Tips for Saving for Your New Car

Hands holdinga jar of moneyIdeas for affording that hot ride you have always wanted
It’s a common situation: your current car is on its last leg and you have your heart set on a new model that will last longer, look better and have more features. Unfortunately, your bank account isn’t on your side and is limiting your options. Instead of disregarding your financial limitations, find ways to overcome them by saving money and shopping wisely so you can eventually afford that dream vehicle.

Determining your financial goal
Before you establish a plan of action, it is vital to fully evaluate your current financial situation and what your goal is; a clear understanding will help you effectively plan how to reach your goal.

Once you identify which vehicle you want, you can estimate how much a down payment would cost. Ronald Montoya of Edmunds suggests that 20% of the total cost of the vehicle should be your down payment (resulting in a lower monthly cost), but that if you cannot comfortably afford that amount, a 10% down payment with GAP insurance mitigates risk while keeping money in your pocket.

Jamie Page Deaton of U.S. News & World Report emphasizes the importance of considering the ongoing price of monthly vehicle costs, such as repayments, insurance and maintenance. Depending on your cost of living and pre-existing debt, these expenses should not exceed 15-36% of your monthly take-home pay. Ensure you have a secure income to afford these monthly costs after you drive the car off the dealership lot.

Saving money on daily expenses
Now that you’ve established a target amount of money to save for both the down payment and monthly fees, you can analyze your current spending habits and find ways to trim your daily expenditures and divert the difference into a savings fund.

Trent Hamm of The Simple Dollar outlines dozens of methods for cutting expenses. For instance, consider using public transportation or carpooling to work. Cancel your unnecessary memberships, subscriptions or paid services. Buy bulk, generic, non-perishable items from the grocery store and make your own meals instead of eating out. Other ideas include shopping at thrift stores, selling unused items, consolidating your loans, lowering home thermostats, unplugging electronics and pausing your travel plans.

Getting the best deal on the car
Saving money isn’t just about having enough cash in your bank account; it’s equally imperative to ensure you’re getting a deal on the vehicle you are purchasing. There are methods for knocking some numbers off the sticker price to ensure you are paying the lowest possible amount rather than simply handing over your hard-earned money at the first price presented.

Kerry Hannon of Forbes offers nearly a dozen ways women can save on a new car; all of the methods can be used by men, too. Time your purchase so that you can take advantage of a seasonal sale, a reduced price on last year’s model or a rebate program. Do your research and have a clear idea of what the car’s value is and what competing dealerships in the neighborhood are offering for the same model. Don’t be afraid to negotiate; hold firm on the target price and don’t get drawn into add-ons or upgrades.

Another way to get a better deal on your car is by improving your credit score and thus receiving a better deal on financing. Investigate all your financing options and find the best loan offer that is best for you, whether that’s through your bank, a local credit union or the dealership.

With a solid plan and frugal spending habits, you will eventually be able to afford that new car without putting your finances at risk.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

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Cool Ways to Save Extra Money

A little creativity and thought can save you a lot of money
Couple Saving MoneyThere are many ways to save a little extra money each month, some of which have added benefits beyond financial ones. Have a little fun and get some great additional perks with these five out-of-the-ordinary ways to save extra money.

Forgo cable
With the popularity of Hulu, Netflix and other streaming services, cable isn’t considered a necessity anymore. These streaming services even produce their own shows that you can’t watch anywhere else. Plus, their fees are just a fraction of the average monthly cable bill—services like Apple TV only cost a flat fee up front for the device.

Another way to get media on the cheap is to dust off that old library card. Many local libraries are part of a network from which you can rent a vast selection of DVDs, TV series boxed sets, CDs and books. Even better, it’s absolutely free—as long as you return everything on time.

Socialize cheaply
Instead of going to the movies on date night or heading out for drinks with your pals, look for free activities happening in your area.

“Many cities offer a host of free activities, especially in the summer months. Use social media tools and the web to find listings for community activities and make your date night a little cheaper,” wrote money blogger Nicole Graham on LifeHack.org. “This will also push you to do something new or different, which will broaden your horizons and help you meet new people.”

You can also host your own social events. Save on menu items, tax, tips and parking by hosting a potluck supper. Or organize a clothing swap—it can be a fun, intimate event; and you can all get some free new outfits out of the deal.

Eat at home
Maybe your apartment is too small to host a potluck, but you can still plan your meals ahead and cook at home for yourself in order to pocket some cash.

“Taking a few hours every weekend to grocery shop and meal plan for the week will definitely save you money, as dining out is the No. 1 expense for most households,” said Brittney Castro of CNBC. “By eating at home, you save money that would otherwise be spent on tax and tip—and you usually save calories, too.”

