Finances

14 Car Finance Managers Reveal The Worst Deals They Ever Seen

October 18, 2024

1. I feel sick to my stomach whenever I think about this, but I sold a customer who was about $10,000 underwater a new Ecosport and due to her credit the interest rate was well into the 20%’s. She bought everything in the finance office and left with payments just over $1000/m for 84 months. The car was ~$24,000 (with rebates), her negative equity and taxes brought it to ~$37,000 and then bought about $4000 in back end products. I have no idea how the deal ever got funded but AFAIK all the back end stuff stuck.

Paying $85,000 for an Ecosport just makes me physically ill.

There Is No Secret to Getting Rich

October 17, 2024

Here’s the thing: when it comes to building wealth, there’s no magic formula. No secret sauce. No hidden code that only a few select people know about. It’s far more mundane than that—and that’s why it’s so hard for people to grasp.

Why You Should Never Rely on an Inheritance for Your Financial Future

September 26, 2024

Let’s talk about something people rarely want to admit: the idea of banking on an inheritance to secure your financial future. It’s one of those topics that floats around quietly at family dinners, whispered between siblings or silently assumed. But here’s the truth you need to hear: relying on an inheritance is one of the worst financial strategies you can adopt.

Why Turo Might Not Be the Best Business for Entrepreneurs

September 20, 2024

You’ve probably heard that Turo can be a great way to make extra money—renting out your cars and turning a profit sounds easy. But from what many people in the industry are saying, it might not be as smooth as it seems. If you’re considering Turo as a path to entrepreneurship, here’s why it might not be worth it in the long run.

You Need To Avoid The “I Deserve It” Trap

September 3, 2024

It’s easy to fall into the “I deserve it” mentality with our finances. After a long week of work, it’s tempting to rationalize splurging on an expensive meal, new clothes, or the latest gadget.

But this mindset can seriously damage our financial health if we’re not careful. Let’s delve into what this mentality is, why it’s harmful, and how to combat it.

Why Many Advise Against Buying a Franchise

August 12, 2024

The allure of owning a franchise often stems from the promise of a proven business model, brand recognition, and potential financial success. However, a closer look at the experiences of many franchise owners reveals a different story. Here’s why many advise against buying a franchise:

You’re Buying a Job: The sentiment echoed by many is that owning a franchise is akin to “buying a job.” Instead of the passive income many hope for, franchisees often find themselves working long hours, dealing with the day-to-day operations, and facing the challenges of managing staff and customer relations.

The Strategic Benefits of Job Hopping

August 9, 2024

Let’s cut to the chase: job hopping isn’t just for the restless or the uncommitted. It’s a powerful strategy that, when done right, can skyrocket your career and fatten your wallet faster than you ever thought possible.

Now, you might be thinking, “But won’t employers see me as unreliable if I hop around?” Sure, if you’re switching jobs every three months, you might raise some eyebrows. But strategic job hopping? That’s a different ballgame entirely.

Money Matters: ‘Elderly parent has significant debt and no job’

April 23, 2024

My mom (70) “retired” a few years ago despite not being nearly financially secure enough to do so. Cut to today and she currently has 6k remaining in her 401k with no other savings, and is just over 100k in debt (43k remaining on mortgage, 23k car debt across two cars, 25k credit card debt, 10k in other loans).

Monthly expenses including minimum payments on all loans is $4k ($1k housing, $520 utilities, $800 food/necessities, $675 car payments, $1k credit card/loan payments), and she gets $1.5k a month in social security benefits, so there is a $2.5k deficit that needs to be paid each month which she has been paying with a combination of credit cards and 401k withdrawals.

[Read more…] about Money Matters: ‘Elderly parent has significant debt and no job’

Special Assessments: The Hidden Risk When Buying in an HOA

April 19, 2024

"I’ve got a brutal special assessment that was just unilaterally decided upon by my HOA board. I live in a condo I bought in May 2014 for $245K. The assessment will be for $60K to replace the siding and windows."

"I’ve recently moved into a condo complex that I’ve now learned needs a lot of urgent work done. We haven’t yet gotten a final figure, but it’s looking like a $30k-$40k assessment may be in my near future."

"Hello, I (30 F) own a condo in a 16 story building. I am a full-time Master’s Student with a part-time retail job. My Condo building is falling apart and needs about $3.5 million in repairs. My portion of this is an $18000 assessment due on June 11th"

[Read more…] about Special Assessments: The Hidden Risk When Buying in an HOA

What is Sunk Cost Analysis?

April 15, 2024

Sunk Cost Analysisis a way of making decisions that ignores any costs that have already been incurred and cannot be recovered. These costs are known as “sunk costs.”

The key principle of sunk cost analysis is that only future costs and benefits should be considered in a decision, not past expenditures, since the latter cannot be changed and should not influence the rational assessment of a viable option.