Whether you’ve been a single mom since day one or are in the process of becoming a solo parent, raising a child on your own can be expensive. Housing, essentials, and extracurriculars add up. Add in unplanned days off for childcare, major expenses like dental work and medical insurance, or expenses like legal bills during a separation, and you may find yourself with your finances stretched thinner than you’d like.
One option to consider is a personal loan. This type of loan provides a lump sum of money up front you then pay back (plus interest) in monthly installments over time. You can use the funds from a personal loan for virtually any purpose, whether it’s making a large purchase, covering living expenses, or paying down other, higher-interest debt.
Read on for a closer look at personal loans for single moms, including their pros and cons, how to qualify, plus other funding options you may want to explore.
Why Might a Single Mom Need a Personal Loan?
There are many reasons why a single mother — or any parent — might consider applying for a personal loan. These include:
1. Consolidating debt
2. Covering the cost a move
3. Paying tuition or extracurricular expenses for children
4. Stopgap during times of unemployment
5. Covering housing costs, such as rent or a mortgage
6. Paying for a home remodeling project
7. Buying a car
8. Purchasing major appliances
Recommended: What Is a Personal Loan? How Do Personal Loans Work?
Are Personal Loans for Single Mothers Special?
In a word, no. The process of applying for a personal loan is the same for everyone. However, there may be particular approval hurdles to overcome as a single parent.
One is income. If you’re newly single, you may not have a steady income, which can make it more difficult to get approved for a personal loan. Another is your credit. If you’ve had to rely on credit cards to cover the cost of divorce or the transition to single parenting, your credit may not be what it used to be. The amount of debt you owe on your credit cards is one of the biggest factors affecting your credit score.
However, these obstacles aren’t insurmountable (more on that below).
Benefits and Risks of Personal Loans for a Single Mother
A personal loan can offer a single mom a valuable lifeline to meet immediate needs, such as unexpected expenses, education costs, or debt consolidation. However, taking on any type of debt generally comes with costs, as well as risks. Here’s a look at the pros and cons of getting a loan as a single mom.
Pros
Cons
Flexibility in fund usage
Interest and fees add to your costs
Quick access to funds
Risk of overborrowing
Fixed repayment schedule
Missed or late payments can negatively impact your credit
Interest rates are typically lower than credit cards
Can add to your debt burden
Pros of Personal Loans for Single Mothers
• Flexibility Personal loans provide flexibility in how you can use the borrowed funds. Whether it’s covering medical bills, home repairs, or summer camp tuition, personal loans can be used for a wide range of purposes.
• Quick access to funds Personal loans often come with a streamlined application process and relatively quick approval. You may be able to access the funds quickly, enabling you to address urgent financial needs promptly.
• Fixed repayment schedule Personal loans usually come with fixed monthly payments over a specified term. This predictability can make it easier for you to budget and plan your finances effectively.
• Potential for lower interest rates Depending on the borrower’s creditworthiness, personal loans can offer competitive interest rates compared to other types of borrowing, such as credit cards or payday loans. Single mothers with a good credit history may benefit from more affordable repayment terms.
Cons of Personal Loans for Single Mothers
• Interest and fees On top of interest, some lenders charge fees for personal loans, which increase the overall cost of borrowing. It’s important to carefully evaluate the terms and conditions to make sure you can comfortably manage the repayments without straining your budget.
• Risk of overborrowing As a single mom, you likely want to avoid overborrowing or taking on more debt than they can reasonably repay. Overcommitting to loan payments may lead to a cycle of financial stress and difficulty in meeting other essential expenses.
• Impact on credit score Taking out a personal loan creates a new line of credit, and if not managed properly, it could negatively affect your credit profile. Late or missed payments can damage creditworthiness, potentially impacting future borrowing opportunities.
• Debt burden A personal loan will add to your existing financial obligations as a single mother. Before opting for a loan, you’ll want to be certain to assess the long-term implications and consider whether the loan repayments align with your income and financial goals.
Is Getting a Personal Loan With No Income Possible?
If you’re a single mother with no job or you’ve been a stay-at-home-mother with little or no income of your own, it may be difficult, though not impossible, to qualify for a personal loan.
Lenders typically want to see proof of a regular income. However, that does not necessarily have to be job-related income. You may be able to count these other sources of income:
• Unemployment
• Alimony
• Child support
• Investment income
• Rental income
• Pension or annuity income
• Freelance work
• Gig work
If you don’t have much income to speak of, then you might consider a cosigner or co-applicant for your loan. This a person who agrees to make the loan payments if the main borrower cannot or does not. For some borrowers, family members have the financial flexibility to cosign on a loan, but it can be a good idea to have a conversation about expectations and potential hypotheticals if you were no longer able to pay back the loan.
Another option is to secure a personal loan with collateral. This is an asset of value, such as a vehicle or money in a savings account, you use to back the loan in case you default. Should you become unable to repay the loan, the lender can seize your collateral to recover their losses. This lowers risk for the lender, making steady income (or less-than-stellar credit) less critical.
Also keep in mind that if you have no income but excellent credit, you may still find a lender who is willing to offer you an unsecured personal loan.
You’ll also want to be wary, however, of lenders who advertise “No-Income Loans,” as these loans may come with sky-high interest rates, short repayment terms, and low loan amounts.
Alternatives to Personal Loans for Single Mothers
There are other alternatives to personal loans, depending on your financial circumstances and your needs. Here are some you might consider.
