If you’ve finished your budget but discovered that it doesn’t balance, give yourself praise. The majority of people lack the understanding or motivation to create a balanced budget, and they aren’t willing to bother to prepare an initial budget, to begin with. If you’ve realized that you’re paying more than you earn, you’ve taken an important first step towards fixing this issue. It is impossible to make changes to what you don’t know. If you’d like to determine whether you’re spending more than you earn, download your free budget spreadsheet by clicking on the link I have in my signature.

Simply put, there are only two ways to make sure that your budget is balanced. These are:

• Do more.
• Spend less.

That’s it. A majority of the clients I’ve worked with believe there’s a magical formula to balance budgets. Nope. Actually, the more complex you make it, the more difficult it’ll be. Be simple. If you’re paying more than you earn, most likely, you’ll need to combine both of these to get it to work. In the case of your specific circumstances, you may not be able to reduce your spending and maintain the budget balance you want due to the two distinct types of expenditures.

When it comes to expenses, there are typically two types. They are:

Household and Purchasing: These expenses are able to be changed. However, it will require a lot of effort or a major change to get it done. For instance, selling your house and purchasing smaller ones to lower the cost of payments. Selling your car to buy an affordable one, etc. It’s possible; however, I’m pretty sure many people would never take the plunge.

Monthly payment: These expenses do not have a fixed monthly payment that is tied to them. These purchases are categorized as an impulse category. The majority of people are prone to spend too much. It is also the one where you have the most control over. For many people, a dramatic reduction in their variable costs is the majority of cases.

One of the most common mistakes many people make is turning variable costs into fixed ones. This is a grave error and must avoid at all costs. I refer to this as a “bad loan conversion.” It’s paying for variable expenses using credit cards, thereby making a fixed payment. In addition to paying for the item many times over, you also set up the fixed monthly installment, which can strain your cash flow. If you do this often enough, it’s almost guaranteed that you’ll be financially ruined within a matter of days. There’s good news that there are some things you can start doing today to help you keep your finances in check.

Ten Tips for Helping to Balance Your Budget:

• Increase your income by:
• More overtime hours.
• Create a business from home.
• You can rent a room or even the basement of your home.
• Find a job that pays better.
• Earn a part-time income online.
• Save Money:
• Rent movies instead of dining out.
• Get rid of your gym membership and exercise at home. Run around the block, etc.
• Make your own cup of coffee at home instead of visiting a coffee shop.
• Take fewer expensive vacations. Go camping instead.
• Take a break from alcohol, or stop smoking cigarettes.

These are only a few suggestions of things you could implement to help manage your budget. Don’t be afraid to be inventive. Making small adjustments over time can yield huge effects.

Do not overcomplicate the concept of a budget. Keep in mind that the money you put in should be as much as the money is taken out. You’re left with two choices if it isn’t: either spend more or make less. It’s that simple. Look at the areas of your variable expenses where you could make adjustments. If you decide only to make one change each month, you’ll be on the right path within minutes. A well-balanced and balanced budget can be the first step towards real financial freedom.

Location: Stay in a hotel and take advantage of the free Vail shuttle service. It’s likely to be less expensive than staying at Vail Village and Lionhead. Most larger houses and condos are situated outside of The Villages, so you can enjoy a higher quality than what you pay for when you are on Vail’s shuttle routes. The Vail shuttle is an easy and reliable method of getting to the village and the lifts. Insider Bonus Tip #7: You can make traveling even more convenient.

Do not stay in the hotel: choose a Vail holiday condo or home rental. They’re usually less expensive, particularly for groups of families, even in the most desirable Vail Village and Lionhead locations. Vacation rental owners and private homeowners tend to be more open to pricing negotiations. With fully equipped kitchens and dining spaces, you can cook and host a party in your house rental just a few times and save money.

Skip the rental car: You can skip the rental car, or, more often, when you’re in the mountains, you can rent an SUV. They’re expensive, and you won’t require one in Vail. You can take your Colorado Mountain Express shuttle from the Denver or Eagle airports directly to your hotel. When you arrive in Vail, take the Vail shuttle. Vail shuttle. It is frequent and will take you to the town, where everything is. Make sure that the lodging you choose is close to this shuttle’s route. Certain areas in Vail are not served by shuttles or require a hike to reach. Inquire with your lodge manager if they can provide discounted rates on the Colorado Mountain Express. Many dos.

