Managing your spending habits, saving sufficient funds and clearly seeing your personal financial situation are important elements in managing your personal finances correctly. This test will give you an idea whether you need some more help, or if you're on top of this important part of your life. (The answers are listed at the end of this article.)
Question #1. What does "living within your means" really mean?
Question #2. What damage can only paying the minimum credit card payments each month do to your financial future?
Question #3. What is the most widely advocated and proven method of getting your finances in order?
Question #4. What are the most important financial goals you can set?
Question #5. Why is it not safe to spend all your income each month?
Question #6. What is the recommended percentage of my income that needs to be saved for emergencies and a savings nest egg?
Question #7. In what order should your bills be paid?
How did you fare with these questions? Did you know the answers? If not, or if you wish to check your responses, check out the answers listed below.
Answer to Question #1.
"Living within your means" means spending to live as comfortably as possible, from your income, while saving sufficient funds to adequately cater for emergencies and building your savings nest egg. It also means that you should not rely on external funding such as credit cards and bank finance just to live day-to-day.
Answer to Question #2.
Paying only the minimum credit card payment each month can condemn you to life-long poverty. It is that serious. If you only pay the minimum off your credit card each month you quickly start paying interest on the interest and the debt can spiral out of control. Live within your means, don’t add to your debts, pay cash and pay down that credit card debt as quickly as possible.
Answer to Question #3.
The most widely advocated and proven method to getting your finances in order is to prepare a budget. Please don't go glassy-eyed and lose interest now. This is an easy task that can finally put you in control of your finances once and for all. There are many resources available on the Internet to help you quickly make a start.
Answer to Question #4.
The most important financial goals you can set are as follows:
a) Set a goal to pay down that credit card debt, both for the amount and the time period. For example, I am going to pay $5,000 off the credit card debt in the next 12 months. Commit to only living off my income starting today. I will always pay cash from today onwards.
b) The second most important goal is to set a savings target. A budget can show you how much you need to set aside for emergencies and that savings nest egg.
c) The third most important goal is to determine to be debt free. This will transform your life. Work out what you need to live and see how much better your life would be if there was no money being applied to debts each month. It's like giving yourself a pay raise.
Answer to Question #5.
It is not safe to spend all your income each month for the simple reason that life is unpredictable. If you have no savings buffer then how will you afford the bills that occur when you least expect them? Will you pay for them with your credit card? Then how will you pay that bill?
Answer to Question #6. The most common percentage recommended to keep aside from your monthly income is 20%. This is a target of course. Not everyone can manage this immediately. Any amount you put aside will be better than nothing as long as you are shooting for a target.
Answer to Question #7.
If you are struggling with paying all your bills each month, the most vital bills are listed below in order of importance:
a) Housing - rent or house payments. If you don't pay these you may have no home
b) vehicle
c) groceries
d) power, water, gas etc.
e) credit cards
The costs of shelter, food, clothing and transportation always come ahead of paying the credit cards.
Are you now a little more understanding of this critically important part of your life? Could you do with some help? There are many agencies and websites dedicated to offering advice and tools to help you better manage your finances. Check them out today. Financial success can be yours. Don’t you deserve it?
Bruce Hokin has designed a simple spreadsheet "5 Steps to Freedom" Personal Budget. It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
Friday, June 15, 2007
7 Important Benefits of Preparing Your Personal/Home Budget Using a Spreadsheet
Have you ever wished to make a start on setting up a home budget but were not sure how to start? Couldn't work out how to do the calculations and were not sure whether the answer would be correct? No more reason to stall. Use a pre-formatted spreadsheet that you only have to enter your financial income and expenses into. There are many of these available on the Internet. Ready to look at the benefits? Let’s go.
Benefit #1. A spreadsheet clearly shows your thinking and the calculations used to arrive at the answer. What's more, it allows you to add extra items quickly and see their impact on your financial position, or your free spending amount.
Benefit #2. A spreadsheet can be quickly and easily copied and the data changed to suit a friend or another member of the family. Maybe a teen's budget or a hobby budget could be started using the same initial template. You could also easily copy one month's budget and reproduce it 11 more times to last for a whole year.
Benefit #3. A spreadsheet can be printed and taken with you for further study, or passed on to members of the family for their input.
Benefit #4. A spreadsheet allows for "What If" questions to be asked of it. For instance, what if you were to reduce the spending on clothes and add some extra funds to credit card payments and/or holiday savings? The answer to this question could be instantly calculated by just changing 2 or 3 numbers.
Benefit #5. A spreadsheet can teach you a new, very marketable skill. You may find you pick up this skill really quickly and want to add more elements to the budget like graphs, personalized formatting and more calculations. A spreadsheet is really only a calculator, but with a lot more flexibility. Setting up a budget for yourself, is a good place to start, since this is an easy project. You could progress on to building a Savings Growth Calculator, a Retirement Goal Calculator or a hobby expense and income sheet, and the list goes on. Spreadsheets are used everywhere in the finance, marketing, teaching, manufacturing and sales functions in many businesses worldwide.
Benefit #6. A spreadsheet can improve your accuracy. If you have set up the spreadsheet correctly, you can be sure that the answers provided are correct, time after time. It's easy to see the formulae used and to check their correctness. Others can check these for you also, if you need some help in this area.
Benefit #7. A spreadsheet allows for easy changes to be made to your assumptions and data, as your circumstances change over time. Let's say you receive a substantial pay raise? No worries. Just adjust the income numbers and the new answer falls out. What if you wish to spend less on some item for a month and apply these savings to another expense item or save a little more? Not a problem. Just change the required data and the answer is immediately available.
If you want your budget preparation task to be as simple as possible don't waste your valuable time with scraps of paper and a calculator. Use the tool that will save you time and hassle, the spreadsheet.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom" Personal Budget. It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
Benefit #1. A spreadsheet clearly shows your thinking and the calculations used to arrive at the answer. What's more, it allows you to add extra items quickly and see their impact on your financial position, or your free spending amount.
Benefit #2. A spreadsheet can be quickly and easily copied and the data changed to suit a friend or another member of the family. Maybe a teen's budget or a hobby budget could be started using the same initial template. You could also easily copy one month's budget and reproduce it 11 more times to last for a whole year.
Benefit #3. A spreadsheet can be printed and taken with you for further study, or passed on to members of the family for their input.
Benefit #4. A spreadsheet allows for "What If" questions to be asked of it. For instance, what if you were to reduce the spending on clothes and add some extra funds to credit card payments and/or holiday savings? The answer to this question could be instantly calculated by just changing 2 or 3 numbers.
Benefit #5. A spreadsheet can teach you a new, very marketable skill. You may find you pick up this skill really quickly and want to add more elements to the budget like graphs, personalized formatting and more calculations. A spreadsheet is really only a calculator, but with a lot more flexibility. Setting up a budget for yourself, is a good place to start, since this is an easy project. You could progress on to building a Savings Growth Calculator, a Retirement Goal Calculator or a hobby expense and income sheet, and the list goes on. Spreadsheets are used everywhere in the finance, marketing, teaching, manufacturing and sales functions in many businesses worldwide.
Benefit #6. A spreadsheet can improve your accuracy. If you have set up the spreadsheet correctly, you can be sure that the answers provided are correct, time after time. It's easy to see the formulae used and to check their correctness. Others can check these for you also, if you need some help in this area.
Benefit #7. A spreadsheet allows for easy changes to be made to your assumptions and data, as your circumstances change over time. Let's say you receive a substantial pay raise? No worries. Just adjust the income numbers and the new answer falls out. What if you wish to spend less on some item for a month and apply these savings to another expense item or save a little more? Not a problem. Just change the required data and the answer is immediately available.
