save money buy used car

Why buying a brand new car isn’t the best idea

Hey focusshares.com readers !

I know this article might be a little bit off topic but still I think it might be interesting for some of you.

We all love that new car smell, but it has to be one of the most expensive smells. A car is not an investment, it starts losing value as soon as you drive it away from the dealership.

We have to get away from the idea that car payments are a way of life. We don’t need to pay interest to own a car. We can pay ourselves the car payment and use the money that accumulates to purchase cars that are paid for in full.

A new car loses a considerable amount of its value in the first year. This is terrible financial management, especially if you add interest paid into the equation.

For example a 2005 Honda Accord retails for $20,990. The Kelley Blue Book retail value for a 2004 Honda Accord is $20,000 (95% of retail) and the trade in value is $15,625 (74% of retail). Remember that the trade in value is what a dealership would tell you that your car is worth if you took it to them to trade in. The used car retail value is what a dealership would ask for the car.

Let’s assume you were going to purchase this 2005 Accord and financed it for 6 years at 5.95%. The payment would be $341.85 per month for a total amount paid over the life of the loan of $24,613.40. That includes $3,623.40 in interest paid.

You can see that even if you thought you got a good deal on your new car purchase, if you finance it you have lost your good deal.

Instead of paying $24,613.40 for the new car put up with your jalopy for another year and save the $341.85 each month (for example save by buying ETFs on shares instead) in a savings account and earn the interest yourself. In a year you would have $4,100 to purchase a car. This $4,100 would buy a decent used car for you to drive while you continue to save monthly. Since older cars do not lose value at the rate of new ones you can eventually drive relatively new cars by saving this monthly payment.

“The best way to own a car is to pay cash for a 2 or 3 year old car that has low mileage and has been well maintained. Let someone else take that large depreciation hit for the first couple of years. Then drive this car as long as you can while saving for your next one.”

Some would argue that repairs on older cars make them uneconomical after many years. This isn’t really true. How many repairs would it take to accumulate to $20,990? Usually it is the hassle factor that will force us to replace our cars. We all live busy lives and do not have time to have our cars at the shop. Another issue is safety and reliability. I do not want my wife and children to be broken down along the road very often but you don’t have to have a brand new car to get good reliability.

A good maintenance schedule will go a long way towards the reliability and longevity of a car.

Car Leases

Leases have also shown some popularity over recent years. Many believe that leases are the most expensive way to operate a car.

One lease on the market currently requires $2,038 down and $219 per month. This totals $9,922 over the 36 month lease. That is almost $10,000 to use a car for only 3 years and after that period you have nothing at all to show for your money. What will you do for another car once this lease is up? You would have to save up some more money to get into another lease and some of this would most likely be used to pay the penalties on the one that you just turned in. If you have saved up money by the time that the lease is up then just purchase a used car and get off of the car leasing treadmill.

The other problem with car leases is the cost when the lease has ended and you have to turn in the car. Most people end up paying additional charges either due to excessive mileage or scratches on the surface of the car.

Leasing is definitely not the way to operate a car.

  1. Leave the New Car Page and learn how to buy a used car without going into debt.
  2. Leave the New Car Page and learn how to get out from under an upside down car payment.
  3. Are zero interest loans the way to buy a car?

Who Doesn’t Want To Earn An Extra Income ?

When you are trying to get out of debt, you need some extra income. You need to scrape up as much money as you possibly can.

One way to do this is to increase your income.

This, of course, is much easier said than done but not impossible. We’ll talk about three options for you to gain an extra income. The first option is to simply take on an extra job, the second is to get a higher paying job and the last is to change your career path completely.

An extra job can come in many forms and the amount of time available will vary with each individual. You may have enough time to put in quite a few extra hours at WalMart each week or you may just have an hour or two each day. You can also earn extra income from home in many ways. Some people earn extra income mowing grass, cleaning or doing odd jobs for other people that have busy lives. Some start a small business on the internet, as I have with this website, or simply selling extra things from around the house on Ebay. You can read and learn more about earning part time extra income from 48 Days.com and more about website building from Site Build It! I have used SiteBuildIt to put together this site.

Surely everyone wants a higher paying job, but the question is how do you get one. One of the best sources for changing your employment and marketing yourself to other companies is also at www.48days.com. Dan Miller, who owns 48days.com has many resources available to help you in all aspects of career counseling. His book titled 48 Days Till The Work You Love has a lot of real good information that can help you get a new higher paying job. You do not just fall into a better, higher paying job, you must pursue it and in the appropriate manner.

