Category Archives for Uncategorized

How To Afford Holiday Gifts For The Kids

The following post is by Kevin Fullerton. Enjoy! 

With utility bills, car repairs, and other unexpected payments, it’s hard to save up during the year to get your kids their holiday gifts. The below six ideas are ways you can afford the holiday gift items they want.

Work Part Time at a Retail Store

Just about every retailer will need holiday help. Be prepared to take on the grunt work though, as you’ll more than likely have the hours current clerks do not want such as closing or weekend hours. However, since it’s the holidays, there are plenty of hours available to work and in less than a months’ time you may find yourself with a considerable amount of holiday shopping money.

Become a Direct Sales Representative

Avon, Amway, Thirty-One, Scentsy, Origami Owl, and Sass N Frass are all direct sale companies actively recruiting representatives. It’s an easy way to start your own side business selling popular items from home or online.

The startup fees are low, and in some cases free to join. Your sales commissions can be 25% or higher. Some companies offer a stellar referral fee if you recruit a direct sales representative under you. The payout could be daily, weekly, or monthly. If you start now, you can rack up some money to afford the gifts for your little ones and possibly discounts with the products you also sell. That’s an additional bonus for you!

Complete Gigs on Online Job Sites

If you’re looking for a side gig, but can’t afford to hire a sitter, there are many online job sites you can sign up for and complete side gigs while at home. So if you are an expert writer, excel in website design, or have advice for business owners, you’ll do well bringing in extra holiday income. Check out the following sites to get started:

• Behance.net
• Guru.com
• Elance.com
• Fiverr.com
• Bloggingpro.com
• Craigslist.com

Sell Your Old Items

Since you’re looking to purchase new items, make room for them by selling your old items. You’ll kill two birds with one stone by freeing up space and bringing in money for those holiday gifts your child wants. Take great photos and upload them to sites such as EBay or Craigslist to sell them online. You could also take them to consignment stores and see what they offer you. Finally, have a garage sale and get rid of everything in one day. Your kids can even help out.

Clean for the Holidays

During the holidays, many families get together for dinner and visits. One thing the host may not have time for is cleaning their home. That’s where you can step in and offer your cleaning service. Just a few homes could bring in the cash you need. This opportunity also gives you the flexibility to create your own working hours. If it’s a good friend of yours, you may be able to bring your kids with you and avoid babysitting fees as well.

Improving Business Functionality

The following post is by Derek Boser. Enjoy!

Functionality is your business’s ability to perform well according to its intended purpose. There are two ways to help your small business increase functionality. Either you need to have more employees who are working longer hours to get more done, or they must find better ways of doing the job. For most small businesses, hiring more employees or extending employee hours is not a practical option. It increases business expenses and those costs may outweigh the overall benefits, particularly when functionality is already strained. If your profit margin is shrinking, it may seem counterintuitive to spend more money. However, by investing in high-quality barcode scanners and a system to organize them, you can greatly increase efficiency in several areas of business. Startup costs are low and you can see a return on your investment relatively quickly.

Barcode Scanners in the Shipping and Receiving Area

Barcodes can help with new shipments upon arrival before they are placed in storage, as well as organizing outgoing shipments to e-commerce customers. “Laser barcode scanning is a simple, easy-to-use and affordable process that offers a large scanning area and working range,” points out Material Handling and Logistics news writer Jorge Schuster. He recommends using the latest technology for the most accuracy in scanning. It may cost slightly more, but it will save time messing with sloppy machines.

When new shipments of product come in, they can be immediately scanned and added to inventory. This means they can also be distributed quickly, rather than waiting or becoming misplaced in a quick “out of the way” area. Likewise, the barcodes on items can be scanned before shipping to keep track of what has left the facility and what has not. For businesses that hold inventory for both in-store and online sales, this is important. Tracking sales in both areas means that inventory needs to be accurate for both as well. Having a high-quality barcode printer at your facility means that you can quickly and efficiently print new barcodes as needed.

