Bible Money Matters

3 Financial Principles You Can Depend On!

John Frainee — Wed, 08 Sep 2010 12:40:34 +0000

I‘ve been writing about finance for some time now, and in all my research 3 principles stand out as the most important. You’ve heard these before; the problem is most people don’t take them to heart. If you follow these straightforward rules of thumb, you’re almost guaranteed to become wealthy. Let’s start with the one at the top of my list – living on less than you make!

The Three Principles

1. Live on less than you make – really this time!

Leases, car loans, mortgages, student loans, personal loans, credit cards, what did I forget? Our financial system has invented every way imaginable to charge money for using money we didn’t earn. The interest rates are utterly ridiculous. How is it that so many people can get caught up in spending more money than they make? Some may argue that they pay off their credit cards and don’t spend more than they make. But if you’re spending someone else’s money, isn’t that spending money you don’t have? It’s a dangerous game.

Keeping a budget is key to spending less than you make. Obviously, the first step is to determine how much money you have coming in. If you have a variable income, this can be rather difficult. Start by looking at your historical income. I recommend looking at at least 6 months of history if not a year. Take the average monthly income and spend less than that per month. For example, right now we spend approximately 80% of our average monthly income. The rest of the money goes into whatever major goal we have – in our case, Dave Ramsey’s Baby Step 3.

2. Your financial behavior is more important than the mathematics.

It’s true. Too many people are concerned about how much interest their checking account provides rather than looking for ways to raise their income through hard work. Hard work first, perks second! Your behavior affects your pocketbook more so than the light mathematics can.

Get intense. The best way to responsibly manage your finances is to become zealous and have a plan. Don’t worry so much about the math – it’s not so much about head knowledge, it’s about pursuing an objective.

3. Emergencies happen – plan on it!

The third financial principle is a biggie. Emergencies take place, and it is crucial to have an emergency savings account labeled “For Emergencies Only.” If unexpected medical bills pile up, you’re going to need a buffer between you and life. This is an important part of your financial vehicle that is taking you where you want to be.

Another key component to fighting emergencies is excellent insurance. Here are a few pieces of insurance you should have:

Health
Auto
Life
Disability
Long-term Care
Homeowners or Renters
Identity Theft Protection

Listen To Those Who Have Been Successful

You’ll find that many within your family who have been successful with money have adhered to these principles. Do you know someone who has done well financially? Sit down with them over a cup of coffee and ask them how they keep a grip on their finances. What do they do in their everyday living that helps them win with money?

I’ve had the opportunity to meet with many successful people – people who are where I currently want to be. Teaching me their methodologies for success, I’ve become closer to reaching my goals and can taste freedom. Never underestimate the power of a mentor.

What are some of the great principles that have kept you afloat in times of emergency? Or, what has propelled you to the success you have in your finances? We’d love to hear from you! Tell us what are some of the financial principles you have depended on. Meet you in the comments!

This article was written by John Frainee. John Frainee is a personal finance writer at TheChristianDollar.com. His goal is to provide biblical financial principles that encourage people to live healthier lives. Beyond personal finance, John enjoys spending time with his wife and two crazy cats, playing a competitive game of Monopoly, and reading just about anything he can get his hands on. You can also find him on Twitter and Facebook.

Get Motivated To Reach Your Financial Goals – And Motivate Others!

Jason Topp — Tue, 07 Sep 2010 13:33:05 +0000

Every once in a while it’s easy to get into a funk with our finances. We get out of our groove, we mess up our rhythm, we slack off. What I mean is that it’s easy to slip back into bad habits like getting into debt, or seemingly forgetting how to save money or just simply not caring about reaching our goals anymore. We start thinking about all the negatives to disciplining ourselves financially, becoming more frugal or using our cash flow for saving rather than spending.

Sometimes it’s not fun, but we need to recalibrate. We need to get back on track. If you find yourself in this position, you’ve come to the right place.

So here are three things you can do to get back on track financially and start getting ahead again.

Be Positive

Be positive. This is easier said than done – especially if your natural personality is a bit of a pessimist.

Turn your “No’s” into a “Yes!” Don’t talk about what you can’t do, talk about what you can do. Turn your negativity into positivity.

Now, this doesn’t mean you’ll all of a sudden start saving $2,000 a month, but it does put things into a different light. It’s motivating to talk about the things that could be, to put things into a positive perspective, and it helps with reaching your goals.

I know too many people who think the odds are against them to save. Maybe it’s true, but don’t dwell on why you can’t save – let’s figure out some ways to help you get there.