If you do eat out—maybe it’s a special occasion or a reward—at least try to order take-out rather than dining in or getting food delivered. You won’t have to pay the double-fee of tipping the driver AND paying the delivery charge.

Get crafty
Take to Pinterest, beauty blogs and more to find cheap, easy-to-make and oftentimes eco-friendly cleaning or beauty supplies. These online resources can also give you cool ideas for repurposing items around the house or crafting in general, so finding a new hobby out of the deal is yet another advantage.

Charge yourself for bad habits
Quitting vices, such as smoking, can save you a ton of money. But the actual process of kicking the habit can save you some money as well. On LifeHack.org, Graham recommends labeling a jar with your designated bad habit and placing a certain denomination of money in the jar every time you find yourself partaking in said bad habit.

As if watching exclusive media content, hanging with friends, helping the planet or bettering yourself could get any better—with these tips, you can save money while you’re at it!

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

Cut These Costs TODAY

Man buying groceriesHave you ever unexpectedly found out you’re quickly going to have less income? It’s enough to throw you into a panic. But the best way to get through hard times is to take a few deep breaths and put a plan together. Check out these common targets for quick and effective expense cuts.

Food
You might find it obvious that evenings dining out at fancy restaurants probably aren’t the best idea when experiencing a budget crunch. But think about your groceries too. Consider avoiding the higher-priced stores and stocking up on the basics at the more reasonably priced spots. You might find that cooking at home and taking your lunch to work saves you lots of money and ends up being healthier too.

Cable/Movies/Rentals
If you’re like most people, your visual entertainment comes from multiple sources. You may watch movies on cable, in the theater, via rental or online. In crisis situations, it’s best to focus on watching movies at home and using one particular way to do it. In other words, if you have both Netflix and premium movie channels, it’s probably time to go with one or the other.

Phone plans
It’s nice to use a smart phone to be able to look up information on the go, but you could probably make do without the data plan if you had to. Did you know that you could also be on a prepaid smart phone plan? Call your service provider to ask them to perform an analysis on which plan is best for you. You might be paying for more than you actually need. Also consider eliminating your house phone if you have one.

Gym
It’s important to get some stress-relieving exercise during this trying time, but there’s no reason why you should have to spend money to do it. Brainstorm ways to be active without having to fork over a big chunk of your paycheck. The main thing is to just get moving!

Shopping as entertainment
One activity that could put you in the trouble zone is shopping for fun or to ease tension. “I won’t buy anything, I’ll just browse” too often can lead you down the path of unnecessary spending. Eliminate leisure shopping or other activities that put you in temptation.

Gas
Is it an option to work from home more? Can you carpool or combine your errands into fewer trips? If your family has multiple vehicles, can you sell one and share the remaining?

Insurance
With the ease of using the Internet to compare rates, the insurance business is much more competitive than it used to be. Shop around for the best deals on any type of insurance you have—auto, home, life, etc. Check into bundling these with one company to save even more. How is your credit score? This might affect the cost of certain insurances. Also be sure to ask about discounts you might apply for, and the option of raising your deductible in exchange for a lower monthly payment.

Utilities
Think of ways to stay warm or cool more efficiently. Put on more layers in the colder months and spend more time outside during the warmer times. Be conscious of turning everything off and even unplugging electrical items when you leave a room.

Habitual items
When you have a comfortable financial situation, it’s easy to buy coffee, cigarettes, alcohol and convenience store snacks without thinking too much about it. But in these tighter times, think about what you are really getting out of these purchases and if there are expenses that are more important.

Taxes
If you have more money taken out of each of your paychecks than is necessary in order to get a large income tax refund check in the spring, you are over-paying the government each month. Cut this expense by using the IRS withholding calculator to determine the appropriate amount to have withheld from each paycheck.

None of these cost-cutting measures alone is guaranteed to immediately solve all cash flow issues, but in concert they can potentially save you hundreds of dollars per month.

Used with Permission. Published by BALANCE Includes copyrighted material of BALANCE.

Useful Apps for Managing Your Expenses

Using your smartphone to be smarter about budgeting
Creating and sticking to a budget is essential if you want to get out of debt and achieve financial security, but it’s easier said than done. The proper amount of money to spend on various expenses can be difficult to calculate, and summoning the willpower required to stay true to those set amounts can prove even harder. Fortunately, there are many apps designed to keep you honest—and in the black. Here are some of the best apps available for managing your finances.