Barcode Scanners in the Warehouse

Barcodes make a big difference in organization for warehouses and storage areas. Unless your business includes only a few products, keeping an accurate count of what you have requires attention to detail. Many small businesses still use spreadsheets to track inventory. However, a barcode system can simplify this process and help guarantee that those number are accurate up to the minute. When a warehouse barcode system is coordinated with point-of-sale registers, the result is a constantly accurate evaluation of real data.

When you are conducting an annual audit, the process can be time-consuming and require many employees. An example showed that a business which typically required 25 employees over a weekend could perform the same task using barcode scanners with just four employees in only five hours. For all businesses, time is money. When a barcode system can cut your time to a fraction, the overall savings are significant.

Barcode Scanners at the POS Checkout

Utilizing a barcode scanner at the checkout can improve your point-of-sale activity in multiple ways. First, a barcode ensures that the price on the product is accurate. There is no need to price check an item or key in the price by hand when a simple scan puts all the relevant information at your fingertips.Inevitably, when an individual is responsible for accuracy, mistakes are going to be made. Most barcode scanners are easy to use and require only minimal training. When the checkout moves smoothly, customers are happy and more likely to return.

Second, a barcode scanner can help track sales information and calculate taxes. According to Entrepreneur.com, “Perhaps the most valuable way POS systems help you gain better control of your business is through their reporting features.” The  POS system can be synchronized with QuickBooks to maintain accounting records. Each sale is tracked using the software, giving users access to daily sales totals and at-a-glance tax amounts. Use this to analyze the most popular products, compare in-store sales with online sales, and see which payment methods are preferred.

Choosing the Right Barcode Scanner

For small businesses owners, a barcode scanner needs to be fairly inexpensive, simple to use, and compatible with existing hardware. The point-of-sale system offers an all-in-one solution for upgrading all technology at once. It requires only a single iPod to coordinate and barcode technology uses the most up-to-date scanning capabilities. The Socket Mobile 1D barcode scanner is wireless, connects with your computer using Bluetooth technology, and has a battery life of up to 19 hours. Get more done throughout your shop every day. This sleek and efficient device offers a lot of benefits in a little package. It is also compatible with most other hardware, including both PC and Mac Computers.

Setting Goals for Financial Success

The following post is by Kevin Fullerton. Enjoy!

America is a country in debt. More than 160 million Americans have credit cards, and the average cardholder is $15,000 in debt. Fortunately, it’s never too late to turn around and start making wise financial decisions. Follow these five tips to start getting out of debt, find ways to save for the future, and get on the path to financial success.

Start With Small Changes

You don’t have to completely give up your way of life in order achieve financial stability. Set a goal to save $100 a month on groceries or stay in one night a week instead of going out. You really only need to save $20-$25 per grocery trip to reach $100, and staying in instead of eating out or going to the bar will save at least $10-20 per instance.

Time crunched the numbers found that bringing lunch to work at least one day a week instead of buying can save you $500 annually, and bringing food three days a week instead of buying saves $2,500. The same financial gains come with replacing a Starbucks latte with home-brewed or office coffee. Start small by bringing your own coffee and lunch once a week, and then challenge yourself to do it twice a week next month. Soon the savings will add up.

Cut Unnecessary Spending

Track your spending to get a clear picture of where your money is going. You would be surprised how many hidden charges and “convenience fees,” are added to Internet purchases and other bills. There are plenty of ways to cut back on these unnecessary fees. You could consider switching banks to one with better locations if you’re hit with ATM fees.

Spenders looking to cut back on their budgets might also need to make some tough cuts in order to save in the short run. Consider breaking up with your cable provider if you already subscribe to Hulu, Netflix, and Amazon Prime. Also, cutting just one of those streaming services can save you $100 annually, so end your service with the one you use the least often.

