Finances

You have a number of options available to you when you’re buying a new car. But the reality is that the different options can easily lead to confusion. We begin this article by looking at the different ways that you can finance your car purchase before looking at the pros and cons of applying for your first car loan.

Cash or savings 

Paying in cash is one of the best way to buy a car, as you will save money on fees and interest payments. Also, if you fall on tough times, you can sell your car to recover some of your initial investment because you own it outright. What’s more, many dealers offer discounts to cash buyers, so you might get a better deal on the car as a result. Just be careful if you’re using cash, as it’s not a good idea to wipe out your savings entirely just to buy a new car.

Personal contract purchase 

Personal contract purchases (PCP) have become popular recently. They allow you to pay a deposit on a car before agreeing to specified monthly repayments for a particular timeframe. At the end of the deal, you can either give the car back to the company, pay a final lump sum to own the car, or part exchange the car for a new one. PCP options are not the easiest way to fund a car, but they allow people who don’t have a great deal of capital to complete a deal. One of the drawbacks of this type of financing arrangement is that the finance company draws up a mileage limit, which restricts how much you’re allowed to use your vehicle in one year.

Hire purchase 

A hire purchase also allows you to spread the repayments for your car over a longer period (2-5 years). But the difference is that when the period is over, you officially own your car and are not subject to additional payment if you want to keep it. You will also need to put down a deposit for the car in the first instance, which will then determine how much you’re required to pay off over the years in repayments. Interestingly, with hire purchases, because you don’t own the car until the end of the period, the finance provider will have to step in to pay for any faults with the car.

Personal loans 

Another good option is to apply for a personal loan from a provider like Koyo Loans. Personal loans are transparent, give you full ownership over the vehicle, and provide you with bargaining power, as you can sell it at any time if you need the money. There are many advantages of receiving your first loan for a car, and we introduce them below.

Pros of receiving your first car loan 

• Personal loans enable you to arrange your finances in advance, meaning the dealer will treat you as a cash buyer. You might be able to negotiate a discount as a result.
• You have the chance to spread the cost of repayment over a long period, meaning you don’t have to use up all of your savings to buy the car that you want.
• You can sell the car if your personal circumstances change, which isn’t the case with other financing arrangements.
• When you’re approved for a personal loan, you’re not beholden to one dealer. This allows you to shop around for the best deal.
• When you receive your car, you don’t have to restrict yourself to an annual mileage and can drive it as far and as often as you like.

 Cons of receiving your first car loan 

• Unlike other types of car finance, you will be responsible for fixing defects yourself. This shouldn’t be such an issue if you’re buying a new car, but it’s important to note.
• You will need to have a decent credit rating to be approved for an unsecured personal loan, so it’s not an option that is open to everyone.

What’s the best way to finance a car purchase? 

As you can see, there are lots of ways to finance a car purchase, and a lot depends on your personal circumstances and preferences. Dealers are pleased when you use finance products because they earn a decent commission on these arrangements. However, buying with cash (or at least with cash secured from a personal loan) affords you bargaining power, as many dealers provide cash discounts on certain vehicles. Ultimately, we’d recommend shopping around before committing to a financing arrangement, but opting for a personal loan provides you with the cash upfront and is a great way to remain in control of the purchase.

 

Investors are often on the lookout for good investment opportunities that can help them accumulate wealth, fetch regular and significant returns, and also help them save tax. This is because the more they can save on taxes, the more earnings they can take home. This is why tax planning becomes absolutely essential. Section 80C provides numerous tax benefits to investors with its varied tax-saving investments. Although these tax-saving investments offer tax deductions, they prove slightly incompetent when you take into account the lock-in period and the average returns provided by these investments. Individuals investing in mutual funds often shy away from mutual fund investments due to tax on mutual funds. Enter ELSS tax saving mutual funds, also known as Equity-linked Savings Scheme.

What are ELSS funds?

ELSS mutual funds are referred to as tax saving mutual funds, owing to their tax-saving attributes. ELSS funds invest a minimum of 80% of their assets in equity and equity-linked securities. Investments in these mutual funds are eligible for a tax deduction of up to Rs1.5 lac u/s 80C of the IT Act, 1961. An investor can save up to Rs 46,800 p.a. by investing in ELSS mutual funds. ELSS tax saving funds are accompanied by a 3-year lock-in period, which also happens to be the shortest lock-in period against any other Section 80C investments. These mutual fund tax savers offer dual benefits of wealth creation and tax saving.

How to invest in ELSS funds?