Don’t park in the parking structures, even if you drive. They can cost you up to $22 per day and are difficult to leave after skiing. Instead, please park at the North Frontage Road, where it is permitted, for no cost, and take the shuttle.

Bundle your lessons and equipment: Bundle your lessons, equipment, and lift tickets for your kids or yourself if you plan to attend ski lessons. It’s usually cheaper to buy a whole package deal than to buy everything separately. Go to Vail Resorts’ website for more information, or phone them and inquire about the best deal for a package.

Keep an eye on Vail Resorts: Keep an eye on the Vail Resorts website to get discounted lift tickets. Prices are set and managed by Vail Resorts in Vail, which is why the best spot to find discounts is on their website. It is possible to save money by purchasing them online before you get there.

Save money by hiring your skis and boards on the internet in advance. The majority of companies offer discounts for this on their websites. Repeat renters get even better deals. Furthermore, most ski rental companies will store your rented equipment for free if you request it. If the rental company won’t, I am sure it is the case that Christie Sports in Vail Village, located on Bridge Street, will store your equipment for you at no cost. The absence of any gear will make the shuttle ride a breeze!

Plan your ski trip during the off-season, such as the beginning of the season (from opening to mid-December) and the end of the season (from April to closing). Many places offer deals, from accommodation to restaurants to spas. One caveat is that there is a chance of a problem with the quality of the snow, even though Vail generally has great late and early season snow. If you’re not looking to alter it, think about January. There’s lots of snow, and it’s less expensive than the peak seasons of Christmas in February, March, and February.

A word to describe it is SUMMERTIME. The word “summertime” is truly amazing here during the summertime. There’s a lot to do, and it’s extremely affordable in summer. It’s the reason that keeps me coming back year after year, and I love it, especially after a winter that lasts for about 6-7 months. It’s top To Do on life’s list. Book your trip for early June to mid-June to get the best golf discounts. The fall season is the least expensive in Vail, so it’s an economical and fantastic excuse to witness the changing of the leaves and enjoy Oktoberfest. You can enjoy up to 50% discounts at local eateries, shops, and spas. An excellent source for discounts is your local newspaper, The Vail Daily Lodging, which is economical.

Sign up by visiting opentable.com: Sign up by visiting opentable.com to receive their special offers. It is necessary to join for the Denver region, but you’ll be eligible for special deals such as $25 coupons valued at $50 in restaurants in the area. Vail or Vail Valley restaurants. The good ones as well! I just had a great $50 dinner at Latour, which I bought for a fraction of the price. It was delish!!

These are only a few of the tips that can be used for making a budget-friendly excursion to Vail. Feel free to share your own ideas or those of your fellow travelers.

How to save 10,000 in a year (how to save 10,000 in a year, save 10,000 a year)

Everyone would like to save money to have an emergency fund or to save for all kinds of things they may need or want, but how can you save 10,000 a year? Of course, if you somehow had a little over $833 bucks a month extra, it would be easy to save 10,000 a year, but not everyone can manage that.

That seems like a high number to most of us, but you could learn how to save 10,000 in a year with the following strategies. Read on, and soon you will be able to save the money you need for your next car, house down payment, vacation or emergency fund, etc.!

1. Save an hour’s worth of your paycheck every day (Goal is to save $3,900 or more in a year)

Lots of those financial gurus tell people to save 20 percent of their paycheck every week, but many of us have too many bills to do that. However, there is a little tip you can do to save up to $75 a week as long as you make at least $15 an hour. That will only add up to $3,900 for the year, but it will be a bit more if you place that money into an account that earns interest.

Yes, you won’t save 10,000 a year if you use this strategy alone and only make $15 an hour, but it’s a great start, and if you make more than $15 an hour, then you can save even more money a week, and if you combine this tip with the rest of them on the list, you can hopefully eventually make your goal of learning how to save 10,000 in a year.

