5 Car Buying Tips for Women

Do you (or someone you know) want to avoid paying more than you have to when buying a car? I do!

If you are in the market for a new car now or in the near future, here are 5 Car Buying Tips to help save money when shopping for your next car.

   

KNOW YOUR BUDGET

The first and most important tip is to know "How much you can afford!" Do NOT let a car dealer's finance department or bank tell you how much you can afford.  Both essentially want to ensure that you borrow as much as possible so they can make more money off of you. The more they can make you believe that you can afford, the more the car dealership will make on the car and the more loan interest income the bank will earn on your loan.

   

GET PRE-QUALIFIED

The best way to avoid unpleasant surprises; like, not qualifying for the amount wanted, needing a cosigner or getting a ridiculously high interest rate, is to get Pre-Qualified or Pre-Approved for an auto loan. Go to your bank or credit union to apply for the auto loan. Tell them the payment amount you can afford to pay so they can determine the total loan amount based on the interest rate and term you qualify for based on your credit. Remember, the Higher your Credit Score, the Lower your interest rate and the More loan amount you will qualify for.  Adversely, the Lower your Credit Score, the Higher your interest rate and the Less loan amount you may qualify for or a down payment will be required.

    

RESEARCH BEFORE YOU CAR SHOP

Now it's time to have some fun going online to search for a vehicle in your price range. Dealers with No Haggle Deals are really good because they usually sell their vehicles below NADA or KBB value.  Next go to NADA or KBB website to find out and print the Trade In and Retail Values to take when you go shopping.

    

TAKE A MAN WITH YOU

Take your husband, boyfriend, father, brother, uncle, male coworker or that dude from down the street. Even if he knows nothing about cars or negotiating, take a man with you when you go car shopping. If the sales person begins speaking directly to the man, play along and coach your escort in what to say or not say. You are in control of the transaction; he is just the figure head.  Unfortunately, women are sometimes taken advantage of during the car sales process.

     

NEGOTIATE BEFORE THE TEST DRIVE

Sometimes we absolutely lose our mind after we get intoxicated by that "New Car" smell during the test drive. My advice is to negotiate before you test drive to have a clear mind during the negotiation process.

    

Here are a few things to do when you get to the car dealer: 

1. Tell the sales person that you are doing a cash purchase. (Because you have already been pre-approved!) 
2. Do NOT give your personal information or allow them to run your credit. (Again, you are already pre-approved.) 
3. Tell the sales person what type of car and the price you are looking for. 
4. Ask if the car has any rebates or if the dealership has any incentives. 
5. Ask to see the buyers order with options to see the breakdown of all expenses and fees to help you with negotiating. 

Use your NADA or KBB value to negotiate the price as close to the Trade In value as possible. Negotiating the price as close to the Trade In value will give you equity in your car, as well as help you when you decide to trade in the car later.

     

You may not be able to get the car of your dreams today, but by getting a reasonably priced vehicle within your budget, you will be able to save money and get that dream car in your near future. Happy Shopping!

   

Financially True,

   

Tarra Jackson, Making Money Matters Manageable

5 Things I Wish I was taught "How To Be" when I was a Teenager (to be Financially Better Off)!

Do you, or someone you know, have things you wish someone taught you "how to be" when you were a teenager, to be financially better off?  I do!
  

“If I knew then what I know now.” This has got to be the theme song for most adults, especially when it comes to finances.  There are hundreds of things that I wish I was told, taught or nagged about when I was a teenager.  But, here are my top 5 Things I wish I was taught “how to be” when I was a teenager, to be financially better off.
 

I wish I was taught how to be …

  

A Boss!

No, not Bossy, but A Boss of my own business. Instead of being encouraged to go to school so I can get a good job, I wish I was told and taught to go to school to learn how to make jobs. Or to go get a job to learn what it takes to run a business. Seriously, we are told what to do and what not to do when we are children, only to go to school to get a job for other adults to tell us what to do and what not to do when we become adults.  Seems like a set up to me now.  
  