Follow these simple steps to start investing in Equity-Linked Savings Schemes:

1. Determine your taxable income and tax slab
   It’s important to have a clear picture of your taxable income and your tax slab. This will aid you to decide under what sections you can save tax and what investment options can be useful in achieving that.
2. Choose the most suitable ELSS mutual fund for your investment profile
   As an investor, you must consider various factors such as the age of the fund, consistency, past performance of the fund, extended internal rate of return (XIRR) of the fund, etc. You must ensure that your ELSS fund aligns with your investment horizon, risk profile and financial goals and objectives. Additionally, if the fund is actively managed by a mutual fund expert, you should look at their history to determine their success ratio and vision.
3. Invest in ELSS online
   An investor can invest in ELSS online by filling in all the necessary personal details in the application form, providing their bank details, and uploading a picture of a cancelled cheque. This can be done directly on the AMC’s (Asset Management Company) website or through a mutual fund transfer agency like CAMS (Computer Age Management Services). Just follow these simple steps and, voila, you have created an account, and you can now invest in ELSS funds.

Just like any other mutual fund, ELSS mutual funds offer the flexibility to choose the investment style – SIP (Systematic Investment Plan) and lumpsum. SIP follows a disciplined way of investing, wherein an investor invests a specific amount periodically over a period of time that lowers their burden to invest. In the lumpsum mode of investing, an investor puts all their money in one go at the start of the investment cycle. Happy investing!

 

Managing their money is something that many people struggle with. Since not everyone has a basic foundation of money management before they become adults, it can be difficult to know about how to best handle the money you earn. However, getting a grip on your finances as early as possible has a variety of benefits.

Take a look at some of the best tips for managing your money.

Set Goals

Before you can figure out the best money strategy, you’ll need to know exactly what you want to use your money for. Get to know what your priorities are in terms of your long term plan. Perhaps you want to sell your home, or maybe you’re more set on traveling the world.

Having a clear understanding of what you want to do with your money is the best way to create a foundation for your goals.

Get Rid Of Debt

One of the worst things you can do for your finances is to put yourself in a large amount of debt. When your debt surpasses your income, you’re in over your head. The first thing to do to have control over your money is to pay off any debts that you have.

Experts recommend starting paying off the smaller ones first and working your way up to the big ones. The idea is to keep yourself motivated by watching each small debt disappear.

Track Your Spending

The best way to identify where you can make improvements in your spending is to keep track of where your money goes. Keep an eye on your finances and see where your trouble areas are. Perhaps the majority of your expenses go towards bars and restaurants. In this case, you should stop going out as much.

However, other people may find that they have an Amazon addiction that they need to get rid of. By having a clear understanding of where your money is going, you’ll be able to make improvements where necessary.

Prepare For Setbacks

Despite how many goals you may have for the future, setbacks are bound to happen from time to time. Perhaps your car will break down, or you may suddenly lose your job.

Whatever the case may be, it’s important that you have money set aside for those particular situations. Having money set aside specifically for emergencies means that you’re protecting yourself for the worst.

Use Technology To Your Advantage

There are all sorts of apps out there that can help you reach your financial goals. Whether you’re looking to save more or pay off your debts, there is an app out there that can help you manage your money. Take advantage of technology and let it do the work for you.

Owning a home when you are young and agile is a much different experience than owning a home as you move into the elderly time of your life. Your home has to work more to take care of you when you’re older, as opposed to you working hard to build your home when you’re younger.

Adjusting your home to your aging body will take time and money. It’s important that you prepare yourself for the financial need before the time comes to start spending.

Take a few moments now to read through some personal finance tips for aging homeowners, and prep yourself to age gracefully in every realm of your life.

Prep the budget for changes in your home

When you get older, it’s common to need a little more help getting things done around your home. There are plenty of simple upgrades and augmentations you can make to your home to make it more accommodating to your body’s needs.

Though the changes may not cost much one by one, the bigger picture may show a bigger price tag. It’s important to prep your budget for the changes your home may need to be more livable for you as you age.

Save for a little help with life

Getting older means that you may not be able to tackle all of the things you need to keep your household in order every day. Eventually, you may have the need for an assisted living setup to remain comfortable in life.

It’s important to make sure you have the funds to maintain control over your setting. Your life is what you make it, and proper financial planning will help you feel more empowered as you age.

Let the professionals take care of the heavy lifting

Making the upkeep of your home space is one of the most important factors to consider when planning for the financial side of growing older. Owning a home takes regular maintenance, and you may not have the same drive to spend hours in the yard as you get older.

Leave the heavy lifting and physical labor to the professionals, and take the money you’ve been saving to hire lawn care specialists for landscaping and yard maintenance. Hire a pool cleaner to keep your pool in good shape, etc.

Look out for your financial security

Owning a home means that you have to keep up with mortgage payments and taxes on the property. You may have done away with your mortgage payment by the time you reach old age, but taxes never cease.

Make sure your finances are well secured, and embrace the best in today’s cyber security programs. Make sure there’s not a digital leak in your wallet, so you always have the money to take care of your homeowner responsibilities.