2. Get A Part-time Job or Side Gig (Goal is to make $3,900 or more in a year)

Another way to get that bank account to add up to save 10,000 a year is to get a part-time job on the weekends or some sort of side gig or paying hobby. Many of these out there could earn you money to put towards your savings goal.

For instance, you could do things like be a virtual assistant a few hours a week and sign up for services like Lyft, Uber, Door Dash, etc. Or, if you love pets, you could pet sit or be a dog walker. Many of these side jobs could bring in $15 an hour or more if you put your mind to it and take it seriously. They can easily be done in your spare time, and it doesn’t take long to try for the goal of making $75 or more a week (like in the first tip), so you have nearly $4,000 at the end of the year towards your goal of how to save 10,000 in a year.

3. Spend less money on food (Goal is to make at least $780 or more in a year)

How much do you believe you spend on food every month? Many of us don’t pay attention to impulse buying on things like fast food or processed foods, etc. You need to set a strict budget on your food bill and stick to it religiously. It all depends on your situation, and maybe you need to cut out that five-buck cup of coffee every day or not send out for pizza every week.

In this challenge, you are trying to save $15 a week. It’s not that hard. Besides the above suggestions, you could also pack your lunch a few times a week, eat a meatless meal once a week, or skip the booze if you eat out at a sit-down restaurant and only drink water. It all adds up in the end.

4. Only Purchase Needed Items (Goal is to save $780 a month)​

The main objective of this challenge is to find a way to cut $15 or more bucks a week out of your spending habits. One way to start is only to buy something you need (not want, need!). Before buying something, whether it is that candy bar at the checkout counter or that cute sweater, etc., ask yourself if you need it.

Is this something you don’t have already? Do you truly love it, and it makes you feel joyful? Is it something you can sleep on and decide when you are feeling more rational? Just start doing this every time you think about buying something while browsing online, or even just out and about for some reason, and soon you should be able to save about $15 a day to meet this goal to help your goal to save 10,000 in a year.

5. Get rid of unused subscriptions​ (Goal is to save $15 a month to end up with $180 or more in a year)

How many monthly subscriptions do you think you have? Whether it is your cable bill, streaming service, book of the month, etc., you need to go through them and see if there are any you don’t really use anymore. The average subscription fee is around $15 a month, so if you can cut out at least one subscription, you should be able to save $180 or more in a year towards your goal of how to save 10,000 in a year.

6. Sell things you don’t want or need (Goal is to save at least $100)

Most of us have stuff lying around that we really don’t need. Likely you can easily find a few items and sell them at a yard sale, on eBay, Craigslist, etc., and make at least $100 towards the goal of saving 10,000. You might even make a lot more than $100 and make that 10,000 a year goal quicker.

7. Do not pay the list price for anything (Goal is to make $360 in a year)

You may not realize it, but there are many ways to get a discount on something or find some coupons to use or other sorts of ways to pay less for lots of things we buy every day. You have to start seeking these out every time you buy something online or elsewhere. For instance, if you want to buy something at an online store, just Google “promo code” or “Coupon code,” and likely, you will find one for some percentage off.

Other saving opportunities are to download coupons at places like Groupon, where they offer a service for less money than at a normal price. But make sure it is something you really need, not just a coupon for the sake of a coupon. You can also sign up for services where you get back part of a purchase price every time you shop there, like Rakuten, where the average is between three and five percent back on purchases.

Again, be sure you really need the item and don’t do it just to get cash back, or you’ll be wasting money, not saving it. All you need to save to make this goal is save around $30 a month, which is a pretty low number!

All in all, if you add up all these goals together, you will see how to save 10,000 in a year or even more! Happy Savings!

Seven tips to avoid being house poor (house poor, how to avoid being house poor, am I house poor)

Many folks living in the U.S. are considered to be “house poor,” are living paycheck to paycheck, and can barely meet their daily expenses. “House poor” means someone’s rent or mortgage payment is so high that they can barely if at all, pay for the rest of their obligations.

This situation happens at different times, dependent on how much money a person makes. It ranges from people being strained at only 25 percent of their income to as high as not being affected until your housing costs reach around 40 percent of your income, according to studies that have been done.

