Posts Tagged ‘money management’

Buying a car doesn’t necessarily have to drive you crazy. There are steps that you can take to make getting on the road much easier. New or used, there are some very basic steps to buying a car. Take a quick look at these tips, and my personal story, to help you on your journey to owning a car.

Things to Consider

Research! I cannot stress this enough.  If you think you know what you want, be sure to do as much research on the vehicle as you can. Read blogs from those who actually own the car, read reviews, and get a history report on the specific car you are looking to buy.  Knowing about the car’s history is very helpful. You can find out what repairs the car has had, and then you are aware of what issues you may come across with the vehicle.

Planning is also very important, and somewhat of a broad concept. You want to plan for a down payment, or full on cash payment. If you are going to be taking out a loan you will want to budget and be sure you know what you can afford to pay monthly. You need to remember that you will also need to budget in licencing and sales tax, insurance, and it’s a good idea to budget an emergency fund (for repairs). There are other expenses to remember when you buy a car; obviously you will need fuel, you will need to change your oil, and you might want to wash your car every now and then.

Save, save, save!

Once you have your goals set, start saving. Never buy a car, or anything for that matter, unless you are financially stable enough to make that purchase. You will want to save for your down payment, your licensing, insurance, a repair/regular maintenance fund, and budget for your monthly payments.

Here are some other tips for buying a car I found online:

1. One rule of thumb is that you should spend no more than 20% of your household income to buy and operate car.

• 2. If you don’t have a car payment now, consider whether you’re willing and able to take one on. Try putting aside a car payment, say, $500, each month for three months and not touching it. Are you able to live easily without that money? Would you really rather do something else with it?

• 3. Call your insurer for full-coverage rates on the cars you’re considering.

• 4. Contact your local motor-vehicles department to see what registration and licensing would cost.

• 5. Before you hit the showroom floor, take a hard look at the kind of driving you do. Don’t assume you need a brand-new car, and consider keeping a driving journal for a week, or even a month, to chart exactly when, where and how far you drive each day. Then buy a vehicle according to those needs.

• 6. Get financing approved in advance. If you have a pre-approved loan elsewhere, the dealer then is motivated to compete against the deal you already have.

My Story

Coming from a rural part of the States, owning a car was necessary for me.  While I was living at home and attending high school, my parents allowed me to use one of their vehicles to travel to and from school (for extra-curricular activities).  I also started working while I was in high school, and my parents allowed me to use one of their vehicles to go to work.  When I went off to study at the University, my family was kind enough to let me use their car until I could buy my own. So this is where my journey began; all the planning, saving, researching, and expectations I had for buying my own car.

My First Shot was a Fail

After a couple years of studying and working, I had saved enough to buy a used Volkswagen Beetle. It had high mileage, somewhere around 90,000, but was a fairly current model and was super cute! It had all of the things I thought my car would need, fake leather interior, sunroof, CD player, and a really large (somewhat humorous) decal on both sides.  I purchased the car, with cash, for $7,000.  I thought that I had made a pretty smart buy, and it might have been if I had done a bit more research. After two months of owning the car, a timing belt broke and destroyed the engine. It was estimated $3,500 for repairs. I also had the local scrap yard give me an estimate on what they would buy it from me for. They quoted me $4,500, as is.  So, I was faced with the decision to live without a car, in order to save the $3,500, or sell it for $4,500 and use the cash for a down payment on another car. I had to decide to either pay an additional $3,500 for the car to work or take a loss of $2,500.

My Second Try

I chose to take the loss of $2,500. In this case, it was the best alternative after doing more research on my first purchase. The Volkswagen’s had some timing belt issues, and the timing belt would need to be replaced regularly. This time I decided to do more research on my prospective purchases, get advice, and have a plan for the next time disaster struck. I saved the money from selling my Beetle, and began saving more, as I shopped around.  I set goals like; I want to have at least $5,000 for a down payment, I need to be sure that I have enough extra to pay for licencing, tax, and insurance, also I need to be sure I can comfortably pay my monthly payments.

