt to move funds with the market, question what gains they are making now and how to make more.

Women, on the other hand, tend to look at the long-term picture of what their portfolio could be. They aren?t too phased by the change in stocks or what their rate is at this moment as it may not affect their overall plan.

Gender Biases Growing Up

Boys are raised to be tough and be the leader. Girls are raised to be “pretty” and follow the leader. Is this a super simplification of how children are raised? Yes, but that doesn?t mean they are still being raised that way.

Social standards that have been set on how boys should act versus how girls should act. Those are changing. How you are raised greatly affects how you manage your relationship with money. If you were raised in a household where your father did all the finances, then you most likely as a woman will let your spouse do the same.

It all boils down to financial literacy and the confidence of making your money work for you, whether you are male or female. The more illiterate someone is of how money works and what you should be doing to meet your financial goals the less likely they are to not be in debt and have smart money habits.

Are there some differences between how men and women manage money? Yes. Looking at spending habits and going into debt seem to be fairly similar rates between the sexes. Women are more likely to be large individual donors than men. Giving people, especially women, the confidence in what finances are and how they work, will make better investors, borrowers, and givers.

What are some reasons you think women manage money differently than men?

Photo courtesy of: luxstorm

5 Ways to Pay Off Student Loans Faster

June 21, 2017 Wise Dollar College No comments

Graduating from college is a great step toward a strong financial future. College graduates tend to make significantly more money over the course of their careers than do those only holding a high school education.

However, for most people, college graduation comes with a price ? student loans. Most people leave college with at least some amount of student loan debt, which can be tough when you are living on a modest salary to start your adult life.

So, is there a way to pay off student loans faster?in order to free yourself from this debt? While you might not be able to pay them down as quickly as you would like, the following tips should help you cut into this debt faster than your friends.

1. Make Extra Payments

Okay ? so this might be a somewhat obvious point, but it is important because some people do not know that they can make extra payments each month. When submitting your payment, consider adding even a small amount to cut down on your principal. The extra money you submit will be applied to the principal of the loan, so it will go directly to pay off student loans faster.

2. Live Modestly

While you are still under the pressure of student loan debt, resist the temptation to spend beyond your means. Start out of college by living somewhere affordable and taking on as few other debts as possible. As the years go by, your earning potential should increase and you should be able to afford more and more luxuries in life without jeopardizing your financial well-being.

3. Side Work

These days, it is easy to find a ?side hustle?. While it used to be difficult to take on a part-time job in addition to your full-time employment, the story has changed in the modern world. Look for a part-time job online or at a location near you to make it as convenient as possible. If you dedicate this extra money to your student loans, you can pay off student loans faster than you thought possible.

4. Stick with the Payment Schedule

Most student loans will allow you to restructure the payment schedule in order to extend the life of the loan ? and reduce the monthly payment amount. This is a good option if you simply can?t make the monthly obligation, but do your best to avoid going down this road. It is preferable to stick with the payment schedule in order to get rid of the loan as quickly as you can.

5. Create a Budget

If you fall behind on your finances overall, you might wind up having to delay your student loan payment schedule ? meaning you will be making payments for longer overall. By living on a budget, and sticking to that budget, you can avoid getting into trouble down the line. Be consistent with your budget from month to month and prioritize debt payments over other expenditures.

There are ways to pay off student loans faster so you don’t have to be stuck with them for years to come.

What are you doing to pay off student loans faster??When will your student loans be paid off?

Photo courtesy of: maura24

4 Things You Can Rent to Save Money

June 19, 2017 Wise Dollar Saving No comments

The art of advertising has been around for a long time to get you to want to buy goods so you can show off your wealth (or sometimes the lack thereof). Through the Internet and the want to not own or need everything, goods and services can be rented.

When one thinks of renting they usually think about apartments and it isn?t always favorable. Did you know that you could actually save money while renting things? Here are?a few things you can rent to save money.

1. Formal Wear

If you have multiple?weddings to go to this summer?and don?t want to purchase a different dress for each one, try renting them instead.?Online rental websites, such as Rent the Runway, provide a selection of trendy or designer fashions. The prices are decent too, much cheaper than buying several dresses to wear for only one night.

Instead of dropping several hundred dollars?on a gown you may not wear again, you could find a similar look for less?and send it back the next day. Not to mention the cost of cleaning and storing your only-worn-once dress. There are many rental websites available to fit your?budget.

2. Party Supplies

If you are throwing your parents a 50th?wedding anniversary celebration, chances are that occasion won’t come around again. 😉 So, you?ll want to bring out the best. Instead of purchasing tables and chairs, linens and d?cor, you can go to a party rental place and rent everything you need.

Most times you don?t even have to wash the linens, the company will do that for you. You just return them, no mess and no fuss for you.

3. Vacation Rental Cars

Car rentals can get pricey depending on what type of car you get, how long you need it, and how much gas you will be using. But, if you are going on a long road trip, it can be cheaper in the long run to rent a vehicle than to drive your own. This comes out in the cost of mileage put on your car.

Also, if you are going out on an expedition and need a larger or more powerful, vehicle renting one is definitely cheaper than buying one you won’t need the rest of the time.

4.?Uber and Public Transit

If you live in a large city where public and private modes of transportation are readily available it probably isn?t worth the money to own a car at all. Online car pickups such as Uber and Lyft can bring you transport at the touch of your finger. The small charge to go downtown is cheaper than if you had to make a car payment, pay insurance, maintenance, gas and parking fees. Plus, you’ll save time not having to find parking.

There are many more things such as camping equipment, canoes, yard equipment and more that if you don?t have a continuous need for them, it?s cheaper to rent it for the day than to buy one. Be sure to note the condition you rented it in and how you returned it, because if you break it? well you know.

What things have you rented that saved you money? How much did you save?

Photo courtesy of: HauteSwan

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