Share Stories

This is so important. Share stories with others about your successes or your failures and help one another stay accountable with your financial goals.

This is hard to do – especially in our culture, where we prize secrecy and independence about our financial situations.

One of the great motivators for me is hearing all the stories come through in the comments sections or reading other people’s blogs about how they paid off their debt, how they saved 10% of their income or retired early!

I love hearing those stories – and it’s motivating. It makes me want to turn my “No’s” into “Yes’s”.

Why do you think Dave Ramsey is so popular? Besides his to-the-point advice, one of the things people love about his show is the “Out of Debt Scream”

Have you ever heard that? When someone pays off their debt they call in and they get to scream on the air! It’s silly, but you know what – it’s motivating. And there are people across America who are dying to call into the Dave Ramsey Show and scream!!

Commit To Change

I can tell you one thing for sure. If you’re not committed to changing your lifestyle, getting ahead financially, opening a Roth IRA, creating a budget, giving more away or even reviewing your life insurance plans - (you can also throw in any number of other things that take a bit of work) – then you’ll never do it.

You can’t half-heartedly commit to your goals.

Runners don’t half-heartedly commit to the 100 meter dash. Baseball players don’t half-heartedly commit to trying to get a hit.

Neither can you half-heartedly go after your goals – it simply won’t work.

It takes discipline and a motivated effort to change. But you and I both know that you can do it. Look at the contestants on the Biggest Loser.

Most of these folks have lived with negative eating habits for their whole lives and all of a sudden they’re on a show that is getting them to lose weight.

But the weight loss is the result – what trainers Jillian and Bob are really trying to do is get the contestants to commit to change!

If the contestant is not going to commit, they stand no chance of winning the money!

It’s the same with our finances.

Motivate Others!

Now it’s your turn to motivate others and share your story!! Please share at least one positive change you’ve made or a positive thing you’ve done in reaching your financial goals in 2010!

We’d love to hear your story!

This article was written by Jason Topp. Jason writes at Redeeming Riches where he helps others Restore Their Money and Renew Their Minds. If you want to learn how to save money be sure to subscribe to to catch more of Jason's posts!

How I Keep Track Of Blog Income And Expenses And Why It’s Important

Peter Anderson — Fri, 03 Sep 2010 11:55:22 +0000

A while back I wrote pretty extensively about how I had taken my small insignificant personal finance blog, and turned it into an income producing asset for my family. By writing about the right topics, performing the right types of promotion, performing SEO for the site and networking with the right people, I was able to make my site a success. If you want to read a bit more about how I was able to do it, I’d suggest checking out my ebook, Blueprint For How To Make Money With A Blog. In the e-book I walk you through the process I followed to take my blog to the point where it was able to replace the income from my wife’s day job, so she could stay home with our son. (click on the banner below for more details)

While I have been blessed in that my site has done well since it launched in January of 2008, I haven’t done everything perfect. I’ve made my fair share of mistakes. One of the mistakes that I made that I regretted later on was not tracking the income and expenses for the blog better.

Why You Should Keep Close Track On Income And Expenses: Taxes

When you start making any kind of income for your blog, it’s important to start tracking the income that’s coming in, and the expenses you’re incurring to keep the site operational. The reason? You’re going to need to pay taxes on your income when tax time comes around. In fact, if you’re making enough money on the side, you’ll need to be making regular estimated tax payments during the year as well. Our tax system is a pay as you go system, so you need to pay your taxes throughout the year either through withholding or estimated tax payments. If you don’t, you could face penalties when tax time comes.

So who should be making estimated tax payments? If you’re making any kind of regular income from your blog, you will most likely need to pay estimated taxes.

To avoid penalties at tax time you will need to make sure that you make your estimated tax payments, and at the very least meet one of the following safe harbor requirements so that you don’t have to pay during the year. Different rules may apply for some taxpayers.

Safe Harbor Requirements (To Avoid Tax Penalties)

Owe less than $1,000 for this year’s taxes.
Withhold 100% of last year’s tax liability. (We are doing this safe harbor requirement this year because it’s easiest to calculate)
Withhold 90% of this year’s tax liability.

So as you can see – as always, taxes are going to be a complicated mess, especially if you’re making income on the side that doesn’t have taxes withheld. For a more detailed discussion of paying estimated taxes, check out this post: Estimated Tax Payments

Ways To Track Your Income And Expenses

When it comes to tracking your income and expenses for your blog, there are a lot of ways to do it. Today I just thought I’d talk about what has worked for me.