Start Paying With Cash

Psychologists have identified an occurrence called “coupling,” where consumers feel both happiness and loss when they make a purchase. The brain feels happy about the new item, but it also feels bad about losing money. Unfortunately, “de-coupling” occurs when we pay with credit cards, meaning the brain experiences the pleasure of a purchase without any of the pain. De-coupling also occurs with one-click and in-app purchases, where people buy items online without having to think about it.

To avoid credit card debt, pay in cash as often as possible. This way you only buy what you can afford at the moment, and you experience the pain and pleasure that comes with coupling.

Save to Make Purchases in Full

It may be tempting to buy a new car or finance furniture to redecorate your new home, especially when stores and car lots offer seemingly cheap deals. They may say you won’t pay interest for the first couple of years, but you’ll make up for it after the interest kicks in. Buying upfront will keep you out of debt and save you hundreds, or even thousands, in the long run when you don’t have to pay interest. Yes, it means you’re not driving a nice car for a while, but your credit and bank accounts will thank you.

Saving is a Marathon, Not a Sprint

One thing to remember as you start out on this journey to financial stability is that saving and climbing out of debt is a process. Bringing your lunch once a week adds up over time, not overnight. Saving to avoid financing your furniture will take months, and you might not see the results for years. Instead of following a couple quick tips to save, change your spending habits to make better decisions in the long run.

Different saving tips work for different people. Some can’t live without their lattes, while others need Netflix. Find what works for you and get on the path to financial stability today.

***Image via Flickr by 401(K) 2013

Can I Buy Property Without Conducting a Title Search?

The following is a guest post. Enjoy! 

Performing a title search on a property before you make an offer on it reveals if anyone else has any claims to the property. Neglecting to ensure that the title is free and clear could cause problems for you later. In effect, any claims against the property that were the responsibility of the former owner will be transferred to you.

This is a huge risk to be assuming as a new property owner, and one that is wholly unnecessary, as well. Real estate professionals make it simple to perform a thorough title search before the settlement, so there is simply no reason to forgo a title search.

Establishing that the property is free and clear of any liens or title disputes might be more complicated than it seems. It’s not necessarily the case that the former owner is “pulling one over” on the new property buyer. In fact, the previous owner might be completely unaware of any liens against the property.

Liens against the property can include current taxes as well as delinquent past taxes, strata fees, utility bills such as sewer and water bills, and outstanding interest, just to name a few. And these liens can go back several owners, so it might be be possible that the current owner has no idea that there are any liens on the property.

Nearly one-third of all title searches reveal some type of problem that needs to be resolved. Things as simple as unpaid bills to contractors and repairmen can crop up during these title searches and it’s important to reveal them before you have committed to purchasing the property.

The potential problems with the title might not even be as malicious as the current owner trying to skip out on a contractor bill, either. Problems with the title could be as simple as errors in the previous deeds or undetected forgery from the past.

This is why conducting a title search on a property isn’t just recommended, it’s essential. If you’re using a real estate practitioner to complete your settlement, they will almost certainly insist on performing a title search beforehand.

This leaves them free of any liability and provides you with the peace of mind you should have when purchasing a new property. If you’re going to invest in a new piece of real estate, it just makes sense to perform a simple routine title check It’s a small expense that can prevent a huge liability later.

The great news is that real estate practitioners are excellent at doing property title searches. Not only do they know what to look for and where to look, many companies provide search services that make it simple for the real estate professionals to do their jobs quickly and efficiently. With one simple click of a button, they can order many land title searches at once, meaning that it’s possible to verify the title on many properties at the same time. With a process this simple that can save you so much hassle later, why not be safe rather than sorry?

Ever Thought of a Career Opportunity Abroad?

The following is a guest post. Enjoy! 

The Small Print

According to the Isle of Man government website, those who have been educated or have lived on the island for more than five years will have priority for employment on the island. Employers on the island may employ workers from outside the Isle of Man from the EEA, only in the event that there are no current residents who have applied and meet the requirements for the job.

