How budget for a car if you & # 039; Again teenager

Even in adulthood - can buy a car a difficult thing to balance. But if you are a teenager, it is even more difficult.

They work a minimum wage job - part time while you are in school - and you know that a car costing thousands (plus insurance, gas and other car expenses). How can you budget for such a large expense?

Here are some tips:

Create a budget

First things first: you will never withdraw able to keep their savings for a car (or anything else in life), if you have a budget in place. Keeping track of your income and expenses can seem a little boring, but you know exactly where your money is going each month, especially now, when you have not much of it.

Set a spreadsheet program or budget allows you to record the amount of money you make and where it goes. (Some applications do this automatically for you if your credit card and bank details.) Account for all by the candy bars 99 cents, which led to the grocery store.

Then configure the games, how much you spend per month for each zone. Large areas should be included, food, entertainment and of course your car. (More information on the amount set aside for a moment.) Now you see where all this is happening, you can keep your spending on track and provide measures to ensure that meet their objectives categories.

Thoughts economical

As frugal is a habit that is to serve you well for the rest of your life, and save for a car is a good reason to start.

Another look at the budget that you have created, and try ways to reduce further. Instead of going to the mall or to the movies every weekend, you can less expensive ways to have fun, as can be found with friends for a movie night or position of a local park or on the beach regularly. When you meet for coffee, whipped cream imagination creating $ 4 each time to get you, or could do with a coffee at home and still have the same conversation with your friends?

You do not have much money coming in that time to do so, what you put as much as possible.

Buy Used

Besides the fact that the new cars are much more expensive, it may be difficult to finance a new car as a teenager, unless their parents sign for them together. (This is an option, but you're still paying more each month if you buy used.)

You are much better off in cash for a car. And that means that you have a used car ... probably buy a very used car.

Note that many people have stories less-than imagination "first car", and there's a reason for that. In this phase of your life, you do not really need a lot of options, such as a large sound system, leather seats and a rearview camera. You just need something safe and reliable that you get from point A to point B.

Browse the classified ads or search Craigslist to get an idea of how much car costs also used safely get (good condition 16 Camry with 170,000 miles is only $ 1500 by Kelley Blue Book) still works. Plan to save for this goal.

You're friends do not care that your "new" car has some miles on the clock, you had just won impressed that you have your own set of wheels.

In search of more lucrative work

One last tip: It is not necessary to take a minimum wage job, even if you are still a teenager. You can make your job at minimum wage as a backup to keep stable source of regular income. But in his spare time, looking for better paying gigs.

Some ideas:

• Tutors students in middle school math, science, English or a foreign language
• Keep children - many parents pay more than the minimum wage, especially if you take care of more children
• Mowing the lawn, leaves, shoveling snow
• Learn some carpentry or repair of basic skills and a job with a construction crew

Just because you is not a teenager, you have to earn only $ 7 or $ 8 per hour. If you want to increase your income by 12 - $ 15 per hour, and save more than you earn, you will be on the right way to pay for a car in no time.

What is an unexpected expense?

Conventional wisdom says that the money should be reserved for "incidental expenses" in the emergency fund.

This is true. But what exactly is an unexpected expense?

Here it is:

This is not a recurring annual financial statements

Your property tax bill in the bill for car insurance, the annual premium of life insurance, the study of glasses and other costs once a year are not surprising. Instead, you get to fully pay the bills annually or semi-annually.

Budget, giving them a certain amount each week or month. If your property tax is $ 5200 a year, for example, set aside $ 1,000 per week. If your exam and glasses replacement lens costs $ 300 per year, I have $ 25 per month. These are not the kinds of issues that your emergency fund should be used.

It is not the occasional maintenance or repair

Is leaking from your roof? Your dishwasher breaks down? Need to pay a deductible of $ 1,000 health insurance?

Most people call these unexpected expenses. But some experts disagree personal finances.

"Medical bills, car expenses and costs of the house are not really unexpected - at least it should not be," says Liz Weston, personal finance columnist for MSN Money and author of the 10 commandments of money. "If you have a body, a car or a house, sooner or later, it is going to cost you."

