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Selling Your Car

Finance

English: Jalopy car in Joshua Tree National Pa...

English: Jalopy car in Joshua Tree National Park in Hidden Valley Campground (Photo credit: Wikipedia)

When it’s time to replace your car, most people focus on the new car, instead of the old, but that is ignoring real money.  Your old car–unless it has disintegrated–still has value.  Sometimes, it’s just time to ask yourself, “When should I sell my car?”

When you’re looking to sell your car (like with We Will Buy Your Car), you generally have several options:

  1. Tow & crush. If your car has been wrecked, doesn’t run, or is just old and beat up, you may be stuck with calling a junkyard and accepting $50 for them to pick up your car and crush it for scrap.
  2. Trade it in. This is probably the least hassle, but–other than #1–doesn’t pay well.  Dealerships are willing to pay something under what they will get at a wholesale auction, which is quite a bit less than the blue book value.
  3. Sell it yourself. Now you’re thinking, “He’s going to buy my car! Oh, bother.”  It can be a pain, but it’s also the best way to get a decent price for your wheels.

When you sell your car, there are a few things to keep in mind, much like when you sell something on Craigslist.

  • Don’t be alone. There are bad people in the world, but they don’t like witnesses.  Bad things are much less likely to happen if you have company.
  • Know your price. Specifically, know three price: your dream price, the price that would make you happy, and the absolute lowest price you are willing to accept.  Make sure you figure these numbers out ahead of time.  Know what you are comfortable with before it comes time to close the deal.
  • Check IDs. The buyer is going to want to test-drive your car.  That’s fine, but you want to make sure you know who is driving off in your car.  “Officer, Sumdood took my car.  He was wearing jeans.”  That won’t get your car back.
  • Clean it up. Get the car detailed before you show it to a potential buyer.   A sparkling-clean car will almost always bring in a few hundred extra dollars.  It’s well worth the expense.

Following this plan should make the sale go as smoothly as possible and bring you the most possible money.

Readers, what have you done to dispose of an old car?

This is a sponsored post written to provide some insight into the world of used car retail.

 

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Daytrading Bitcoin and Cryptocurrency

Business

For the past 6 weeks, I’ve been playing with Bitcoin and Litecoin.

The bitcoin logo
The bitcoin logo (Photo credit: Wikipedia)

I can hear you from across the internet.   You’re asking, “What the hell is Bitcoin?”

I’m glad you asked.  It’s a cryptocurrency.

And now you know as much as you did before.

Cryptocurrencies are anonymous internet-based money.   You spend it just like money, though granted, there are fewer places that accept cryptocurrency.

The big name in cryptocurrency is Bitcoin.   In second place, trying to play silver to Bitcoin’s gold, is Litecoin.

So what do I mean by “playing with” Bitcoin and Litecoin?

I’ve been daytrading, which is generally a horrible idea…when you’re doing it with stocks.   Daytrading is gambling.  It’s the art of doing short-term flips on a stock.  You buy it today to sell tomorrow, hoping it goes up.   With stocks, I play a long game.  I buy and hold.   I buy a stock that I believe has long-term value, and I hold it for months or years.

That’s not the game I play with BTC and LTC.    I play a short game, rarely longer than a week.  When the coins are at a low price, I buy, then I immediately sell when they price is higher.   When it’s high, I short the coin, essentially selling coins I don’t own to trade back when the dollar-price is lower.   When I’m paying attention, I make money as the coins go up and I make money when the coins go down.

Why is this a good strategy for cryptocoins?

Because they are extremely volatile.   As I’m writing this, Litecoin has had a 10% swing today, from $4.03 at midnight, to a current price of $4.16, with a peak of $4.36.  On Thursday, it was floating around $4.60 all day.   In the last 30 days, it’s been as high as $8.65 and as low as $3.18.  Go back to May and the low is $1.29.

Traditional wisdom says that volatile investments are bad.   In traditional investments, that’s true.  But when a stock is this volatile, nearly every bet is a good one, as long as you’re patient.   If I buy LTC at $4.20 and it drops to $3.90, that’s bad.  I lost money.   But, if I wait a couple of days, it’s almost definitely going to climb back up.   Except for large-scale sell-offs, it’s usually going to bounce 10% in a given day.     You can buy in the dips and sell at the peaks all day long, turning 5-10% profits with each time.   If you’re brave or stupid, you can short at the peaks and make 5-10% on every downturn, too.