But regardless of whether you’re a current resident or not, what does this tiny island have to offer career wise?

Technology Companies

Unlike traditional companies, which require a permanent establishment (PE) to conduct their business, such as a shop or hotel, technology companies are based online and therefore have a geographic spread of customers and staff. As tax systems look to the PE and ‘Management and Control’ of a company to calculate corporate tax, there is no need for technology companies to base themselves within areas of high tax jurisdiction. The Isle of Man is therefore a popular choice for technology companies to base themselves and benefit from the tax advantages.

The growing number of technology companies on the island has therefore opened up a new line of career opportunities, and as they often require specialised skill sets such as Internet marketing, SEO and programming it is not uncommon for them to look outside of the island for suitable employers.

Tourism

In 2012, the Isle of Man welcomed 294,460 visitors keen to relax in peaceful countryside, explore the island’s wildlife, from wallabies to basking sharks, dive ship wrecks, sample fresh seafood and explore the Island’s Viking ancestors. The range of outdoor, cultural, historic and annual activities has seen tourism figures increase year on year, opening up an array of career opportunities for current and prospective residents.  According to government data, there is a typical demographic profile of tourists: 75% of visitors to the island are over 45 years and 70% of tourists have visited the island before.

Career paths in the Island’s tourism industry include anything from marketing to hospitality and management. So whether you want to become a diving instructor, organise events or run a b&b, there are plenty of options.

Food and Agriculture

75% of the Isle of Man’s land is used for agriculture with farmers producing around 29,085 tonnes of food each year. The majority of livestock on the island are cows (used for beef production) and sheep (used for wool as well as lamb meat). Although the Isle of Man is not in the EU, 60% of its red meat and milk is eligible for European and international trade. The islands other exports include oats, seed crops, red wheat, oilseed rape and linseed.

As most of the island’s farms are passed down through families, job opportunities in the farming sector do not come up frequently. As the island’s population is only 80,000, there is also limited opportunity for local trade. However, with the introduction of the Isle of Man Food and Drink Festival, and a growing number of excellent restaurants on the island, the food and agriculture industry does benefit from the island’s tourism. There are therefore career opportunities in the hospitality sector (restaurants).

5 Money Lessons You Only Learn In Your 60s         

The following is a guest post. Enjoy! 

From splurging on holidays to paying for university fees and student bank loans, spending whilst we’re young doesn’t seem to matter too much at the time but it can drastically affect our bank balances later in life.

Here are five money lessons which you are only likely to learn once you’re in your 60s. As this article from McCarthy & Stone shows, you’re not old until you’re 90 so you’ve got plenty of time to take heed of these lessons and whip your bank balance into shape!

1. How to manage your finances online

If you’re still learning how to manage your finances then now may be the time to start saving ‘properly’ for the future. A huge number of people in this day and age will work well into their retirement and those still in employment after the age of 60 may like to take this opportunity to manage their finances online.

Speaking to an advisor at your local bank is a great place to start as he or she will be able to tell you a little more about the best ways to save for your future. The best thing about modern day banking is that it can be managed at the click of a button.

2. It is never too late to learn something new

More individuals than ever before are treating retirement as the start of a new life as opposed to the end of an era. Both learning new skills and accepting new challenges is certainly one way to enjoy later life. It’s also a great way to earn a little extra pocket money post retirement.

3. Get what you’re entitled too

When you reach a certain age, there are innumerable benefits, grants and extra payments available. Such payments help towards everything from the weekly shop to fuel bills and further study. If you’re not receiving any of these extra grants at present then now is the time to suss them out.

Certain insulation companies may even offer those on a low income free boilers, and cavity wall and loft installation for no charge, so it’s worth investigating.