So teens … go to school and get a job, NOT to just be an employee, but to learn how to become an entrepreneur. Besides, there are not that many jobs out there right now anyway. Create your own business and Be A Boss!

  

A Giver

The first principle of Prosperity is Giving! In order to reap a harvest, a seed must be sown.  Always remember, there is no room to receive in a closed fist.  Whether your giving is spiritually, morally or emotionally based, give gladly and on good ground. Giving is not always about money. Sometimes your old clothes, knowledge, or time may be just as, if not more, valuable.
  

So teens … learn the power and pleasure of giving early to a church, non-profit or worthy organization or individual. You’ll be surprised of the blessings you will receive because of your openness to give.

  

A Saver

Who knew that if I had saved only $100 per month when I got my first job at the age of 14 in a savings account with an interest rate of 0.50% until now (25 years), I would have saved over $32,000? And if I had saved $200 per month, it would be almost $65,000.  The point is, if I really understood the power of saving at a younger age when I could afford it, I would be able to afford almost anything I wanted when I got older.
  

So teens … Start Saving Sooner!!! The younger you are when you start saving, the more you will have when you really need it when you get older. Trust me on this one.

  

Financially Proactive

Enjoy today but Live for Tomorrow!  Tomorrow is your future. Live like you are going to be alive for a long time and you want to be financially comfortable for the rest of your life. True story … If I had planned for the things that I wanted “tomorrow” (in the future); I would nothave borrowed money to get what I wanted “today” that I would have to be paid back “tomorrow” (in the future). Well, it’s tomorrow for me now and I’m still paying for what I borrowed “yesterday” (in the past).  My point is that using credit to get what you want right now will limit what you can afford tomorrow, when you really need it. It’s no fun not being able to afford to buy a home because you owe too much in credit card debt.  Credit is designed to be a leverage to help you acquire real “assets” (read Robert Kiyosaki’s book, Rich Dad Poor Dad) or to be an anchor and drown you deep in debt.
  

So teens … use credit wisely and do not use it until you are mature enough to handle its consequences (read my book, Financial Fornication).

 

Wealthy!

Not rich, but Wealthy! Rich is predicated on how much money you have, but Wealth is determined by how much you are able to do with the money you have. I’ve met hundreds of broke “rich” people, but I’ve never met a broke “wealthy” person.  Also, don’t believe the bling you see on TV! Nine times out of 10, the bling is borrowed! #IJS
 

So teens … follow my Financial Freedom Formula early and be wealthy for the rest of your life!

 

      

Those are my top 5 things I wish I was taught, but believe me there are more. Come to think of it, I was probably told to be a few of them, but I just didn't listen. Typical teenager.  ;-)

   

Best wishes on your journey to Financial Freedom!

   

Financially True,

   

Tarra Jackson, Making Money Sexy!

5 Ways to Avoid Financial STDs (Substantially Tremendous Debt)

Have you or someone you know been infected with Financial STDs? I have…
   

In my book Financial Fornication, I talk about Financial STDs (Substantially Tremendous Debt).  This financial dis-ease is not only financially and emotional painful, but families and cosigners can get infected as well because it can be contagious.

   
Here are 5 ways to avoid Financial STDS.
   
Use Financial Contraception.
Financial Contraception is better known as a budget or spending plan. Create a budget or spending plan that works with your lifestyle. Using a budget is the best protection against acquiring Financial STDs.
    
Avoid being financially promiscuous with multiple credit cards.
Pick a credit card that has the lowest rate and provides bonus points if you must or choose to use a credit card for purchases. Using multiple credit cards may result in excessive spending, which result in Financial STDs.
    
Limit or Avoid Financial One Night Stands.
A financial one night stand is a financial transaction, usually less than $50-$100, that should be paid in cash or paid in full if purchased with credit. If you choose to use credit for these types of transactions, avoid turning those financial one night stands into a long term financial relationship by revolving the balance and not paying it off in full. Vernacularly speaking, “Hit it & Quit it!”
   
Become Financial Abstinent.
When your finances feel like they’re getting out of control, sometimes it’s best to just STOP using credit to get a handle on your finances. Being financially abstinent stops the leaks in finances so a budget can be created to build up immunity against Financial STDs.