So, people sometimes wonder, am I house poor, and if so, how to avoid being house poor. Here are seven tips to avoid being house poor:

1. Establish an Affordable Limit to Your Housing Costs

Many times, folks will unwisely purchase a house in which the mortgage and other monthly costs exceed their ability to pay them. It’s recommended not to rent or buy a home if the costs are over 25 percent of your monthly income, if possible.

While these days rent and mortgages are going up and up, and it’s not always possible to do this, at least try to stay as close to the 25 percent mark as possible. The issue is that many mortgage lenders are willing to make a mortgage deal with a buyer that ends up costing them up to 45 percent of their monthly income if they have excellent credit and their debt-to-income level is low.

2. Watch out for mortgages with variable loan rates

If you get a mortgage with a variable loan rate, you could have a hard time finding out how to avoid being house poor. These are ARM mortgages or adjustable-rate mortgages. It means your payment is going to vary depending on the current interest rates. This can quickly make your house poor as it could, in some cases, raise your monthly payment by hundreds of dollars.

It is much safer to get a mortgage with a fixed interest rate, as then your payment will stay the same no matter what the current going rates of interest are charging. If you have an ARM, it is best to refinance it as soon as possible and change it over to a fixed rate so you won’t have to answer positively when you ask, “am I house poor.”

3. Establish an Emergency Fund

If you can put together at least six months to a year of cash in the bank to cover your expenses in case of a loss of a job or other emergencies, you lower your chances of being house poor. You should at least attempt to have a three-month minimum amount of cash on hand to cover your monthly expenses, as you never know when an emergency will occur.

4. Don’t compare your situation with someone else’s

Another way to avoid being house poor is to not compare your situation with someone else’s when you start your search for buying or renting a house. If you are trying to keep up with the Jones’ as the saying goes, it is going to hurt you in the end. It’s better to assess your financial situation and know truthfully how much you can afford to spend every month.

When looking for your dream home, take into consideration any upgrades, repairs, fees, etc., that could come up. Just because the other guy can afford to buy a huge house with a huge mortgage doesn’t mean you can do it. Stick with what you know you can afford, and you won’t have to ask, “am I house poor.”

5. Find ways to better your financial situation

If you are already “house poor,” it’s time to find some ways to earn more money and change your financial situation. First, make sure you have a monthly budget and stick to it. Are there areas where you can cut things out? For instance, do you really need to subscribe to every streaming T.V. company or drink that $5 cup of a fancy coffee every day? Can you get an extra job or some sort of side hobby that brings in money? Can you sell anything? All those suggestions can help you to make your financial situation better.

6. Refinance your house

If you are already facing a mortgage payment you suddenly can’t afford, then you can look into refinancing your house to see if you can get a better deal. This can work out well if the ongoing interest rates are lower than what yours are at the moment. If you make a good deal, then your payment will be lower, and you may not be house poor any longer.

7. When all else fails, downgrade to a smaller, cheaper house –

Sadly, if you already house poor and none of the above tips to avoid being house poor fit your situation, it may be time to sell the house and find cheaper housing elsewhere. If the housing market is good, and you have enough equity in your current house, you might be able to sell it for enough money to pay off the mortgage as well as have a chunk of cash to as a hefty down payment on a cheaper house.

You may have to also move into a less expensive neighborhood or move somewhere you can get a higher-paying job. It all depends on your situation.

Summary

All in all, if you don’t want to be house poor, you need to follow these seven tips to avoid being house poor. Do your research, make a budget and do some careful planning before you decide to buy a house and sign your life away for a high monthly payment, you’re likely not to be able to make.

