Healthy Financial Habits

Happy holidays from the staff at Healthy Financial Habits. Check back Monday morning for gold price predictions and other news.

Many unemployed Americans are turning to colleges and universities in order to gain a better position in today’s workforce.   But what do these unemployed people do when they see that the college education they seek will cost them nearly 6 figures?  Of course, they are applying at that prestigious state school with the best programs in the region… or are they?  Community colleges and 2 year schools have always had the reputation of offering an inexpensive, second rate education to second class citizens.  This is not the case anymore.

Community colleges still may have lower tuition than your average state university, but its green curriculum may be blowing universities out of the water.  Two-year schools specifically focus on programs where there is a current labor market demand.  This way, they can get the students through the program quickly in 2 years and have them walking into work right after graduation.  The future labor market consists of positions that are far and few currently.  These positions include bio-fuel production technicians, environmental engineers and eco-activists.  Community colleges are looking ahead and designing programs and degrees that cater to the green market and sustainability.    Because of this, community colleges are starting to partner with large corporations such as GE and IBM to fund and support sustainable degrees.  Many of the Fortune 500 companies are donating materials and electronics in an effort to build these eco-degrees.  These corporations will then hire within these programs, which in a sense, they helped to create themselves.

If you’re one of the many unemployed Americans seeking a higher education, you may want to rethink your choice of schools.  Community college degrees may be a wiser decision in the long run not only financially but sustainability as well.

Visit Healthy Financial Habits daily for up-to-date news.  Here you will find all the information you need in order to guide you while making investment decisions.  Check back every Monday morning for your current news report.

Author: John Zinsky

If you are searching for a way to earn a little extra cash then selling used cars may interest you.

It doesn’t require that you know the ins and outs of the used car business however; It does require a little research.

If you are not very knowledgeable when it comes to automobiles then it may be a good idea to grab a friend who is mechanically inclined.

Here’s how it’s done in 10 easy steps:

1.               Come up with capital. For starters $1,000 – $2,000 will be sufficient. If you don’t have extra cash laying around then apply for a 0% credit card then take a cash advance. If credit cards are not an option then borrow money from a friend or family member.

2.               Find automobile auctions in your area. This can be a difficult task because there are so many individuals out there that want to sell you a list of auctions. You can find all the information online for free if you are willing to spend the time and search. Once you have selected a particular auction find out whether or not it is an absolute auction. By definition an absolute auction is where property is sold to the highest bidder with no required minimum amount. You only want to attend absolute auctions.

3.               Attend the auction. Most auctions allow you to inspect vehicles before you bid on them. Be sure to thoroughly inspect each vehicle and take note of damages or areas of concern and basic information such as year, make model, mileage etc. Do not consider bidding on a vehicle that you don’t feel 100% comfortable with.

4.               Purchase a current edition Kelly Blue Book prior to attending the auction. Once you have hand picked the vehicles that you are interested in then look up the book value and write it down next to the vehicle notes.

5.               I have used the following formula for years and have successfully doubled my money many times:

Book value / 2 – $300.

For example A 2002 Chevy Malibu has a private party book value of Approx $2,600 (good condition). I have found on average that you will spend $300 in taxes, battery, small repairs etc. Using the formula $2,600/ 2 – $300 = $1,000. This means that if you were to pay $1,000 for this particular vehicle and spend $300 to get it ready to sell and sold it for $2,600 then you would have doubled your investment. Your max bid should not exceed $1,000.

6.               Once you bid on a vehicle and win then its time to take the vehicle home and inspect for any necessary repairs. Repair anything small  that may immediately deter potential buyers. For example if the carpet has a lot of stains then you may want to consider purchasing new floor mats.

7.               Clean the vehicle inside and out and take pictures. Perform a detailed cleaning. A coat of wax is easy and gives a better first impression.

8.               List your vehicle on classified websites sites such as Craigslist. Craigslist of not only free but also very effective.

9.               Be prepared to answer questions that potential buyers may have such as mileage, damages, power accessories etc.