Note: If you go and visit 48days.com, make sure you sign up for Dan’s weekly ezine. It always contains good information.

One of the topics that I have read a lot about lately is a complete career change. Many of us are tired of the nine to five grind where we scrape ourselves out of bed every morning. Don’t just run away from a steady income while you are still in debt. You can start looking around to see where your passions lead you while you are still producing income from your current job. Once you’re out from under the burden of debt you will have the freedom to pursue your dreams.

I have noticed over the last several years that it is those that are doing what they love for a living that are most alive.

Just take a look around you and you will see people in many occupations that are doing what they really like to do for a living.

I jump-started my Internet side business by reading Dan Miller’s 48 Days To Creative Income and I have read a few other books since. The Dream Giver and Jesus Entrepreneur are both excellent books to read if you are thinking about changing your work life. Don’t get trapped into a job. Find a way to earn some extra income and get yourself out from under the burden of debt and then throw yourself into fulfilling work.

You may also want to listen to Turning Passions Into Profits a CD made by Dan Miller. You can also read the 7 tips how to earn side income on Entrepreneur.com for even more motivation folks !

So there you have it. One may earn a nice side income either by doing internet business or venturing into stock trading maybe (if so then you may jump start stock trading by signing up into our stock trading newsletter.

The Valuable Traits that Make a Successful Stock Investor

In the stock market, every investor aims to achieve long-term success. However, not all investors possess the characteristics that are common to traders who earn maximum profits from their stocks. While investors differ in their strategies to earn huge profits from their stocks, the best ones share similar traits that make them stand out.

Discipline

Discipline is one important ticket to a stock investor’s success. When making crucial investment decisions, it is a lot easier to commit mistakes than to succeed. Stock investing techniques—no matter how well planned they are—become useless if an investor is not disciplined enough to stick to them at all times. Thus, discipline involves following your own investment rules so that you can better prepare for any decision or move you have to make. That also means you should not let past investment failures prevent you from achieving success.

Determination

A successful stock investor knows the value of determination. It does not matter if this is your first time to invest in stocks. As long as you educate yourself continuously about stock trading, you are on the right track.

Rational thinking

Successful investors are rational thinkers, meaning they do not allow their emotions to influence their investment decisions and ideas. If you let your emotions dictate what stocks to buy, when to sell them, or how much to invest, it would be difficult for you to see things as they are. So keep your emotions at bay when making crucial decisions to avoid huge investment failures.

Having a plan

Finally, having a plan spells success in stock market investment. Planning, or lack of it, can make or break your investment efforts. Before you invest in stocks, you should know what you will be getting into, what your objectives are, and what you should do when unforeseen events occur.

Stock Trading Newsletter: What Every New Investor Needs to Know

To gain substantial profits from the stock market, a wise investor must be armed with the perfect tool: a stock trading newsletter. It does not only educate and inform you about the current trends in the market but also helps you become skilled at making the right decisions.

Whether you are a new or an experienced investor, nothing can keep you more updated than a high-quality stock trading newsletter. So start your quest for a successful stock trading by subscribing to a good trading newsletter. Many Internet stock trading newsletters are available for free. You may also opt to get paid newsletters. Either way, just make sure that you get the most out of your chosen newsletter.

Why get a stock trading newsletter?

Getting a stock trading newsletter is a wise idea especially for first-time investors in the stock market. Investing in the stock market is a very risky game, so you have to be prepared for any development at all times. How do you keep yourself updated on the latest trends in stocks? A good stock trading newsletter comes in handy. In fact, you can find plenty of stock trading newsletters on the Internet. In just a few clicks, you can readily access information and expert advice on stock performance and the best stocks to purchase. You just need to choose a newsletter that suits your needs as an investor.

What makes a good online stock trading newsletter?

One of the great tools for stock market investors is a stock trading newsletter. Many stock trading newsletters are available for free on the Internet—some are good, others are not. How will you know which ones are good? You need to do a careful research on what newsletters have been successful in providing valuable tips such as the fast-rising stocks and the best stocks to purchase. A good stock trading newsletter must help you make informed choices based on advice from credible and established traders. It should also give the best and latest information so that you can trade better.