Home Loans for Single Mothers
If you own your home, using your home as a financial asset may be one way to borrow funds at a reasonable cost. If you have built up equity in your home, you may be able to tap that equity by getting a home equity loan or a home equity line of credit (HELOC). Just keep in mind that the loan is backed by your home. Should you have difficulty repaying the loan or credit line, you could potentially lose your home.
Government Resources for Single Parents
If your income is low, you may be eligible for one or more government assistance programs. Some options you may want to explore include:
• Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
• National School Lunch Program
• Temporary Assistance for Needy Families (TANF)
• Low Income Home Energy Assistance Program (LIHEAP)
• The Emergency Food Assistance Program
You can find more resources at enefits.gov.
Educational Aid for Single Mothers
If you’re considering going back to school, below are some programs that can help make it more affordable (or even free):
• Pell Grants
• Teach Grants
• Women’s Independence Scholarship Program (WISP)
There also may be private scholarships and grants for single parents available from the institutions you’re interested in. Speaking with the financial aid office may help you see the breadth of options available to you.
Other Financial Help For Single Mothers
Becoming a single mother, either by choice or circumstance, can feel overwhelming. But there is support out there. It can help to talk to other single parents in your community — you may be surprised by all the resources that are available. Other opportunities may include:
• Financial aid or tuition assistance If your children are in private school or extracurricular programs, there may be financial aid available to help lower the cost. Even if there’s not a formal program, it can’t hurt to explain your situation and ask what may be available.
• Employer-based programs Your human resources department may have certain programs, such as childcare coverage, free legal consultations, and access to financial planning and debt counseling, for eligible workers. Talk to your HR representative or look through their materials to assess what’s available.
• Family and friends People close to you may be willing to provide support, or there may be creative ways to trade services, such as babysitting, to get more financial help. If a friend or family member offers to loan you money, it can be helpful to put an agreement in writing, including any interest you will pay and the terms of repayment, so there is no confusion that can cause a rift in your relationship.
Recommended: Options for When You Can’t Afford Your Child’s College
The Takeaway
As a single mother, there are avenues that can help you manage your finances and achieve your financial goals, including taking out a personal loan. This type of financing can provide financial relief and flexibility, but it is important to weigh the pros and cons, compare options from different lenders, and assess your ability to manage repayments responsibly.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
Photo credit: iStock/RyanJLane
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financing a car isn’t unlike taking out a mortgage. The principal is lower, but lenders will still take a peek at your credit score to see how much interest they should charge to compensate for the risk of lending to you.
So what is a credit score? What credit scoring system do auto lenders use? Whether your credit score is 350 or 800, how can you improve your lending terms and save thousands on interest?
Let’s investigate credit scores and car loans.
What’s Ahead:
What credit scoring system do auto lenders use?
Although everyone uses the same rough scale (300 to 850), different agencies calculate their version of your credit score differently. Your Equifax Credit Score, for example, might differ from your FICO score.
In this article, I’m going to focus on your FICO score. It’s what most institutions use and is heavily favored by auto lenders for being accurate, widely used, and constantly innovated upon. For example, the 64-year-old company recently debuted the UltraFICO score, a next-gen credit score that combs through more variables and offers a meatier suite of tools for achieving and maintaining prime credit.
Until the UltraFICO becomes standard, the vanilla FICO score works just fine for 90% of lenders. Here’s precisely how your FICO score is calculated:
FICO Score Factor
Description
% of total
Payment history
Whether you pay your bills on time
35
Total Amount Owed
Debts plus percentage of your credit you’re using
30
Length of Credit History
Length of time you’ve had credit
15
Types of Credit
Variety of loans (mortgage, car, student, etc)
10
New Credit
Recent hard credit pulls
10
Your bank’s online dashboard should let you check your FICO score for free. You can also use myFICO to estimate your FICO score in under a minute. You will need to pay a monthly fee (there are three different price options), but you get way more features than the free credit score apps.
The cheapest plan lets you check your FICO score specifically for auto loans, so you can rest assured that you know your exact score before walking into a dealership.
Now, what does your FICO score say about your viability to get an affordable car loan?
What FICO score is needed for a car loan?
If you’ve ever driven past a sketchy used car lot or watched The Price is Right on cable like I have, you’ve probably seen ads with marketing language like this:
“BUY HERE PAY HERE!”
“$0 DOWN!”
“BAD CREDIT? NO PROBLEM!”
They’re all indicators that if you can fog a mirror, you can get a car loan. It just won’t be a very good one. John Oliver did an exposé on predatory car loans that’s worth the 18-minute watch.
A better question is: what FICO score is needed for a good car loan? At what point should you instead focus on improving your credit first? Let’s dive in.
How does my credit score affect my auto loan terms?
Depending on your loan amount, raising your credit score by just a few points prior to purchase could save you thousands in interest.
You can tinker with Money Under 30’s Auto Loan Calculator to see how your pretend credit score could affect your loan terms on a $25,000 vehicle purchase, leased over 60 months.
Credit score
APR
Total interest paid on $25k loan over 60 months
Excellent (720+)
4.49%
$2,958
Good (650-719)
7.65%
$5.164
Subprime (550-649)
13.99%
$9.895
From these numbers, you can see how your credit score can have a huge and pricey impact on your loan terms.
Low credit will likely drive up interest rates
If you have subprime (<650) credit, lenders will consider lending to you to be a higher risk. Therefore, they’ll charge you more interest to offset the risk.
As illustrated above, if you can raise your credit to above 720 before taking out an auto loan you could save thousands in interest.