What it means is that the budget should be an estimate of how much you spend on variables such as problems at home, including auto and health costs.

For example: A good rule of thumb is 1 percent of the cost of your home set aside each year for repairs and maintenance are set. If you live in a $ 250,000 home, for example, you need to save $ 2,500 per year or $ 208 per month.

You will not spend $ 2500 per year. Some years will be $ 100 or $ 200 to spend on basic maintenance, such as cleaning the gutters. But other years spent $ 7000 to replace the roof. The golden rule of 1 per cent is destined to a long-term annual average rate, and the budget for such expenses by allocating $ 208 per month on the background of "repair and maintenance" that you have.

Read more: Should I buy or rent a house?

The same is true for automotive and healthcare expense. You can choose to set aside $ 600 per year or $ 50 per month for car repairs. Some years will spend $ 0 Other years, you will have to pay more than $ 4,000 to replace the transmission. Annual budget "smooth" these vibrations.

Similarly, you need to put a little money aside each month to cover deductibles, co-payments, prescriptions and other medical expenses out of pocket. The lifting amount should be aligned with this of-pocket costs and maximum annual deductible on your health plan.

For example, say that your health plan has an annual deductible maximum annual $ 1,200 and $ 5,000 total out of pocket. If you are generally healthy and rarely visit the doctor, you can in a health savings account set aside $ 100 per month or $ 1,200 per year. If you think you need more frequent visits, the doctors could choose aside $ 416 per month or $ 5,000 per year (full year maximum out of pocket).

So what is really unexpected?

Your emergency fund should be for expenses that are not used to fall right as property taxes, optometry and auto insurance in the categories of projects "annually". Should also be used to pay bills that are outside the range of home care and repairs and car and invoices in the normal health effects.

Actual expenditures are hitting the result of unexpected events such as job loss or a large bill from the norm, health insurance is not cover.

Define your concept of "unexpected" bills to these events once-in-a-lifetime instead of the most common activities ,. Then adjust your budget accordingly.

Don & # 039; t skimp on this expense!

There are many ways to save money. You can stop at restaurants, buying new clothes, cut your cable TV or your Internet service.

But what points you should absolutely never cut your budget, no matter how little money you can just feel?

Here is a list of items that should never be cut, no matter how you feel broke. Make sure that you spend every last penny to pay for these costs, even if you take a second job to pay for it.

# 1: Health Insurance

Did you know that two thirds of all bankruptcies are directly medical expenses together? There is no limit to the amount of the hospital bills they can stretch.

If you have a car, destroying more money, you may lose the value of the car (without, of course, all medical costs along to the car accident.) This means that your problem is probably not more than $ 20,000.

But hospital bills can easily stretch into the six-figure mark. If you have a serious illness or injury, medical expenses can vary in the millions. It is more common than you think.

If your employer does not offer health insurance, you can buy your own individual plan. If you think that the individual plans are too expensive, consider the cost of not having one., If you really are struggling to make payments, you choose a plan that has a high deductible.

After graduating from college, I bought a health insurance policy with a deductible of $ 5,000. Obviously I have never counted on this plan for a flu shot, contact lenses or other standard office visit. I knew if I got sick and had to go to the doctor, I pay the bills out of pocket.

But with my high deductible plan $ 5,000 that the comfort of knowing that my "problem" has had internationally. If I seriously ill or injured, the more money would pay would be $ 5,000. It would be fun to make these payments, but it would certainly be better need to pay up to $ 40,000 or more.

# 2: Home Insurance

After the cost of their health, the second largest bill that you never pay more for your home.

Maybe by fire, tornado, earthquake or other disaster - - Disaster your home is destroyed you happen to be on the hook to pay for the loss, unless you have home insurance. And if you think that the mortgage payments are hard now, wait until you pay two mortgages: one for the house in which you live, and for the house that was destroyed.

Many lenders and mortgage companies want to protect their assets, so they collect the insurance as part of your mortgage. In other words, if you pay your mortgage, you can now pay for insurance. But check your loan documents to make sure.