11 monthly expenses people forget when they budget (monthly expenses, household expenses)

Having a budget is a good habit to have, but there are a lot of monthly expenses and household expenses people forget to account for. Here are 11 monthly expenses people forget when they budget:

1. 1. Impulse Spending – In reality, you should avoid all kinds of impulse buys, but there are going to be a lot of cases where you may actually need that extra item you see at the checkout and have to consider it part of your household expenses. For example, these days, a lot of folks carry around a tiny bottle of hand sanitizer and might forget to add it to their list, yet they see one at the checkout counter and remember they need it.
2. Yearly Payments—Most people tend to make monthly budgets. So, it is quite possible they would forget to consider things they must pay every year, for instance, their property taxes or the registration fee for their vehicle. So, when you set down to figure out your household expenses, be sure to add these in. You could take the annual fee amount and divide it by 12 and add that amount to the monthly expenses on your budget.
3. Items for personal hygiene—If you don’t get your hair done every month or only get something like a pedicure or manicure occasionally, you might forget to add these to the list of your monthly expenses. For instance, another item you likely only buy once a month or so is deodorant or shampoo so that it might get forgotten.
4. School Costs –If you go to college or your kids go to a private school, you likely pay fees for this. You might remember to add such fees to your monthly expenses, but how about the extra fees for things like school field trips, buying a yearbook, school pictures, or if your child wants to attend a dance or special school event? Be sure to not forget this as one of your household expenses.
5. Birthday and other Presents – Do you budget for buying gifts for folks at Christmas, birthdays, or anniversaries? How about if someone is going to have a baby? These are a common addition to the 11 monthly expenses people forget when they budget, so be sure to add in an appropriate amount you are likely to need.
6. Various Household, Car, and other Repairs – Though repairs are not something you are likely going to be able to know about in advance, so you can’t put down an exact amount in a budget, you still need to create some sort of emergency fund for when they happen. So, set aside an amount you can afford every month as part of your household expenses, and you will be ready if your car breaks down or a window breaks in your house, etc.
7. Saving for your retirement – People also often don’t even think about what funds they will need when they retire someday. Not all jobs have a pension or a 401k or another way to save money for retirement automatically, so you need to set aside money to cover this yourself, or you may not have enough money to live on when you retire.

So, financial experts say it is a good idea to set aside around 15 percent of your income every month and put it into some sort of retirement savings program. This could be an IRA or CD or

some other place you won’t be able to get the money and spend it randomly.

8. Insurance premiums – You may not remember to add in insurance premiums as one of the 11 monthly expenses people forget when they budget. Some are not paid monthly and could be annually or quarterly. Most folks have life insurance, car insurance, health insurance, etc., that they need to pay every year, so don’t neglect to add these to your household expenses budget.
9. Money for fun and entertainment – Everyone likes to have some fun once in a while, but you might not remember to write this down on your monthly budget as part of your household expenses. So, think about how many times you, on average, do things every month like go out to eat, watch a movie, have drinks with friends, etc., and add that amount into your planned budget.
10. Charity donations – Many folks like to give money to charities, which is not only helpful to the charities, but you can sometimes use these donations as a tax deduction. So, think about the charities you like to support, like that Salvation Army bucket at Christmas time or your local animal shelter, etc. Then, set aside as part of your monthly expenses the amount you plan to give each of them. It could vary every month since some are only one time a year (like the Salvation Army buckets), or it could be the same amount every month; it is up to you.
11. Co-pays or other medical expenses – We all get sick from time to time or could be in an unexpected accident. You likely do budget for how much your medical insurance costs every month, but do you budget for those co-pays? Think about how much those are for things like annual check-ups or what the average emergency room visit could cost for an office visit if the unexpected occurs. Then add whatever amount you can afford every month and put that into a special fund for only use on medical expenses. Then you will be ready if it happens. This also includes budgeting for things like the prescriptions you get every month.
12. Parking, toll, or other transportation costs – If you commute to work or school, you likely have to pay things like parking fees, tolls, bus far, gas for your car, etc. People sometimes forget to budget for these as part of the common 11 expenses people forget when they budget. So, add these all up, and be sure to put them down in your planned budget.

All in all, these are just a few of the 11 monthly expenses people forget when they budget, and some could apply to you.

How to easily save $200 a month (save money, save extra money)

If you want to save money, you first need some kind of good strategy. Many people want to save extra money every month so they can build up an emergency fund or save for something they want, like a vacation. No matter why you want to save money, the following article is going to show you how to save $200 a month easily.

Start a hobby or business on the side – A lot of people who want to save money have something extra besides their normal job that they do that brings in money and helps them save extra money. While this makes you more money, it applies because if you save the money you make in this side job, then you will likely reach your desired plan of how to save $200 a month in no time easily. Some side ideas are babysitting, pet sitting, making and selling crafts, doing odd jobs, etc.