For example, today started at $4.03.  Buy.  Today’s peak was at 7:15AM at $4.36.   When the graphs start swinging down, sell short.   Two hours later, it bottomed out at $4.20 for a 4% return.   Then, buy while it’s low.  Ninety minutes later, it was at $4.31, another 3% return.  Short it again, then close the position at 7PM for $4.13.

Let’s walk through this.

Buy $10 worth of Litecoin at midnight, sell at 7:15AM.    You have $10.81.

Turn around and short the same amount until 9AM.   You have $11.22.

Buy that same amount to sell at 10:30AM.   You have $11.51.

Short it again before closing out at 7PM and going to bed.  You have 12.01.   That’s almost a 12% return in 12 hours, assuming you guessed all of the major swings right.  If you guessed some wrong, you’d just have to wait until the next time it swung your way, and it will.   Did I do that well?  No.  I bought in at $4.008 yesterday and sold today-once-for $4.32.   I will not complain at an 8% return over 12 hours.

The only exception to that is during major buying and selling streaks.  On July 5th, a major buying run started.  By July 8th, the price was run up to $8.65.   A huge sell-off happened then, dropping the price to $4.36 on July 9th.

If you bought at $8.65 you’d be hosed.

The lesson there is, don’t buy at the peak.   I’ve had a number of trades that could have been huge scores if I would have held onto them longer, but I’m a wimp.   I sell as soon as I’ve gotten enough money to make me smile, then I refuse to regret the decision.   That also prevents me from holding on to my positions too long.  I avoid all of the crashes that way.  That giant buy-in happened while I was on vacation, so I wasn’t paying attention.  When I’m not paying attention, I leave my money in US dollars, so there’s no risk…and also no reward.

Also, an important caveat:  while I am learning the cryptocurrency ropes, I’m playing with a non-critical amount of money.  I put $75 into the exchange in June.   Not enough to cry over losing, but enough I can play with all of the different investment options.  As I said, I’m a wimp, although a 30% return in 7 weeks is pretty sweet.

Next up, I’ll show you how to get started investing/gambling with Bitcoin.

FINCON13 After Action Report

Business, Life

I spent most of last week at the Financial Blogger Conference, or FINCON.

First, since this is a personal finance blog, here is what it cost:

Hotel: $695.75 – I paid $119 per night, plus taxes and fees.  The travel rewards on my credit card will be making this go away.

Airfare: $211.80 – I bought early and live next to a Delta hub airport.  This will also be getting erased by my credit card rewards.

Ticket: $175.84 – I got a $25 discount for being a repeat attendee and I paid an extra $99 for the Bootcamp extension, which was 2 extra days that–alone–made the whole trip worthwhile.

Food: $203.53 – This includes a $90 splurge meal at Ruth’s Chris, which I was looking forward to for months before the conference.

Other – $113 – I brought $183 in cash with me.  This was used for some meals not included above, cab fare, and tips for bartenders, housekeeping, and the concierge.  I always tip a bartender, even if it’s an open bar.  It guarantees fast service and full-strength drinks all night.

Total cost: $1399.92

Total after credit card reimbursement: $492.37

Now for the important part: Was it worth it?

Yes.

The Bootcamp was a fantastic time to meet–and actually get to know–other bloggers.  There were only 50 of us, instead of 500 at the main event, so we were able to break into small groups and brainstorm useful projects and activities.  I learned more about podcasting than I ever had before and I got a chance to share some of what I know about SEO and managing virtual assistants.  In the larger sessions, questions are rushed and people are shy.

I got to beat up on my comfort zones.  

I presented some awards with Crystal at the Plutus Awards ceremony, which means cracking jokes about Canadians in front of 500 people who don’t know me.  I regularly stand and teach 30-50 people, but that’s always a warm crowd on a topic I know extremely well.  This was new for me.

I sang anatomically explicit songs to strangers during the Bootcamp karaoke night.  Selections were from Monty Python, DaVinci’s Notebook, and Denis Leary.