I had different requirements for my new car. My new car needed to have a warranty, in case something happened.  It needed to be fuel efficient, comfortable, and reasonable.  I had to kiss my ridiculous decals and leather interior goodbye.  After 3 months of searching, I found my nearly new car. It had previously been used by a business for travel, they had put a hefty 30,000 miles on it in one year, but it was still under manufacturers warranty.  It was in my price range, according to my budget of what monthly payments I could afford. The newish Saturn was very fuel efficient and somewhat stylish.

One Happy Car Owner

I purchased my car two years ago, I haven’t had to put any money into repairs (thanks to my warranty). I only had one issue, it was quite small and the dealership fixed it in a matter of hours.  I am very pleased with my purchase, and am relieved that it was much easier than my first attempt.  I think that researching, planning, and saving really helped me to make this a better experience. So I would like to go into more detail about the actual process of buying a car.

What tips do you have for those looking to buy a car, and what are you experiences?

Looking to buy your own car? Make it your goal in heaps! and you’ll be on track to saving up for that big purchase.

What inspires you? What makes you want to change your life?

Is it the people around you? A historical figure? A story you saw in a book or film? There are so many inspiring stories about achieving goals, especially in films. You know the ones: the dancer who auditions for the role of a lifetime, the underdog sport team winning the final against all odds, the discriminated outsider who rises up to become a social hero *cue dramatic orchestral music*. These films are inspiring and teach us, you can do anything! If you just believe and follow your heart (oh, and work your ass off).

However, despite all this inspirational material, only 20% of the population set goals and of those people a whopping 70% fail to achieve the goals they have set for themselves. Why is that? There are a number of reasons why this happens, such as not committing to the goal, not wanting to change, not understanding the goal setting process or setting too many goals. Well no more! We are here to help you set goals you can achieve. Booyah!

Why set goals?

Goals give you something to work toward, they give purpose and ultimately make life more interesting and challenging. People who set goals have higher self-esteem, confidence, and control in their lives. Goals come in all shapes and sizes, whether it is buying a house, winning a race, getting promoted, losing weight, or learning something new. No matter the size of the challenge, achieving goals is always rewarding. The feeling of success when achieving your goals is like no other. Not only does it better your current situation, but also boosts your moral, confidence, and self-esteem. What reasons do you have for setting goals of your own? What types of goals do you have, and which do you struggle most with?

When to set a goal?

Setting goals will help to achieve something that does not come easily. Learning a language, running a marathon, moving to Japan are huge investments, not only in money but in time, effort, commitment and planning. Setting milestones in order to achieve these goals will help to make the situation less stressful as it breaks up the massive goal into tiny little goals that seem easier to achieve step by step.

If you find yourself asking someone for advice on something, realize that you have the perfect opportunity to set a goal.  Goals are best for situations that require guidance. Consider setting goals with a partner as working together makes achieving goals much easier.  For example many people prefer to reach their fitness goals with a friend for motivational reasons.

How to set a goal

When setting a goal you need to have a clear idea of what you want and why you want it. Your goal needs to have purpose, as this will make it a high priority in your life, and therefore more likely to be achieved. Try using the SMART model: Specific, Measurable, Attainable, Reasonable, and Timely goals. Take a look at the SMART model below and answer the following questions in terms of your goal:

Specific:

• 1) What are you going to do? (What is it that you want to achieve? Visualize your goal, and your success!)

• 2) Why is it important to you? (Define compelling reasons for achieving your goal. Why do you want to achieve it?)

• 3) Define the benefits you expect to gain from achieving your goal. (How will you feel if you achieve your goal?)

• 4) Consider the consequences of not achieving your goal. (What will happen if you don’t achieve it? How will you feel?)

• 5) How are you going to do it? (What steps do you need to take in order to achieve your goal?)

Measurable:

If you can’t measure it, you can’t manage it. Choose a goal with measurable progress so you can see the change as it occurs. Set measurable tasks or milestones towards your goal, so that by achieving each step you will feel like you are moving forward. Also, be sure to plan for the obstacles you may come across. Obstacles are unavoidable, and when you plan for solutions to them you are more likely to overcome them.

Attainable:

• Goals that are out of your reach won’t motivate you, your goal should stretch you slightly.

• Don’t do it alone, ask for help! Share your goal with friends/family (they will keep you motivated).

Reasonable:

• Set goals that you can attain with some effort. Set the bar high enough for satisfying achievement.

