Monthly Archives: August 2019

How to Buy a Car – and Actually Save Money

Is your current car on the fritz or have you been eyeing that shiny new Jeep you see parked at a dealership on your way to work every morning? If you’ve been hesitant to buy a new vehicle because you’re worried about it costing too much, here are some ways that you can get the car you’ve had your eye on while still saving money.

Get Pre-Approved

Before starting your search, you should get pre-approved for a loan. It’s important to know what limit you can qualify for and match that up with your monthly budget. It has been estimated that your total auto expenses should not exceed more than 10 percent of your yearly income. This includes the loan, insurance, maintenance and interest. When you know your limit, you can stop yourself from gazing at cars out of your price range that you may have otherwise talked yourself into buying.

Sell Your Current Car

Many times the dealerships will ask for you to trade in your vehicle in order to get a “better” deal on the new car. However, you can typically get more for the auto if you sell it privately. This may cost you some additional time to fix anything major with the car, as well as listing it in the local classifieds. The dealership will turn around and sell the car for a profit anyways – shouldn’t that extra money be yours to put towards your new wheels?

Shop Around

You are your best advocate when it comes to finding and buying your new car. Don’t make any decisions right away. A smart way to start looking is searching at the average value of the car you are wanting. Look at reputable sellers online to see what the cars are typically going for, so you don’t find yourself getting swindled by a dealership transaction.

New to You Is Often More Valuable

The minute a car is driven off of the lot, it loses a significant amount of value. Often, the newer cars aren’t necessarily any different than ones from a few years prior in terms of features. Consider buying Certified Pre-Owned vehicles to save yourself hundreds or thousands of dollars.

Be Wary of Extended Warranties

Many dealerships will push heavily for you to have an extended warranty because this is how they make a large portion of their money. It is of course your choice on whether or not it is worth the risk of not accepting the warranty. However, many times these extended warranties are mute in comparison with the manufacturer warranty. They are usually very expensive and do not make it worth your dollar in the long run.

Allow us to help you with a big purchase like this – we’d be happy to speak with you about our options.

Top Tips to Save Money on Back-to-School Supplies

Whether you are taking your little ones for their very first school supplies shopping trip or perhaps gathering items you need as you continue your education this fall, there’s no need to empty your wallet. Here are some great ways to save money on school supplies, while still getting everything that’s on the list!

1. Ask a Friend

If you have a friend who has taken that class before or whose child has had the same teacher, it’s time to give them a call. Ask them what supplies were truly needed and what items you can do without. Sometimes lists have a lot of excess supplies, so be sure everything you purchase will get used!

2. Skip the Extras

Think carefully about the list. Does it seem like there are unnecessary items? For example, if the list says to buy pencils, there likely isn’t a reason to buy separate rubber erasers. You may be doubling up on supplies if you don’t examine the list carefully before buying.

3. Scour Your Home

You know that junk drawer you’ve been wanting to clean out for some time? Now is your chance! There are likely many items like pens and pencils laying around the house already.

4. Online Shop, But Don’t Buy

One trick to online shopping is placing items in your shopping cart, but not purchasing. Leave those items there and often, you will be offered a coupon to convince you to complete the purchase. A penny saved is a penny earned!

5. Stock Up

There are often many back-to-school sales that won’t come around again throughout the year. If there are supplies like glue sticks or folders you are sure will need replaced at some point this school year, go ahead and buy extra at the lower cost. This will save you money during the year and if you don’t end up using it this term, you’ll have part of your shopping already finished for next year.

6. Know the Stores

Social media can be your best friend when it comes to back-to-school shopping. Either sign up for email sales alerts or ‘like’ your favorite retailer’s Facebook pages. This will keep you updated on the latest school sales and which stores have the best deals on each item.

7. Don’t Be Fooled

Often, places like dollar stores or general retailers will make items seem significantly cheaper by decreasing the size of the item. They may have folders listed for 50 cents each, but in reality you could get a pack of three folders for a dollar. Be sure to calculate the cost per unit to verify if this “deal” truly is a deal.

8. Consider Alternatives

Not all items need to be purchased new. You’d be surprised at what you can find at garage sales and consignment shops. Many people have too many school supplies already laying around their house and are ready to get rid of them and sell them for a fraction of the price.

If you’re looking to save on more than school supplies, we offer a variety of different accounts to help you do so!

4 Ways to Stay Within Your Budget When Buying a Home

The weather is beautiful and homes are popping up for sale everywhere! If you’re on the hunt for your next house, it’s important not to bust your budget. Luckily, we’ve compiled some great ways that can help you stay within your budget when buying a home.

Have 20% Saved for the Down Payment

While you don’t need 20% saved in order to actually buy a home, there are plenty of benefits that come along with it. In total, you’ll pay less for your home since you’re avoiding interest being applied to a higher cost. You’ll also potentially get a lower mortgage loan interest rate because making a higher down payment is a sign that you’re stable financially, and thus are a good credit risk. Finally, this can help you avoid paying private mortgage insurance.

Raise Your Credit Score

The balance on your credit cards vs the credit limit is called your credit utilization ratio. This ratio accounts for 30% of your overall FICO score. By paying off your cards, your credit score will raise and allow for a better loan. It’s also important to know that new accounts and hard inquiries make up 10% of your credit score. When you open a new account, your credit score will drop for a couple months. When you know you’re going to be applying for a mortgage in the near future, it’s best to hold off on buying that new car or applying for a different credit card.

Earn More Money

There are plenty of ways to earn more cash! If you want to stay within your budget, finding ways to add more savings to the pile can help with that goal. You can take money from your IRA without the 10% early withdrawal penalty when you use the money for a home. There are also other solutions that won’t take from your retirement savings, such as getting a second job or hunting for a new job that will pay more. If none of those options work for you, try hosting a garage sale or selling some lightly used items you don’t need online. You could also find ways to use your talents on the weekends or after work, like being a photographer for weddings and senior photos on the side!

Utilize First-Time Buyer Programs

Exploring local and national first-time home buyer assistance programs is an important step in the journey to homeownership. See what’s available to you to know what your options are.

We believe these top tips will advance your home buying skills and help your budget. If you’re looking for a place to put your savings for your new home, we’re here to help. We also have all the home loan options you’ve been searching for and are happy to talk to you about the next steps!