4. I should have started saving sooner

Once you reach the age of 60, it’s important to consider a retirement plan. You may be a few years off from retiring but despite this, having a plan in place is a must. You may quickly begin to realise that you should have started saving sooner. Just because your retirement is coming up, doesn’t mean payments for your household bills, child’s study fees and car insurance will suddenly cease.

5. Saving trumps spending

Even after realising your savings fund is a little overdue, it’s never too late to start. Instead of spending each and every day, learn to stick to a budget and enjoy the rewards. By eating out rarely and only treating yourself on the odd occasion you will make these perks more meaningful and boost your savings to support your future – what’s better than that?

You can find more tips like this by clicking on this great article on 12 things learned after being made unemployed when aged 60 or over.

Does Home Insurance Cover Rented Items Inside Your Home?

The following post is by Jesse Hughes. Enjoy! 

There’s every chance that you may have items in your home that are rented; they do not actually belong to you. There is always a chance that a problem may befall your property and you may have to claim on your home insurance, but are rented items covered when this happens?

When you’ve purchased an item, and have it in your home, you know that you should claim for it on your home insurance plan should there be a problem in your home, such as break in and theft. You may not necessarily think the same way about a rented item. Keep reading about your home & contents coverage options, you can learn what kind of cover you’re eligible & exactly what you’re covered for.

Your home insurance covers all items that you have a financial interest in

When you take out home insurance you are covered for the property in your home in which you have an interest. If you have bought a TV for instance, this will be covered. What you may not know is that you are also covered for items you rent.

Although you haven’t purchased these items you are spending money on renting them so you are disadvantaged by not having the item available and you are responsible for the item. It’s a different situation to if an item in your home belongs to someone else who is not living there. You don’t have any interest in items like this so your home insurance does not cover the replacement of them.

The rules with regard to cover for personal items do not just apply if you own your own home. If you rent a property then you will need to purchase renters insurance to cover the cost of the personal property you own. The same rules apply with this insurance.

What do your need to consider when you purchase a home insurance policy?

When you’re looking at buying a home insurance policy you need to shop around to see which plan suits you the best. You may want to opt for a higher deductible in order to keep the amount of your premiums at a lower level. You may also be able to get a good deal on your plan if you get your home insurance and vehicle insurance from the same company.

The one thing you need to make sure you do is to check the policy in detail before you buy it to make sure that it covers everything you need. If you have items in your home that are especially valuable you will probably need to get these items insured separately as they may not be covered under a general policy. You should be able to discuss this with your insurer when you go to purchase a policy.

Don’t forget you need to make sure that you have enough cover for the property you have purchased and any property that you are renting. If the worst does happen you don’t want to be in a position where you are out of pocket because you haven’t got sufficient home insurance cover.

How to Choose the Right Financial Planner

The following post is by Tanya Oliver. Enjoy! 

There are a lot of areas in life where a DIY approach can save you money, but investing isn’t one of them. Unless you’re extremely financially skilled, you’re going to need professional advice to make the right investment decisions. And that means hiring a financial planner.

But where can you find the right financial planner for you? What questions should you ask to determine that a particular planner has the experience and integrity you’re looking for? Should you choose a planner who charges an annual fee, an hourly rate or a commission? The answers will vary somewhat depending on your financial position.

Where to Look for a Financial Planner

Often, the best way to find a financial planner who’s right for you and your financial place in life is to ask around. Your friends and co-workers, especially those who are in the same financial boat as you, may be able to give you a good referral to a financial planner who can help you get from where you are now to where you want to be in 20, 30 or 40 years. Whether you’re single or have kids, just starting out in the work force or several years into your career, choose a friend who’s in the same place in life and ask him or her to recommend a financial planner.

Alternatively, you could go online to look for financial advisors. Some good places to look are with the National Association of Personal Financial Advisors. Look for an advisor who is willing to meet you on your level and stick with you over the years.

Is Your Financial Advisor Reputable?