 

Get out of Financially AbusiveRelationships.

If you are getting your butt kicked with ridiculously high loan rates, low deposit rates, lots of fees and poor customer service, they’re probably really not that into you, which means that it’s time to plan your exit strategy from that financially abusive relationship.  You don’t have to stay. Date financial institutions to find the best one for you.

 

For more tips, check out my book “Financial Fornication.”

 

Financially True,

 

Tarra Jackson, Making Money Sexy

Pay Day Loan Confession: I've fallen and I can't get up!

…have you (or someone you know) "fallen" into the Pay Day Loan bottomless pit of debt and feel like you can't "get up" out of it? I have.

When you’re in a bind and you need a few hundred bucks to bridge you over a few days until your next pay day, a pay day loan may look very appealing. In my opinion ... Pay Day Loans are like an addictive drug. The first experience may seem helpful and pleasurable but it eventually becomes something that you believe you can’t live without.  And just like a drug addiction, getting out of Pay Day Loan debt can be scary, daunting and financially painful. But … there is a cure for this Financial Dis-Ease. 

   

Let’s first discuss how Pay Day Loans causes Financial STDs (Substantially Tremendous Debt).  Ok … (true story) … a family member of mine needed $200 to pay the electric company to keep the lights on. A so-called friend referred them to a local pay day lender. The pay day lender charged $20 per $100 borrowed. The process was so pleasant and easy that they decided to borrow an extra $100 for a total of $300.  They paid their past due electric bill for $200 and had $100 for food and gas until their next pay day. On their next pay day, they made the fateful decision to renew the pay day loan. So, this time the loan was for $360 (to pay off the original loan amount of $300 loan and the $60 fee). The new fee was another $72, which totaled $432 for the new loan. My family member renewed this pay day loan at least 5 or more times and quickly began to sink into debt.

   

Getting “up” out of pay day loan debt is not as easy as falling “down” into it, but it is possible. Here are 3 tips to get out of Pay Day Loan Debt.

   

COLD TURKEY

   

If at all possible, the best method is to stop taking out pay day loans immediately and sacrifice for the pay period. This will reset your financial situation and give you your full pay check during your next pay check.  It is important to plan for this pay check deficiency. To help you through this financial deficiency,

• Ask your family members if they some money to spare or borrow,

• Contact your bank or credit union to see if you qualify for a payment deferment on your loan payment due to financial hardship,

• Cut out eating out during this pay period to save a few bucks, or

• Carpool with a co-worker or take public transportation to save on gas.

DEBT TREATMENT

   

Another option is to apply for a loan with a reasonable interest rate and short period of time (term) to pay off the pay day loan. So instead of having a pay a lump sum every month, you can paythe new loan off in more reasonable and smaller weekly, biweekly or monthly payments.  If you go this route, make sure you keep the term at 12 months or less and make sure that the interest rate does not exceed 18%. Some credit unions may offer loan programs designed to help people get out of pay day loan debt.  One of the advantages of getting a loan from credit unions is that they must comply with a “usury law,” which means that they cannot exceed a specific interest rate, usually 18%.  If you have a great relationship with your bank, ask them if they have a loan consolidation program that can assist you with refinancing your pay day loan.

   

  

TERMINATION

  

A last resort to get out of pay day loan debt may be bankruptcy. The two chapters available to file under for bankruptcy are Chapter 13 or Chapter 7.

   

Chapter 13 bankruptcy is considered “reorganization” and is appropriate if you have significant collateral that you want to keep like a home or vehicle. Chapter 13 establishes a payment plan up to 5 years to pay on your debt based on your financial capacity.  Once you have completed all of the payments ordered in the bankruptcy plan, the debt is considered “discharged” and the remaining debt is not collectible by the creditor.

   

Chapter 7 bankruptcy is considered “liquidation” and is appropriate if you have significant unsecured debt and minimum or no collateralize debt.  Chapter 7 liquidates or “terminates” qualified unsecured debt. Should you have collateralized debt, you can “reaffirm” with the bank and continue to make payments according to your credit agreement or you can “surrender” the collateral to the bank or trustee so it can be sold to pay on the debt to liquidate.