Mint
The most popular app for managing your money is Mint, a free app from Intuit, the company behind TurboTax and QuickBooks. Mint allows users to connect all of their bank and credit card accounts, as well as their monthly bill statements, into one convenient, all-in-one application for managing spending. Bill payment reminders, specific advice based on your unique spending habits and free credit scores are among the other services that Mint has to offer.

YNAB
You Need a Budget, or YNAB for short, doesn’t just document your spending—it seeks to actively improve your purchasing habits and behaviors. For $5 a month or $50 per year, this app is best for those struggling to escape from the burden of debt. In addition to designing a budget that will help you achieve solvency, YNAB also provides helpful advice and community support in the form of an online forum made up of others suffering from the constraints of living paycheck to paycheck.

Level Money
Many consumers get into the bad habit of checking their bank account, seeing a healthy balance and then spending with carefree abandon. But there’s a difference between how much you can spend and how much you should spend, and Level Money is designed to illustrate that divide. This free app factors in essential monthly costs like rent, utilities and grocery bills to show the “spendable” amount of money in your bank account. You can also program it to take into account your saving goals, which helps you better prepare for the future.

Digit
When managing your expenses, it can be hard to remember to save money; fortunately, Digit does it for you. This free app makes an analysis of your spending and income and then automatically takes small amounts from your checking account, often anywhere from $5 to $50, and banks them in an account managed by the company. The app is fee-free and comes with a no-overdraft guarantee, so there is little risk involved. No interest is earned on your savings, since Digit is not a bank, but there is a “Savings Bonus” of five cents for every $100 saved over a three-month period.

Whether you are racked by debt and searching for a way out or simply looking for a convenient way to keep track of expenses and improve your saving habits, there are many free and affordable apps that can have a positive impact on your finances.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

Mobile Wallets: Moving Shopping Into the Future

A more secure and convenient way to make payments
These days, most transactions don’t involve physical money, so why should they involve physical wallets? Thanks to new technologies like Samsung Pay, Android Pay (formerly Google Wallet) and Apple Pay, you can now use your smartphone to securely make transactions without ever having to take out your credit card.

According to the latest survey data from market research firm CMB, only about 15 percent of smartphone users actually utilize these technologies to pay for purchases, but usage nearly doubled from 2013 to 2015 and will likely continue to rise over the next few years as the benefits of mobile wallets are better understood.

If you are not sold on the idea of joining the new trend, here’s why you may want to reconsider:

Ease of use
A mobile wallet is an app that can be installed on a smartphone, or may even come pre-installed. Investopedia explains how they work: “Once the app is installed and the user inputs his payment information, the wallet stores this information by linking a personal identification format like a number or key, QR code or an image of the owner to each card that is stored.”

You may also have to contact your financial institution to allow the mobile wallet app to use the payment card. Once everything is set up, the mobile app uses a radio-based technology called Near-Field Communication (NFC) that communicates with the merchant’s point-of-service terminal. In other words, you only need to wave or hold your device over a store’s reader to make a payment.

Security
Because mobile wallets use encrypted payment codes and never actually transmit your account number, they are much safer to use than credit cards. In addition, paying with a mobile wallet requires your fingerprint or personal identification number, so even if a thief managed to get their hands on your smartphone, they would have a much harder time spending your money than if they had stolen your credit card.

“Even if a thief bypassed all the security, the risk to you is low,” Jeff Blyskal writes in an October 2016 article for Consumer Reports. “Mobile wallets usually require an underlying credit or debit card to fund transactions, and those cards limit your liability for erroneous or fraudulent charges to little or nothing.”

Convenience and incentives
Mobile wallets can be used for more than just emulating credit and debit cards. “In addition to payment cards, the mobile wallet can also be used as a storage device for driver’s license, Social Security Number, health information cards, loyalty cards, hotel key cards and bus or train tickets,” Investopedia explains.

Thanks to mobile wallets, you can carry hundreds of rewards cards virtually, making it easier to keep track of the ones you own and to remember to use them. You can even use mobile wallets to make online payments, removing the need to tediously enter dozens of digits for each transaction.

You can also save money with various reward programs. For example, Android Pay offers rewards for using the app at selected partners, while Samsung Pay offers a tiered rewards system based on how many monthly purchases you make with it.

Widespread adoption
So far, the main obstacles faced by mobile wallets are the different payment methods. While almost all modern smartphones will support Samsung Pay, Android Pay, Apple Pay or a combination of these, all three of these apps may not necessarily work at all retailers.

“Samsung Pay can be used at more than 10 million U.S. stores, Apple Pay at more than 3 million stores, and Android Pay at more than 1 million stores,” Blyskal says. “The numbers will grow as retailers upgrade their payment card readers.”