10.             Once you have some who wants to purchase your vehicle then its time to seal the deal. Create a bill of sale, sign the title over and have it notarized by a public notary.

Here are a few vehicle buying tips:

-          Never engage in a bidding war with another individual. Only bid up to your max amount as described above

-          Never purchase a vehicle that you are unsure about

-          Avoid vehicles that have been wrecked or have a salvage title

-          Always choose a vehicle with a good paint job. Nothing sells a vehicle better than a shiny paint

-          Always check all your fluids to ensure they are not mixed or contaminated. This could result in costly repairs.

-          If necessary you may want to resort to paid advertising sites such as Auto Trader

For more ideas and information on how to make money be sure to check back with Healthy Financial Habits. As always we are dedicated to helping you form wealth accumulating habits.

Author: Greg Jackson

Millions of Americans are searching for ways to pay off debt fast, especially their mortgage debt.  A mortgage is not something you can pay off at the end of the month, let alone the end of the year.  It takes time and a strategy to pay off debt fast.  Many people are in over their heads in mortgage debt, because they never should have been approved in the first place.  I would suggest refinancing as an option, so you could use the cash to invest or do something else profitable.  However, refinancing has probably gotten people into trouble as well.
The only real solution to managing your mortgage debt is to make some money somewhere else, and don’t count on your house appreciating on this one, especially in this market.  You can always cut your household costs and start living on a budget.
Even though the Jones’ next door eat out for dinner every night and are always taking their expensive weekend retreats, doesn’t mean you have to.  Put your household on a budget and start making the mortgage payment you’re supposed to be making.
You need to be consolidating your mortgage as well.  There are hundreds of lenders out there that would love to be making money off of you.  They will give you a lower interest rate than what you’re paying now, also.  So, go find them and consolidate!

By: Kim Soyung

Are you trying to pay off debt but are still encountering money problems?  There are several things you can do to pay off debt and be financially free from money problems.  First, determine what debt you have.  List everything out-whether it is credit card debt, student loan debt, or even a mortgage or car payment.  Start by paying off the debt with the highest interest rates.  Usually the debts with high interest rates are credit cards.  Pay the cards down as fast as possible, but still maintain making your monthly payments on the rest of your debt
After the credit cards have been tackled, narrow it down to the next highest interest rate and make that your next priority to pay off.
Obviously this will not happen overnight, but at least you will have a long-term plan of action that will eventually give you the financial freedom you deserve.

The Chevrolet Volt is part of a new line of vehicles that General Motors is expected to release by next year. What is particularly remarkable about this gas-electric hybrid is that it is expected to get nearly 230 MPGs in the city with a range of 40 miles before requiring a recharge. These vehicles can be charged using an ordinary outlet and do not require a special charging station.

The Volt is expected to carry a price tag of around $40,000 and will come with a nice $7,500 tax credit. The tax incentive in addition to the savings on fuel will hopefully drum up some much needed sales for General Motors in addition to improving their “green image”. GM is not expected to make a profit on these new vehicles at first because of their high production cost from product development and batteries. They are anticipating high sales make up for the initial loss.

The Volt is only a part of General Motors pan to turn the troubled company around.  GM is expected to release 20 new vehicles in the upcoming two years.

By: Kim Soyung

Debt elimination plays a huge role when deciding on credit solutions.  Do you have poor credit?  Did you apply for several credit cards and max them out, knowing you would not be able to pay them off at the end of the month?  You’re probably now up to your neck in credit card debt and student loan debt.  By now your credit score is lower than you would like and you’re trying to kill 2 birds with one stone: eliminate your debt while maintaining good credit.

Paying off all of your debt is easier said than done.  Do what you can to decrease your overall spending and focus on paying off as much of your debt each month as you can.  Start by paying off your credit cards with the highest interest rate, but still make your minimum payments on cards with lower rates.

Your credit score will not increase overnight by paying off your debt, but as you pay it off, eventually you will see an increase and more of an abundance of credit.