I was on a panel, by surprise.  I was asked to be available if I were needed for questions, then got dragged to the front of the room for the entire session.  I would do that again.

That’s 3 things that were all well outside of my comfort zone, but I’m happy I did them.  I don’t believe in not doing something simply because I’m afraid to do it.

Random gatherings are fun.

From people stopping by our staked-out territory in the lobby, to a surprise game of Cards Against Humanity in the lobby bar with Joe and Len to having a discussion about the meaning of “No” when you’ve got a pre-determined safeword, it was a good week.

The last 5 days were easily the most extroverted days I’ve ever had.  Since I didn’t force myself into any large groups for long periods of time, I never felt drained like I often do in similar situations.   It’s good to find a balance that let’s me meet and connect with other without exhausting myself.  I am seriously an off-the-charts introvert, even if I’m not even a little bit shy.

FINCON was totally worth it.  I was excited to go, and I’m excited to start acting on what I’ve learned, including being a part of a new mastermind group, with the awesomest lounge lizards in the PF world.

 

 

 

 

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10 Top Tips for Reducing Household Expenses

Finance

Regardless of the economic climate, it is always a savvy move to assess your expenditure and look for ways to cut your energy costs. Small changes can make a big difference to your energy efficiency and reduce your outgoings significantly.

1.       Know Your Accurate Energy Usage

Do not pay for estimated resources. Using a smart meter will tell your exact energy consumption and means you simply pay for your actual confirmed gas usage. So many customers are unknowingly trapped into paying for estimated energy, which can be very costly.

2.       Secure an Suitable Tariff

Once you have established your actual gas and electric consumption using a smart meter, speak your energy supplier regarding the various available tariffs.

There are over 120 tariffs available for energy in the UK and there is definitely one to suit all households. Being more assertive in this area can save you money instantly.

3.       Let There Be (Energy Efficient) Light

Lighting accounts for up to 40 per cent of our individual electricity bills.

Change light bulbs to energy saving bulbs for a progressive way of reducing your energy expenses. As energy efficient bulbs last ten times longer than normal high-watt bulbs, any cost in making this switch will be quickly recuperated.

Although many days in the UK are dismal, cleaning windows and opening blinds means that rooms can generally be lit with natural light.

4.       Don’t Tumble Dry

Tumble drying your clothes is one of the most financially and environmentally expensive appliance usages. Though energy efficient products are now available, try to make use of any other means you have for drying clothes.

During the winter months, fill indoor clothing racks and radiators within items to be dried. Summer washing is generally less of a problem, with warmer temperatures meaning you can hang loads of washing outside to dry naturally.

5.       Switch Off Electrical Equipment

Turning your electronic equipment off at night can cause impressive yearly reductions in your expenditure. Encourage the family to turn all laptops, consoles and computers off during the night, and unplug phone chargers when not in use.

Simply switching off a computer overnight saves £35 on the cost of running the equipment 24 hours over the course of a year. Once you have factored in the number of computers and other electronic equipment in your home, this could amount to quite a saving.

6.       Moderate Your Heating

Turn your heating down by just one degree. Such an unnoticeable alteration to your thermostat holds the potential to cut your energy bills by a whopping £55 per year.

Enhance your savings by becoming more energy efficient. Rather than switching on heating and cooling systems, use doors and windows to regulate temperature.

7.       Invest In Energy Saving Appliances

Most appliances on the market now offer detailed insight into their environmental impact. Buying eco-friendly products not only benefits the climate, it also benefits your pocket. The lower the amount of energy the appliances consume always equals lower energy bills for your household.

8.       Reduce Water Waste

A dripping tap can cost up to £400 per year. Paying out for plumbing services now will definitely save on your water bill.

Rather than bathing daily, swap alternate baths for showers. Showers typically use 35 litres of water, whereas baths take more than double this amount at 80 litre of water per tub. Though this varies depending on the type of your shower, according to South Staffs Water, power showers still save approximately 20 litres on the average bath.

9.       Replace Your Old Boiler

If your home currently uses an old G-rated boiler, of 15 years of age or more, then you may find that investing in a new A-rated boiler will save you money long term.

