- Up at 5 two days in a row. Sleepy. #
- May your…year be filled w/ magic and dreams and good madness. I hope you…kiss someone who thinks you’re wonderful. @neilhimself #
- Woo! First all-cash grocery trip ever. Felt neat. #
- I accidentally took a 3 hour nap yesterday, so I had a hard time sleeping. 5am is difficult. #
- Wee! Got included in the Carnival of Personal Finance, again. http://su.pr/2AKnDB #
- Son’s wrestling season starts in two days. My next 3 months just got hectic. #
- RT @Moneymonk: A real emergency is something that threatens your survival, not just your desire to be comfortable -David Bach # [Read more…] about Twitter Weekly Updates for 2010-01-09
Is It Time For a New Car?
So far this summer, we’ve sold a 1984 Cadillac, a 1994 Mercury Sable, and a 1976 Lincoln Continental.
That’s most of the vehicles we inherited in April.
Now, we’ve got a 2005 Chrysler Pacifica, a 2001 Ford F150, a 2009 Dodge Caliber, and a 1986 Honda Shadow.
According to Kelly Blue Book, the Caliber has a resale value of $10,065 and a trade-in value of $8470.
The F150 is worth $6,418/4,923.
The Pacifica is worth $7,738/$6,093.
The bike is worth about $1,500.
We own all of them, free and clear, right now.
With our current situation, the F150 and the Caliber aren’t working. We have 3 kids. The oldest is 12 and pushing 6 feet tall. He barely fits in the backseat of either and is forced to wedge himself against a car seat if we take either of these vehicles anywhere. Even the front seats don’t have a lot of leg room, and I’m not exactly short or small.
We are also a popular place to hang out and almost always have an extra kid or two on the weekends. Right now, that means we take two cars if we have to go somewhere.
On top of that, my girls ride in a saddle club on borrowed horses. We are planning to buy a horse trailer and (shudder) lease a couple of ponies next summer.
So, our requirements are:
- Seat 7-8 people
- Full-sized 3rd row
- Towing capacity of at least 5000 pounds
- More than 20mpg highway
- Comfortable front seat
Based on our initial research, the Chevy Traverse meets our needs. Depending on the configuration, it seats 7 or 8 people with a full-sized 3rd row, has a 5200 pound towing capacity, and is rated for 24 mpg on the highway. Locally, there is a 2010 model with 50,000 miles for $19,000, which is dead-on with blue book. For another $1500, we can make it all wheel drive and 2011, which is below blue book. Consumer reports rates it pretty high, but Edmunds has some mixed reviews.
We should be able to sell the F150 and the Caliber for $12-13,000. That only leaves about $6,000 left, which we should have after the remodel on our rental property. I’m almost positive we’ll pull the trigger on a new car in the next month or two.
What do you think? Am I missing anything? Any experience with a Traverse? Have a better idea for something that meets our needs? Please leave a comment and help me out.
Things You Should Buy Online to Save Money
Article written by money supermarket.
Sometimes the price you pay in-store for a product or service can change dramatically if you find the same product online, and in most cases the price in-store can be considerably higher. There’s nothing worse than getting home from a shopping trip thinking you have a bargain, until you realise that you could have saved a lot more had you have waited until you got home. Here are a few examples of things you should buy online to save money:
- DVD’s and Blu Rays
All movies, whether on DVD or Blu Ray format, are generally cheaper if bought online, it’s a fact that I have learned over the years. I’ve always found that searching the sites of film selling giants Amazon and Play, I can always find a movie that little bit cheaper and some considerably so. There are also some websites such as dvdpricesearch that compare prices of all of the big merchants for you; it’s a great way to save time and money.
- Flights and Holidays
In my opinion, the day of buying flights face to face is slowly on the decline, I seem to find considerably cheaper prices by searching online at home. I think the main reason for this is that, travel or holiday agents just do what we do, they search online for the best prices, and unless they have any exclusive deals then they will just be getting the same prices as us. I tend to use some online travel comparison websites that again do the searching for you; however, some work better than others so make sure you do your research.
- Books
I always purchase books online, whether in the standard physical format or in the form of an e-book. Books are just one of those things that always seem to be cheaper, with the likes of Amazon and Borders available online and offering fantastic discounts. There are also many websites that sell niche or rare books online that can be considerably cheaper than going direct to a book seller.
- Auto Insurance
Auto insurance is one of those things that we all hate purchasing, but if you want to drive your vehicle on the road, then by law we have to spend our hard earned cash on it. Getting your auto insurance online can save you a lot of money. Using price comparison sites, you only have to fill in one form as if you’re applying for one quote, you will then be provided with a list of pricing options available to you.
- Cell Phones
Whether you are just buying a handset or if you’re looking for a monthly cell phone price plan, I always seem to find better deals online than I can in-store. Of course in-store you have the ability to try and haggle but I’ve found that the deals I get offered are never as good as those that I can find online. Online you can also search by provider website which is another great way to save money, and it would take you a lot of time to visit each store!
Jason’s note: I shop online a lot. I buy things that most people don’t realize are available online. An interesting counterpoint question: What should you buy in-person to save money?
Credit Card Pitfalls You Have To Avoid
The idea of a credit card is appealing. You don’t have to have the money to pay for things; you can just use the card. It creates instant gratification and you start to get used to the idea of getting what you want when you want it. Unfortunately, this can be a disaster waiting to happen.
If you get in over your head and begin to negatively affect your credit rating, it is not the end of the world. By looking at things like bad credit credit cards at Money Supermarket you can start to make things right again. Watch out for these pitfalls that could cause you to stumble into a bad credit card situation.
