Tips for Getting Cheap Finance to Buy a Car

Few cars are bought fully on cash, most people have to use some sort of finance in order to get all the money needed to buy a car. The most common financial products used for this purpose are personal car loans and financial schemes offered by car dealerships. The first thing you need to understand if you want to save money on your purchase is that car dealers are not loan specialist and they can’t provide you with a competitive loan. Moreover they work in association with certain financial institutions and they receive a share of the profits. The financial institution will most certainly charge you for that cost and you’ll end up paying a lot more.

Personal Car Loans

When requesting a loan what you need to be aware of is that the lending industry is a buyer’s market which means that lenders will be competing to get clients and thus, you need to shop around to get the best loan offer available. Don’t be afraid to bargain with lenders, if you get a better offer let the others know so they can improve theirs and so on. You might end up paying far less than you thought.

The easiest way to compare loan offers is to take note of the APRs and compare them in order to see which one is the lower. However, the APR is not the only thing you need to compare. There are some fees and costs not included in the APR, beware of these as they can greatly increase the overall cost of the loan. Watch for prepaying penalty fees, closing costs, and any other loan term that may affect you.

The best place to look around for car loan lenders is the internet. You’ll find many lenders dealing with car loans. There are lenders willing to approve car loans for people with bad credit, no credit or even bankruptcy. You need to request loan quotes from them and make sure they won’t pull your credit report till you are certain to get approved. If you are unsure whether you’ll meet their requirements or not, don’t authorize them to check your credit history because too many credit checks or declines can affect your credit score negatively.

Raise your Credit Score

It’s important to have a good credit score since a good credit score equals to lower interest rates. If you are about to finish paying an outstanding loan and you’ve paid the installments on time, it’s better if you just wait to cancel it completely before applying for your car loan. This will increase your credit score substantially.

Don’t pay late and never miss payments. Prepay any small loan you may have as this will increase your credit score. Too much outstanding credit, even if not used, affects your credit score. So, you should close store cards accounts and credit card accounts you don’t use. Bear in mind though, that you shouldn’t do so with all the accounts at the same time as this might be misinterpreted.

Make a down payment

Finally, another great way for saving money by getting a better deal on a car loan is to put aside as much cash as possible and make a down payment. This will greatly reduce the interest rate you’ll have to pay for financing and thus, you’ll save thousands of dollars over the whole life of the loan. Down payments show the lender you have the capacity to save money and that you’ll be able to repay the loan. Thus, the risk for the lender is greatly reduced and the interest offered will be substantially lower.

5 Super Wealth-Building Tips Pave the Way to Financial Freedom

There are so many things involved with building wealth that it would take much more than one article to explain it all. So, we've put together a simple five-step guide to help you get a great start in building wealth for a lifetime.

Step 1: Set Specific Goals

Goal setting is a task that can be easily put off - especially when you are extremely busy in day-to-day activities. However, goal setting is the first and one of the most important steps you'll take to achieve wealth. Set both short-term and long-term goals. Short-term goals may be daily, weekly and monthly goals. These should reveal where you would like to be financially by a certain time in the near future.

Long-term goals include the amount of wealth you would like to accumulate within a year, two years, or maybe even five or ten years. Both types of goals are necessary to build wealth. Without goals, you are wondering blindly with no care or thought of what's ahead. This pattern of life is sure to leave you empty-handed!

Step 2: Create a Business Plan

Every successful business from the past and today started with a plan. Your business plan should illustrate where you are now, where you plan to be in the future, and how you're going to get there. Write these few notes down on paper. Then, fill in the blanks to create a rough business plan. It's easier than you think.

*Your current income
*Business profits and expenses (if you already own a business)
*Business budget (or personal budget if working for someone else)
*Capital needed upfront to promote and operate business
*Plans to acquire the capital needed (source of capital)
*Spending plan (promotions, supplies, inventory, online expenses, etc.)
*Expectations (What results do you expect from your initial efforts?)

Creating a business plan is a necessary step to build wealth through your own business. Even if you don't own a business, you should write down a similar plan to reach your personal wealth goals.

Step 3: Avoid Harmful Debt

Debt is the one of the key reasons many people never accumulate wealth. But remember, there are two types of debt: harmful debt and necessary debt. Harmful debt is the debt you create for things you do not need such as excessive shopping, luxury items, expensive cars that you can't afford, etc. Necessary debt is a debt most people must have to live, such as a mortgage, car loan (affordable), medical, college, etc. These debts are a part of life for most families and will be for many, many years. However, even these types of debts should be kept well within your income limitations. If you can only afford a $250/month car loan, then shop around until you find one at this price. Don't give in to the temptations and pressures to buy the fancier, more expensive car with a $450/month payment. It's not worth the risk!

You may ask, "I thought these steps were for building wealth?"