If you want your budget preparation task to be as simple as possible don't waste your valuable time with scraps of paper and a calculator. Use the tool that will save you time and hassle, the spreadsheet.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom" Personal Budget. It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
5 Easy Ways a Budget Will Save You Money and Reduce Your Debts
Unless you step up to the challenge of controlling your finances, your debt level and your financial future, who else will? Preparing a budget is the ideal tool to get you started. It's also really quite easy.
#1. A budget will show your current financial position.
Without a budget you are not able to clearly see the extent of your spending compared to your income. This is the most important role of your budget. It will show you whether you are living within your means or whether you are living on borrowed funds. It is also the tool that can show you where all your money is being spent. This allows you to answer important questions, such as "Am I wasting money on things I don't really need?" "Is my credit card debt to blame for my predicament?" and "How much better off would I be if I could manage to be debt free?"
#2. A budget points you to the areas that need your attention.
There are reasons why you are in this worrying financial position. It could be that you are spending more than you earn, you are not paying off the credit cards quickly enough and are paying interest on the interest. Or it could be that you're not saving for those inevitable emergencies and large financial bills that arise from time to time. The budget can provide answers that show you what is required to fix each situation.
#3. A budget helps you set goals to pay down the debt and save for emergencies.
A budget can help you calculate how much you need to put aside to save for emergencies and large unexpected bills. Is it the children's education? Is it a holiday for the family or yourself? Is it to set some money aside for retirement? Or, is it to replace the car, furniture or washing machine? If you are spending all you earn and not saving any, you may be condemning yourself to lifelong poverty. Not a happy prospect.
#4. A budget shows whose money you are really spending.
The budget can show you how much of your spending is being funded by others. How much is being funded by the Credit Card provider or the bank. The cost of this funding is interest. The interest costs are most likely the reason you are in this situation, currently. It can clearly show how much you need to reduce your spending to live within your means .
#5. A budget can keep you on track and motivated.
Once you have set up a budget it is no use putting it into the drawer and forgetting it ever existed. It is meant to be a living document that can help you often. It can keep you motivated to stick to your plan by tracking your progress towards the goal and seeing your savings rising and debt falling.
A budget is the key to getting your finances under control and the debt worry off your back. Preparing your own budget is very enlightening and offers you the chance of finally getting control of your financial future. Isn't it worth a little effort? Don't you deserve it?
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom" Personal Budget. It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
#1. A budget will show your current financial position.
Without a budget you are not able to clearly see the extent of your spending compared to your income. This is the most important role of your budget. It will show you whether you are living within your means or whether you are living on borrowed funds. It is also the tool that can show you where all your money is being spent. This allows you to answer important questions, such as "Am I wasting money on things I don't really need?" "Is my credit card debt to blame for my predicament?" and "How much better off would I be if I could manage to be debt free?"
#2. A budget points you to the areas that need your attention.
There are reasons why you are in this worrying financial position. It could be that you are spending more than you earn, you are not paying off the credit cards quickly enough and are paying interest on the interest. Or it could be that you're not saving for those inevitable emergencies and large financial bills that arise from time to time. The budget can provide answers that show you what is required to fix each situation.
#3. A budget helps you set goals to pay down the debt and save for emergencies.
A budget can help you calculate how much you need to put aside to save for emergencies and large unexpected bills. Is it the children's education? Is it a holiday for the family or yourself? Is it to set some money aside for retirement? Or, is it to replace the car, furniture or washing machine? If you are spending all you earn and not saving any, you may be condemning yourself to lifelong poverty. Not a happy prospect.
#4. A budget shows whose money you are really spending.
The budget can show you how much of your spending is being funded by others. How much is being funded by the Credit Card provider or the bank. The cost of this funding is interest. The interest costs are most likely the reason you are in this situation, currently. It can clearly show how much you need to reduce your spending to live within your means .
#5. A budget can keep you on track and motivated.
Once you have set up a budget it is no use putting it into the drawer and forgetting it ever existed. It is meant to be a living document that can help you often. It can keep you motivated to stick to your plan by tracking your progress towards the goal and seeing your savings rising and debt falling.
A budget is the key to getting your finances under control and the debt worry off your back. Preparing your own budget is very enlightening and offers you the chance of finally getting control of your financial future. Isn't it worth a little effort? Don't you deserve it?
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom" Personal Budget. It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
Tuesday, June 5, 2007
How to Save Real Money When Bargaining With a Private Seller for a Used Car
Apart from your home, this can be one of the largest financial expenditures and therefore one of the most important to your financial well-being. If you can learn a few rules and remember some proven tips then this can be an enjoyable experience. Enjoyable, because you can eliminate some of the major pitfalls. Here's how.
There are a few ways to honestly and ethically get the car of your dreams for a reasonable price. Follow these tips and hints and you may be surprised how much the seller will discount the advertised price.
Ready to Start? Lets' go.
1. Do this before you even see the car.
When you see the car on the Internet or in the newspaper or the magazine and you are interested in checking it out more closely, do these things first:
a) Check out the price of this car against others of similar specifications.
b) Have your finances worked out in advance. Set your spending limit and stick to it. Offering cash is usually a better option than saying you will need to organize finance.
c) Contact the seller and ask the following questions:
- Is the car still for sale?
- How many kilometers or miles has it done?
- How long have you owned the car for?
- What color is it?
- What is the overall condition of the car?
- How negotiable is the price?
If you're satisfied with the answers to these questions ask if you can see the car at a mutually convenient time.
2. Do these things once you see the car.
a) Check it out closely in all areas and test whether the answers you were given over the phone were correct.
b) See if there are things that need to be done to get the car to your standard and mentally work out their costs. For example, does the car need new tires, does it need a new windscreen?
c) Go for a test drive. Not with the stereo going all the time though, so you can hear the car's noises.
d) Work out, silently, what you think you are prepared to pay as a maximum for this car. Make sure it is equal to, or less than your set limit.
3. Remember these things once you have decided that you will purchase the car, if the price is right.
a) This is not the only car in the world for you. There are others. Maybe, they will be even better.
b) Don't be in a rush to conclude the deal. Take your time.
c) Don't be swayed by seller saying "I have another buying waiting".
4. Do these things when negotiating.
a) Say "I'd like to make an offer".
b) Tell the seller the costs of the items you think will need fixing once you purchase the car.
c) Make your offer taking b) into account and leaving room to move upwards on your price to the maximum you set.
For example, say your maximum spend is $10,000, the car is advertised for $12,000 but you have found $2,000 of work to be done to bring it up to your standard. Make an offer for $8,000 ($10,000-$2,000). The seller may respond by saying that $10,000 is his minimum. After taking a suitable amount of time to consider this response, you can say "I'll go half way, is $9,000 OK? If the seller agrees, then you have purchased the car for $3,000 less than advertised. However, your $9,000 price plus your $2,000 of expenses is $11,000, $1,000 over your limit. No worries, just delay some of the work until you can afford it. The seller feels a bit of pain, you feel a bit of pain and you both are reasonably satisfied with the deal.
These are just some general tips and hints from my experiences in buying and selling cars over a long period of time. I am passing them on to you to help you with your personal finances. You need to be able to save money wherever you can.
For details on what to look for when buying a used car from a private seller see my other article titled "How to Save Real Money When Purchasing a Used Car from a Private Seller".
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
There are a few ways to honestly and ethically get the car of your dreams for a reasonable price. Follow these tips and hints and you may be surprised how much the seller will discount the advertised price.
Ready to Start? Lets' go.