Consistency Is Key

Tracking income and expenses isn’t that hard to do. For me the problem usually happens when I don’t stay on top of things, and my income statements and expense reports start to pile up on me. So for me, consistency and entering things as they happen are key. If I don’t do that I usually find that tax time creeps up on me and I end up having to pull an all-nighter trying to enter all my income and expenses in order to figure out estimated tax payments. Trust me, you don’t want to be there.

Tools For Tracking Income And Expenses

At our house I use 3 separate tools to track our income and expenses for the blog.

Personal finance software: I use Microsoft Money to manage our household budget. You don’t have to use Money, but any budgeting software will do. (Check out our list of 75 Budgeting And Personal Finance Software). We enter all of our income from day jobs, and income from sideline pursuits. We also enter every cent that leaves our bank accounts be it for regular monthly expenses, or blog expenses. In order to track blog income and expenses effectively I’ve set up special categories for all blog income, and expense types. Money also downloads all transactions from my banks, so it double checks everything I’ve entered. This makes things easier because when it comes time to pay taxes and I need to know how much was made or spent, i can just run a report on those blog income and expense categories.
Income and expenses spreadsheet (download it here): I also use a google docs spreadsheet for all blog income and expenses. In fact, I use this as my main source for this information just because I can enter it on the fly anywhere and anytime. I get paid for an ad banner sale? I enter it on the correct line in my spreadsheet on the “income” tab. I have to pay for hosting, or pay one of my staff writers? I go to the “expenses” tab and enter it there. Since I enter everything as it happens, I always have an accurate accounting for everything coming in and going out for my side incomes. Download a copy of my spreadsheet here:

Blog Income And Expenses Spreadsheet - 18.18 kB

Small business software Outright.com: Within the past 2 months I’ve also started using a small business software/website called Outright.com. Basically the software automatically downloads transactions from accounts you tell it to, categorizes your Schedule C income and expenses, and prepares reports for you on your estimated taxes and other things. I’ve only started using the software, but so far, it looks like it should be pretty helpful. Read a full review of Outright.com here.

So those are the three ways that we track all of our income and expenses that are coming in during the year. Because we’re doing it in more than one way, it also adds in a layer of confidence that the numbers we’re coming up with are correct.

Have your own favorite ways to track income and expenses? I’d like to hear them, tell us in the comments!

What Things Should I Track?

One thing I hear from people is that they’re not sure what types of things they should be keeping track of when they do make note of income and expenses.

On the income side of the equation I would just say to keep track of pretty much everything.

On the expense side, it will usually only make sense to track things that are going to reduce your tax bill, or count to reduce your taxable income. To be safe, I track just about everything just in case.

As a blogger or freelancer, here are some expenses and deductions you can track for use at tax time (As always consult a tax professional to confirm they can be claimed in your situation):

Web hosting: Your website hosting fees can be claimed as a deduction on your taxes, so print out an invoice and keep it in your “expenses” folder.
Premium themes: Premium WordPress themes like Thesis, Frugal and Headway themes can be claimed as deductions.
Advertising, promotion and design: If you had a custom theme designed or a banner created for use on other sites, you can claim it as a deduction. Used adwords to push traffic to your site? Claim it!
Domain names: If you bought or renewed domain names, you can claim them on your taxes.
Staff writer fees: If you pay writers to create content like I do, you can claim their fees as a business expense.
Internet access fees: You can deduct internet access fees.
Software and blogging tools: Use a video editing software to create videos for your site? Bought a custom plugin to use on your blog? Claim them!
Home office space: This one is a bit hazy for me, but if you have a well defined space used only for work in your home, you can deduct a portion of your home mortgage. Consult a professional for details on this one.
Computer equipment: If you bought a new laptop or digital camera to use mainly for work, you can claim it.
Paid stock photos for posts: Pay for a stock photo service to use their photos on your site? You can claim the membership fees.
Supplies and stationary: Business cards, stationary, pens, etc can be claimed.
Refunds and discounts to customers: If you give discounts on ad sales or give special pricing for package deals, you may be able to claim them as a deduction. Just be sure to carefully document it. Also, if you’ve given a refund on something, you can claim that as well.
Post office box: If you have a post office box for use on your blog or email newsletter, you can claim it as an expense on your taxes.
Tax software & tax preparation: They’re deductible!

For even more deductions for bloggers, check out Darren Rowse’s list at problogger: 46 Tax Deductions that Bloggers Often Overlook

Conclusion

When you start a side business whether it be a blog or other small business, it’s important to make sure you’re tracking everything that’s coming in, and going out. When it comes time to do your taxes, you want to make sure that you properly report everything, and at the same time, that you take advantage of all the deductions that are available to you. If you setup a system and follow it throughout the year, you’ll be far ahead of the game when it comes time to pay the tax man.

