Many of you know that my wife and I purchased a 2008 VW Beetle just a few weeks ago. We found it while searching Auto Trader and we had just enough cash to make the purchase without getting the banks or the dealership involved. The only question at the time was, “What do we do . . . → Read More: The Jeep is Sold and I’m Swimming in Cash]]>

Many of you know that my wife and I purchased a 2008 VW Beetle just a few weeks ago. We found it while searching Auto Trader and we had just enough cash to make the purchase without getting the banks or the dealership involved. The only question at the time was, “What do we do with our Jeep?” We obviously didn’t need it anymore (I don’t think there’s ever a time when 2 people really need 3 vehicles), but should we trade it in and keep our bank account stocked up? Or, do we try to sell the Jeep ourselves to get more money out of it?

While I know that trading a car in is almost always the worst financial move (because obviously the dealership needs to make money), I figured that I would at least ask the salesman what he would give me for it. His price: $4,000. Based on Kelley Blue Book, this Jeep was worth $6,400 in good condition, so I just couldn’t let him take it for $4,000.

So, we drove the VW Beetle AND the Jeep back home. The next day, my wife and I cleaned up the Jeep and took it to the shop to get looked over. Unfortunately for us, our SUV needed some new Control Arms that would cost $750 in repairs. Rather than try to sell a busted vehicle, I decided to just go ahead and get it fixed.

We soon had another surprise. There were a ton of Jeeps for sale and not a huge market for them since they only get an average of 16mpg. Within the first 2 weeks, I think I only had one phone call. Let me tell you, I was starting to get nervous!

After 2 more weeks, I had 3 parties take it for a test spin. There didn’t seem to be a whole lot of interest until that 3rd person took it for a drive. I could tell that she wanted it, and I couldn’t let her get away. It took a few days and a trip to her mechanic, but we finally settled on a price and made the transaction yesterday!

Since the tires and brakes were worn, we agreed to come down from the $6,400 Kelley Blue Book price and settled on $5,850. Even with my $750 repair, I still came out ahead by $1,100 compared to the trade-in price!

Those With Money Make Money

I think it’s true that those who have money are often able to capitalize on more opportunities than those who do not. This situation with my Jeep is the perfect example! If I would have been strapped for cash and really needed some money from my Jeep immediately, I would have only received $4,000 for it. But, since we had enough money in our savings to pay cash for the car, we were able to make an additional $1,100 by avoiding the trade-in! As we continue to build up our savings, I believe that there will be even greater opportunities available in the future!

Do you trade your vehicles in or do you sell them yourself? What is your reasoning?

Are you interested in saving money? I hope so! If you can save $100 a month, that’s basically the same thing as making an additional $1,200 a year! I bet you could think of something that you’d like to buy with that extra $1,200. Or, maybe you’d like to invest it and turn it into . . . → Read More: 5 Ways to Save Money Today]]>

Are you interested in saving money? I hope so! If you can save $100 a month, that’s basically the same thing as making an additional $1,200 a year! I bet you could think of something that you’d like to buy with that extra $1,200. Or, maybe you’d like to invest it and turn it into hundreds of thousands of dollars by the time you retire. Or, perhaps you’d like to build up your savings accounts. Let’s figure out how to turn this idea into actual greenbacks in your pocket!

1) Use Cash – It’s a pretty well-known fact that when you use cash, you spend less than if you use a credit or debit card. Why is this? Because you can actually see the money that you’re dishing out for those goods or services. Suddenly, it becomes much more painful when your $200 makes its way down to $0 in a matter of days. If you were paying for your goods with credit, you most likely wouldn’t even realize how much you’ve spent over that same time-frame.

2) Learn to Barter – This is nearly a lost art, but there are still some people that utilize the power of bartering. Right now, I’m selling my Jeep. Let’s say that I have an interested party that only has $4,000, but I’d like to get at least $6,000 for it. Many buyers would just walk away from the deal with their head down, but the savvy buyer will find some items that may be of value to me in order to make up the difference. Maybe they’re in the siding business and can make up the difference by siding my house. This would more than make up for the $2,000 gap (which would be a win for me), and the buyer no longer had to come up with more cash! Sometimes bartering is a great solution!

3) Take Your Eyes Off That New Car – Sure, it would be cool to drive one of those new cars, but for most of us, it’s just not worth the cost. Did you know that a typical new car will lose 60% of its value in the first 4 years of ownership? That means that if your new ride cost $25,000 when it was brand new, you’ll lose $15,000 by the time 4 years go by, and that’s if you paid with cash! If you bought a new car on the payment plan, you’ll lose $16,000 or more! The best buy is always a gently used car that’s 4 years old or older.

4) Have Fun With Cheap Activities – Good times don’t always need to have a high price tag. In fact, many of your best memories are probably from spontaneous events that cost practically nothing! Outdoor activities are some of the best freebies. Head to the beach, have a picnic, play tennis, beach volleyball, shuffleboard, shoot some hoops, or play some Frisbee. You can have plenty of fun inside too. Play cards, get out those board games, watch a free movie online, or maybe even read a book!

5) Keep an Eye on Those Sale Papers – Even if you don’t buy the newspaper, you probably still have sale papers delivered to your door. Take a careful look at these sales before heading out the door to get your groceries. By keeping your list general (such as “meat” instead of “chicken” or “snack” instead of “Nabisco crackers”), you can probably meet all of your grocery needs with sale items!