1. Do this before you even see the car.
When you see the car on the Internet or in the newspaper or the magazine and you are interested in checking it out more closely, do these things first:
a) Check out the price of this car against others of similar specifications.
b) Have your finances worked out in advance. Set your spending limit and stick to it. Offering cash is usually a better option than saying you will need to organize finance.
c) Contact the seller and ask the following questions:
- Is the car still for sale?
- How many kilometers or miles has it done?
- How long have you owned the car for?
- What color is it?
- What is the overall condition of the car?
- How negotiable is the price?
If you're satisfied with the answers to these questions ask if you can see the car at a mutually convenient time.
2. Do these things once you see the car.
a) Check it out closely in all areas and test whether the answers you were given over the phone were correct.
b) See if there are things that need to be done to get the car to your standard and mentally work out their costs. For example, does the car need new tires, does it need a new windscreen?
c) Go for a test drive. Not with the stereo going all the time though, so you can hear the car's noises.
d) Work out, silently, what you think you are prepared to pay as a maximum for this car. Make sure it is equal to, or less than your set limit.
3. Remember these things once you have decided that you will purchase the car, if the price is right.
a) This is not the only car in the world for you. There are others. Maybe, they will be even better.
b) Don't be in a rush to conclude the deal. Take your time.
c) Don't be swayed by seller saying "I have another buying waiting".
4. Do these things when negotiating.
a) Say "I'd like to make an offer".
b) Tell the seller the costs of the items you think will need fixing once you purchase the car.
c) Make your offer taking b) into account and leaving room to move upwards on your price to the maximum you set.
For example, say your maximum spend is $10,000, the car is advertised for $12,000 but you have found $2,000 of work to be done to bring it up to your standard. Make an offer for $8,000 ($10,000-$2,000). The seller may respond by saying that $10,000 is his minimum. After taking a suitable amount of time to consider this response, you can say "I'll go half way, is $9,000 OK? If the seller agrees, then you have purchased the car for $3,000 less than advertised. However, your $9,000 price plus your $2,000 of expenses is $11,000, $1,000 over your limit. No worries, just delay some of the work until you can afford it. The seller feels a bit of pain, you feel a bit of pain and you both are reasonably satisfied with the deal.
These are just some general tips and hints from my experiences in buying and selling cars over a long period of time. I am passing them on to you to help you with your personal finances. You need to be able to save money wherever you can.
For details on what to look for when buying a used car from a private seller see my other article titled "How to Save Real Money When Purchasing a Used Car from a Private Seller".
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
How to Save Real Money When Shopping for a Used Car from a Private Seller
Apart from your home, this can be one of the largest financial expenditures and therefore one of the most important to your financial well-being. If you can learn a few rules and remember some proven tips then this can be an enjoyable experience. Here's how.
There are a few major items to check out when buying any used car from private sellers and they are listed below. Follow these guidelines BEFORE you pay the deposit and you will reduce your chances of buying a headache. You want this car to run cheaply, keep its resale value, be reliable and look good. Ready to start?
Look over the car generally first. If you think it is suitable, follow these steps.
Check the Title.
It is no use paying good money for what seems to be a bargain, when in a few weeks or months the car is repossessed due to unpaid debts attached to it. There are several ways to check this out depending on your local circumstances:
1. Check the owner details with your local or state government agency and whether there is money still owed on the vehicle.
2. Some agencies can also advise whether the car has been written off or wrecked, and then rebuilt. Definitely stay away from a car that has been "reborn" since your resale value will suffer when you try to sell it eventually.
Check the Authenticity.
1. Look at the Registration papers and ensure that the registration plates, the chassis number or vehicle identification number and engine number are EXACTLY the same as the Registration details.
2. In older cars look at the chassis number on the car and ensure it has not been tampered with. Make sure it looks genuine - not extra clean and just repainted. This could mean that the number has been tampered with by grinding off the old number and replacing it with a new one. Stay right away from a car in this condition.
3. If the car has log books and/or owners purchase papers all the better. Look through them carefully and check these details against the answers you receive from the questions you ask in 4.).
4. Talk to the owner(s) and ask the following questions. If you notice hesitancy or you think they may not be genuine be very, very careful.
a) How long have you owned the car?
b) Do you know any of the car's history prior to your purchase?
c) To your knowledge, are the miles or kilometers genuine?
d) What repairs or work have you had done to the car? Do you have receipts for the work?
Check the Car Body
1. Look for rust. This is the major risk when buying second-hand cars. If you are not sure how to do this have a qualified panel-beater or rust repairer check it out. If you want to do this yourself look for the telltale signs of bubbles under the paint or brown/orange color in the following areas:
a) Under the mudguards or fenders.
b) Around each door, especially under the door.
c) In the floor. Lift the mats and carpets if you can, and check out carefully.
d) Around the windscreen, where it meets the body.
e) Around the roof, especially in the gutters.
2. Look for panel damage and/or repair. Do the panels match properly? Is the paint color consistent on every panel? Has the whole car been repainted recently? If it has had a recent paint job, what is it covering? It could be covering cheap rust repair or panel work.
3. Look under the car. Is it straight and clean? If it's very dirty and the under floor is bent out of shape it could mean the car has had a hard life off the normal roads. This could mean extra stress on steering and suspension components.
4. Look at the paint color. The most serviceable color, and best for resale generally, is white. Darker colors may look good but they show the dirt more and are harder to match if you need minor panel repairs.
Check the Motor.
1. If you are not sure how to do this, have a qualified motor mechanic or your road service organization check it out. If you want to do this yourself look in the following areas:
a) Does the car blow smoke at start up?
b) Is the motor very oily and dirty? Does it look too clean, just washed?
c) Does under the oil filler cap look like the oil is a milky mixture, not black?
d) Does the radiator show bubbles being formed in the water when the motor is running?
e) Are the other fluid levels low?
If any of these problems show up then you may need some more expert help.
Check the Gearbox.
1. Again, if you are not sure how to do this have a qualified motor mechanic or your road service organization check it out. If you want to do this yourself look in the following areas:
Automatics -
a) Is the oil level on the dipstick correct and clean?
b) Does it change gears correctly when driven?
c) Is the gearbox clean and not showing oil leaks?
d) Does it sound OK when being driven or is there a whine at certain speeds?
If you cannot say Yes to these questions you may need some expert help.
Manuals -
a) Is the gearbox clean and not showing oil leaks?
b) Does it sound OK when being driven or is there a whine at certain speeds?
c) Is the gear change smooth and quiet?
d) Does the clutch work properly, with no shuddering at take-off?
If you cannot say Yes to these questions you may need some expert help.
Check the Interior.
Look for these potential problems.
a) Always check upholstery under seat covers - no matter how nice they look.
b) Look for seat belt wear.
c) Do all the gauges and controls work properly?
d) Is the headlining in place correctly, not dropping or coming undone?
e) Does it look cared for, or has it been neglected?
There are other components such as suspension, brakes, air-conditioning and steering that can also cost significant amounts of money to repair or replace, but these are usually serviced by experts.
These are just some basic checks that you can do when looking to buy a used car. Use your common sense. Keep in mind, as with any private purchase, Buyer Beware. If you think you are out of your depth in any of these major areas, it may be better to have the vehicle checked by an expert.
These are just some general tips and hints from my experiences in buying and selling cars over a long period of time. I am passing them on to you to help you with your personal finances. You need to be able to save money wherever you can.
For hints on how to bargain when buying a used car from a private seller see my other article titled "How to Save Real Money When Bargaining With a Private Seller for a Used Car".
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
There are a few major items to check out when buying any used car from private sellers and they are listed below. Follow these guidelines BEFORE you pay the deposit and you will reduce your chances of buying a headache. You want this car to run cheaply, keep its resale value, be reliable and look good. Ready to start?