Gas burning boilers eat energy and money and are a costly way of fuelling your home. The government currently offers £400 to those who are looking to purchase a new energy efficient boiler, with companies such as British Gas doubling this grant.

10.   Insulate Your Home

Alongside grants for new A-rated boilers, companies are being encouraged by the government to offer discounted (and free) loft and wall cavity insulation. Take the time to see if you are eligible for this as it can make your home significantly warmer, reducing your reliance on central heating.

Be assertive to how you are using resources within your home, small changes can make a big ecological and economic difference.

This is a guest post.

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Avoiding Financial Traps & Saving Money on Big-Ticket Purchases

Finance

 This is a guest post written by Jason Larkins. He writes at WorkSaveLive – a blog he started to help people change the way they think about their finances, careers, and lives.

Who doesn’t like to buy stuff?

Okay…I’m sure there are a few of you out there that take pride in never buying a new “toy,” but I know personally that I LOVE stuff!

Not to the point that I make dumb financial decisions that jeopardizes my family’s financial well-being, but I do have that natural American desire to have nice things and to be able to do fun stuff!

If you’re in the market to buy a Big-Ticket item (i.e. a new car, TV, or other technology gadget), what are some of the things you should be thinking through as you contemplate making the purchase?

The first mistake people make is buying on impulse. The massive majority of Americans don’t even have a thought process when it comes to buying toys, so that’s why I decided to dedicate a post on a few things you should ponder.

3 Financial Traps You Should Avoid

1. Avoid spending extra for add-ons, or features, that you’re never going to use.

It is easy to get an appliance or technology gadget that has a ton of amazing features on it – but why pay for them if you won’t use them?

Consider buying the item that may be a step below what you’re looking at.

I know that I personally love the thought of having an Ipad 2, but am I really going to utilize it to it’s full capabilities?

Probably not!

It doesn’t mean I shouldn’t have one, but it does mean I can look at the older Ipad and save some money. Or, I can avoid the purchase altogether if I don’t think it’s going to be worth the money.

2. Be cautious with offers such as “no money down,” “90 days same as cash,” or “12 months interest free.”

Nearly 88% of the “90 days same as cash” offers are actually converted to payments because the purchaser couldn’t pay off the bill before the offer was up.

3. Don’t buy it just because it’s the cheapest.

Always be sure to do research prior to your purchase – check consumer reviews and product reviews. Saving money may not be worth it if the product breaks down quickly or doesn’t have the functionality that you’re looking for.

3 Strategies to Save Money

1. Prepare for large purchases and pay cash for them.

If you can’t pay cash for the item, then there is a good chance that you can’t afford it.

Determine how much money you will need to spend on a particular item and save up for it! This is going to help you in a couple of ways:

  • It will help you avoid buying on impulse.
  • If it takes awhile to save up for the item, then this will give you valuable time to really determine if it’s something you WANT badly enough to pay that kind of cash for it.
  • It will allow you to ask for a DEAL. Every retailer pays a fee to run a debit/credit card. If you’re paying in cash the worst you can do is to ask for that 2-3% discount the store would be saving!

2. Buy at the end of the month, or at the end of the year!

Consumers rarely think of this, but it’s important for you to know that every store (and store manager) has monthly/yearly sales to report.

If they’re wanting to close out the month/year strong, they’re much more inclined to offer you a deal on whatever you’re buying!

3. Avoid the extended warranty!

Insurance (in general terms) is the act of transferring risk – the more people that pool money together to help mitigate risk (buy insurance), then the lower the cost of the insurance becomes.

The reason to avoid the extended warranties is because the cost you’re paying to cover your item also includes: commissions paid to the retail store, overhead for the insurance company (wages for employees, building costs, utilities, etc), and some profit for the insurance company as well.

Sure, you may be in the miniscule percentage of buyers that has their item break down on them, but the reality is that it’s unlikely.

If it was likely for your item to break down, then the insurance wouldn’t be available because it wouldn’t be a profitable endeavor for the insurance company (and they’d be out of business).

Whenever you’re buying something that has a large price tag, you should develop a process that you think through before buying it!

Always pay in cash, get a deal, and make sure you actually need everything you’re paying for.

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