College degree debt is the newest big debt trend that sinks people after mortgage debt, vehicle debt, & credit card debt. In the past the debt ratio to return on investment was lower then it is today. An ounce of prevention is worth a pound of cure so looking for way to prevent college debt is better than trying to pay off the debt…
Recently I’ve looked into purchasing a car to get a more reliable vehicle to get to and from work. I travel 66 miles round trip a day for work so a reliable car is needed to protect my ability to get to work and ultimately my livelihood. When you talk to the salesman often they make you think you can afford anything.
Of course going to some salesmen of cars for financial advise is like going to some stock brokers to ask about buying cars. They have some idea of what they are talking about but, it isn’t their specialty.
The tactic I have seen employed the most from the salesmen in my area is just talking about the payment per month. The total cost does not even enter into the conversation. Don’t get me wrong most salesmen are great guys and are doing their best to place you in a car; which is why you go to a dealership in the first place. Knowing the total cost “out the door” which includes tax, title, extra dealer charges is important.
Purchasing a car is like purchasing a pencil; only more expensive. The car like the pencil has a job to do and depreciates in value over time. Eventually they both can’t fulfill their purpose and are gotten rid of.
Radio host Dave Ramsey has a debt elimination framework he calls Baby Steps. It seems to work well from the people I have talked to who have used it. I often think many frameworks can be improved. This is just a not so quickie article on what ways I would tweak the Baby Steps to “improve” it. (In fact it is part II because part I started to get long)
Welcome to Part II
Radio host Dave Ramsey has a debt elimination framework he calls Baby Steps. It seems to work well from the people I have talked to who have used it. I often think many frameworks can be improved. This is just a quickie article on what ways I would tweak the Baby Steps to “improve” it. (Humbly I don’t know if I could but, that doesn’t mean I shouldn’t try.)
A few articles ago I analyzed the budgets and profits of Mockbuster movies. That got me thinking about what is the profit margin for big studio blockbusters and how does overhead effect the film’s success.
In the past I did a WAVE-B Drive Free project. The starting car was a Ford Windstar Mini-van which was sold for whatever I could get for it. That money plus my small nest egg of $3,500 was used to buy a 1994 Honda Accord. One year and a half from then I sold it for about what I purchased it for and added that to the money that was saved to purchase a 2012 Honda Accord cash. The purchase price for the 2012 was $15,000 + registration, fees and tax ($17,000 total). The miles on the car was 26,000. The question I have is: what was the depreciation of this car to this point?
Do nothing and nothing happens. Do something and something happens.
The power of action is not something that can be taken likely. Procrastination is the opposite of progress. Progress can only be made when action is taken, even if the movement is backwards you are a step closer to move forward. Sometimes a bad action is needed to get started on anything. Sometimes writing these articles I have a loss for words. The way I bust through it is to just write about anything and eventually I come up with something I like. Sometimes what I write is so-so in my eyes but, It gets me to move forward on something I really want to say.
Procrastination is Opportunity’s Assassin
~ Victor Kaim