   

This option again should be a last resort consideration but can assist you in resetting your financial situation with a fresh start.  There are pros and cons to filing for bankruptcy so make sure that you consult with a knowledgeable and consumer focused bankruptcy attorney.  Click here to listen to my interview with Bankruptcy Trustee & Attorney, Angelyn Wright, Esq., as she talks about the “Truth About Bankruptcy.”

   

   

Sinking in Pay Day Loan debt can feel helpless and hopeless, but there is financial resurrection. The great thing is that you hold the power in stopping this type of financial abuse by making the decision to stop using pay day loans.  Make the decision today.

   

Of course, the best way to avoid "falling" into this bottomless pit of debt is to avoid using it at all costs. Seek alternative short term loans through your bank or credit union.

  

  

Financially True,

  

Tarra Jackson ... Making Money Sexy

   

  

P.S.  The 3 tips above is a start to help you get up from falling down into this type of debt, but there are other ways as well.  What are some other tips to "get up" from falling into pay day loan debt bottomless pit?

3 Ways to Stop Financial Self-Sabotage

… have you (or someone you know) committed Financial Self-Sabotage? I have.

   

Yeah I know what you’re thinking … “Financial Self-Sabotage?”  Yes many of us have a very dysfunctional relationship with our finances. Whether it is a fear of commitment or wanting to avoid getting into another financially abusive relationship; many people execute financial self-sabotage. Financial self-sabotage is being aware of what you are doing; knowing it is not beneficial to your financial well-being, situation or your financial goals; yet you still do it anyway.  Don't fret!  Most of us do it every now and then. Here are 3 Ways to Stop Financial  Self-Sabotaging.

  

STOP BREAKING YOUR BUDGET'S HEART

Even though budgets are living and breathing documents and may change, they help us keep financial promises to creditors, other bills, and more importantly to ourselves and our financial future through savings. Every time we break our budget, we position ourselves to break a financial promise, which may negatively affect our financial goals.
  

When I realize and acknowledge that I am breaking my budget frequently,

• I  re-evaluate my budget to make sure it is "S.M.A.R.T." (Simple, Manageable, Accurate, Repetitive with Times of all due dates).
• I may also reassess my Financial Goals to make sure they are "S.M.A.R.T." (Specific, Meaningful, Attainable, Reasonable & Time-driven) as well. 

  

PLAN FOR FINANCIAL SLIP UPS

Confession ... I am an Emotional Spender. (Look out for my Blog: Emotional Spender Confession: I am an Emotional Spender and Why it's OK!). I rebel against anyone or anything that tries to cage me in (I'm an Aquarius, go figure). I have also realized and admitted that I financially self-sabotage during a specific time of the month when I feel unusually emotional. Ladies, you may understand. Men, don't judge.
  

So, I set aside extra money in my "Slip Up Money Jar" to use when I need a little retail therapy through emotional spending. I don't justify it, I just plan and allocate for it.
  

If you are like me regarding this, include your Emotional Spending Sprees in your budget so that you don't use money that is allocated to something more important like, giving, saving or paying your bills. Just remember, being Financially Promiscuous requires Financial Contraception (Budget).  Again, plan and proceed with caution.

  

STOP PLAYIN' YOURSELF

Ok, here’s the thing … if we don’t know the rules of the financial Game, we're going to get Played. Many years ago, I used to lose the financial game because I didn't understand how my money and credit management behaviors financially affected me. As I matured and grew in the financial services industry, I realized that I was playing Checkers when the financial institutions were playing Chess and losing was EXPENSIVE. I was financially self-sabotaging myself because I didn't take the time to learn the rules of the financial game by reading the Disclosures thoroughly and completely.  My reality check was that "they weren't cheating me ... I just didn't take the time to learn the rules of the financial game." That was why I was getting played. 
  

So because I was (and still am) a sore loser, I learned the rules of the financial game by reading the Disclosures very carefully before I opened an account or signed for a loan, product or service. 
  