Have your own tips, tricks and hints for tracking blog income and expenses? Have software that you use to help make it easier? Tell us your thoughts in the comments!

This article was written by Peter Anderson. Peter Anderson is a Christian, husband to his beautiful wife Maria, and father to his baby boy, Carter. He loves reading and writing about personal finance, and also loves a brisk game of tennis every now and again. You can find out more about him on the about page or check out his design site at http://www.logosforwebsites.com. You can also follow him on Twitter at @moneymatters.

5 Things About Money I Wish I Would Have Known When I Was Younger

Guest Poster — Thu, 02 Sep 2010 11:48:27 +0000

Sam Ewing, who used to play baseball for the Chicago White Sox, once said, “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”

Many of us may feel that we can never quite catch up with our money, but one thing is certain: There are many things about money that we probably wish we had known when we were younger. For those of you who are still young or even young at heart, here are five things about money that you should probably think about.

1. Compound Interest

If you can save money at a young age and invest it in a quality mutual fund, you can become a millionaire by the age of 58 with only a small investment. That’s the beauty of compound interest.

Consider this scenario: Beginning at the age of 19, Jane invests $2000 per year ($167 per month) into a mutual fund with a 12% rate of return. She continues to invest $2000 per year into that same fund until she reaches the age of 26. From the age of 27 on, she invests nothing. This gives her a total out-of-pocket investment of $16,000. By the time she is 58, her $16,000 investment will have turned into $1,035,425! It can be difficult to find a fund consistently earning 12%, but even if it is only 10% the power of compound interest still works quite well!

2. Learn to Use a Monthly Budget

A monthly budget is the single most powerful tool you can use to keep tabs on your money. If you aren’t able to see where your money is going each month, you’ll have no way of knowing where you’re overspending or where you need to change your spending habits.

3. Just Say NO to Credit Cards

Remember what we said about compound interest? Well, credit card companies love compound interest. In fact, many of these companies charge interest rates of over 18%. Pretty good return on the money they’re loaning out, isn’t it? The single biggest problem with credit cards is that when you max out the card and only make minimum payments, it will take you forever to pay off the card and the interest that you pay will be much higher than what you originally owed. Even the best credit card rewards don’t make up for all the interest paid if you are paying monthly miniums. Instead use a cashback debit card like Perkstreet Financial which pays just about as much as any credit card rewards.

4. Cash is King

If you budget your money and set specific goals, you’ll be able to use cash for all of your purchases. If you use cash for big-ticket items, you have bargaining power. Most people in the U.S. are afraid to bargain with retailers. Doesn’t it seem strange that when you travel to almost any other country in the world, marketers actually expect you to dicker?

When you bring cash into the store it does a couple of things. First, using cash gives you a sense of the value of the item. It’s much harder to part with the dollars than it is to just put it on a credit card. Guess what? Retailers know this. People who use credit cards for purchases are much more likely to buy more. Basically, it doesn’t hurt as much when you use a card. When you count out that cash to pay for an item, it’s kind of like saying good-bye to a good friend.

Cash enhances your bargaining ability. When the salesperson tells you the price of the item in question, the first thing you can ask is, whether or not you can get a discount for using cash. The answer is usually yes. If it isn’t, you can always go to a store where it is. Using cash also puts a top-end amount that you’re willing to spend. If the item is higher in price than what you have, you can always tell the salesperson that you only have x-amount of dollars. It may take a couple of trips to the manager’s office, but most of the time, you’ll be able to negotiate the price of the item down to what you have.

5. Save Early and Save Often

It’s much easier to save money when you’re young. If you’re in your mid or late teens, you probably live with your parents. This means you have no real living expenses. If you have a job, you can put most of your paycheck into savings or investments. Remember what we said about compound interest? Put your money in a quality mutual fund and be ready to retire early.

Another reason to start saving early is to establish it as a normal habit. Once you’re out of your parents’ house, it’ll be much harder to save. If you’ve established saving as an important goal, you’ll be much more likely to continue a habit that you’ve started early on.

Many of us wish we could have “do overs” in our life. The way we handle money is usually one of them. If you’re still young, begin practicing the items listed above and reap the rewards as you get older.

This article is by Bob Lotich who writes for ChristianPF.com – a blog that looks at personal finance using Biblical principles.

This article was written by Guest Poster. We love guest contributors here at Bible Money Matters. Would you like to write for us as well? Please check out out our guest post submission guidelines and then contact us with your post idea!