Certain lenders may not offer you a loan at all
If you have subprime credit (or no credit at all), certain lenders may not even consider your case. On the flip side, however, improving your credit opens the door to better rates and better lenders.
By choosing to only lend to prime candidates, some lenders can afford to offer extremely low interest below 4%.
Oh, and here’s the thing about those “0% APR for 60 months” claims
You’ve probably heard claims that a dealer can offer you “0% APR for 60 months!” While technically true, 0% APR isn’t as good as it seems.
First, and perhaps not surprisingly, it typically only applies to buyers who have excellent credit already. For everyone else, it’s just a misleading way to lure you into the dealership, only to be disappointed at the point of financing.
Even if you do qualify for a 0% APR on a new vehicle, you may not be saving any money in the long run. As illustrated above, the total interest for someone with Excellent credit financing a $25k loan is around $3,000. If you’re offered a 0% APR loan on a new car, there are at least four possible realities as to why:
The car is months away from being “last year’s model” and depreciating $4,000.
The dealer has hidden $3,000 in fees somewhere in the walkout price.
The car is terrible and nobody bought one so they need to make space.
0% APR is actually a good deal.
0% APR deals embody the old saying “if it sounds too good to be true, it probably is.”
In reality, you’ll probably negotiate a deal with your lender or take some time to improve your credit score. On that note, what are some concrete ways you can improve the terms of your auto loans?
How can I lower my interest rates?
If you have subprime credit, here’s a playbook of ways you can lower your interest rates.
Talk to the financier
Like auto insurance, auto loans are subjective, and financiers can be open to negotiation. Not all car buyers have subprime credit for the same reasons, and you can prepare a case for why you deserve prime credit interest rates without the score to support it.
For example, if your credit score got pummeled by your student loans but you’ve never missed a car payment, that’s music to an auto loaner’s ears. Similarly, if you’re in debt from starting a business but said business is paying you a steady salary, that’s also fodder for negotiating.
Find a cosigner
There may be someone in your life with a high credit score who’s willing to cosign with you on the auto loan. Cosigning on a loan takes tremendous trust, as the other person will be financially responsible if you can’t make payments.
However, you can make the case to them that you’ll remove them and refinance as soon as your credit score is high enough.
Make a larger down payment
It’s simple math; a smaller principal means less interest. The more cash you can plunk down, the more you’ll save on interest.
Improve your credit
Perhaps the best option is to simply take a few months or years to improve your credit score. With strategy and patience, it’s not impossible.
Taking time to improve your credit score will not only save you thousands on your auto loan, but could save you tens of thousands on your mortgage or other large loans down the road.
Finance a cheaper car, or don’t buy one at all
You should never spend more than 35% of your annual pre-tax income on a car. You can see how much car you can afford using MU30’s Car Affordability Calculator.
I personally own a luxury Japanese sedan worth $8,000 and a Japanese “fun” car worth $4,000. Both are paid off and cost $1,200 annually to insure. I want for nothing. Similarly, famous YouTube personality Scotty Kilmer spends most of his energy convincing viewers to buy less car than they think they need (he’s also a mechanic with 50 years of experience).
Point is, you can live a great life with a cheap, reliable car. Expensive cars are expensive to insure and maintain, and most of them depreciate like an open carton of milk. So consider lowering your budget, or better yet, not buying a car at all – that’s the best way I know of to achieve 0% APR.
Summary
Your credit score can have a huge impact on your auto loan terms. How big of an impact? Well, improving your credit score by just 100 points is near-guaranteed to save you thousands.
If you don’t have the time to improve your credit, you can still negotiate prime rates with subprime credit by making your case to a lender. Be prepared to explain why your credit is subprime, and show proof that you’re ready to make on-time payments throughout the lifetime of the loan.
Alternatively, you can also reduce your interest by simply spending less, finding a co-signer, or best of all, taking time to improve your credit.
When a couple first get married, the last thing either wants to think about is the inevitable—death.
However, it is a realistic part of the cycle of life.
While it’s not something to dwell on, it is a smart idea to keep in mind that one half of the married couple will die in the future, be it of old age or other unfortunate reasons.
In the case that one half of the couple should die prematurely, a financial catastrophe can occur, especially if the couple has children. The surviving spouse may have trouble supporting the family alone and providing for the children.
And of course, there will be other expenses like house payments, car payments, and other possible debts. For newly married couples, it is a good idea to consider life insurance for married couples.
Having insurance is best to ensure the financial security of the family should a disaster occur.
Life Insurance for Couples
If a couple decided to get life insurance for married couples, both can name each as the beneficiary so that if one dies, then the other will have financial support from the life insurance pay out. In addition, in the unfortunate case that both die and they have children, then the children can be named as the beneficiaries, giving financial security to the children. Having life insurance is the best option if one spouse is a stay at home parent.
If the working spouse dies, then the remaining spouse will probably have trouble finding a job or a means to support the family and themselves. Given the possibilities, even if they are slim, that tragedy can strike a family, it’s always best to be prepared.
While younger couples may not think they need life insurance, getting life insurance for married couples earlier on will mean that the premiums will be much lower, especially if both are in prime health. Younger people are also more likely to be approved for life insurance.
Buy Life Insurance While it’s Cheap
Also, at the early stages in a marriage, the couple will be just beginning to collect expenses, like buying a car or buying a home. It’s better to be prepared in the case that one spouse passes away and the other cannot cover those expenses. Life insurance is not only needed to cover living expenses, but funeral expenses as well. Funerals aren’t cheap at all, and the remaining spouse and family may have trouble affording an appropriate funeral given the price. The insurance can help with the cost of a funeral and other post-death expenses.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-banner-1-0-asloadedmax-width:580px!important;max-height:400px!important
Also, the remaining spouse may suffer mentally from death, so they may not be capable of working or earning an income. Life insurance benefits will aid that spouse in that situation.