Look over the car generally first. If you think it is suitable, follow these steps.
Check the Title.
It is no use paying good money for what seems to be a bargain, when in a few weeks or months the car is repossessed due to unpaid debts attached to it. There are several ways to check this out depending on your local circumstances:
1. Check the owner details with your local or state government agency and whether there is money still owed on the vehicle.
2. Some agencies can also advise whether the car has been written off or wrecked, and then rebuilt. Definitely stay away from a car that has been "reborn" since your resale value will suffer when you try to sell it eventually.
Check the Authenticity.
1. Look at the Registration papers and ensure that the registration plates, the chassis number or vehicle identification number and engine number are EXACTLY the same as the Registration details.
2. In older cars look at the chassis number on the car and ensure it has not been tampered with. Make sure it looks genuine - not extra clean and just repainted. This could mean that the number has been tampered with by grinding off the old number and replacing it with a new one. Stay right away from a car in this condition.
3. If the car has log books and/or owners purchase papers all the better. Look through them carefully and check these details against the answers you receive from the questions you ask in 4.).
4. Talk to the owner(s) and ask the following questions. If you notice hesitancy or you think they may not be genuine be very, very careful.
a) How long have you owned the car?
b) Do you know any of the car's history prior to your purchase?
c) To your knowledge, are the miles or kilometers genuine?
d) What repairs or work have you had done to the car? Do you have receipts for the work?
Check the Car Body
1. Look for rust. This is the major risk when buying second-hand cars. If you are not sure how to do this have a qualified panel-beater or rust repairer check it out. If you want to do this yourself look for the telltale signs of bubbles under the paint or brown/orange color in the following areas:
a) Under the mudguards or fenders.
b) Around each door, especially under the door.
c) In the floor. Lift the mats and carpets if you can, and check out carefully.
d) Around the windscreen, where it meets the body.
e) Around the roof, especially in the gutters.
2. Look for panel damage and/or repair. Do the panels match properly? Is the paint color consistent on every panel? Has the whole car been repainted recently? If it has had a recent paint job, what is it covering? It could be covering cheap rust repair or panel work.
3. Look under the car. Is it straight and clean? If it's very dirty and the under floor is bent out of shape it could mean the car has had a hard life off the normal roads. This could mean extra stress on steering and suspension components.
4. Look at the paint color. The most serviceable color, and best for resale generally, is white. Darker colors may look good but they show the dirt more and are harder to match if you need minor panel repairs.
Check the Motor.
1. If you are not sure how to do this, have a qualified motor mechanic or your road service organization check it out. If you want to do this yourself look in the following areas:
a) Does the car blow smoke at start up?
b) Is the motor very oily and dirty? Does it look too clean, just washed?
c) Does under the oil filler cap look like the oil is a milky mixture, not black?
d) Does the radiator show bubbles being formed in the water when the motor is running?
e) Are the other fluid levels low?
If any of these problems show up then you may need some more expert help.
Check the Gearbox.
1. Again, if you are not sure how to do this have a qualified motor mechanic or your road service organization check it out. If you want to do this yourself look in the following areas:
Automatics -
a) Is the oil level on the dipstick correct and clean?
b) Does it change gears correctly when driven?
c) Is the gearbox clean and not showing oil leaks?
d) Does it sound OK when being driven or is there a whine at certain speeds?
If you cannot say Yes to these questions you may need some expert help.
Manuals -
a) Is the gearbox clean and not showing oil leaks?
b) Does it sound OK when being driven or is there a whine at certain speeds?
c) Is the gear change smooth and quiet?
d) Does the clutch work properly, with no shuddering at take-off?
If you cannot say Yes to these questions you may need some expert help.
Check the Interior.
Look for these potential problems.
a) Always check upholstery under seat covers - no matter how nice they look.
b) Look for seat belt wear.
c) Do all the gauges and controls work properly?
d) Is the headlining in place correctly, not dropping or coming undone?
e) Does it look cared for, or has it been neglected?
There are other components such as suspension, brakes, air-conditioning and steering that can also cost significant amounts of money to repair or replace, but these are usually serviced by experts.
These are just some basic checks that you can do when looking to buy a used car. Use your common sense. Keep in mind, as with any private purchase, Buyer Beware. If you think you are out of your depth in any of these major areas, it may be better to have the vehicle checked by an expert.
These are just some general tips and hints from my experiences in buying and selling cars over a long period of time. I am passing them on to you to help you with your personal finances. You need to be able to save money wherever you can.
For hints on how to bargain when buying a used car from a private seller see my other article titled "How to Save Real Money When Bargaining With a Private Seller for a Used Car".
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
How to Save Real Money When Buying Nearly Anything at Auction
Auctions are a fun, yet sometimes stressful way to buy goods. It could be a car, it could be real estate, it could be antiques or items for the garden and around the home. You can pick up a bargain or get caught. Learning a few tricks can make this process a lot more enjoyable and you can save money too.
There are a few tricks you need to learn to make the auction process profitable and enjoyable. Ready to start? Let's go.
1. Before the auction starts.
a) Ensure you have sufficient cash or credit availability before you leave home. Bring a pen.
b) Arrive early. Buy a catalog. You can wander around and look at the items for sale more easily at a more leisurely pace. Mark the items that interest you.
c) Mentally, work out what you think you will spend on those items, or write this down on the catalog against the item number.
d) Ensure you find out what the extra fees and charges are that add to the total bid price.
e) Go back to the items you think you will bid on and check them out closely. Look for defects, authenticity and overall condition. Set your bid limit and stick to it. There will be other bargains.
f) Keep your personal belongings safe at all times. Don't let your handbag, purse or wallet out of your possession at any time.
2. During the Auction.
a) Listen to the Auctioneer's opening instructions. Take note of payment terms, pick-up and security conditions.
b) Don't be too keen to always bid first. It's best to leave your bidding towards the end when bidding is starting to slow.
c) Get to know how the auctioneer works and what attracts his attention.
d) If you feel you need to start with an opening bid, don't start with a ridiculously low bid. This will irritate the auctioneer and slow down the auction process. Start with a sensible, but low bid, if you want to bid first.
e) If there are many lots and the auction is continuing for most of the day, you may find towards the end of the day people get a bit tired, bored or have left and there are bargains to be had.
f) If the winning bidder has responsibility for their items make sure you know where your items are or collect them and place them together so you can keep them secure as the auction progresses.
g) Don't get carried away with the process. Keep your wits about you. Don't get caught up in a bidding war - unless it is below your set limit. Let others bid it out. Come in towards the last with your bids.
h) Learn how quickly the Auctioneer shuts down the bidding process and moves to the next item. There isn't much time usually.
3. After the Auction.
a) Guard your property, know what is yours. Put it all together in one place, if possible, so you can keep it safe, if this was not done during the auction.
b) Check your records closely against the Auction office records before you hand over that hard-earned cash or credit card.
c) If you lost out to someone for an item you really wanted, why not go up to them after the auction and see if they want to sell? Sometimes this will be successful.
These are just some tips and hints on how you can spend an enjoyable time at an auction, coming away with some bargains, hopefully and saving some real money.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
There are a few tricks you need to learn to make the auction process profitable and enjoyable. Ready to start? Let's go.
1. Before the auction starts.
a) Ensure you have sufficient cash or credit availability before you leave home. Bring a pen.
b) Arrive early. Buy a catalog. You can wander around and look at the items for sale more easily at a more leisurely pace. Mark the items that interest you.
c) Mentally, work out what you think you will spend on those items, or write this down on the catalog against the item number.
d) Ensure you find out what the extra fees and charges are that add to the total bid price.
e) Go back to the items you think you will bid on and check them out closely. Look for defects, authenticity and overall condition. Set your bid limit and stick to it. There will be other bargains.
f) Keep your personal belongings safe at all times. Don't let your handbag, purse or wallet out of your possession at any time.