Some examples of disclosures you should you read and understand are:

• Truth In Savings Disclosure
• Truth In Lending Disclosure & Loan Agreement
• Fee Schedule
• Credit Card Disclosure & Shumer Box

 
Although I Financially Self-Sabotaged myself, I was eventually able to identify it, acknowledge it and fix it. The great thing is that now, when I start doing things that are counter-intuitive to what I need and want to accomplish financially, I am able to choose to make better financial decisions to stop financial self-sabotaging myself.
 
 
Financially True,
      

Tarra Jackson ... Making Money Sexy

Teaching Money and Credit Management - Whose Responsibility is it anyway?

In the United States, our school system requires all children to take and pass Reading, Writing, Arithmetic (I hated Geometry), a foreign language, Social Studies, Science, and in some schools they still require Physical Education.  However, it still baffles my mind that Money and Credit Management Education is NOT required. 

There may chapters that teach the denominations and how to count currency in elementary; as well as a little bit of finance education in high school.  And yes, there may be a financial management class offered in college as an elective.   Huh?  An Elective?   Yes, I use Reading and Writing every day of my life.  The other required courses … maybe on occasions or for fun, but I deal with MONEY EVERYDAY OF MY LIFE.  As a matter of fact, I dealt with money before I could read or write when my grandfather gave me a dollar bill when I was 2 or 3.

So, the question of the day is… Who is responsible to teach a child how to manage money, to leverage its potential wealth building power and to avoid ending up in tremendous debt and bad credit?

…I hear someone in the audience yell… The Parents!  OKAY…  And who taught the Parents?   

Many parents don’t teach their children about how to manage money because they either assume that the schools are doing it or because they don’t know or weren't taught themselves.  They may have “Colorful Credit” and could be drowning in debt.  They probably were never taught how to balance a checkbook properly.  “Checkbook?  Who uses checks nowadays?  We have debit cards.”  HINT: you still must balance your account when using your debit card. 

So, the second question of the day is…If the Parents don’t or can’t teach their children how to manage money & credit, who is now responsible to teach the child?

…I hear someone else in the audience screaming, “The Church!”  The Church is its people.  Most of those people have not been taught and are seeking financial counsel.

I do believe that Financial Institutions, such as banks and credit unions, are the most qualified to teach the world how to manage money.  Makes cents (sense) right?  “Herein lies the rub…”

LACK OF RESOURCES TO EDUCATE THE MASSES

IF the financial institutions teaches money management to the communities it serves, it may not have the resources to share the information to every consumer that needs and wants it.  Some financial institutions, do share money matters information to communities, organizations and schools, when they can get in there; but that is a small drop in a large bowl.  BUT…it’s a start!

CAN’T TEACH THE UNWILLING

You can only teach a person that wants to learn.  There are thousands of resources online, in the communities, independent professionals, etc. that provide some form of Financial Education.  However, reality check… the target audience may be set in their ways and probably afraid or unwilling to make necessary changes or sacrifices to help their financial situation.  Money & Credit Management should be taught before bad habits are formed. 

  

IT JUST DOESN’T PAY!

Here is the Oxymoron Answer to this million dollar questions (Pun intended):  It is frankly not advantageous for financial institutions to educate consumers on money management.  Consumer ignorance is a multi-million dollar business. Financial Institutions make money off of financial ignorance, poor money management, and financial irresponsibility of consumers.  Those consumers should take a close look at their monthly bank statements or check out the interest rate on their loan.  The less educated/informed and disciplined a consumer is with their money, the more money they will pay in fees and interest.  Simple math. So… if that is the case, is it really advantageous for financial institutions to have a massive Financial Literacy Campaign for the world?   

I believe that  1) it is the responsibility of the schools to provide the information as a core class from Elementary through Higher Education, 2) it is the responsibility of the Parents to reinforce the information by modeling the behavior of proper financial management for the child and instilling discipline, and 3) it is the responsibility of the Financial Institutions to provide the Financial Educational resources for the Parents to learn more and continue to be informed and fiscally responsible consumers.

