Finance Tip of the Bi-Week

I had a recall on my car so I got the chance to look at all the new fancy cars while mine was getting fixed. New cars are really shiny so I thought “hey; while I’m here maybe I should get an appraisal on my current car for possible trade in”.

When I bought it, I paid cash for it ($15K plus tax). I saved for a couple of years for it so I could buy it outright and not finance it. 3 years later it’s now only worth $5.5K. I figure that based on the kms that I drive I have 3 years left with my current car. The car I would probably buy new would be $23K, but with my driving would last about 6-7 years.

Based on that value, my current car will cost me $1,833 per year for three years, but if I trade my car in it will cost $2,917 per year for 6 years. [(23-5.5)/6yrs]

I’m keeping the Fusion.

That being said…. new does mean shiny!

Finance Tip of the Bi-Week

October 13, 2015

Be careful not to get in the trap of using a credit card or a line of credit as a replacement for an emergency fund.  They are often sold as such, but when you’re in a hole the worst way to get out of it is to dig it deeper.  The best thing to do in an emergency is, either climb out through working hard, or ask for temporary help from family, but don’t ask for a loan from family.  It’s easier to have thanksgiving dinner with family when you don’t owe them any money.

Disclaimer:  I do not owe nor do any of my family members owe me any money. Though I did borrow my brother’s PlayStation Controller and I really should get that back to him.