Make a monthly budget – Having a budget you follow every month is quite vital towards knowing how to save $200 a month easily. You have first to sit down and write down every single bill, debt, obligation, etc., you have each month. No matter if it is your rent or mortgage or just that cup of coffee you get on the way to work, don’t forget to put down every single penny.

Then, add all that up and see if your current income is enough to pay for it all or if you need to find a few things you can cut out and not spend money on. If you already have that $200 a month extra or any other amount of extra money, then great! You will put that away in the bank or in an envelope somewhere and don’t spend it that month at all.

If you don’t have any money left, then you need to go through your expenses and see what you can cut down on; for instance, do you really need a $5 cup of coffee every day? You could make your own, save money and put that into your plan to save $200 a month.

Cut out monthly subscriptions – Part of how you can expand on the previous suggestion of a budget is to go through all your monthly subscriptions, i.e., gym membership, magazines, streaming services, cable, etc. Are there any that you really don’t use much? If so, you can stop them and save the cash towards your plan to save money.

Be more energy efficient – Another way how to easily save $200 a month is to be more energy efficient. This might not save the whole 200, but it will go towards that monthly goal. This can be done by adjusting your thermostat and turning it down a degree or so in the winter and turning it up a degree or two in the summer to cut your utility bills. Be sure you always turn off lights you aren’t using too. Don’t leave any faucets dripping, and check for leaks in your plumbing too. All these can add a few bucks to your goal to save extra money every month.

Look for things you can do for free – Entertainment costs can keep you from meeting your goal of saving money. Instead of doing things that cost money like eating out or going to a movie, etc., do free things. You can go on a bike ride, go hiking, go to the park for a picnic, have a family game night at home, etc. Your town likely has a few free offerings as well; just look for them on the town’s website or find out about them at the town council office, etc.

Refinance your mortgage – If you have a mortgage, you may be able to save money by renegotiating it and getting a lower payment and less interest. It can’t hurt to talk to your mortgage

lender and see how much you could potentially save every month by refinancing your mortgage.

Start a savings account – In order to easily save $200 a month, you would need to put aside around $6.50 a day since a month range from 28 to 31 days. So, if possible, set aside that much from your paycheck every week and have it automatically placed in a savings account where you can’t spend it. That way, you get used to losing that amount every month, and soon, you will have those 200 bucks!

Talk to your insurance company – If you own a house and car, then likely you have insurance on both of these. If you aren’t using the same company for both, chances are you could save money by picking the one that’s least expensive and bundling your car and home insurance with the same company. Companies usually give discounts for doing this.

Save all your change – Many times, when you buy something using cash, you likely have a couple of bucks and some change leftover. If so, take that money and put it into a jar, and don’t touch it. Then, at the end of the week or month, count it up and put it into that savings account you should have already started. It might not be much, but every bit of the money you save goes towards how to save $200 a month easily.

Ask For Discounts – If you are buying something, it can’t hurt to ask for some sort of discount. For instance, if you are a military veteran, some places will give you around 10 percent off the bill, or if you are over 55 or, in some cases, over 65, many places give senior discounts. Even if you don’t fall into those categories, it is likely you could qualify for another one. You have nothing to lose, and it could bring in some extra money. All in all, these are a few ways how to easily save $200 a month and help you be well on the way to building up your emergency fund or going on that vacation you crave.

Ten reasons not to lease a car (10 reasons not to lease a car, lease or buy a car, Pros and cons of leasing a car)

If you need to finance a new car or truck, there are two main ways of doing so: lease or buy a car. If you choose to lease a car, there are several pros and cons of leasing a car. First, you need to know things like how long you plan to keep the vehicle, how many miles you want to drive it, and how well you can keep the car from suffering too much wear and tear damage.

Here are some of the pros and cons of leasing a car:

Pros

You get to upgrade vehicles at the end of the lease. Most leases are for three years, so this lets you get a new car every three years.

Payments are lower than if you actually buy the car.