Having a high credit score is extremely important. You need it so that you can easily apply for loans. Your application could end up getting rejected if you don’t have a good credit score. Even if you jump from one loan provider to another, your low credit score will be a problem for your application. Therefore, you need to find a way to avoid messing up the rating. These tips might be useful.

Pay bills on time

Make sure that you pay all your bills on time. Don’t wait until the due date is over before paying them. Late payments of recurring bills could hurt your credit score. Sometimes, it’s not about your inability to pay the bills, but the date slipped your mind. You can set a reminder on your phone to tell you that the due date is up and you have to pay.

Avoid getting too close to your credit card limit

Your credit card limit will indicate how much you can borrow from the credit card company. It doesn’t mean that you should max it out. Even if you regularly pay the bills and you don’t have any delays, your credit score might still get affected by your spending. Avoid maxing out the credit card limit and try to reduce its use if possible.

Always pay bills in full

Don’t let yourself get fooled by credit card companies by agreeing to pay only the minimum amount required each month. It’s easy for you to say that it’s a fair deal, but the truth is that you’re on the losing side. To begin with, you could end up with higher fees next time if you can’t pay the entire amount. The rest of the fees will roll over to the next month and the interest will skyrocket. Add to that the adverse impact on your credit rating.

Don’t rely too much on loans

If you have enough income each month, you should pay for items in cash. Don’t use your credit card to swipe all payments. You also can’t feel complacent if you think you’re still far from maxing out your credit card. Think about how much you’re spending each month. If you have unnecessary expenses, you might have to let them go. Focus on what you need and sacrifice the rest.

When you follow these tips, it’s easier for you to get any type of loan, including no deposit car finance. It’s challenging to get it if you don’t have a good credit rating, but you will get it once you have straightened up your messy credit score.

It takes time to rebuild your credit rating, especially if you were financially irresponsible at some point. However, you can’t allow things to stay that way. You need to fix the problem. You still have time to do it. Think about your long-term plans and how a bad credit score could affect you.

 

 

 

It might be frustrating if you see that your friends already have a new car, but you still don’t have one. You can’t blame them, though, since they were financially responsible, and they managed to afford a car. At this point, you need to understand why you still don’t have a car, and what you need to do to have one soon.

You have other priorities

When you keep spending your paycheck on other things and don’t set aside enough money to buy a new car, you shouldn’t wonder why you still don’t have a car. You need to set your priorities straight and let go of unnecessary expenses. Perhaps, it’s time for you to cancel that golf club membership you don’t use or a local spa subscription when you can live without it.

You’re doing your budget plan incorrectly

You keep complaining that you don’t end up having savings each month because you’re terrible with budgeting. You start by determining how much you’re going to spend each month before deciding that the rest will go to your savings. The best option is to begin by setting aside enough money for savings before distributing the rest.

You’re not making any effort at all

If you desire to buy a new car, you need to start planning now. Meet with a car dealer or research online for more information. Compare the current price of the vehicles with the features that you want. You can also decide if you wish to buy a new car or you a used car. There are lots of steps for you to take while waiting until you can afford to purchase the car.

You don’t consider financing

When you wait until you have enough money before buying a car, that time might not come. Therefore, you need to start thinking about it now and consider financing as an option. You can look for companies that provide auto loans so that you can pay the cost over the next several years until you fully pay for the vehicle. When you divide the cost over various months, you won’t feel that it’s too much of a strain on your pocket at all.

You’re not getting enough pay

If you feel like you’ve been working hard and you’re not getting adequate compensation, it might be time for you to ask for a raise. Given your current financial condition, it would be impossible for you to reach your goal. You might also consider looking for a new job that will recognize your efforts and pay you the salary you deserve. The bump could be enough for your savings to afford a car.

Start now by looking at car dealerships in Layton Utah if you want to bring home a quality vehicle at an affordable price soon. When you desire to achieve this goal, you will soon reach it. Stop thinking about how expensive a car is, and about what you can do to afford one.

To read more on topics like this, check out the finances category.

Most of us are always finding ways to save money. Wouldn’t it be great if we could save money on a daily basis by finding the best deals for food, daily household items and even on discount motorcycle tires? Yes we can if we try hard enough to do a little homework by scouring the internet for the best deals and promotions.

Many of us find that the hardest thing about saving money is just getting started. This step-by-step guide on how to save money can help you develop a simple and realistic plan to save a little money for rainy days and a comfortable retirement.

1. Record your expenses

The first step to saving money is to figure out how much you spend on a daily basis. Keep track of all your expenses—that means every single item that you spend money on must be recorded. One good way of recording and keeping track of your expenses is by using Microsoft Excel. Keep your receipts each time you make a purchase and enter the amount into your Excel spreadsheet. At the end of each month, you will be able to see how much you’ve spent and whether you’ve spent within your budget, exceeded your budget or have an excess.