How To Get A Spouse To Start Budgeting

Craig Ford — Tue, 31 Aug 2010 12:00:05 +0000

This post is by Craig Ford. Craig, a freelance writer and missionary, blogs at Money Help For Christians. Today is the last day that you can get a copy Craig’s eBook, The Secret to a Successful Budget for 30% off.

Married couples don’t always see eye to eye. If you’re married, you didn’t need me to tell you that .

When I started writing about making a budget and answering budgeting related questions, I found that people often struggle with a spouse who won’t get on board with the finances.

The usual response is a full frontal attack. One partner digs his or her heals in and pushes, and pushes, and pushes until they get their desired results – the spouse to start budgeting. Not only is this approach extremely damaging for a marriage, it is also highly ineffective. You might get your spouse on board, but they may mentally distance themselves from you.

Instead, a better approach is to subtly try and come alongside your spouse and gently lead them in the right direction.

4 Effective Steps for Getting Your Spouse to Start Budgeting

1. Dream together.

Dreaming about your future is the best way to motivate a spouse to start budgeting. Block off an evening and have a nice dinner together. After dinner, take time to walk and ask each other – where do you picture us in 10 years? What will we be doing?

Most dreams have financial implications. Leave those implications for another time. Enjoy the evening.

Later, follow up with your spouse by proceeding to step two.

2. Introduce the benefits.

Nagging and critiquing never helps improve someone’s willingness or attitude, but kind affirmative words always provide the right structure for having a financial discussion.

Don’t say – I’ve asked you a hundred times to keep your receipts and track your spending.

The problem: It is accusatory and will automatically make the other person feel defensive.

Try: I think I’ve found a way for us to afford that Europe vacation we talked about the other night. It’s going to require us to change our spending, but I really think we can do it.

3. Search for middle ground.

Most married couples consist of one free spirit and one geek. The geek typically takes the lead when it comes to budgeting. The geek then sets up an elaborate budgeting system with 457 budget categories. As the geek explains the new budgeting process, the free spirit feels more and more overwhelmed. Nothing in this plan sounds like any fun. Can geeks and free spirits ever find middle ground?

Don’t say – I’ve already set up the budget on the computer so you need to enter your expenses.

The problem: There is no discussion about budgeting preferences and systems that work. One party has made a decision without including the other, and they expect the other to follow ‘their’ pattern.

Try: I’ve done a little research and found that there are five good ways that we could budget. Perhaps we could find some time this week to choose the budgeting system that works best for our personalities?

4. Share victories.

This is similar to introducing the benefits, but now you’ll actually share positive results. Let’s say that your spouse is still hesitant about budgeting. Implement some of the changes yourself and share those positive results.

Say: Guess what, sweetie? I started to keep a grocery budget this month and I was able to save $50 on groceries. I’ve opened up a new bank account and we now have $50 towards our Europe vacation.

Remember, direct confrontation in marriage is rarely effective. Instead, try and come alongside your spouse and gently lead them in the right direction.

What suggestions do you have for getting a spouse on board? Have any of you ever experienced this struggle?

This article was written by Craig Ford. Craig is a fulltime missionary in Papua New Guinea who writes Money Help For Christians and Help Me Travel Cheap, a frugal family travel blog. He is the author of Money Wisdom From Proverbs, has a Masters of Divinity degree, and (most importantly) eats homemade pizza with his family every Friday night.

What Is An Economic Bubble Anyway?

John Frainee — Mon, 30 Aug 2010 12:31:11 +0000

It seems nearly every financial publication released today has the term “bubble” in it somewhere. Many of us know it’s a bad thing, but what does it really mean and how do they happen? Do they truly have an effect on the average consumer? Hopefully we can clear up the confusion of what an economic bubble is and determine if we can know when one is occurring.

What Is An Economic Bubble?

Economic bubbles happen when trade of a specific item (like a stock, asset, product, or service) is artificially inflated beyond normal standards of trade. On a graph, this looks much like a bubble! The price/trade of an item might be skyrocketing higher and higher with time, but then inevitably comes crashing down in the end.

Mania, Fear, And Hysteria

Many times, economic bubbles can result from mania surrounding a product or service. Values of an item are pushed beyond normality, and everyone tries to buy the product at one time so that they might make a profit. The stock market is prime real estate for such bubbles, as it can be difficult to accurately determine the value of a stock. Because it is difficult to know whether a stock is valued too high or low, many financial advisors suggest a diversification plan when it comes to investing, and not purchasing single stocks.