In addition to re-evaluate your insurance at least once a year to ensure that you have enough coverage. Has inadequate insurance is almost as bad as having none.

# 3: Auto Insurance

I know, I know I always talk about insurance. But that's because it's pretty damn important.

It is against the law to drive without at least a minimum level of mandatory car insurance in the state. It does not take much more for you little extra protection which will cost to pay for damage to your vehicle and the vehicle elsewhere. You must also include liability protection, which covers injury in an accident.

Remember, assault is a bill of health, and be the cost astronomical.

# 4: Debt restructuring

If you pay a high interest credit card debt, and 29 percent of the cost of APR credit card, it is difficult for you afford not to pay as soon as possible. Every month is a high interest loan to pay ever deeper into a hole.

However, if you have lower interest debt such as a mortgage or car loan at a reasonable price digit, you can not have so far to the urgency of this loan.

Before you rush to pay low interest rate that debt, you should focus on creating an emergency fund and retirement. This brings us to the next point ...

# 5: Your emergency fund

You will be amazed at the comfort of knowing that if you know that you are to have a salary for a few months to deal with any emergency that may arise.

If something unexpected happens, that would be needed earlier to break the credit - as burst pipes in your bathroom - you'll be able to pay the bills immediately, without going into debt.

Further to your emergency fund, the only time that you add to maximize your first 401 (k). This brings us to the next point ...

# 6: Your employer 401k match

If your boss matches your contributions to 401 (k), made the most of this opportunity. If you are a match of 50 cents for every dollar you invest, up to the first 6 percent actually wins 50 percent "guaranteed interest" 6 percent of your salary. This is important.

Once you have optimized your employer match, high interest focus on the construction of an emergency and the refund of the money debt. At the same time, make sure you do not skimp on their insurance plans. Insurance is the best protection against falling you further in debt.

How can I budget with irregular income?

How can the budget if your income is irregular?

Say you are an independent contractor, or you are independent from the other. You do not get regular checks every two weeks. Instead, get the payment random irregular intervals.

A few months make twice what you did last month. Other months, to make half of what you did last month. How the hell can a budget with all this randomness to keep in your life?

Here are some tips to help you budget, despite its irregular income.

Step one: Look through the records of his last two years of income. What is the money you have made in a given month? What is the less money you made in a given month? And what is the average?

For now we will focus on less if you have made in a given month.

Step two: Use these sheets to a system based on the minimum that you can arise in a month in the last biennium budget.

What was the least that he has done, you can assume that the majority will be in the future a little more than that each month. But you have your budget all you have done to support keep a safety margin.

Perform all of your expenses - including fixed and variable costs - and see if you can make it fit into your budget, based on the minimum you won in a month. If you can not, then start a list of your expenses for the most important to least important.

This worksheet will help you go through your needs. The needs are by definition the most important items on your list. Include food, housing, electricity, water and other things that you could not live without reasonable.

Discretionary items, on the other hand, spending less on your list. These are the prices that is cut when you try to fit your budget your income will be.

Step Three: Create a plan for your money "excesses." Remember, you are on the minimum they have acquired in the last two years, the budget is based. If the other 23 months are signs, you will earn more money in most of the time.

Create a plan of what you now with that extra money to do. Otherwise there is a risk of blowing through you.

Would you like to save money to buy your next car with cash? Want to open savings funds for the education of their children? Do you want a large retirement account that the money to pay the debt to create or set?

Determine your goals and put all their excess money to her.

Step Four: When the check comes, divided according to their budget categories.

Let's say you created a budget in five categories. You have decided that you are willing to put their money on housing, 15% profit on debt spending 35%, saving 10%, 15% for transport and 25% on everything else.

If you get a check from a customer, immediately share the check in the appropriate categories (after the first cancellation of the corresponding income tax). You can even cash the check and the money in envelopes, so you use an envelope budgeting strategy.

Parts of each check that is the case, you can ensure that your budget is with their ideals percent Aligned. In other words, you will not risk it, 50% of the money for discretionary items, and there is not enough food.

Step Five: Create a large cash cushion.