While no one wants to think of something as grim and solemn as death, it is better to consider the worst for the benefit of the remaining spouse and family. Instead of thinking about getting life insurance in a negative light, think of it a securing a financial future for your family should the event come that you pass away early.
Life Insurance Options for Married Couples
When you start looking for life insurance, there are several different policies and life insurance company options that you can choose from, each of them has its own advantages and disadvantages. It’s important to sit down with your spouse and discuss which one will best for your family.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-large-leaderboard-2-0-asloadedmax-width:300px!important;max-height:250px!important
The first two options are the standard life insurance policies, term, and permanent life insurance. A term life insurance policy that is only effective for a pre-determined time, like 10, 20, or 30 years. Once that time is up, the policy is no longer effective, these policies basically have an expiration date. One the set term is over, you’ll have to go through the application process again and purchase another policy.
On the flip side is permanent life insurance, which is exactly what it sounds like. As long as you continue to pay the monthly premiums, these policies are in force. These plans also build cash value, which is useful if you ever need to take out a loan using the cash value.
Aside from traditional life insurance plans, there are also joint life insurance plans. These policies are similar except for they cover two different people under them instead of just one. With joint policies, there are two main types to consider, first-to-die insurance and second-to-die insurance.
First-to-die policies are paid out when the first person in the couple passes away. The payout from the policy automatically goes to the spouse and the policy is no longer effective.
Second-to-die policies are the opposite. These policies are paid out when both people pass away. The money is normally given to the children or another beneficiary to help pay for all of the final expenses like mortgages, funeral costs, and taxes.
How Much Life Insurance Do Married Couples Need?
Now that you know which type of policy you’ll get, you both will have to decide how large of a policy you’re going to buy. You can get a policy as small as $25,000 all the way up to millions of dollars. Obviously, the larger the policy, the more expensive the monthly premiums are going to be. It’s important to find the perfect balance between adequate life insurance coverage and affordable monthly premiums.
The biggest thing to consider when calculating your insurance needs is your debt. If you or your spouse (or both) were to pass away, would your loved ones be left with lies and piles of unexpected debt? Who would pay for the car and the mortgage? It’s important to plan ahead for the terrible things that could happen. After you add up all of your debt, then you have a great starting point for deciding how much life insurance you’ll need.
The other factor you should consider is that number of people that would suffer from losing you and your salary. Do the two of you have children that would struggle to get by? Does one spouse not work and rely solely on the other’s income? Each situation is going to be different, there is no “one size fits all” life insurance plan.
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Cheap Life Insurance for Couples
When you apply for life insurance, the company is going to look at many different things when calculating your monthly premiums. One of the biggest factors is your age. The younger you are, the cheaper your rates are going to be. If you’re looking to save some money, don’t wait to apply for life insurance.
@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-leader-1-0-asloadedmax-width:728px!important;max-height:90px!importantThe company is also going to look at your health. Do you have any high risk or chronic conditions? Do you exercise regularly? Are you at a healthy weight? All of these are going to impact what type of rating you receive from the company. One of the best things you can do to save money on life insurance is to lose weight and exercise regularly. The healthier you are, the less risk you pose to the insurance company.
After the initial paperwork, the company will send a paramedic to your house to do a medical exam. This medical exam will consist of family history, some health questions, and basic vitals like blood pressure. They will also take a blood sample and urine sample. After this, they will look at all of the factors and give you a rating that will determine how much you pay and if you’re approved.
Inside: Are you looking for ways to make money quickly and easily? This guide has a variety of tips and tricks to help you make 1000 a day.
Making money is something that everyone is interested in. And why wouldn’t we be? Money gives us the ability to buy the things we want, travel, and live a lifestyle that most people can only dream of.
But what if I told you that it was possible to make $1000 a day? Would you believe me?
Well, in this blog post, I’m going to show you some of the best ways to make money really fast.
So if you’re looking to make some quick cash or consistent income, then this is the post for you!
In this post, I will share with your some of the best ways that I know of to make money $1k a day on a regular basis.
So if you’re ready to learn how to make 1000 a day, then let’s get started!
Is it possible to make $1000 a day?
Yes, it is possible to make $1000 a day.
In fact, this is something I regularly do (see picture to prove it).
However, achieving this goal requires commitment, hard work, and a solid plan. Factors that contribute to achieving this goal include finding a method that works for you, sticking with it, and putting in the necessary effort.
Additionally, having a unique skill set and interest in a particular method can increase the chances of success.
How to make $1000 a day?
Making $1000 a day is an appealing goal for many people, whether it’s a one-time need or a consistent source of income. Fortunately, there are several ways to achieve this goal.
Here are the top ways to make $1000 a day:
Start a high-paying job: Some jobs pay over $300k a year, and while they may require advanced degrees and education, there are also a few that don’t require a college degree.
Offer high-value services: You can offer services such as pet-sitting, tutoring, design work, or writing to make money.
Start a business: You can start a business that generates $1000 a day, such as a digital marketing agency, freelancing, or a service-based business.
Sell items you no longer need: You can sell items on eBay, Craigslist, or other online marketplaces to make quick cash.
Let your money work for you: You can invest in stocks and shares, real estate, or property to earn upwards of $1000 a day.