When it comes to searching for a financial advisor, don’t be afraid to shop around. Advisors know that you’re probably vetting several candidates, so they won’t be offended. Shopping around offers advantages — it allows you to find the most affordable financial planner, for a start. It also gives you the chance to find a financial planner with the qualifications and experience you’re looking for.

To avoid getting taken in by an amateur financial planner, look for a professional with the letters “CFP” after his or her name. CFP stands for Certified Financial Planner, and in order to get this credential, a planner needs to have passed a certification exam from the Certified Financial Planner Board of Standards. CFPs must maintain their certification with continuing education on ethics and other matters of personal finance.

While certification is important, it’s not all there is to it. Some important questions to ask a potential financial advisor include:

• Do you have staff committed to watching the markets?
• How do you apply current academic thought on the science of investing to your financial planning services?
• How do you ensure due diligence?

Run a background check on your financial advisor to make sure he or she hasn’t been convicted of a crime. Go here to learn if a CFP has ever been disciplined. Ask for and check references from current clients who are in the same financial position as you.

Should You Choose a Fiduciary or Suitability Advisor?

There are two basic compliance standards that financial planners adhere to — the fiduciary standard and the suitability standard. Fiduciary advisors have a commitment to giving you advice that’s in your best interests, and many people feel more comfortable with such a planner, even though they can cost more.

A suitability planner has a legal obligation to give you advice that’s suitable to you and your situation, even though it might not be your best option. However, don’t take that to mean that a suitability planner will definitely lead you astray. He or she wants to retain your business as much as any other professional.

Understanding Financial Advisory Fees

There are three basic pay structures for financial advisory services. You’ll pay a commission, pay an annual fee or pay by the hour. The one that’s best for you will depend on your financial position.

If you’re on the lower end of the income scale, or just want to get a few questions answered on a one-time basis, an advisor who charges by the hour may be for you. On the other hand, if you want ongoing financial planning and advice, you’ll probably want to go with a fee-based planner who will take a small cut of your assets — usually around one percent — in return for managing all of them. If you have a lot of assets, however, you may want to work with an advisor who is paid on commission.

Without professional financial advice, you could end up making money mistakes that could devastate your financial potential. Finding the right financial planner for you may take some legwork, but in the end, it’s well worth it.

Prepare For The Future – Invest In A Funeral Plan

The following post is by Kevin Fullerton. Enjoy! 

It’s easy to fall into that fateful cycle – your wages pop into your bank account, then instantly plunge to zero again as you buy a glut of products you don’t need.

Indeed, in a recent survey from finance news site This is Money, it was revealed that one in three people deliberately overspend on nights out so they don’t appear cheap to friends. We’re collectively wasting money just to keep up with the Jones’s.

But there’s one thing more important than saving face – having money set aside for your passing.

That’s right – while a large sum of people are willing to splash out on an evening, few have savings set aside for those autumn years, and even fewer are taking precautions such as funeral plans to ensure a good send-off.

Why should I? you might be thinking as you shell out for your next holiday or luxury item.

From a financial point of view, a funeral plans are one of the soundest purchases you can make, ensuring that your family aren’t lumbered with debt upon your passing.

Saving at any age

As a rule, these plans are marketed squarely at the over-65 market, but that doesn’t mean you can’t start saving and planning your funeral at any age.

And saving has become an imperative, especially if you want a touching tribute.

With funeral costs rising year-on-year, national newspaper The Daily Mail claims that the average service (including clergy, medical, casket, wreath and burial fees) costs around £7,600 – and that price is only set to increase.

However, with a plan from a trusted provider, you’ll be able to make a series of monthly payments that won’t leave you out of pocket before your wages come in.

The fate of the pauper

What’s the alternative if you don’t pay for your funeral? The perfect way to answer that is to tell you about a man called Chris Sievey.

The creator of beloved cult figure Frank Sidebottom, Sievey tirelessly focussed on his oddball creations, songs and stage shows. He pumped so much of his cash into his creative ventures that he had none left for actual living.

