www.billionairewoman.com

The Real Cost Of Owning A Car

nathalie@billionairewoman.com (Nathalie Lussier) — Thu, 13 Oct 2011 00:00:00 +0000

Cars cost a lot of money to buy. A lot of people prefer using public transportation such as buses, trains, or even taxis when needed, rather than buying a car. Why is this? Well after throwing down a load of money to buy the car, you are no where near done with the costs. That’s just the beginning. You’re looking at a few hundred dollars a month for just gas. How are you going to use your car without filling it? Gas prices have increased dramatically over time, and will most likely continue to increase. So there’s the price of the car, and the gas prices. Is that it? Nope! Next, expect a bill every 6 months to a year, for car insurance. Every car must have insurance on it, whether you like it or not. It’s not optional like life insurance, or health insurance, it’s a must. So there’s already over a few hundred a month on top of the price you already paid for the car. The real cost of owning a car is so much more than people expect it to be. And it’s definitely not a one time fee, it’s far from that. Be ready to pay all of these fees monthly before buying a car.

Beware Of Credit Card Interest Rates

nathalie@billionairewoman.com (Nathalie Lussier) — Wed, 12 Oct 2011 00:00:00 +0000

Beware of credit card interest rates because they can change after the introductory period of time expires. Many people take the time to find a great rate, but what do you do when that rate exprires. It is very difficult to get a low interest rate that will last for a long time. Most introductory rates will lure you in for a short amount of time, and then the real interest rate kicks in and your bills seem astronomical. Before you take the time to get your credit checked through a credit card company, make sure you know what will happen when the rate changes. A good company will let you know what your balance will be at the changed interest rate before you sign up. They should be able to tell you your new balance and your monthly payment with the new interest rate. They should also let you know how much extra you can pay each month to decrease your principal balance faster. If you are really having a lot of trouble with your debt then you may want to seek some credit counseling. You may also want to try a debt consolidation loan to avoid higher rates.

The Real Cost of Owning A House

nathalie@billionairewoman.com (Nathalie Lussier) — Tue, 11 Oct 2011 00:00:00 +0000

When a person buys a house, they are made very much aware of how much the mortgage payment will be the property taxes, and the insurance. The buyer should do their homework before the purchase and have a close estimate of the monthly utility charges, heating, gas, electricity, sewer and water. The prudent home buyer has calculated these monthly costs and has figured them into the cost of owning the house.

Costs that are typically overlooked are the future repair and maintenance costs – and they can be substantial. Depending upon the age and condition of the house maintenance or replacement projects will have to be done at some point during ownership. Future maintenance and repair projects such as painting inside and out, a new roof, bathroom and kitchen upgrades, heating and carpeting upgrades need to be considered. The expense of these items can be very substantial and should be budgeted for when buying a house. Projects planned for years down the road can not be precisely estimated but with the help of a professional financial planner, when the time comes for a major home improvement project, it does not have to be a severe financial burden to the homeowner.

A Home Purchase As A Savings Vehicle

nathalie@billionairewoman.com (Nathalie Lussier) — Fri, 07 Oct 2011 00:00:00 +0000

For most families the largest financial investment they will make is their home. A home is a large monetary investment and should be viewed as a savings investment as well. Homes are thought of as a “fixed asset”, increasing in value over time at a steady rate. This is not always true. A home can change in value over time, like the up and down cycles of the stock market. The severity of the cycle can determine whether large returns or losses result depending upon if the home is sold.

Similar to a savings account, the best way for a home to be a positive savings vehicle is to not “withdraw” from it. Refinancing the mortgage for a better rate or a shorter term has a beneficial effect on the equity in the home. Refinancing the mortgage for obtaining cash for other than home improvement purposes will have the same negative effect as withdrawing principal from a savings account. Making “deposits” such as home improvements or paying down existing debt on the home will in the long run increase the home’s value and lessen the effects of a “down” real estate cycle and increase the returns in an “up” cycle.