2. During the Auction.
a) Listen to the Auctioneer's opening instructions. Take note of payment terms, pick-up and security conditions.
b) Don't be too keen to always bid first. It's best to leave your bidding towards the end when bidding is starting to slow.
c) Get to know how the auctioneer works and what attracts his attention.
d) If you feel you need to start with an opening bid, don't start with a ridiculously low bid. This will irritate the auctioneer and slow down the auction process. Start with a sensible, but low bid, if you want to bid first.
e) If there are many lots and the auction is continuing for most of the day, you may find towards the end of the day people get a bit tired, bored or have left and there are bargains to be had.
f) If the winning bidder has responsibility for their items make sure you know where your items are or collect them and place them together so you can keep them secure as the auction progresses.
g) Don't get carried away with the process. Keep your wits about you. Don't get caught up in a bidding war - unless it is below your set limit. Let others bid it out. Come in towards the last with your bids.
h) Learn how quickly the Auctioneer shuts down the bidding process and moves to the next item. There isn't much time usually.
3. After the Auction.
a) Guard your property, know what is yours. Put it all together in one place, if possible, so you can keep it safe, if this was not done during the auction.
b) Check your records closely against the Auction office records before you hand over that hard-earned cash or credit card.
c) If you lost out to someone for an item you really wanted, why not go up to them after the auction and see if they want to sell? Sometimes this will be successful.
These are just some tips and hints on how you can spend an enjoyable time at an auction, coming away with some bargains, hopefully and saving some real money.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
Want to Live Debt Free? These Tips Will Help
Are you up to your eyeballs in debt? Can't see a way out of the mess? Welcome to the club. Most American families are weighed down with too much debt, causing them stress and worry. There is a way out. All it takes is some knowledge and commitment.
Do you dream about being debt free some day? This can be a reality if you follow some basic rules and do what it takes. To start down the road to financial freedom you need to do a few things first. Are you ready? Let's go.
Tip #1. You need to admit there is a problem.
Is there not enough cash coming in or is it spent too quickly, or both? Is the money being spent on non-essentials? Is the income being spent unwisely on luxury items that you cannot really afford? Do you know how much you really have to spend? Do you know how much you owe and to whom?
You need to honestly answer these questions and be prepared to take some action.
Tip #2. You need a make a plan and stick to it.
First of all, you need to know your financial situation. Take out all your credit cards' statements and add up the outstanding balances. Make a plan to reduce the debt to a certain level within a fixed period of time. Once this is done there are tools you can use from the Internet to track your spending and your debt reduction.
Imagine what you will be able to do with the money you currently use to pay off debt.
Tip #3. Never add to your debt. Cut up the credit cards and live within your means.
Work out ways to cut down on your expenses so that you can live within your means. Start to put some funds aside for emergencies. You can cut down your expenses easily if you just think creatively. Here are a few suggestions to get you started.
a) Anything you need (not just want) can usually be bought at a sale. Commit to not buying at retail prices again. Look in newspapers, wait for sales and be patient.
b) Cook at home a lot more often. Freeze leftovers. Plan you food needs for the week. Make your lunch for work instead of buying it each day.
c) Read magazines, get DVDs and Videos for free from your local library.
d) Take up a hobby. Get busy - shop less. Maybe your hobby can create some income?
e) Give up the coffee bought while shopping or at work.
f) Maybe if you tried you could get away with only 1 car. Travel by bus or train if possible.
Tip #4. Don't compare yourself with others.
If you spend to keep up with others, think whether they may be in a similar position to you. Work out and understand how much you can spend and how much needs to be put aside for saving or emergencies.
Tip #5. Pay off one small debt completely.
This will give you a boost and help you keep on track more easily and you'll be more motivated to pay off all the debts.
Tip #6. Keep some fun money.
This process needs to be fun, not a misery. If it becomes a chore you will be tempted not to meet your goals. Keep some money aside that allows you the freedom to spend on things you want, occasionally. You'll feel so much better about spending on items that you can afford.
To truly solve your debt problems you need to keep yourself under control. There's no one else who can do this for you. Ask for God's help also. You'll be so glad you did, once the debt burden has been lifted and you can become your own person.
You can get additional specialized help, if you need it. Your debt can be an opportunity for you to give yourself a BIG pay raise and to reach financial freedom. Check out the PayRaise Professors Debt Elimination System by clicking on this link. Click Here!.
Do you dream about being debt free some day? This can be a reality if you follow some basic rules and do what it takes. To start down the road to financial freedom you need to do a few things first. Are you ready? Let's go.
Tip #1. You need to admit there is a problem.
Is there not enough cash coming in or is it spent too quickly, or both? Is the money being spent on non-essentials? Is the income being spent unwisely on luxury items that you cannot really afford? Do you know how much you really have to spend? Do you know how much you owe and to whom?
You need to honestly answer these questions and be prepared to take some action.
Tip #2. You need a make a plan and stick to it.
First of all, you need to know your financial situation. Take out all your credit cards' statements and add up the outstanding balances. Make a plan to reduce the debt to a certain level within a fixed period of time. Once this is done there are tools you can use from the Internet to track your spending and your debt reduction.
Imagine what you will be able to do with the money you currently use to pay off debt.
Tip #3. Never add to your debt. Cut up the credit cards and live within your means.
Work out ways to cut down on your expenses so that you can live within your means. Start to put some funds aside for emergencies. You can cut down your expenses easily if you just think creatively. Here are a few suggestions to get you started.
a) Anything you need (not just want) can usually be bought at a sale. Commit to not buying at retail prices again. Look in newspapers, wait for sales and be patient.
b) Cook at home a lot more often. Freeze leftovers. Plan you food needs for the week. Make your lunch for work instead of buying it each day.
c) Read magazines, get DVDs and Videos for free from your local library.
d) Take up a hobby. Get busy - shop less. Maybe your hobby can create some income?
e) Give up the coffee bought while shopping or at work.
f) Maybe if you tried you could get away with only 1 car. Travel by bus or train if possible.
Tip #4. Don't compare yourself with others.
If you spend to keep up with others, think whether they may be in a similar position to you. Work out and understand how much you can spend and how much needs to be put aside for saving or emergencies.
Tip #5. Pay off one small debt completely.
This will give you a boost and help you keep on track more easily and you'll be more motivated to pay off all the debts.
Tip #6. Keep some fun money.
This process needs to be fun, not a misery. If it becomes a chore you will be tempted not to meet your goals. Keep some money aside that allows you the freedom to spend on things you want, occasionally. You'll feel so much better about spending on items that you can afford.
To truly solve your debt problems you need to keep yourself under control. There's no one else who can do this for you. Ask for God's help also. You'll be so glad you did, once the debt burden has been lifted and you can become your own person.
You can get additional specialized help, if you need it. Your debt can be an opportunity for you to give yourself a BIG pay raise and to reach financial freedom. Check out the PayRaise Professors Debt Elimination System by clicking on this link. Click Here!.
6 Real Advantages to Setting Up Your Own Personal Budget
If your goal is to clear your debt burden and live debt
free, you need a personal or family budget. This is what
you really want, is it not? Most folks think that preparing
and sticking to a budget is too time consuming and no
fun at all. However, you can complete your own
personal/family budget in an evening and have fun doing it.
Preparing your personal/family budget can be an energizing
project. Maybe, for the first time you will see the full
extent of your debts and make the commitment to fix your
finances once and for all. Are you ready to make a start?
Great! Let's go.