A classic example of economic mania (resulting in an economic bubble) is the Dutch Tulip Mania event. Tulip bulb prices between 1636 and 1637 shot up and crashed down within months. It’s said that prices were artificially inflated because everyone was buying bulbs hoping to turn around and sell them to make a profit. This is an unsustainable business model, because eventually the buying of the product outweighs the selling and the whole system comes crashing down.

A Lesson To Be Learned?

There are two schools of thought within economics when it comes to economic bubbles. Some people say that bubbles are predictable with study. Entire books have been written on how to “time” the stock market or financial future. However, mainstream economics believes that economic bubbles are both inevitable and unpredictable.

I lean towards the mainstream, and believe that bubbles can go unnoticed for a period of time before they inevitably burst and nearly everyone is surprised. The free market is a good thing and eventually equalizes the markets, but it’s more of jerky roller coaster ride than smooth sailing. Not only is Wall Street affected, but Main Street as well.

The lesson to be learned? Diversify not only your investments, but also diversify your income streams. The recent recession left a countless number of people unemployed. Many only had one job before the recession hit, and now they are left with collecting unemployment.

It’s All Psychological!

Contentment. It’s key when you’re wanting to handle your finances in a successful manner that leads to wealth. Too many get caught up in a mode of desperation and take part in the hype, mania, and overvaluing of products and services. It helps to have a calm spirit. Don’t allow the media to influence your path. When everyone is saying “buy now, buy now,” it’s probably not the best time to buy. Likewise, when everyone is selling, it may be unwise to sell.

Slow and steady! That’s the ticket. Having a long term game plan is crucial to your success. Build a financial foundation, and slowly build wealth, one dollar at a time. Then, when the economic bubbles pop, you can sit back and relax – you’ve built a strong house that can weather the storm! Don’t you agree?

Buying A New Or Used Car? Negotiating Tips To Use With Car Dealers

Peter Anderson — Thu, 26 Aug 2010 14:21:47 +0000

Buying a new car will often be the 1st or 2nd most expensive purchase that you’ll make – depending on whether you own a home. Unfortunately far too many people just don’t do their research, and don’t try very hard to find the best deal because they just feel intimidated when going to a car dealership or talking with a car dealer. In my opinion that’s a big mistake.

If you do your research, and make sure to have your financing (or cash) lined up and ready to make the purchase, you’ll have more power when you go out to make a deal. Here are some sites to do that research:

My wife and I are currently shopping for something a bit bigger than my wife’s Honda Civic now that we’ve got a baby at our house. We want something with a little bit more room for the baby and the baby’s things – so we’re looking for a small SUV or something similar. (Any suggestions? Let us know in the comments!)

Here are some tips that we’ll be trying to remember when we go out to negotiate with dealers to buy our new (to us) car.

Tips For Negotiating With A Car Dealer

Here are some things that can help you when negotiating a price with your local car dealer.

Set a hard price you won’t go over: Before you even go to the dealership and start negotiating with the dealer, you’ll need to sit down and figure out what your budget is for your new car. Do you research on the particular makes/models you’re considering, set a firm price you won’t even consider going over – and have that number in your head when you negotiate. And for heavens sakes, don’t start negotiations at that price.
Try shopping when salespeople need to make a deal – at the end of the month: Because most dealerships will have monthly sales goals for their salespeople, the end of the month is often the time that they’re most willing to offer a deal and get you into a car. If they’re 2 cars short of meeting their sales goal, do you think they’re more likely to give you a better deal?
Don’t fall for the old “what can you afford for a monthly payment” trick: When you talk to the salesman about a certain car, they may try to distract you with low monthly payments, financing offers, and other incentives. Don’t give them the control by allowing them to price your car by the monthly payment or by a good finance rate. Be in control of the situations and explain to them you’d only like to discuss total price first, and then talk about how you’ll pay later on. You don’t need to tell them if you’re financing – or if you’re paying cash – as we are.
Don’t be desperate, have walkaway power: When you start negotiations you can stress with the dealer that if the price is satisfactory – you could sign and drive today. However, you can tell them that you’re certainly in no hurry. Always keep open your options and ability to walk away from the deal if you’re not happy with it. If the dealer knows you are desperate or that HAVE TO HAVE this particular car, he will take advantage of that. (That means you’ll be paying more!)
Make an offer and shut up: Sometimes the easiest thing you can do to get a better deal is make your offer, and then just be quiet. Don’t get uncomfortable if the dealer doesn’t say something or make a their own offer right away. Just wait for them to make a counter offer. If you decide to counter their deal, never go over your firm price.
Work up from dealer cost, not down from MSRP: Quite often the dealer will try to get you to negotiate the price down from the sticker price, trying to make you feel like you’re getting a deal. The only thing is, nobody except for suckers pays MSRP. Instead, work your way up from the dealer’s actual cost of the vehicle. Allow them a fair (and small) profit, and you’ll both come out ahead. According to Carbuyingtips, on a 5% profit a dealer can still meet operating costs and come out ahead.
If you’re come to your firm price – stop: When your last offer has been put on the table, and you can’t go any higher because you’re reached your firm price, politely tell them that you’ve put your best deal on the table. Once your best deal is out there, they’ll either have to accept it or turn it down. If they turn it down, be ready to walk out the door.
Follow up with a call the next day: If they didn’t accept your best offer, try calling the dealership the following day with a last chance offer. They may take the deal just to move inventory and meet their monthly goal if they’re desperate enough.
It isn’t in the deal if it isn’t in writing: Make sure everything you agreed to in your negotiations with the dealer are stipulated in the sales contract. If it isn’t, it’s like it never happened. Don’t rely on the salesman’s word – make sure to have it in writing.