As it happens, debt is the opposite of wealth. The more debt you have, the less wealth you will accumulate. You can't save money or invest money that belongs to someone else. If you earn $3,000 in income this month, but owe $2,000 in loans (before everyday living expenses), you can't possibly have extra money to save. You must either earn more or sell some items to pay off your debt. You should avoid this "debt trap" if you intend on building wealth for the future.

Another type of debt is one for your business. You may take out a small business loan to get things started or to promote your business. If you are uncertain about whether the business will bring profits, try to avoid business debt until you have tested it a while.

Step 4: Develop a Personal Plan

Above, you developed a business plan. Now it's time to create a personal plan. What tasks will you do daily to build wealth? Put yourself on a schedule and a strict budget. Work toward your goals daily by making a list of things to do and marking off each item on the list as you complete the tasks. In your budgeting, include a set amount of money you will put away in savings (savings account, IRA, stocks, bonds, etc.) If you plan to invest, be sure to diversify your investments. Choose only one or two high-risk investments and several "safer" investments such as mutual funds or bonds.

Step 5: Stay focused on the Goal, not the Circumstances

No matter what circumstances you find yourself in, keep your eyes on the wealth-building goal ahead. Even if sales are down in your business, don't stop dead in your tracks. Remember, businesses have ups and downs. If you remain steadfast toward your goal during the slow times, the busy times are bound to be much better than ever. Your income will grow and you will have the extra money needed to reach your wealth-building goals.

In a nutshell, building wealth does not happen over night with one get-rich-quick program. It happens with consistent labor toward the goals and tasks you have created. You can build wealth for your future if you do not waver from these basic truths that have worked for millions of others!

Financial Investment Tips - 7 Tips For Not Losing Money On Your Mutual Fund Investments

Investing in mutual funds has inherent risks. You cannot totally eliminate all risk from any financial investment. However, you can significantly reduce your risk and lower your chances of losing your principle by following these seven tips.

1. Know the risks.

Not only should you know the risks but you should know them before you buy. Many people learn by trial and error. That way of learning means that you will get burned every time you learn a lesson. Your life will be more comfortable if you learn from the mistakes of others. Then you get the benefit of the lesson without the financial injury.

2. Discern who has your best interest at heart.

You always want to have your radar on so you can discern who is a friend or a foe. It takes practice to be able to tell who has your best interests at heart. If someone only calls you when they want you to buy something, they may have their self-interest above what is best for you.

One of the best principles to utilize when judging the merits of someone's ideas is to use third party verification. See if what someone tells you can also be verified by a third party. Who else says that this investment is a solid long term play?

3. Always understand how financial instruments work.

If you cannot explain how something works in one to three sentences then you may not fully grasp what it does or how it works. That lack of knowledge can end up harming you later. An easy way to research financial terms and investment vehicles is to use a search engine like Google or Ask.com. Type a term in a search engine and you will easily find simple explanations to almost any confusing terms.

4. Know your options.

Don't think that you must invest in the single item that is in front of you. Understand what options you have. You may discover that something that is similar but ten times better for your individual comfort level.

For example, many people have bought REIT's and mutual funds that invest in real estate over the last ten years. However many experienced investors that I know have been surprised to see people use these investment vehicles when they can easily invest in real estate directly as a private lender without the fees and expenses.

5. Stay within your risk comfort zone.

Some people fall into the trap of feeling that they must take more risk because they are close to retirement and need to grow their savings faster. This attitude can lead to chasing the highest return without fully assessing all of the risks involved. Staying within your comfort zone can bring you more sleep and less stress.

6. Get answers to all of your questions.

If you have serious reservations about an investment, do not purchase it. First, get your questions answered, and then decide if it is right for you. Too many people accept what someone presents to them without fully understanding it.

7. Ask an expert.

Talk to other people who know more than you do about the financial subject you are interested in. Discover their opinion and how they feel about the topic. They may be able to suggest an alternative that suits your needs better.

Tips For Achieving Financial Independence

Most of us seem to forget one of the most obvious things in our life even though it is that simple; money is only a tool to help us to do what we want, to live out your dreams or goals as far as money can by them. Have you ever considered to live on little money? You can even live well with little money but the biggest benefit of living on a small budget now, is that you will be able to live a life of leisure where you can spend your time and energy doing things that you choose to do within some years. To gain financial independence whether your purpose is retirement planning or another purpose, there is more than one way to go. Roughly there are two ways to obtain it:

• Reducing your expenses
• Increasing your income.

Reducing your spendings

This is obvious - but so many people have not understood it yet: Always spend less money than you make. Continually track and review your purchases for the purposes of keeping track of your money as well as learning from your previous mistakes. We are actually talking about a change in your lifestyle, and you can't expect to do this change overnight.

Never use money on impulses but always plan and prioritize your purchases. You must understand that money is not the important thing, the important thing is to have a good life. Therefore sit down and find out what is really important for you in your life and prioritize your use of money according to that. Focus on achieving your goal and never lose sight of it. Be creative and constantly look for ways to live well without much money. Who said you couldn't live a good life frugally?