Benefit #1 - A personal budget shows your true financial
position
If you don't have a budget how can you see your spending
compared to your income? This information is at the heart
of the budget process. It has the power to help you realize
whether you are living within your means or on borrowed
funds. It can show you where your income goes and whether
you are spending it wisely, or not. It also shows how much
of your income is being used to pay off previous credit
purchases (plus interest).
Benefit #2 - Budgets show how much to set aside for savings
If you have set up your budget correctly you will easily
see how much you need to save from every pay to cover
emergencies, credit card repayments and household asset
replacements. Once you make a commitment to yourself to
make this work, the budget becomes a tool that will help
you stay on track.
Benefit #3 - Keeps you mindful of your goals
If you do not commit to making the budget work, you can
easily slip back into your old ways and habits. If you are
tempted to give in, the budget goals are there as a guide
to help you understand how important it is to make your
commitment stick. When you see sale items, the budget
can help you see clearly whether the item is a worthwhile
purchase or not. You can now make a choice as to whether
that purchase is the very best use of your funds
Benefit #4 - Keeps you from spending money you don't have
Each time you spend, it either adds to or detracts from,
your overall financial position. The personal budget can
show you the impact of your proposed expenditure in
advance. You don't have unlimited income. If you spend more
than you earn you pay the price and the price is interest.
This interest is often the cause of your hardship now.
Benefit #5 - Puts you in financial control
Once you've set up your budget correctly it will show you
how much you have available to spend each month and how
much you need to put aside for savings and emergencies.
This information will make you feel a lot better about
yourself when you know that there is cash to buy the things
you need and want. When you know you can afford a luxury
occasionally, it makes you feel confident and relaxed -
not stressed and worried as before.
Benefit #6 - Shows the progress to meeting your goals.
Don't leave you budget in the kitchen drawer once it is
completed. Refer to it weekly, or at least monthly. It is
your guide to debt freedom. Keep checking your progress.
It will give you the motivation to make the right
decisions for you and your family.
You can see that all it takes is a little commitment and
effort to get you on the path to financial freedom. Isn't
it worth that little effort? Looking back, with the debts
paid off, you'll agree that it was definitely worth it।
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
free, you need a personal or family budget. This is what
you really want, is it not? Most folks think that preparing
and sticking to a budget is too time consuming and no
fun at all. However, you can complete your own
personal/family budget in an evening and have fun doing it.
Preparing your personal/family budget can be an energizing
project. Maybe, for the first time you will see the full
extent of your debts and make the commitment to fix your
finances once and for all. Are you ready to make a start?
Great! Let's go.
Benefit #1 - A personal budget shows your true financial
position
If you don't have a budget how can you see your spending
compared to your income? This information is at the heart
of the budget process. It has the power to help you realize
whether you are living within your means or on borrowed
funds. It can show you where your income goes and whether
you are spending it wisely, or not. It also shows how much
of your income is being used to pay off previous credit
purchases (plus interest).
Benefit #2 - Budgets show how much to set aside for savings
If you have set up your budget correctly you will easily
see how much you need to save from every pay to cover
emergencies, credit card repayments and household asset
replacements. Once you make a commitment to yourself to
make this work, the budget becomes a tool that will help
you stay on track.
Benefit #3 - Keeps you mindful of your goals
If you do not commit to making the budget work, you can
easily slip back into your old ways and habits. If you are
tempted to give in, the budget goals are there as a guide
to help you understand how important it is to make your
commitment stick. When you see sale items, the budget
can help you see clearly whether the item is a worthwhile
purchase or not. You can now make a choice as to whether
that purchase is the very best use of your funds
Benefit #4 - Keeps you from spending money you don't have
Each time you spend, it either adds to or detracts from,
your overall financial position. The personal budget can
show you the impact of your proposed expenditure in
advance. You don't have unlimited income. If you spend more
than you earn you pay the price and the price is interest.
This interest is often the cause of your hardship now.
Benefit #5 - Puts you in financial control
Once you've set up your budget correctly it will show you
how much you have available to spend each month and how
much you need to put aside for savings and emergencies.
This information will make you feel a lot better about
yourself when you know that there is cash to buy the things
you need and want. When you know you can afford a luxury
occasionally, it makes you feel confident and relaxed -
not stressed and worried as before.
Benefit #6 - Shows the progress to meeting your goals.
Don't leave you budget in the kitchen drawer once it is
completed. Refer to it weekly, or at least monthly. It is
your guide to debt freedom. Keep checking your progress.
It will give you the motivation to make the right
decisions for you and your family.
You can see that all it takes is a little commitment and
effort to get you on the path to financial freedom. Isn't
it worth that little effort? Looking back, with the debts
paid off, you'll agree that it was definitely worth it।
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
Are You Guilty of These Personal Budgeting Mistakes?
The topics that are close to everyone's heart are financial
freedom, financial security, lifestyle and spending habits.
In life, however, you are left to gain this knowledge on
your own, often through trial and error, since these skills
were not taught consistently in your schooling. If you can
understand these common mistakes folks make, then it may
save you financial heartache and headaches later on. They
are outlined below:
#1. Expenses Outstrip Your Income.
This mistake would have to be the major cause of worry to
many, many people suffering under the load of financial
hardship. Whose money do you think you are spending, if you
are making this mistake? That money is coming from banks
and credit providers and the cost of this service is
interest. This could be the cause of your problems now.
Helpful Hint: Spend less than your income. Try to think of
ways to save money at every opportunity - not spend. See
how much you can buy for your money. Make it stretch as
far as possible.
#2. Paying for Large Purchases on Credit.
You will never get ahead financially if you continue to
purchase new expensive assets such as TV, Video,
Refrigerator or lounge and dining settings on credit. Their
value reduces as soon as you purchase them, but the
payments continue, often long after the asset's life has
ceased. In addition, the cost of interest is also added.
Helpful Hint: Save for these purchases by putting aside
some funds each payday.
#3. Buying Sale Items You May Not Really Need
Do you think that businesses would be successful if they
spent their scarce resources on every new invention or
"must have" new technology? Would they be profitable if
they bought up a heap of raw materials on a whim without
thinking through the strategy first? This is what you are
doing, in effect, if you buy at the sales just for the sake
of grabbing a bargain. Next time you are at a sale, ask
yourself whether you REALLY need the item first.
Helpful Hint: Only pass over your cash once you are
convinced it is in your best financial interest to purchase
the sale item.
#4. Not Thinking of Ways to Increase Your Earnings
Even though you may have a steady 9-5 job it does not mean
that you should not look at ways to earn more. Why not try
these?
- Think of ways to make your hobby pay for itself.
- Why not sell other peoples products on the Internet for a
fee? You don't even need you own website.
- Get your resume sharpened up and ready for the next
interview.
- Make yourself more valuable by learning new business
skills.
#5. Forgetting the Goldmine of Unused Items in your House.
You would be surprised at all the unused items that are
sitting around your house and in the garage. People will
pay good money for unwanted items. Why not sell them at
your local weekend markets? The money you receive will be
very welcome.
#6. Looking Enviously at Others' Lifestyle.
Why try to compare yourself with others when you don't know
their financial situation? They could be in a worse
financial situation than you are. Look only at your needs
and lifestyle and be content with your circumstances.
#7. Spending All You Earn.
If you live day by day, you will never get ahead,
financially. Think about it - by just saving $50 each week,
that's $2,600 a year! Why not do without the bought lunch
and the magazines. That's enough for a real holiday or the
beginnings of a retirement fund.
#8. Forgetting to Set Up a Personal/Family Budget
This is a big mistake. You must do things differently if
you want the outcome to be different. Setting up and
sticking to a budget will take a bit of effort, but in the
end, it's worth it. Financial security, spending freedom,
debts under control, holidays and more happiness can be
yours.