While each method has its own advantages and disadvantages, with the right strategy and dedication, making $1000 a day is achievable.
So, get started today and see how much money you can make.
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Best ways to make 1000 a day
We’ve compiled a list of our favorite ways to make money really fast – specifically $1k a day!
Many times, you will have to invest 100 to make 1000 a day.
If you’re looking for ways to make some extra cash, or even earn a full-time income, this post is for you.
1. Freelance Writing
Freelance writing is a great way to make extra money or even replace your full-time job. There are various types of content that freelance writers can specialize in, such as long-form content or shorter direct-response copywriting.
With freelance writing, you can earn over $.50 or even $1 per word, which means that a 1,000-word article could net you $1,000 quickly.
To start, you need to establish a portfolio of your work to pitch to new clients. This portfolio should include links to any relevant articles or copy you’ve written that’s related to the client you’re pitching. If you don’t have a portfolio yet, you might need to do some work at lower rates to get your foot in the door.
Even if you don’t consider yourself a writer, don’t strike it off the list just yet. With the right approach and mindset, anyone can become a successful freelance writer.
2. Crafting
Crafting offers many benefits beyond just making extra cash. It allows for flexibility in your schedule, creativity in your work, and the ability to turn a hobby into a lucrative business.
If you are creative and have a talent for creating handmade items, then starting a crafting business is the perfect way to monetize that skill by doing something you enjoy. There are plenty of crafts to choose from and you may even become an instructor!
The most difficult side is you are trading your time for money and it may be difficult to scale.
3. Day Trading Stocks
Day trading stocks is a high-risk, high-reward investment strategy that involves buying and selling stocks within a single trading day. It requires a great deal of knowledge, discipline, and risk management to be successful.
However, there is a large group of us who have made the $1000 in a day club.
Successful day traders use a combination of technical analysis, risk management, and discipline to make profitable trades.
This choice requires discipline, a proper trading education, knowledge, and risk management.
Trade and Travel with Teri Ijeoma is a popular course that investors can take to learn about trading stocks and options and begin their journey to making $1,000 a day.
4. Trading Options
Trading options can be a lucrative way for seasoned investors to make money.
With options, investors can speculate on different stocks with only a fraction of the investment capital needed to buy the stocks outright.
Investors who are familiar with investing in individual stocks can take the next step in the process by trading options. While options may seem exotic on the surface, they are a common tool used by seasoned investors and are especially valuable during volatile activity in the stock market.
To trade options successfully, investors need research skills, investing knowledge, discipline, and patience.
Trading options can be a high-risk option, especially for those who lack expertise in the area. However, it can be extremely lucrative for those who have experience and knowledge in the stock market.
Investors should consider taking courses to learn more about trading options.
5. Youtube
YouTube can be a great source of income for those who are willing to put in the effort to create quality content. It offers multiple ways to generate revenue, including sponsorships, affiliate marketing, and Google Adsense.
With the right approach, it’s possible to make $1000 or more per day on YouTube.
Remember, success on YouTube takes time and hard work, but the potential rewards are significant.
6. Selling on Amazon
Selling products on Amazon can be a highly profitable business opportunity.
Amazon FBA, or Fulfilled by Amazon, is a business model where you send your inventory to Amazon warehouses and they handle the rest, including storage, shipping, customer service, and returns.
This makes it a great option for digital nomads and those looking to scale their business quickly.
With an average profit margin of $20 per sale, it’s possible to make $1,000 per day by selling just 5 units per day of 10 different products.
7. Sell Printables Online
Selling printables online has become a popular way to make passive income.
With the rise of digital products, creators can sell anything from coloring pages to budget spreadsheets on platforms like Etsy. Thousands of creators make a living selling digital products, and it’s easy to see why.
Learn how these sellers got started.
The key is to pick a topic you’re knowledgeable in and passionate about, so you can create high-quality products that people will want to buy.
8. Dropshipping
Dropshipping is one of the best ways to make $1000 a day, especially for those looking to start a business with minimal initial investment.
This business model allows entrepreneurs to sell products to customers without ever holding a single piece of stock.
Dropshipping is a viable and profitable business model that can generate high profits without the hassle of managing inventory. With the right niche, platform, supplier, and marketing strategy, entrepreneurs can make $1000 a day or more with dropshipping.
9. Consulting
Consulting is one of the best ways to make $1000 a day!
It’s a lucrative career option that allows you to provide expert advice to clients and help them solve problems.
The first step to becoming a consultant is to determine your area of expertise. This could be anything from personal finance to marketing to human resources. Your expertise should be something that you have significant knowledge and experience in.
One of the most important aspects of becoming a consultant is building your network. This includes reaching out to potential clients, attending networking events, and connecting with other professionals in your field.
10. Become a Virtual Assistant
Being a virtual assistant can be a great way to make money while setting your own hours.
As a virtual assistant with no experience, you can work from home and typically on your own schedule. You can choose to work part-time or full-time based on your availability and the workload of your clients.
The tasks that you are asked to perform as a virtual assistant can vary widely, but commonly needed skills include administration, accounting and bookkeeping, marketing, communications, customer service, and many other capacities.
You don’t need special skills or training for this job, as most clients will bring you up to speed on what they need to do. However, having organizational, communication, and time-management skills can be helpful.
Check out the checklist to get started as a virtual assistant.
11. Side Hustles
Side hustles are a great way to earn extra income and supplement your regular income. With a little effort and some creativity, you can make up to $1000 a day with certain side hustles.