By: Kim Soyung

Having personal debt is not necessarily a bad thing.  However there is good debt, and there is bad debt.  Good debt includes student loan debt and a house mortgage.  Bad debt includes any type of credit card debt.  Student loan and mortgage debt are good debt to have because they have value to them; your college education can land you a good-paying job, and your house will always have price tag on it.  However when it comes to credit card debt, the only price tag on credit card debt is a negative price tag.

Good debt in inevitable-you will most likely have to pay for college in one form or another and chances are you will be a homeowner one day.  Bad debt is by choice.  It is good to have balances on credit cards in order to build credit, but just remember to pay the cards off every month.

Personal debt ultimately helps your credit score when the majority of your debt includes student loans and a mortgage.  However the more credit card debt you have, the more bad debt you incur.

The best credit cards are sought after by many. Because each card is unique and each person’s lifestyle is unique there is probably not one card that could be considered the best. If there was such a thing as a credit card with 10% cash back on all purchases, I could argue that this is the best credit card to have, but there is no such thing.

Instead of asking “What is the best credit card out there?” you should ask “What is the best credit card out there for me?”  Start with a review of your finances. If you are smart you would know how much you spend in each category of spending such as grocery, dining, gas, entertainment, etc. Where do you spend the most money?

If you are a traveler and spend a lot of time driving around, you might want to consider a card that gives cash back on gas station purchases. This is especially helpful when gas prices are on the rise.

Frequently fly? Try an airline card that offers “miles” or a similar rewards program.  If you have to fly then why not sign up for a card that allows you to fly for free?

If you have bad credit then your options are fairly limited for a credit card. You will have to take the table scraps that the credit card industry offers. Yes, this means while others are enjoying the top sirloin you have to accept the fatty trimmings. Although these cards have a very high APR (usually in the mid 20’s) you can still enjoy some of the great rewards programs that other cards have. Remember that is only worth having such a card if you keep the balance down or pay it off every month. If you are paying 25% APR on a $5,000 balance meanwhile earning 1% cash back then this might not be the best choice for you.

Selecting the best credit card is not an exact science. You have to first evaluate your lifestyle and all of your options then choose the card that fits you the best. There is no one card that is the “best card”.

Credit card bankruptcy happens to Americans more and more often. The economy is in a slump, people are losing jobs and some people are resorting to the use of credit cards to keep food on the table and a roof over their head. Before these people realize it, they are sunk several thousands of  dollars into credit card debt and consider filing bankruptcy as an easy way out. Well with a plan and some determination you can get out of credit card debt while saving your credit.

First you have to come up with a plan. Make your goals quantitative or measurable. If your plan is to stop eating out so much and spend less on shoes, then your goal is not measurable. An example of a measurable goal is “to spend less then $65 a month on eating out and only buy one pair of shoes per month that cost less than $50.

After you set measurable goals and slow down your spending then you should examine all of the places your money is going each month. You subscribe to a service such as NetFlix that you do not use or how about that gym membership that you are paying for but never stepped foot inside the gym since you signed up the day after New Years. Remember all of those small expenses add up to large expenses.

Another tip is to sell off all of the junk that got you into debt in the first place. Take a look at all of the stuff that you purchased. Why did you buy it? Do you still use it? If so how often?  If you can’t justify why you purchased something and you never use it then sell it! Have a yard sale, put it on Craigslist, or sell it on Ebay. Take the money that you make and pay down those cards.

Now that you have some money freed up and have changed your spending habits,  its time to start paying those cards down. Start with the highest interest card and put every Lincoln that you can towards paying that card off. Attack the next highest interest card next. Continue this pattern until all of your cards are paid off. Remember, any money that you free up after a card is paid off needs to go towards the next card. Don’t spend it. Also, while you are paying off one card make the minimum payment on the others for the time being. Don’t try to bite off too big of a chunk at once.

The biggest challenge is to remain determined. Always keep an optimistic outlook on your finances and stay consistent with your strategy. You will soon start to see those financial pounds  shed.