These are some common financial mistakes. If you wish to
avoid them take note of the solutions. All you need is a
little effort and some good tools. Why not make a start
today? You'll be so glad you did.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
freedom, financial security, lifestyle and spending habits.
In life, however, you are left to gain this knowledge on
your own, often through trial and error, since these skills
were not taught consistently in your schooling. If you can
understand these common mistakes folks make, then it may
save you financial heartache and headaches later on. They
are outlined below:
#1. Expenses Outstrip Your Income.
This mistake would have to be the major cause of worry to
many, many people suffering under the load of financial
hardship. Whose money do you think you are spending, if you
are making this mistake? That money is coming from banks
and credit providers and the cost of this service is
interest. This could be the cause of your problems now.
Helpful Hint: Spend less than your income. Try to think of
ways to save money at every opportunity - not spend. See
how much you can buy for your money. Make it stretch as
far as possible.
#2. Paying for Large Purchases on Credit.
You will never get ahead financially if you continue to
purchase new expensive assets such as TV, Video,
Refrigerator or lounge and dining settings on credit. Their
value reduces as soon as you purchase them, but the
payments continue, often long after the asset's life has
ceased. In addition, the cost of interest is also added.
Helpful Hint: Save for these purchases by putting aside
some funds each payday.
#3. Buying Sale Items You May Not Really Need
Do you think that businesses would be successful if they
spent their scarce resources on every new invention or
"must have" new technology? Would they be profitable if
they bought up a heap of raw materials on a whim without
thinking through the strategy first? This is what you are
doing, in effect, if you buy at the sales just for the sake
of grabbing a bargain. Next time you are at a sale, ask
yourself whether you REALLY need the item first.
Helpful Hint: Only pass over your cash once you are
convinced it is in your best financial interest to purchase
the sale item.
#4. Not Thinking of Ways to Increase Your Earnings
Even though you may have a steady 9-5 job it does not mean
that you should not look at ways to earn more. Why not try
these?
- Think of ways to make your hobby pay for itself.
- Why not sell other peoples products on the Internet for a
fee? You don't even need you own website.
- Get your resume sharpened up and ready for the next
interview.
- Make yourself more valuable by learning new business
skills.
#5. Forgetting the Goldmine of Unused Items in your House.
You would be surprised at all the unused items that are
sitting around your house and in the garage. People will
pay good money for unwanted items. Why not sell them at
your local weekend markets? The money you receive will be
very welcome.
#6. Looking Enviously at Others' Lifestyle.
Why try to compare yourself with others when you don't know
their financial situation? They could be in a worse
financial situation than you are. Look only at your needs
and lifestyle and be content with your circumstances.
#7. Spending All You Earn.
If you live day by day, you will never get ahead,
financially. Think about it - by just saving $50 each week,
that's $2,600 a year! Why not do without the bought lunch
and the magazines. That's enough for a real holiday or the
beginnings of a retirement fund.
#8. Forgetting to Set Up a Personal/Family Budget
This is a big mistake. You must do things differently if
you want the outcome to be different. Setting up and
sticking to a budget will take a bit of effort, but in the
end, it's worth it. Financial security, spending freedom,
debts under control, holidays and more happiness can be
yours.
These are some common financial mistakes. If you wish to
avoid them take note of the solutions. All you need is a
little effort and some good tools. Why not make a start
today? You'll be so glad you did.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
How to Reduce Your Costs When Running the Family Car
Apart for your house, the car can be one of your most
expensive purchases. you will be better off financially
if you minimize the costs of keeping your car on the road
and reliable. Looking after your car yourself is not all
that complex. Take the time to learn a few basic skills
and you'll save real money while running the family car.
Ready to start? Let's go.
There are 3 main areas you can help in reducing its running
costs. Some of these are:
- Day-to-day running expenses
- Lessening the servicing costs
- Reducing the car's depreciation as it gets older
Let's concentrate on each of these in turn.
Day-to-day Running Costs
a) Treat the throttle and the brake pedals easily.
Anticipate the traffic ahead and road conditions a little
more and you can save fuel and brake pad wear. Take your
time, go easy on the car controls.
b) Keep the tires pumped up to the right pressure. If they
seem to be wearing too quickly/unevenly or are scrubbing,
take your car to a service center. Get a wheel alignment
done at least once a year.
c) Keep a look out for the best fuel deal. Always use the
discount dockets or coupons.
d) Don't be afraid to ask "What is your best price?" when
it's time to replace your car tires. Compare retailers,
prices and brands. Get to know the best, most economical
tire for your type of driving needs. Compare one retailer
against another. This applies for brake pads as well. Don't
just accept any quote.
Lessening Service Costs
a) Do-it-yourself oil change and greasing. This is
not a very difficult job. I actually enjoy the time under
the car. You can save a significant amount of your
hard-earned cash by spending about half an hour on oil and
filter changes. Just be sure doing this does not void your
warranty. Changing the air filter can save you even more
money.
b) Listen to the cars normal running noises. If these
change, see if you can work where the new noise is coming
from. If you can do this you will be able to offer some
suggestions to the mechanic and reduce the time taken to
diagnose the problem.
c) Look for any loss of fluids. This factor can cause large
maintenance costs if fluid loss is not fixed right away.
Check these regularly: the radiator water level, engine oil
level, brake fluid level, automatic gearbox oil level,
power steering oil and/or clutch fluid levels are all close
to, or at, the "full" mark. Also check rubber hoses for
fluid leaks.
d) Has oil been dropped on the garage floor recently?
Did it come from the back or the front of the car?
Get oil leaks checked right away.
e) If you choose to do your oil changes, look out for the
best prices on oil and filters.
f) If your car does need some work by a mechanic, get
competing quotes. Get the best price by comparing prices
and service.
Minimizing the car's depreciation
a) Keep the car clean at all times, inside and out.
b) Polish the car at least once a year. Twice a year
is better. Find a good brand of polish.
c) Always use floor mats to protect the car carpets.
Keep them clean. Keep the mats and carpets vacuumed
regularly.
d) Any time you buy parts or have work done on the car keep
a record in a log book. Include the date, cost,
mileage/kilometers. Keep the receipts. This will give you
best chance of getting good money fromprospective buyers
when they can see you looked after the car well.
e) Use a good quality leather/vinyl on your dash, seats and
door trims to save them from cracking and discoloration
and getting hard, as they grow older.
f) Keep a lookout for rust spots. They often occur around
the windscreen, under the doors, in the door sills and
other parts of the body. Treat them with a good quality
rust killer. If you can't do it, get a specialist to fix
it right away.
g) Keep the car as close to its original condition if you
want to maximize its value at sale time.
These are just a few ways you can save real money when
running the family car. Your hard-earned money can be
better used in your pocket that in the pocket of the local
mechanic for easy maintenance tasks. Agreed?
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
expensive purchases. you will be better off financially
if you minimize the costs of keeping your car on the road
and reliable. Looking after your car yourself is not all
that complex. Take the time to learn a few basic skills
and you'll save real money while running the family car.
Ready to start? Let's go.
There are 3 main areas you can help in reducing its running
costs. Some of these are:
- Day-to-day running expenses
- Lessening the servicing costs
- Reducing the car's depreciation as it gets older
Let's concentrate on each of these in turn.
Day-to-day Running Costs
a) Treat the throttle and the brake pedals easily.