If you have a fixed income "cash cushion" is your best friend.

By maintaining a balance of several thousand dollars on your account, you have the flexibility to deal with months, when customers pay slowly.

A bankroll is different from an emergency fund. The pad is only there to make sure that you pay all your bills while waiting for sporadic and irregular incomes are in your mailbox. However, the emergency fund is a separate account that can not be touched, the worst case unless developed.

Three things you should never cut from his ...

We often speak of many things that have to reduce their budget: Fast Food, manicure and pedicure, restaurants, buying clothes, going to concerts, the hair getting professionally dyed at a salon.

The list of possible cuts is growing again and again. We have a lot on discretionary items.

But take a moment to look in the other direction. What are some things that you never have to cut your budget?

1 healthy diet.

Not rich in refined carbohydrates, all contracts, money to go on a diet to save on your purchases. A balanced diet is essential for health. Cut fruit and vegetables from the diet will ultimately lead to higher costs for health care on the road. It is a form of budget short face.

If you want your reduce grocery bill from junk food, cookies, chips, soda, and other discretionary items first cut. If that's not enough, look for coupons, buy products only in the season and stored for sale. But not completely eliminate fresh produce. On healthy eating skimp to save a few dollars. The long-term effects on the body, it is just not worth it.

2, while the doctor orders.

If your doctor tells you to fill or use some sort of over-the-counter drugs a recipe, you hear your doctor's instructions. A patient who is not in the interest of saving will not fail to meet a few dollars.

Health is a priority. Of course you can reduce other expenditures to order find room in your budget, requirements to your doctor.

3 Hygiene.

If you had a new case of pink eye, take your mascara.

Yes, I understand that a tube of mascara can cost from $ 10 to $ 20, but your budget does not cut so that makes you more susceptible to infections.

Good hygiene is worth spending money on - even if you try to pay the debt.

It can damage your health by corners on hygiene. This is an area of your budget should not be cut.

That is, you can always look for bargains. It is okay to buy toilet paper. It is more than just jumping on sale on toilet paper completely.

4 Tips to retire at the age of 40 and more

They are men or the age of your 40?

Are you baffled by the amount of money you need to retire?

You know how much money you need to retire, but overwhelmed by the idea of saving so much money?

If you answered "Yes" to any of these questions, check out these four tips retirement at the age of 40 and older people. The first trick will help you determine how much money you need for retirement, while the rest to find the tips that will help you to earn way more money.

# 1: How much money do I need to retire?

Blades much money in retirement as you can. If you start saving for retirement in their twenties, says the rule is that you only get to save 10 to 12 percent of the net wage. If you are just starting out in their forties, the general rule is that you need to increase their savings rate from 15 to 20 percent.

Does your intimidating? Then try this: instead should save on the percentage of net pay, decide how much money you spend per year in retirement. Multiplied to determine with 25, how much you need to save.

At $ 40,000 per year to live in retirement, for example, millions of $ 40,000 x 25 = $ 1 will have in your retirement portfolio. (Read this article for a detailed explanation of how we calculate it.)

$ 1 million may be a lot, but remember: you do not need to $ 1 million in his 9-5 job earn only GROW 1 million for their investments.

The most important factor to achieve this is a long-term horizon. The longer your money invested in a pension fund, the more it will grow. In fact, with a strategy of aggressive saving, you can create a portfolio of $ 1 million to provide only 17 to 20 years. (Read this article to learn how to be a millionaire.)

Why? In short, the more money you invest, the more you benefit from compound interest take. Passes after time, is compound interest, you can double or triple your money. Read this article for a more detailed explanation of how compound interest works.

# 2: Look for sources of current income

If your current job does not pay enough to save you $ 1500 - $ 2000 per month or more, you may want to consider finding ways to make more money on the side.

Small amounts make a big impact. If you win an additional $ 100 per week - maybe cut through the grass, child care, counseling, teaching or self-employment - and you can also cut an additional $ 100 per week from their buying habits, you earn an additional $ 10,400 per year.

(You can possibilities, find tailored for your budget to $ 100 per week? Use these worksheets budget to see where all your money is going.)