Timely:

• Set deadlines to motivate you and make sure you are actively working towards your goal. Be sure that your deadlines are attainable and reasonable.

So go on goal setters, start completing your goals with confidence using these tips! If you have more tips for setting goals we would love to hear from you, so just comment below. Stay motivated and good luck!

“Your goal should be out of reach, but not out of Sight.” – Anita DeFrantz

Make setting goals easy in heaps!

By now you may have seen that heaps! has some sexy new goal templates. These are fantastic for setting financial goals as they are full of tasks and milestones to break up the process for you. Whether you are saving to buy a house or planning a trip to Bali, putting it as a goal in heaps! takes (most) of the work away for you. You can see your progress and heaps! will keep you on track so that you can achieve that goal faster. You can also customise templates by adding notes and tasks or by creating your own. Whatever the goal, set in heaps! and get there faster! Whoo!

Goals are awesome. They motivate you and keep your on track to getting what you want. In heaps! we’ve made goal setting even easier by creating goal templates for you to choose from. Of course you can still set your own goals, but these templates come with a list of tasks that are filled out already for you and will keep you on track to achieving your goal faster. You can choose from templates like buying a car, buying a house, getting out of debt, saving for a medical procedure, going on holiday and saving for retirement. Check out the screenshot below for a taste of what these templates look like:

When ever you want to add money towards your goal you no longer have to go to the goals page first. Just click “I spent it on a goal” when you’re categorising a transaction and it will do it quickly for you. Check out our new goals tracking page below, it is full of milestones along the way to help you break up your journey.

Even better, now you can celebrate by seeing a goal completed in heaps!. Your completed goals are also kept on record so you can see past goals that you have achieved. Go you!

• Add a new goal from categorisation – If you click on “I spent it on a goal” when you’re categorising a transaction you’ll be able to add a new goal without going on to the goals page first.
• Goals progress display – your goals graphs will constantly update to show how much you’ve saved and spent on your goal.
• Easier editing of goals – you’ll be able to edit your goals easier and faster, mark a goal as spend or investment, and see your goal picture instantly after uploading.

How can you make it easier to understand your finances? By adding structure and getting organised! When it comes to understanding your spending, for some, a general overview is good, and for others, the more detail the better. You’ll notice the next time you log into heaps! that we have implemented a new look to the categories’ interface. We’ve added new style and effects so that when you categorise a transaction, you no will no longer have to scroll down and find your place again.

Also regarding transactions, there are new abilities for marking transactions as regular. When you categorise a transaction you will be able to mark an income transaction as being regular, and you when you mark any transaction as regular you will be able to enter a custom amount of how much you expect it to be each time. If you would like to allocate money towards your goal you can now do that on this page. Just click “I spent it on a goal” when you are categorising a transaction and heaps! will allocate this money for you. Too easy! Log in now to check out the new changes!

Looking for ways to save money I stumbled across this helpful little video from Howcast. There were a few good tips on ways to save in there I’m sure you could benefit from.

1. Cutting back on paper products not only saves you money but is environmentally friendly. You can replace paper towels with tea towels and cloth rags and can use the back of envelopes for writing shopping lists.

2. Bottled water is not only becoming increasingly expensive it creates an insane amount of plastic waste. Fill up drinking bottles with tap water and squeeze in some lemon for extra flavour. If you don’t like tap water, use a filter.

3. Aim to buy less food. Make sure you eat food before it goes bad and start monitoring how much food you end up throwing out so you can make better choices.

4. If you use your cell phone regularly, consider getting rid of your home phone line.

5. Find free ways to get fit. Walking, running, stair climbing, jump roping and dancing are all free and great forms of cardio. Using tins of soup or old detergrent bottles filled with water make great hand weights. There are plenty of at-home workouts you can find online.

6. Do you really need that fast food fix? Recreating receipes at home can often be a cheaper and healthier option.

7. More and more TV shows are becoming available online and it is easy to hook up your computer to your TV. Do you really need to keep paying for that TV subscription? You can also wait and rent the entire season of your favourite shows on DVD.

8. Ask your doctor what kind of  supplements and vitamins you should be taking and stick to those. Only buy the ones you need.