Anticipate the traffic ahead and road conditions a little
more and you can save fuel and brake pad wear. Take your
time, go easy on the car controls.
b) Keep the tires pumped up to the right pressure. If they
seem to be wearing too quickly/unevenly or are scrubbing,
take your car to a service center. Get a wheel alignment
done at least once a year.
c) Keep a look out for the best fuel deal. Always use the
discount dockets or coupons.
d) Don't be afraid to ask "What is your best price?" when
it's time to replace your car tires. Compare retailers,
prices and brands. Get to know the best, most economical
tire for your type of driving needs. Compare one retailer
against another. This applies for brake pads as well. Don't
just accept any quote.
Lessening Service Costs
a) Do-it-yourself oil change and greasing. This is
not a very difficult job. I actually enjoy the time under
the car. You can save a significant amount of your
hard-earned cash by spending about half an hour on oil and
filter changes. Just be sure doing this does not void your
warranty. Changing the air filter can save you even more
money.
b) Listen to the cars normal running noises. If these
change, see if you can work where the new noise is coming
from. If you can do this you will be able to offer some
suggestions to the mechanic and reduce the time taken to
diagnose the problem.
c) Look for any loss of fluids. This factor can cause large
maintenance costs if fluid loss is not fixed right away.
Check these regularly: the radiator water level, engine oil
level, brake fluid level, automatic gearbox oil level,
power steering oil and/or clutch fluid levels are all close
to, or at, the "full" mark. Also check rubber hoses for
fluid leaks.
d) Has oil been dropped on the garage floor recently?
Did it come from the back or the front of the car?
Get oil leaks checked right away.
e) If you choose to do your oil changes, look out for the
best prices on oil and filters.
f) If your car does need some work by a mechanic, get
competing quotes. Get the best price by comparing prices
and service.
Minimizing the car's depreciation
a) Keep the car clean at all times, inside and out.
b) Polish the car at least once a year. Twice a year
is better. Find a good brand of polish.
c) Always use floor mats to protect the car carpets.
Keep them clean. Keep the mats and carpets vacuumed
regularly.
d) Any time you buy parts or have work done on the car keep
a record in a log book. Include the date, cost,
mileage/kilometers. Keep the receipts. This will give you
best chance of getting good money fromprospective buyers
when they can see you looked after the car well.
e) Use a good quality leather/vinyl on your dash, seats and
door trims to save them from cracking and discoloration
and getting hard, as they grow older.
f) Keep a lookout for rust spots. They often occur around
the windscreen, under the doors, in the door sills and
other parts of the body. Treat them with a good quality
rust killer. If you can't do it, get a specialist to fix
it right away.
g) Keep the car as close to its original condition if you
want to maximize its value at sale time.
These are just a few ways you can save real money when
running the family car. Your hard-earned money can be
better used in your pocket that in the pocket of the local
mechanic for easy maintenance tasks. Agreed?
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
Up to Your Eyeballs in Debt? Get Help With These 5 Steps
Personal debt has become a real problem in our society.
Whether you're poor, rich or middle-class, your debt level
can make you feel like giving up on your dreams of
financial independence comfortable living. Do you want to
get out of this situation? The five helpful hints listed
below will help. Guaranteed.
The following steps are really quite easy. All it takes
is your commitment. You can do it. Imagine the feeling of
relief and happiness when the debt has been lifted from your
shoulders. It will all be worthwhile. Ready to get stated?
Let's go.
Step #1. Work out your current financial position.
It may have been a while since you took stock of your
financial position. Could this be the reason you're in a
spot of bother now? You need to consider your financial
position now. Unless you know your starting numbers you
won't know what to fix. Correct?
Just get a paper and pen and your latest credit card
statements and review the situation, fearlessly. List out
all your debts and their interest rates and the minimum
monthly repayments.
Don't get too concerned about how much is owed. It's been
often reported that anyone can pay off all their debts
within 5-7 years, this includes your mortgage. That means
you too.
Step #2 Stop living beyond your means - NOW.
You have to stop the rot, and this is the first thing to
do. Review your living expenses and do without those things
you can't afford. Also, destroy all the credit cards except
one for emergencies and promise yourself you'll only
spend what you can afford from the cash coming in.
Step #3. Put aside some money each payday for those debts.
Once you have understood Step #2, the next step is
to think of some ways to put save some money every week or
month, to start paying off those debts. Pay as much as you
can afford. Paying down the highest interest debt
first is the best use of your money. If there are credit
cards with the same intererst cost then pay off the credit
card with the smallest balance first. This will give you the
incentive to keep going and give you a psychological boost.
Step #4. Build a Savings Nest egg.
Once you have paid down those credit cards you can
think about putting some funds aside to start building
your savings nest egg. Your money grows quickly if you add
to the balance each payday and don't touch it. If there
comes a time when you really need to buy some furniture or
a car then you will have a substantial deposit or the total
in the bank already.
Step #5. Reduce That Mortgage.
This item can be left till last since the value of the
asset is increasing - unlike your car, TV, Home Theater,
furniture or boat. Just by adding a few dollars a month or
fortnight to your mortgage repayments, you can
substantially reduce the period of your mortgage.
These a just a few helpful hints to help you get back on
track financially. The main thing here is to work on
canceling that credit card debt. Once that is under
control, use those funds to build your savings nest egg and
pay down the mortgage. That's how the plan works.
So, why not get those documents out, do the math, make the
commitment and start on your road to financial freedom.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
Whether you're poor, rich or middle-class, your debt level
can make you feel like giving up on your dreams of
financial independence comfortable living. Do you want to
get out of this situation? The five helpful hints listed
below will help. Guaranteed.
The following steps are really quite easy. All it takes
is your commitment. You can do it. Imagine the feeling of
relief and happiness when the debt has been lifted from your
shoulders. It will all be worthwhile. Ready to get stated?
Let's go.
Step #1. Work out your current financial position.
It may have been a while since you took stock of your
financial position. Could this be the reason you're in a
spot of bother now? You need to consider your financial
position now. Unless you know your starting numbers you
won't know what to fix. Correct?
Just get a paper and pen and your latest credit card
statements and review the situation, fearlessly. List out
all your debts and their interest rates and the minimum
monthly repayments.
Don't get too concerned about how much is owed. It's been
often reported that anyone can pay off all their debts
within 5-7 years, this includes your mortgage. That means
you too.
Step #2 Stop living beyond your means - NOW.
You have to stop the rot, and this is the first thing to
do. Review your living expenses and do without those things
you can't afford. Also, destroy all the credit cards except
one for emergencies and promise yourself you'll only
spend what you can afford from the cash coming in.
Step #3. Put aside some money each payday for those debts.
Once you have understood Step #2, the next step is
to think of some ways to put save some money every week or
month, to start paying off those debts. Pay as much as you
can afford. Paying down the highest interest debt
first is the best use of your money. If there are credit
cards with the same intererst cost then pay off the credit
card with the smallest balance first. This will give you the
incentive to keep going and give you a psychological boost.
Step #4. Build a Savings Nest egg.
Once you have paid down those credit cards you can
think about putting some funds aside to start building
your savings nest egg. Your money grows quickly if you add
to the balance each payday and don't touch it. If there
comes a time when you really need to buy some furniture or
a car then you will have a substantial deposit or the total
in the bank already.
Step #5. Reduce That Mortgage.
This item can be left till last since the value of the
asset is increasing - unlike your car, TV, Home Theater,
furniture or boat. Just by adding a few dollars a month or
fortnight to your mortgage repayments, you can
substantially reduce the period of your mortgage.
These a just a few helpful hints to help you get back on
track financially. The main thing here is to work on
canceling that credit card debt. Once that is under
control, use those funds to build your savings nest egg and
pay down the mortgage. That's how the plan works.
So, why not get those documents out, do the math, make the
commitment and start on your road to financial freedom.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.
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