Enticing Rewards
You see the commercial or advertisement online and reward credit cards make it seem like you will be drowning in points that can be redeemed for airline miles or gift cards. Initially, you may think that this is a great reason to sign up for a card. Then, you begin to use the card often in order to earn points.
The problem comes when you start spending just to get the rewards and you can’t or don’t make payments to return to a zero balance every month. You may end up with a hefty annual fee on top of everything else. Don’t let the temptation of getting a reward create a problem with your credit score.
Maxing Out the Credit Card
When someone hands you $5,000, you will be tempted to spend it. Why not enjoy the new money? The problem is that a $5,000 credit card balance needs to be paid back. Don’t fall into the trap of spending the entire line of credit immediately.
If you do run into some financial difficulty or you really need a credit card for something, you will have nothing left to use. If you go over the limit, you can be sure that there will be some fees that come along with it. Use it wisely. Charge something and pay it off.
Skipping a Payment or Paying Late
Once you have a credit card, everything is going to affect your credit score. If you miss a payment or pay late, you can be sure that this is going to show up against you. Aside from the damage to your credit score, most credit cards come with a substantial penalty in the form of a late fee that gets tacked onto the next payment.
Always pay on time. Pay in early if possible. Keeping up to date with your credit card will show up positively on your credit rating.
When Problems Arise
Even if you do your best to avoid these pitfalls, sometimes financial problems can be unavoidable. An unexpected emergency requires you to max out the card. You run into a problem at work and lose your main source of income.
If you see that your credit is starting to decline, it is always possible to build that score back up. Start over using bad credit credit cards to make a positive impact on your credit score. With this scenario, you get an opportunity to once again avoid these pitfalls and improve your credit.
Saturday Roundup
First, the shameless self-promotion:
If you want to see the glorious wisdom that is my Twitter feed, follow me on Twitter. I’m @LiveRealNow.
Please take a moment to subscribe to Live Real, Now by email. You get a choice between having all of the posts delivered to your inbox, or just occasional updates and deals. Both options get my Budget Lessons, free of charge, including exclusive access to articles that are not published anywhere else. Woo!
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And of course, there is always the wonderful RSS subscription.
Next, for the part you’re here for…
The Cute War.
Budgeting In the Fun Stuff guest-posted here a few days ago. The post was about her dog. Nicole asserted that her kittens were cuter than BFS’s pug. There is some personal risk involved for me, but my pets are cuter. The proof:
The Best Posts of the Week:
Frugal Dad discusses What to Do When Your Beneficiaries are Minors. We settled this by not making our minor children the beneficiaries. If we both leap off the mortal coil at once, my Dad gets the money. I trust him to take care of my kids with it. No, Dad, you can not work on my brakes.
Marko found a fascinating photo series of WWII war photos overlaying modern pictures of the same location. It’s kind of creepy in places.
My favorite dinosaur has a child has been reclassified as a child itself, not an actual dinosaur. That makes youthful me very sad.
Finally, a list of the carnivals I’ve participated in:
Both the Carnival of Personal Finance and the Yakezie Carnival included Selling Your Home: For Sale by Owner.
The Festival of Frugality has It’s Better to Buy a House than Rent.
If I missed a carnival, please let me know.
3 Things Everyone Should Do Before the End of 2010
- Image via Wikipedia
New Year’s resolutions are great, but what are you doing the rest of the year? As we roll into summer and we see the year’s halfway point approaching, it’s important to look at our goals and our progress and see if we’re on track for where we want to be in our lives.
Financially, now is the time to start preparing for the new year. Don’t be like most people and wait until December to think about it.
Here’s a place to start:
- Max out your 401(k). If you are under 50 years old, your maximum annual contribution is $16,500. If you haven’t contributed to your 401(k), yet, this means you will have to deposit $2358 per month to max it out. If you would have started at the beginning of the year it would only be $1375 per month. If those numbers are out of reach, at least contribute enough to get your employer’s match. If your company matches 50% of your contribution up to 5%, you need to be contributing 5%. If your gross paycheck is $1000, you should contribute $50. If you do so, your company will be giving you $25. That’s free money and a 2.5% raise! With a pre-tax contribution, you are also lowering your taxable wage, so the 5% contribution is not lowering your take-home pay by 5%. In some cases, it may even raise your take-home pay!
- Know your money. Take some time to examine your income and your expenses. What are you having withheld? Will that leave you with a large tax bill next spring? Will it give you a huge tax refund, which is just an interest-free loan to the government? You withholding goal should be to pay nothing and receive nothing when you file your taxes in the spring. The less you withhold, the more you have for your daily expenses, but, if you withhold too much, you risk an unaffordable tax bill and possible penalties later. Look also at your expenses. Have you used your gym membership in the last few months? Cancel it. Do you know every cent you have to pay each month? Figure it out so you can plan the rest of your financial year. A budget is helpful here.
- Own your debt. “It’s not my fault.” “My ex stole my bank account.” “My dog ate the bill.” “My kidneys were stolen and I woke up in a bathtub full of ice and an invoice for services rendered.” “I lost my job.” “I have an X-Box addiction.” “I gave my credit card to a stripper, but we broke up. Go after the stripper.” Excuses. Here’s the thing: None of it matters. You owe the debt. Your choices are to pay the debt or file bankruptcy. Either way, you need to own the debt and take responsibility for whatever choices you made or debt you’ve accumulated. Denial is not a successful coping mechanism. Whatever you choose to do, know that it is your choice. You can’t hide from your bills or your $15/day “Venti Soy Hazelnut Vanilla Cinnamon White Mocha with extra White Mocha and caramel” habit.
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What are your financial plans for the rest of the year?
Update: This post has been included in the Festival of Frugality.