Here are some of the best side hustles that can help you achieve this goal:
Deliver food: You can make good money by delivering food with these apps. You can choose your own hours and work as much or as little as you want. DoorDash is a great option.
Drive with ridesharing apps like Uber and Lyft: If you have a car and some free time, you can earn money by driving people around. You can make up to $1000 a day, depending on how much you work.
Pet sit or walk dogs: If you love animals, you can make money by pet sitting or dog walking through Rover.com. You can earn up to $50 per day, depending on the services you offer.
Babysit or tutor: If you have experience with children or are good at a particular subject, you can offer your services as a babysitter or tutor through Care.com. You can make up to $50 per hour, depending on your qualifications.
Side hustles are a great way to make extra money and reach your financial goals.
12. Start a Business
Starting a business is one of the most effective ways to make 1000 dollars a day on a regular basis. However, it requires careful planning and execution to succeed.
The first step is to research the market and identify a profitable business idea and build it to profitability.
Challenges may arise, such as competition, financial setbacks, and marketing difficulties, but with persistence and determination, you can overcome them and achieve financial success.
The potential for significant financial gain from starting a successful business is immense, making it a worthwhile endeavor for anyone willing to put in the effort.
13. Yard Work
Yard work is an excellent way to make $1000 a day, especially if you have some extra time and don’t mind getting dirty.
If you want to get up and running quickly, there is nothing better than a local side hustle to earn extra money such as mowing lawns in your neighborhood.
Mowing lawns is not only a great side hustle for adults but also for teens. For an average size lot, you could expect to make at least $35. If you could line up a few lawns each weekend, you could easily make an extra $1000 each month.
Landscaping, leave pickup, and bush trimming are all simple tasks that you can complete quickly if you have the right equipment. You can choose to set an hourly rate or get paid for the entire job, depending on the task.
You may have to start hiring crews in order to hit $1k a day.
14. AirBnb or VRBO Rentals
Airbnb or VRBO are popular platforms for renting out your property to travelers.
Many successful hosts have earned $1000 or more per day because they have accumulated more than one property.
One tip for success is to garner excellent reviews that people want to come back time and time again.
15. Affiliate Marketing
Affiliate marketing is a lucrative way to make money online and has the potential to earn you $1000 a day.
This works well for influencers who have a reach of thousands of people. Another way is creating a niche website that focuses on a specific product or market segment.
It’s essential to promote products effectively to generate revenue. Successful affiliate marketers have earned six figures or more per year.
16. Flip Products or Retail Arbitrage
Retail arbitrage is a popular business model that can help you make $1,000 per day or more. The premise is simple – buy or find things cheap and resell them for a higher price.
This is a great example of how to flip money.
To be successful, you’ll need to have an eye for the right product and do product research to choose products that will sell.
Here is a list of the most popular items to flip.
17. Pickup Services
Pickup services refer to businesses that provide transportation and delivery services for goods, furniture, or other items. These services are in high demand, especially in urban areas where people are always on the move and need help with moving heavy or bulky items.
Starting a pickup service business requires some equipment, such as a truck or van, and marketing strategies to attract customers.
So, if you are looking for a new side hustle or business opportunity, consider pickup services as a viable option.
18. Casino Gambling
While casino gambling is not a recommended way to make $1000 a day, it is still worth mentioning as a potential option.
However, it is important to note that gambling should always be done responsibly and within one’s means.
If you are considering casino gambling as a way to make quick money, it is essential to understand the most profitable games and their strategies. Here is an ordered list of the best casino games to play to make money:
Blackjack: This game has one of the lowest house edges, making it a popular choice for professional gamblers. The objective of the game is to beat the dealer’s hand without going over 21. The key to winning at blackjack is to use basic strategy, which involves making the mathematically correct decisions based on the dealer’s upcard and your own hand.
Craps: This game has a low house edge and offers a variety of betting options. The objective of the game is to predict the outcome of a roll or series of rolls of the dice. To win at craps, it is essential to understand the different bets and their odds and to follow a betting strategy that suits your playing style.
Baccarat: This game is easy to learn and has a low house edge. The objective of the game is to bet on the hand that will have a total of 9 or closer to 9. The key to winning at baccarat is to understand the different bets and their odds and to follow a betting strategy that suits your playing style.
When playing these games, it is important to practice good bankroll management by setting a budget for yourself and sticking to it. It is also crucial to know when to quit to avoid losing money.
A winning streak can lead to making $1000 a day, but it is important to be cautious and not get carried away.
19. Freelance Graphic Design
Graphic designers create visual concepts using computer software or by hand to communicate ideas that inspire, inform, and captivate consumers. They work on various projects such as branding, marketing materials, website design, and more.
Freelance graphic design is a lucrative option because there is always a demand for graphic design services, and businesses are willing to pay top dollar for high-quality designs.
By building a strong portfolio, staying up-to-date with the latest design trends, and providing excellent service to your clients, you can earn a substantial income as a freelance graphic designer.
20. Make Money Flipping Items
Flea market flipping is a great way to make some extra cash on the side or even turn it into a full-time business. It involves buying items for a low price and reselling them for a profit.
One couple, Rob and Melissa Stephenson, have become full-time flea market flippers and even host their own website, Flea Market Flipper, to help others find success in the venture. They offer several courses to help individuals turn this into a serious side hustle or even a full-time business earning six figures.
Learning from successful flea market flippers like Stephenson’s can be a great way to get started. They have the skills and knowledge to help individuals find valuable items, network, and use social media and photography to their advantage.