Call me a Dreamer or Optimist!  I believe that Financial Knowledge is power. And … Hopefully one day the US Board of Education will understand the significance of and require Money and Credit Management Education as a curriculum in all schools.  Until then…Private Schools / Charter Schools…here is your opportunity to including Money and Credit Management Education to your curricula. (I'm Just Saying!)

For more information about money and credit management curriculum for your school, contact Madam Money at info@tarrajackson.com.

  

(c) 2010 Tarra Jackson Enterprises

What is FINANCIAL FORNICATION?

Here is a quick summary of my book, Financial Fornication. Check it out and share you comments or questions below.

Tarra Jackson
Madam Money
www.MadamMoney.com
FB.com/tarrajacksonenterprises
Twitter.com/MsMadamMoney

"To SPEND or NOT to SPEND..." That is the question!!!

"Ms. Jackson, I work in sales and I just found out that I will be getting a $19,000 bonus for the last sales quarter!  I feel so blessed!  I don't really have that much debt to pay off BUT I have wanted to build a backyard deck.  About a year ago I got estimates for when I was ready and able to have it built.  The lowest bid was around $10,000.  I also wanted a surround sound system since I do a great deal of entertaining at my home.  I know during this economy I should save my money but I feel that I deserve to do something special for myself since I busted my butt last quarter.  What do you suggest?  Should I use my bonus to get what I want or should I bite the bullet and save it?  -  Ready to Spend, Union City, GA"

Dear "Ready to Spend,"

CONGRATULATIONS on your healthy bonus!  You are truly blessed and are obviously great at what you do.  It is also great that your debt is not so overwhelming that you have to use your bonus to pay it down or in full.

I will NOT tell you NOT to spend you money!  If  you are a spender and I tell you that you can't spend, you will feel deprived and may rebel and possibly spend more than you want or spend it all.  For example, I don't do Diets.  When I hear DIET, I hear DIE...deprivation.  When I feel deprived (and can't have a Big Mac), I rebel.  So instead of having a Big Mac once a month, I may have one once a week just so I won't feel deprived.  Same thing with money with Spenders!

I WILL tell you to apply your Spending Plan allocations to your bonus.  At the very least, take 5% of the bonus for your play money and get what you want and put the 95% of the bonus in a high yielding interest bearing savings or CD.

OR, if you are really inclined to build that desired backyard deck, put the bonus in a high yielding interest bearing account and use the money as collateral for a Secured Loan.  This will provide you the following benefits:

• No or Low Risk loan from a financial institution (easy or guaranteed approval & should you default on the loan, the financial institution can just take the money in the savings to pay it off ... you were going to pay cash anyway.  Just kidding.  DON'T DEFAULT!!!)
• You may get a below market interest rate (for example, 3.00% above the savings/cd rate ... 3.00% + 0.50% = 3.50% interest rate.  Shop around.  Credit Unions have competitive Share/Savings Secured Loan Rates)
• You'll have a positive trade reporting on your credit report to assist in improving your credit score
• When the loan is paid in full, you still have your money with interest

Although your funds may be held up during the duration of the loan, at the end of the day, you will still have YOUR MONEY!!!

Which ever option you choose, be wise about your decision and DO NOT spend all of your cash!  Cash is leverage, especially when your credit may be "colorful" and your "credit score" may not be as SEXY as you would like it to be.

My book, Financial Fornication, discusses "Spending Plan Allocation" to help ensure all areas of your expenses have the appropriate allocation of your net income.

Again, congratulations and enjoy your new deck or new sound system and growing savings account!!!

Get my book, Financial Fornication, for more helpful hints or contact me for further assistance at http://www.tarrajackson.com/.

Tarra Jackson
Financial Relationship Specialist
Author of Financial Fornication: Avoid Financial & Credit Dis-Ease
http://www.financialfornication.com/
Tarra@TarraJackson.com

* Do you have Financial Relationship questions? Submit your questions to Tarra Jackson for "Real Life Real Talk" answers to www.TarraJackson.com.