# 3: Find the source of future income

In addition to winning more, spend less and build your portfolio million, you can also use other sources of retirement income.

I know that a pensioner whose house is fully depreciated; is free from mortgage. He rented the house to tenants. Use part of the rental income to pay their rent to a better place, and saw the rest of the rental income to supplement his small pension and social security.

His case is extreme, since most people are not willing to leave their homes. However, could a modified version, rented part of your home like the basement or cottage in the law.

This is just one example of the many ways you can earn more money while you are retired. You can also give lessons, access, manage a daycare, or work as a nanny.

# 4: Delay Retirement

If you are in your 40s, you still have enough to build a portfolio of $ 1 million times. You are at least 20 years, run until the date of resignation.

But what if you are in your 50s or 60s and you realize that you drastically have enough funds your retirement portfolio? Next work.

Unless your boss or his forces retiring health, stay as long as possible in the workforce. Each additional year in the labor market is more money to save for retirement, and investments have more time to develop.

4 ways to reduce your mortgage Home

It is the account mortgage feels like crashing? Do you want to reduce the monthly payment? Here are four ways you can do.

Mortgage Refinancing

If you refinance? The answer depends on two factors: the age of your loan and the difference between current interest rates and the new potential.

Amortized home loan, which means that you pay special attention to the beginning of the loan amount and more towards the end of the term. Accordingly, the interest rate is higher near the beginning of a period. The interest rate is lower impact towards the end of the term, provided that payments are mostly principal.

Translation: the last mortgage, the stronger the argument that you should consider refinancing.

But the clock refinancing repayment is reconciled and devours few thousand in closing costs, so that a small difference between the old and the new interest rate - for example, 0.25 percent - could not be justified. Run a table to see if refinancing is right for you, if the difference in interest rates is 0.5 to 1 percent or more.

Read more: Should I refinance? Or should I use my existing mortgage?

Post PMI

Pay private mortgage insurance or PMI? If you bought your home with a down payment of less than 20 percent, you can PMI, which could pay added hundreds or thousands of your mortgage each year.

There is good news, though: you will not be stuck paying PMI forever. First pay enough mortgage that you have gained 20 percent equity in the house. (You can also earn equity faster if the value of your home increases - but, of course, you have no control over).

Then contact your lender to find out more about the process of giving up their PMI. Lenders do not automatically reduce the PMI - you need to apply. Many lenders send an expert to determine the value of the house before the lender makes sure that you have 20 percent.

Read more: Having the cost of a home

Based on more

Suffering heavy monthly payments that come with 15 or 20-year mortgage? Expand to cut down on your monthly payment your mortgage in a conventional 30-year term. The bad news: The rate hike. The good news is you can still have the opportunity to make further payments on the mortgage, as you have to pay a loan of 15-20 years. These additional payments will help the loan faster without massive payments if, for example, there is an emergency that leaves you redeem shy for a month or two.

Read more: Should I buy or rent?

It challenges the tax assessment

This is a way to reduce your monthly household rare: the fight against the tax assessment.

A conventional mortgage payment is the payment of principal and interest payments, and "pound", which is a monthly payment to the lender puts your property taxes and homeowners insurance.

If you do not your tax bill on the property, the county can put a lien on your house. The government will take precedence over the rights of lien creditors.

Accordingly, the lender of the property tax collected each month, in order to protect its interests at home. This payment will be deposited to the account of annual property tax due.

This property tax is based on the evaluation of the amount of home and country is a tax on the value of the city.

Many of these estimates are too high, especially in the wake of the housing crisis, which reduced the value of the houses. Property prices Sometimes estimates are too high, when the area was reclassified, the new zoning has caused to fall, and prices have not fallen into account in the assessment.

Owners may protest the assessment by filing a complaint with the district or a hearing with the State Board of Equalization demand. If the claim is, owner accepted taxes down, which means that your monthly mortgage payment from.

(Note: A "review" differs from one district a tax bill for a private company to make an assessment, usually for lending and the purchase of the company .. "review".)

Read more: Mortgage payments disease? Pay your home sooner!