Shopping for a car can be a stressful process. However, if you do your research, come prepared and understand how the sales process works, you’ll end up paying a lot less money than the next guy.

Do you have your own tips for buying a new or used car? What things do you do when negotiating with a salesman? Tell us how you get the best possible deal in the comments!

How To Get Free Financial Help Online

Jason Price — Wed, 25 Aug 2010 12:00:37 +0000

I’ve talked a lot over at One Money Design about my personal experience as a Money Map Coach and often share how this FREE program is a helpful resource for people experiencing financial challenges.

In short, the coaching services are FREE and available through Crown Financial Ministries. Crown is dedicated to equipping people worldwide to learn teach God’s financial principles.

Money Map Coaching

If you’re not familiar with Money Map Coaching, there are two key components that make it so helpful to people.

First, coaches help people learn what the Bible says about money and how to honor the Lord in finances. As a Christian, it’s important to realize God is the owner of everything (including money) and it’s our job to manage money wisely. If you understand these two principles (ownership and financial stewardship) your financial journey is positively impacted forever.

Second, coaches help you apply practical tools to your financial situation and identify where you are on the Crown Money Map journey. The Money Map is a proven 7 step plan to reaching true financial freedom (the final destination). At this final destination, you have a fully funded retirement along with other investments and no longer depend on full-time work. Reaching this destination enables you to be more generous with your time and money.

Online Coaching

But, there is more to Money Map Coaching than just the in-person service. On a recent Crown MoneyLife radio program, I listened to Chuck Bentley interview Jocelin Boutet who is the Crown Money Map Coach Manager.

Jocelin talked about an area of Money Map coaching that I honestly don’t have much experience with, but I think it’s a valuable resource for people. It’s the online Money Map coaching service that is available through the Crown website.

With online coaching you can go online and talk real-time (depending on the time of day) with a Money Map coach to get your financial questions answered. The resource is completely anonymous, so you can ask questions without someone knowing your identity unless you choose to disclose it.

For example, let’s say you’re having a difficult time determining whether or not you should get a new car. Perhaps your existing car is having mechanical trouble. Do you need an objective opinion from another Christian who understands Biblical truths about money? Or, someone who can point you to some practical tools to help plan your way? If so, take your question to an online coach who can help answer it in a matter of minutes.

Jocelin mentioned she once spoke to a pastor who was concerned about visiting with a Money Map Coach who also attended his church. In other words, as the pastor he was uncomfortable revealing his financial challenges to another church member. Well, the privacy of the online program proved to be a great resource for this pastor and served the same needs as in-person coaching.

How Does Online Coaching Work?

It’s actually very easy to get started. Just visit the Crown Money Map coaching page and click on the online coaching link. You’ll need to agree to the disclaimer and then you’re chat session with a coach will begin.

There are over 100 online coaches ready to work with you and help you with your finances. Remember, this can be a great FREE way to help you with a tough financial decision, find a Biblical financial reference, and learn more about where you are on the Money Map journey and how to make forward progress.

What do you think about these FREE financial services?

This article was written by Jason Price. Jason Price is a personal finance writer at One Money Design and a Money Map Coach. His mission is helping people achieve true financial freedom. He provides practical tips for managing money wisely and shares Biblical financial principles. Beyond personal finance, Jason enjoys spending time with his family and playing soccer. You can also find him on Twitter and Facebook.

Would You Give Up Your Favorite Financial Sin To Achieve Financial Freedom?