When he died of cancer in 2010, it was feared that this icon of eccentricity would be left with what’s known as a pauper’s funeral. A basic funeral subsidised by the government, Sievey narrowly avoided this fate thanks to donations from entertainers like Jason Manford, Jon Ronson, Phil Jupitus and many more.

But not everyone is quite so lucky, and this imaginative entertainer is just one cautionary tale on the value of effective planning for your passing.

While you’re out with friends or planning a major holiday, it’s easy to ignore those nagging thoughts of your mortality. But with an effective amount of money set aside, you won’t leave your family in the lurch.

The Cost of Replacing an Older Car

The following post is by Amanda Green. Enjoy! 

While many American cities have excellent public transportation systems – take New York, for example – some places aren’t so lucky. People who live outside urban areas often need cars to get to work, or buy food, because the public transportation system is limited or unreliable. Even people who live within urban areas can have problems – Atlanta, Detroit, and Miami are all considered some of the worst cities for commuters. If you live in an area with less than adequate public transportation, you may have no choice but to own a car.

Unfortunately, cars don’t last forever. If you have an older car, you might be considering replacing it. However, doing so can be an expensive proposition – newer cars often require financing that means high interest rates, high monthly payment, and higher insurance costs. How do you know when it’s time to replace your older car, and how do you get another without going broke?

How to Tell it’s Time

The biggest sign that it’s time to call it quits is if your repair costs increase. All cars need some maintenance and repair as they age and the longer you have the car, the more likely you will need to spring for a big repair. However, there’s a big difference between having to replace the brakes one year, and then the alternator a couple years later, and having to make repairs on a quarterly, or even monthly basis.

For example, if you have to replace the brakes in the fall, then the alternator that winter, and the fuel pump dies the following summer, it’s probably time to replace the car.

While it’s true that the cost of repair could be less than the cost of buying a new car, the fact that the repairs are coming so fast and furious could mean that your car is on its last legs.

Another sign is if the cost of ownership is greater than the cost of a new car. For example, if you have an older car with low gas mileage, that only takes premium, you might be better off with a newer model with more flexible gas requirements and better mileage. If it has a lot of foreign parts and needs to go to an expensive specialty mechanic for routine oil changes, you might be better off with a less unique vehicle.

Tips for Picking Your Next Car

·  Check consumer resources like Bankrate, Consumer Reports, Banking Sense or The Wall Street Journal, for up to date financial information on auto buying, insurance, and credit – all the things you will need when buying another car.

·  Determine how much you can afford to spend on everything, including the car payment, insurance, gas, and maintenance.

·  Determine the type of car you want. For example, if gas mileage is a concern, you might consider a hybrid or electric car.

·  Determine its use. If you’re just driving alone to and from work, and running basic errands, a compact sedan could be fine. If you plan to take a lot of road trips, or do a lot of carpooling, a larger sedan or a van might be a better choice.

·  Decide if you want to go with used or new.

With used cars you don’t have to deal with the huge rate of depreciation, and you can often find vehicles with lots of bells and whistles for less than you would pay for new. Unfortunately, used cars also have mileage, wear and tear, and hidden problems that only show up after you have driven it off the lot. Services like CarFax can tell you about the vehicle’s past, but you may still need to have a mechanic look at it.

With new cars you are less likely to inherit mechanical problems or encounter wear and tear. You can also pick the potions you want instead of taking whatever is available. Unfortunately, new cars are so expensive that most people have to take out financing to purchase them. To make matters worse, most cars depreciate by nine percent the second you drive off the lot. Within a year it could lose another ten percent, and by year two it could have lost almost thirty percent of its value. That means that car you financed for $20K in 2014 will only be worth about $14K in 2016.

After five years the rate of depreciation slows significantly, so your best option might be to purchase a used car that is between three and five years