Leases often cover any required maintenance and repairs. This is due to the manufacturer’s warranty normally being in effect for the three-year lease timeframe.

Leases might include GAP Insurance. This insurance covers you if a normal collision or comprehensive car insurance doesn’t pay the whole amount the car is worth if it is totaled.

Leases normally have a buyout option. This means that you can usually buy the car at the end of the lease if desired.

Cons

Leases have mileage limits. When you get a lease, you negotiate the number of miles you expect to drive every year, which is usually between 10,000 and 15,000. If you go over that amount, you will pay fees ranging from ten cents to fifty cents a mile.

You won’t build any equity in the car. Since you don’t own it and are renting your car, you can’t use it as a trade-in or sell it if desired.

You must pay for any excessive wear and tear on the car. If the company your lease is with decides the vehicle has suffered excessive wear and tear at the end of the lease, you may be asked to pay for this when you turn the car back in.

Like renting a home, leasing a car can be an affordable short-term option, especially appealing to those who value driving new vehicles and want the security of warranty and maintenance coverage. However, if the practice is continued over time, it may prove more costly than simply buying a new or certified pre-owned vehicle.

Ten reasons not to lease a car

It may not be in your best interests to lease instead of buying a vehicle in many cases. Here are ten reasons not to lease a car:

That Mileage Limit– As mentioned before, you are limited to a certain specified milage limit every year if you lease a car. If you, for instance, agreed to 10,000 annual miles, and yet you somehow drove 15,000 miles, you’d have to pay a fee for each of those miles, normally adding up to between 30 and 50 cents a mile.

Excessive Wear and Tear– As mentioned earlier in a lease, you must pay for any excessive wear and tear at the end. What that means could vary depending on the lender/dealer. Be sure to read the small print. For example, normal wear and tear could be minor things like small scratches or dings, but if you have a scratch exceeding an inch long, you may pay a fine for that issue.

Monthly Payment Trick– Car dealerships want to make a profit, and when they lease a car, they, in a sense, get to sell it twice, once to the person leasing it and then when it gets turned in at the end of the lease. So, even though you pay a lower monthly payment with a lease, the dealer will try to make it high enough so that they don’t lose money when they sell it to the buyer at the end of the lease. So, you need to negotiate the actual cost of the vehicle as low as possible to help save you money.

Lease interest rates can be very high – The bad thing is they don’t disclose the interest rate for leases since the FTC doesn’t consider it a debt. So there is no way to know how much your interest rate is jacking up your price.

You don’t own the car – You are merely renting it, not owning it. If the car’s value goes down during the lease, it doesn’t matter, and you are the one responsible for paying for it.

If the leased car is totaled in an accident, you pay full price – If you are in an accident and the vehicle gets destroyed, you owe the entire cost of the vehicle, and it doesn’t matter if your insurance doesn’t cover the whole amount.

Entire lease due if totaled in an accident — If you miss a payment, they not only take back the car, they make you pay the entire cost of the whole lease – If you default on the lease payments, the entire amount for the remaining months of lease becomes due immediately.

Not allowed to modify the vehicle – Since you have to turn in the car at the end of the lease, you are not allowed to modify it, i.e., no repainting, no adding things to the interior, no new stereo, etc., etc.

Can’t build equity – Unlike when you buy a car, there’s no equity. Whatever the car is worth, you get nada. It is like you rented the car for three years, and all you got was its use and nothing further.

Cancel the lease early and pay big bucks – If you want out of the lease early, you could find yourself owing a lot of fees and other charges. However, some places may let you transfer the lease to someone else.

All in all, there are pros and cons of leasing a car, but in the end, it is up to you and your situation as

to whether you choose to buy or lease your next vehicle.

What credit do you need to buy a house (what credit do you need to buy a house,credit score for buying a house)

Buying a house is an ultimate experience and part of the American dream, but you need a fairly decent credit score to do so. So, what credit do you need to buy a house, and what credit score for buying a house?

If you stick with a conventional mortgage from a bank, you likely have to have a credit score of at least 620 or higher to get a mortgage. However, when asking what credit score for buying a house is needed, some lenders will grant you a loan if your score is in the 500s. It all depends on the type of mortgage loan and the lender.