Guest Poster — Tue, 24 Aug 2010 12:00:17 +0000

This is a guest post written by Jesse Michelsen, the creator of Personal Finance Firewall. On his site he writes about taking every tiny detail into account when managing personal finances, and gives tips on ways to make it easier for those with full lives.

I often listen to motivation speeches and read spiritual, uplifting material. It’s really positive and always has great life lessons we can learn, regardless of your religious choices.

A couple years back I heard a speech by a prominent religious motivational speaker about sin and sacrifice. This man spends a lot of his time with people of his faith and in he speech he talked about a common trend he noticed among them. He noticed that, while the majority of them did great spiritually, and followed the word set by their faith on all of the major sins; Thou shalt not kill; Thou shalt not commit adultery, when it came down to the little things like honesty, greed or gluttony, many of them fell short.

So he started privately asking people, “Would you give up sinning in order to go to Heaven?”

They of course would exclaim, “Absolutely!”

and follow it with, “Would you give up your favorite sin, in order to go to Heaven?”

He would point out that some of the really small sins, that people often forget about and more often than not, do commit without even thinking about it, are still sins. Even some of the major sins that were punishable by death back in biblical times, are now every day things, generally accepted in our present culture.

Relating this back to finance, debt and general financial ignorance are just as generally accepted in our culture. Even around here, among you and I that read and write personal finance advice and are trying to improve our financial situation, sometimes we are unwilling to give up or even unaware of the small financial sins we commit.

There are many financial “sins” that are often written about that I would consider the major financial sins. Things such as cashing out your 401k after leaving a job; carrying a balance on your credit card; or paying the minimum due on your debt. These are big sins, and usually the first to be tackled when seeking financial redemption. And although I wouldn’t go as far as saying these are the easy sins, because they are some of the bigger ones they are easily avoided.

But what about the small sins, your favorite financial sins?

Things like overspending on Christmas, getting a new cell phone every year, or going out to lunch every day at work. These things are culturally acceptable, even among some circles of the personal finance niche, these are no big deal, but these small things can still really hurt your financial situation especially because they can open the door to bigger problems.

I have experienced all of these small financial sins, and really enjoy them to tell you the truth. These are some of my favorite financial sins, but in order to achieve financial freedom, even these small financial sins have to be avoided.

Do you have a favorite financial sin? Are you willing to give it up to achieve your financial goals?

Image by jonycunha

Best Of Money Carnival #65

Peter Anderson — Mon, 23 Aug 2010 12:00:44 +0000

It’s that time again, the time when we all wonder – who will be chosen as one of the top 10 posts of the week in this week’s Best Of Money Carnival? It’s not easy to narrow it down when there are over 50-60 posts submitted every week, but I’m going to do my best!

So here are my picks as the top 10 money posts of the week!

Bible Money Matters

3 Financial Principles You Can Depend On!

The Three Principles

1. Live on less than you make – really this time!

2. Your financial behavior is more important than the mathematics.

3. Emergencies happen – plan on it!

Listen To Those Who Have Been Successful

Related Posts

Get Motivated To Reach Your Financial Goals – And Motivate Others!

Be Positive

Share Stories

Commit To Change

Motivate Others!

Related Posts

How I Keep Track Of Blog Income And Expenses And Why It’s Important

Why You Should Keep Close Track On Income And Expenses: Taxes

Safe Harbor Requirements (To Avoid Tax Penalties)

Ways To Track Your Income And Expenses

Consistency Is Key

Tools For Tracking Income And Expenses

What Things Should I Track?

Conclusion

Related Posts

5 Things About Money I Wish I Would Have Known When I Was Younger

1. Compound Interest

2. Learn to Use a Monthly Budget

3. Just Say NO to Credit Cards

4. Cash is King

5. Save Early and Save Often

Related Posts

How To Get A Spouse To Start Budgeting

4 Effective Steps for Getting Your Spouse to Start Budgeting

1. Dream together.

2. Introduce the benefits.

3. Search for middle ground.

4. Share victories.

Related Posts

What Is An Economic Bubble Anyway?

What Is An Economic Bubble?

Mania, Fear, And Hysteria

A Lesson To Be Learned?

It’s All Psychological!

Related Posts

Buying A New Or Used Car? Negotiating Tips To Use With Car Dealers

Tips For Negotiating With A Car Dealer

Related Posts

How To Get Free Financial Help Online

Money Map Coaching

Online Coaching

How Does Online Coaching Work?

Related Posts

Would You Give Up Your Favorite Financial Sin To Achieve Financial Freedom?

Related Posts

Best Of Money Carnival #65

Top 10 Best Of Money Posts

Related Posts