Being able to use Samsung Pay at more than 10 million stores easily makes it the most attractive of all the mobile wallets, but you have to own a Samsung smartphone to use it. The upside is that it works everywhere: according to Ethan Wolff-Mann in an October 2015 article for the Time’s Money, “[Samsung Pay] works everywhere, since it can mimic a magnetic strip if NFC technology is unavailable; retailers don’t get your credit card info.”

This doesn’t mean that Samsung will continue to be the best option for smartphone owners interested in mobile wallets, as both Google and Apple are strongly invested in using this technology to sell smartphones and will continue to implement rewards for using them. Furthermore, using a mobile wallet speeds up transaction times, which gives retailers extra incentive to adopt NFC-capable card readers.

For the time being, mobile wallet adoption across retailers may still not be good enough to leave your credit card at home. In the future, however, it’s very likely you’ll never need to go out shopping with more than just your smartphone.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

How Gift Cards Can Help You Save Money

Strategies involving gift cards to save you cash

There are two main ways you can save money with gift cards: One has to do with buying them, and the other has to do with using them. Read on for more information.

Use only gift cards while shopping
Shopping with gift cards can be an extremely effective budgeting tool. Determine your monthly expenses (go beyond rent and utilities) and place them into categories such as groceries, pharmacy, household items, auto maintenance, clothing and more. Next to each, list the stores where you most frequently shop, starting or listing first your top-choice vendor. Buy a gift card and shop for your items at that store using only the gift card. It will save you from overspending on any given category.

Buy discounted gift cards
To take even better advantage of gift cards as a budgeting tool, you can buy those gift cards at a fraction of the normal cost. How? People often utilize online auction sites such as eBay to sell off cards that they know they won’t use. Peruse your options there or visit an online gift card exchange site such as CardHub, CardCash, Cardpool or GiftCards.com.

Herb Weisbaum of CNBC also recommends checking big-box, bulk retailers such as Costco to find gift cards being sold at less than face value. Additionally, don’t forget to check into your loyalty program or credit card reward points — they are also good sources for gift cards on the cheap, and some even offer them at a redeemed-point discount!

“This is a great untapped resource for savings,” said Bankrate.com’s Janna Herron in a CNBC article. “It’s an easy way to stretch your rewards and your…budget, and maybe use up points or miles that are about to expire.”

Finally, keep an eye out at the shops you frequent for any discounts or promotions they may be having — especially during the holiday season, when there is a big push to get people to come back into their stores once the holidays are wrapped.

Both buying discounted gift cards and using them to stay on budget are great ways to cut prices on purchases you are going to have to make anyway — so what are you waiting for?

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

Best Ways to Save for Your Mortgage Down Payment

Four simple methods to get the ball rolling on your down payment savings
Buying a home is ajanuaryfeatured_saveforhome huge step in life and begins with a huge hurdle: the down payment. Fortunately, by starting early and thinking things through, you can get a solid jump on saving. Here are some easy ideas to get you started.

Automate Your Savings
At your usual financial institution, open a savings account specifically designated for your down payment/mortgage. Not only will this allow you to conveniently transfer funds from one account to the other, it will also allow you to automate transfers or directly deposit part of your paycheck into the specified account.

Make a Budget
Create a spreadsheet that lists all of your monthly expenses and monthly net income. Not only will this tell you how much you can put into savings, it can also help you discern what monthly mortgage payment you can afford. If the buffer between expenses and income is already too small, this is an early red flag that you will have to start doing some things differently to afford your mortgage.

“Given that income and expenses are closely matched in many households, the only way to get ahead is to bring in more money or change your spending habits (meaning spend less) and avidly look for new savings sources,” says Peter Miller, The Simple Dollar contributor.

Invest Your Funds
If you are looking to buy a house within the year, Kathryn Vassel of CNN Money recommends keeping your money liquid; but if your plans are more long-term, it is a good opportunity to invest in order to boost savings. If you are looking at a 10-year time frame, stocks could be a good option for you, Vassel writes. If you think you’ll buy a house in five to seven years, consider investing in bonds: 50 percent in longer-term bond funds or individual bonds and 40 percent in short-term bonds that mature in one to three years, plus 10 percent in cash. Finally, try higher-interest CDs if you are still two to four years from buying a home.

Research Home-Buying Programs
One of the first steps toward saving for a mortgage is setting a goal. A general rule of thumb for the down payment is 20 percent of the home’s selling price, but many available government programs also offer lower down payments, down payment loans or grants, or housing discounts. For lower down payments, look into GSE loans or loans through the FHA, VA or USDA.

Whether you choose one of these savings methods or all of them, they will help you come up with the down payment for the home you’ve always wanted.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.