When you plan to use money on items for your household like a dish washer, vacuum cleaner, refrigerator etc. only buy what you absolutely need and see that it lasts as long as possible. You must ask yourself: Will this item benefit me? You must continually go through a process of selecting strategic use of money as well as do all you can to save money on all your purchases.

If you owe money, make a debt elimination plan and stick to it This is especially important for consumer debt; get rid of it and the sooner the better. Why not move to the countryside. The point is that you should find a place to live that limits your expenses where you at the same time can live a good and healthy life.

Increase your income

If you don't already have it, you should find a job that pays well and doesn't add a lot of cost to your life. You should continually look at improving your income by

• getting a higher paying job
• earning more side income.

The cost you save by changing your lifestyle - your surplus - should be invested. Keep investing the surplus and accumulate it. If you can come so far that you are able to invest $1,000 to $2,000 a month for 12 to 15 years or even better if you can increase your savings by a few percent each year, you will be able to withdraw a decent income from the interest on your investment.

It is possible to re-engineer your life to live well even on little money. If a financial emergency should occur, it is necessary to have some money available. Therefore your should establish and maintain an emergency fund. The more income you make, the more money you can save with a frugal lifestyle. If your goal is to retire, remember that the more income you can get and the lower expenses you have, the quicker you can retire. If you get used to living on a moderate amount of money and prioritize what you really want to do, as far as what money can buy, you will be the master of your time and money - in other words you will be in control of your life.

7 Great Financial Investment Tips

When you are looking for some great financial investment tips, you need to listen to the advice of the experts. You don't consider yourself an expert mechanic most likely, so you don't go around advising others on their repair needs. Then why would you try and advise yourself about investing your money? Do not forget that if you make unwise decisions, you can lose every penny that you have. By the way, that's your first tip - Get advice from professionals.

Tip 2: Diversify. You need to not only diversify by not putting all of your money into one stock, say Coca-Cola. You need to diversify beyond one stock type, say soft beverages. It’s simple, mix it up.

Tip 3: Study and learn. If you are considering a certain investment, do not go in blindly or on a whim. Do your research. Learn about the company or venture that you are considering to finance with your money.

Tip 4: Long-term investing. You need to stand by your investments because of the very nature of the short-term markets is to fluctuate. Don’t stand by them with too much loyalty though. Enough can become enough. Sell before you lose.

Tip 5: Know your limitations. You have to determine, in advance, what your high target prices and stop-loss prices are. Determine them and them stick to them, regardless of anything. The goal is to keep your money and hopefully to grow it.

Tip 6: Don’t forget tax season. Learn how to “split” you income. Get professional advice. The IRS is up to date with their knowledge. Do you just want to make the government money, or do you want to make some?

Tip 7: Don’t exhibit the traits of one who is addicted to gambling. Yes, investing requires risk-taking. However, that implies risk assessment and knowledge of personal limits for those who will come out ahead.

There you are: seven great financial investment tips to get you on the right path to financial freedom. Enjoy and prosper!

5 Financial Tips For College Students

If you are a college student, you are probably concentrating on your studies and trying to get an education that will benefit you in the future. One thing that you may not be thinking about is how to handle your money, and failing to do so can leave you in a pretty big financial mess by the time you are out of college. It is important that you take control of your finances now if you want your financial future to be bright. The following are some tips that can help you with your finances to avoid any college financial disasters.

Tip #1 - Only Use Credit Cards in Emergencies - Once you get a credit card it can be all to easy to start racking up the credit card debt. This is a bad way to start out and you will probably end up with bad credit if you are using credit cards all of the time. Remember, the money you spend on credit cards will need to be repaid. It is best if you save your credit card for emergencies instead of buying that new pair of shoes or paying for an evening out.

Tip #2 - Pay Off the Balance Every Month - It is also important that you pay off your balance each month if you have a credit card. Leaving a balance on the card can result in you paying extra money on interest, so you will save money if you pay off the balance every month. This will also keep you from getting in credit card debt over your head as well.

Tip #3 - Pay Bills on Time - Now is the time to start building your credit history, and you can do this by always paying your bills on time. If you fail to pay your bills on time, it can get quite expensive. Many companies will charge late fees if you do not pay on time and your interest rates may go up as well, costing you even more money for being late.

Tip #4 - Start Saving Now - Many college students do not realize how important saving really is, but if you can start saving while you are in college, you can reap from great benefits when you are older. Saving now will get you in the habit of saving, you will earn money from the money you save, and you will have extra money set aside in case of any emergencies as well.

Tip #5 - Look for the Best Checking Account - You can actually save a great deal of money if you look around and find the best checking account. Look for an account that has no fee for starting an account and no minimum balance. You may also want to check into any debit card fees, and fees for deposits of withdrawals. Some banks will actually offer totally free checking for college students, so take advantage of this and you can save a great deal of money every year.