Follow these 5 ways to save money and you’ll soon notice your bank account beginning to grow! Good luck!

How do you save money? What suggestions would you have other than the five I listed above?

Do you have goals and dreams for your future? Do you have them written down? Every week, I remind myself of my goals for the month to make sure that I’m on track for hitting them. Sometimes I’m way behind the eight ball, and other times I really feel like I have a good handle . . . → Read More: Goals Update #18]]>

Do you have goals and dreams for your future? Do you have them written down? Every week, I remind myself of my goals for the month to make sure that I’m on track for hitting them. Sometimes I’m way behind the eight ball, and other times I really feel like I have a good handle on them. Either way though, my site improves and my readers have a better experience from the improvements.

Goals for May, 2012

So it’s already May 13, and I figure that I’d better start focusing on my goals before the month escapes me! Let’s check out how I’m doing.

1. House Project: Finish Upstairs and Main Level, Minus Trim – This one is almost laughable…. I don’t think I’ve made any progress whatsoever on the upstairs bedroom or bathroom. This is why I write these goals down though, because now I realize that I should probably get to work on a few things!
2. Put eBook into a PDF Format, Build My Site for it, and Sell It! – This has been pretty stagnant as well. I know I have to do it, but life is just so busy!! Hopefully I’ll have a better report next week.
3. Get That Jeep Sold and Make a Double Payment on the Mortgage – The jeep is almost sold! There are a couple of items that need to be addressed, but I have a couple of serious lookers so I fully expect to have sold the Jeep by next week. Keep your fingers crossed for me!

Last week was completely crazy, so I feel like many of my goals were simply ignored, but this week should really be different. As far as I know, there shouldn’t be any interruptions to my typical work week. I can’t wait to let you all know what I’ve gotten done by next week.

Do you currently have a 401(k) or a 403(b) through the company you work for? Just a few weeks after I started my new job here in Michigan, I set up my 401(k). Since I started with a whopping $0.00, I didn’t think too much about my selections, but now that my investments will soon . . . → Read More: How to Structure Your 401(k)]]>

Do you currently have a 401(k) or a 403(b) through the company you work for? Just a few weeks after I started my new job here in Michigan, I set up my 401(k). Since I started with a whopping $0.00, I didn’t think too much about my selections, but now that my investments will soon be valued at more than $10,000, I figured that I’d better start figuring out if my picks match my investing strategy.

Did I Get the Thumbs Up From My Advisor?

A few days ago, I met with an advisor (which was free through my company program) to see how I was doing. I’m not a professional investor, but I like to think that my knowledge is greater than the average Joe. Rather than just picking my mutual funds blindly, I took into account the fees and the average returns. From my analysis, I chose 3 of the options. I put 50% of my investments toward one and 25% for the others.

While my investments did match my aggressive growth strategy (since I’m young and I can afford to lose a bit), my advisor did not like the fact that I had all of my money in only 3 mutual funds. Plus, these funds were all domestic. He felt that for safety, I should at least have 15% of my investments in an international fund.

Based on my advisor’s advice, I have taken on 2 new mutual funds. Both of them have very low fees and there are international investments within each of them. I now have a more balanced portfolio that will reduce my risk, but still hold a decent return on my investment. 

What About Your 401(k)?

If you currently have a 401(k) or 403(b), I’m just guessing that you haven’t paid too much attention to it, especially if you are not nearing retirement age. While I know that you really don’t need to worry about retirement money at this point, you really should make sure that you are investing your money properly in order to yield the greatest results. After all, it could mean the difference between eating spam or steak in your “golden years”.

When you look at your investments in the near-future, be sure that you have considered the wise advice below:

• Invest in more than 3 different funds (preferably at least 5)
• Be sure to include large cap, small cap, bond, and international funds to your portfolio
• Set up automatic re-balancing for the best results
• Choose index funds if you can – the fees are extremely low and perform just as well or better than a fully managed mutual fund
• If you are nearing retirement, shift more of your investments toward less-volatile options like bonds or large cap stocks that yield a dividend.
• Don’t depend only on this investment for your retirement – invest in other areas as well (real estate, businesses, etc.)

Follow the advice above, and you’ll most likely do quite well with your investments.

Do you invest in your company 401(k)? How do you think you are doing?

Have you ever thought about going back to school for your MBA? If you’ve looked at the costs of doing so, I bet you might have had second thoughts. Well, I don’t mean to burst anyone’s bubble, but before you shell out $80,000 on schooling, you might want to take a look at the infographic . . . → Read More: Is an MBA Really Worth the Cost?]]>

Have you ever thought about going back to school for your MBA? If you’ve looked at the costs of doing so, I bet you might have had second thoughts. Well, I don’t mean to burst anyone’s bubble, but before you shell out $80,000 on schooling, you might want to take a look at the infographic below:

Created by: MBAOnline.com

Many of you know that I’m going back to school for my Masters in Business Administration, and while this infographic made me think twice about it, I still think it will be beneficial. Not only are my costs extremely low because my company is paying for it, but even if my income increases only $4,000 a year, it will still be worth it. Plus, I’ll be more marketable for another job or even another career.

Do you think you’ll still go through with the MBA program? Perhaps you’ll seek out a cheaper school?