2. Set a budget

Once you have an idea of how much you spend in a month, you can begin to organize your recorded expenses into a workable budget. Your budget should outline how your expenses measure up to your income—so you can plan and control your spending to avoid overspending. In addition to your monthly expenses, be sure to factor in expenses that occur regularly but not every month, such as buying birthday gifts, car maintenance and oem motorcycle parts for your bike.

3. Plan on saving money

Now that you’ve made a budget, create a savings category within it. Try to save 10 to 15 percent of your income. If your expenses are so high that you can’t save that much, look at your Expenses List and try to look for things that you can cut back, for example your daily cup of coffee, a monthly hair cut or new clothes that you don’t really need.

Tip: Consider the money you put into savings a regular monthly expense, similar to groceries, to reinforce good savings habits.

4. Decide on Your Priorities

After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. Always remember what your long-term goals are. It is important that saving for your children’s college funds and planning for a comfortable retirement don’t take a back seat to shorter-term needs. Set aside a compulsory savings of say, $300 each month so that your long-term goals can be met.

5. Make saving automatic and stress-free

Most banks offer automated transfers between your checking and savings accounts. You can choose when, how much and where to transfer money or even split your direct deposit so a portion of every paycheck goes directly into your savings account. Splitting your direct deposit and setting up automated transfers are simple ways to save money since you don’t have to think about it every month, and it reduces the temptation to spend the money instead.

If you have an emergency purchase or have to buy motorcycle helmets for women as your old one has worn out, thus busting your budget for the month, try to find ways to cut out expenses from other areas. You can always turn down an invite for an after-office drink or have a staycation instead of an out-of-town vacation.

The idea that “Cash is king,” but for many splurges and large purchases, establishing good credit is likely a necessity. While the prospects of qualifying to purchase the latest top-of-the-line vehicle may motivate some, good credit can also mean having access to the basics for many. For those with low credit, for example, young adults or those recovering from debt, building credit may seem like a challenging feat. However, by using some helpful strategies, it is possible to build credit and become eligible for many major purchases and programs.

The Importance of a High Credit Score

Having high credit can significantly improve your ability to access not only certain luxuries but necessities. Having a high score has multiple benefits such as the following:

•         Lower interest rates overall
•         Approval for business loans for entrepreneurs
•         Better interest rates and options when purchasing a car
•         Approval for buying a home
•         Opportunities for higher credit card limits and exclusive rewards programs
•         Approval for rentals
•         More favorable background checks during job interviews

Knowing how much a credit score can impact various aspects of your life, it’s no wonder why it is important to build it and keep it up.

Opening Credit Cards

While you may not be able to get approved on your own, it is still possible to get things started with a credit card. Opening an account with a co-signer with good credit history can give you access to lower interest rates and higher limits.

Even if you don’t intend to max out your credit cards, having a high credit line can be helpful since it looks more favorable to have a lower percentage of use compared to the total credit line. Use below 30% is ideal for establishing good credit. Once you have established your own credit line, consider taking advantage of offers for credit increases, necessarily to spend more, but to bring down your percentage of use.

Big Purchases

Someone just starting out might not always get the top-tier options or the best interest rates, but regardless, it is critical that whatever payment programs signed up for are taken seriously. For example, establishing credit with a car, even a starter one, or any other purchase that requires financing a is a great opportunity to display a good history of being a reliable person with which to conduct business.

Avoiding Excessive Inquiries

Many people do not realize that excessive credit inquiries can chip away at their credit scores. Since that is the case, it is important to be selective with the type of accounts and programs you choose to apply for. It can be wise to avoid multiple general and store-specific credit cards that you don’t plan to use regularly after sign-up incentives.

A good rule of thumb is to only allow credit checks for things you are planning to commit to. In addition, even frequently checking your own credit can count as an inquiry so be sure to take advantage of apps and other programs that allow you to check without docking any points from your credit score.

Establish Good Payment Habits

Many simple behaviors will contribute to whether your score goes up or down. Regardless of the contracts you’ve agreed to, it is important to stick to your agreed terms and pay off all amounts due in a timely manner. Even one missed or insufficient payment is enough to cause your number to decline dramatically. Consider some of the following strategies so you never miss a payment:

•         Setting alarms or reminders for upcoming payments
•         Time payments shortly after paycheck deposits or paydays to avoid insufficient funds
•         Take advantage of auto payment features so your minimum payment is always met
•         Avoid having too many accounts that need to be checked

By following these strategies and being a conscious buyer, anybody can develop good habits to bring up their credit score. While it may seem challenging at first, these habits can become second nature and pave the way for greater opportunities.