21. Photography
Photography is a lucrative career option that has the potential to generate high income or as a side hustle.
There are different types of photography that one can explore to make money, including wedding photography, family photography, real estate photography, and stock photography.
By building a strong portfolio, networking, finding clients, investing in high-quality equipment, and constantly improving your skills, you can become a successful photographer and make a great income. Don’t underestimate your potential in this field.
22. Rental Income
Passive income through rental properties is a great way to generate consistent long-term income. Here are the steps to follow in order to make $1000 a day through rent income:
Find a suitable property: Look for properties that are priced reasonably, require minimal renovations, and are located in areas with high rental demand. You are likely to start making $1000 a month.
However, the earning potential is dependent on the ability to scale multiple properties, keep them occupied, and increase monthly income streams.
Investing in rental properties can be a lucrative and rewarding experience for those willing to put in the effort.
23. Amazon Merch
Amazon Merch is a platform that allows you to create and sell your own merchandise on Amazon. It’s an excellent way to make money because Amazon handles all of the heavy lifting, such as printing, shipping, and customer service.
Using Amazon Merch, you can sell a variety of products from t-shirts to phone cases, and best of all, you don’t need to invest in inventory or equipment.
All you need to do is create the designs.
Successful Amazon Merch sellers include graphic designers, artists, and entrepreneurs who have created unique and appealing designs that resonate with their target audience.
24. Creative Skills like Video Editing
Creative skills can be a valuable asset when it comes to generating income. Video editing is another skill that can be monetized.
With the rise of video content, businesses, and individuals are always in need of skilled video editors. One can offer video editing services for YouTube creators, and businesses, or even edit personal videos for clients.
Freelance platforms like Upwork and Fiverr are great places to find video editing jobs.
25. Fashion Design
Fashion design is one of the most lucrative ways to make money, and it’s an industry that’s always in demand.
Whether you’re interested in starting your own fashion label, working for a fashion house, or becoming a freelance designer, there are plenty of opportunities to make a living in this field.
Marketing yourself is also key to success in fashion design. Use social media platforms like Instagram and Pinterest to showcase your work and build a following.
Networking is also an important part of building a successful career in fashion design. You must stay up-to-date on industry trends, make valuable connections, and potentially land new clients or job opportunities.
Create a website or blog where you can share your designs, offer fashion tips, and connect with potential clients.
Pay attention to industry trends, stay creative and original, and focus on developing your skills and building your brand. Then, there are plenty of opportunities to make a living in this exciting and dynamic industry.
26. Start a Blog
Many people say blogging is dead. But, it’s not.
Starting a blog can be a great way to share your interests, skills, and experiences with others while also creating a new income stream for yourself. The flexibility of blogging allows you to turn your current job or passion into a successful blog.
However, starting a blog can be challenging, and it requires technical knowledge, writing ability, social media skills, and topical expertise.
Once you have started your blog, it’s essential to treat it like a business and monetize your content.
27. Self-Storage Business
Self-storage business is a lucrative venture that involves renting out storage units to customers who need extra space for their belongings. These businesses are in high demand, especially in urban areas where living spaces are often small and cramped.
In fact, the self-storage business is expected to bloom to $64.17 billion by 2026.
Starting a self-storage business can be a profitable venture if done correctly.
28. Invest in Cryptocurrencies
Cryptocurrencies have gained popularity as a potential source of significant income. Bitcoin, Ethereum, and Litecoin are some of the best cryptocurrencies to invest in.
To invest in cryptocurrencies, one must first set up a digital wallet and choose a reputable exchange such as Coinbase or Bitstamp.
It is important to research the market and understand the volatility of cryptocurrency before investing. While the potential for high returns exists, it is important to approach cryptocurrency investing with caution.
29. Invest in Real Estate
Investing in real estate can be a lucrative way of making money.
To make $1000 a day through real estate investing, there are several steps you can take.
First, set aside a few hundred dollars each month to invest in real estate over time.
Second, consider the different types of real estate investments available, such as rental properties, commercial properties, and fix-and-flip properties. Each investment type has its own advantages and disadvantages, so it’s important to research and choose the one that fits your financial goals.
Third, consider investing in real estate investment trusts (REITs) or crowdfunding platforms like Fundrise, which allow you to invest in real estate without purchasing a property.
Remember that investing in real estate carries a degree of risk, so it’s important to do your research and seek advice from successful real estate investors.
30. Make Money on the Internet
Making money online has become a popular option for those looking to earn a substantial income. The internet provides a wealth of opportunities for anyone with an internet connection and a bit of creativity.
You need to learn how to make money online for beginners.
There are so many options today and you never have to leave your house!
When it comes to making $1000 a day online, it’s important to acknowledge that it’s not a quick or easy process. It takes time and effort to build a successful online business or generate significant income through freelance work or other online opportunities.
However, with dedication and hard work, it is possible to achieve your financial goals.
How to make $1,000 really fast?
If you’re in a financial bind and need to make $1,000 quickly, there are several options available to you.
Here are the top ways to make $1,000 a day quickly:
Sell items on eBay or Craigslist: If you have items that you no longer need, consider selling them online. This could include clothes, furniture, or electronics. This is a quick and easy way to make money fast.
Offer freelance services: You can offer services such as tutoring, design work, or writing. If you have a specific skill or talent, you can find customers online who are willing to pay for your services.
Do odd jobs for people in your community: You can offer to mow lawns, rake leaves, or shovel snow for a fee. This is a great way to make money quickly, especially if you live in an area with a lot of homeowners.
Participate in paid focus groups or surveys: This is a great way to make money quickly without leaving your home. Companies are always looking for feedback on their products and services, and they are willing to pay for it.
Rent out a room in your home on Airbnb: If you have a spare room in your home, you can rent it out on Airbnb and make money quickly. This is a great option if you live in a popular tourist destination.
Manage social media accounts: Many businesses need help managing their social media accounts, and they are willing to pay for them. If you have experience with social media, this could be a great way to make money quickly.
Start a blog: If you have a passion for writing or a specific topic, you can start a blog and sell advertising space or products/services to your readers. This takes some time to build up, but it can be a lucrative way to make money in the long run.
Sell handmade crafts or goods online: If you’re crafty, you can make items and sell them online, such as on Etsy. This is a great way to turn your hobby into a money-making opportunity.
Borrow money from friends or family: This is not an ideal option, but if you’re in a bind and need money quickly, consider asking for a loan from someone you trust.
Pawn items for cash: This is a last resort option, but if you have items of value, you can pawn them for cash quickly.
Don’t be afraid to try different methods and see what works best for you.
This is the perfect side hustle if you don’t have much time, experience, or money.
Many earn over $10,000 in a year selling printables on Etsy. Learn how to get started by watching this free workshop.
If you’ve ever wanted to make a full-time income while working from home, you’re in the right place!
This intensive training combines thousands of hours of research, years of experience in growing a virtual assistant business, and the power of a coach who has helped thousands of students launch and grow their own business from scratch.
FAQ
Passive income is a form of earnings that is generated without active involvement.
It is a way to make money while you sleep and can provide financial stability and independence.
This is one of three types of income and the one you want to strive towards building.
Ultimately, the best side hustle for making $1000 a day is one that meets your needs and interests while providing a good return on investment.
Here are several factors to consider before choosing the best option.
Think about your skills, interests, and availability. If you have a full-time job, you may want to consider a side hustle that allows you to work flexible hours.
Next, consider the earning potential of the side hustle you are considering. Some side hustles pay more than others, and you want to choose one that will give you the highest return on investment.
Additionally, consider the start-up costs associated with the side hustle. Some require significant investment, such as buying a car for ride-sharing apps or purchasing an online course.
Most importantly, choose a side hustle that aligns with your passion and expertise. This will make the work more enjoyable and increase your chances of success.
There are many ways to make money from your expertise.
You can start a consulting business, offer services such as coaching or speaking, create and sell information products, or build a following and sell advertising or sponsorships. The possibilities are endless.
What’s important is that you start somewhere and then take action to turn your expertise into cash.
Ready to Make 1000 in a Day?
There are many ways to make money quickly and easily.
The best way to make money fast is to find a way that best suits your skills and interests.
Whether it’s graphic design, content creation, photography, or trading stocks, there are plenty of opportunities to turn your passions into profit. So, start honing your skills and explore the endless possibilities of the gig economy.
Learning how to make quick money in one day is possible. You just need to be determined and disciplined.
So, which method do you choose on how to make $1k a day?
Know someone else that needs this, too? Then, please share!!
If you’re considering refinancing some or all of your student loans, you may wonder what comes next on your financial to-do list.
On June 3, President Biden signed the debt ceiling bill into law, ending the three-year federal student payment pause. Payments are expected to resume in October.
Refinancing student loans can often result in a lower monthly student debt payment, either due to a lower interest rate, a longer loan term, or both. A lower monthly payment can be a big relief to borrowers who are still reeling financially from the effects of Covid-19 and higher inflation.
Lower payments can also free up some of your income for other key financial goals. That’s what we’ll look at here.
What Happens When You Refi Student Loans?
Understanding what happens after a refinance is key to planning your next steps.
As mentioned above, when you refinance, you may find a more favorable interest rate or more flexible loan terms that will help reduce your monthly payment. The SoFi Student Loan Refinancing Calculator can help determine how much refinancing could save you.
Keep in mind, when you refinance a federal student loan into a private loan, you lose the benefits and protections that come with a federal loan, like deferment and public service-based loan forgiveness (PSLF).
What Is Your Next Financial Goal?
As you consider refinancing, it’s a good idea to keep your other financial goals in mind. How can refinancing student debt — and perhaps lowering the percentage of income dedicated to repayment — help you achieve those goals? Take a look at the following scenarios that might apply to you.
1. Pay Down High Interest Debt
Once your student loan debt is under control, turn your attention to any high-interest debt you may be carrying on credit cards. There are two common ways people approach paying down debt. Which one you choose depends on your financial situation.
• The Debt Avalanche. With this system, you start by paying your highest interest rate card first, with payments above the monthly minimum. You do this while still keeping up with minimum payments on any other debt. When you eliminate your highest rate debt first, you can more quickly lower your overall debt picture.
• The Debt Snowball. In this scenario, you pay off your debt in order of the smallest to the largest balances, regardless of interest rate. This way you see some of your smallest debts paid off quickly and get a psychological boost from doing so. As you pay off each debt, you assign the amount of the payment you were making on that balance to the next debt. Your debt repayment builds momentum, known as “the snowball effect.”
Recommended: Which Debt to Pay Off First: Student Loan or Credit Card?
2. Start an Emergency Fund
Having money saved for unexpected expenses is a vital part of financial wellness.
But saving for emergencies is a challenge for many Americans. According to Bankrate’s 2023 annual emergency fund report, less than half (43%) of U.S. adults could pay for an unexpected emergency expense from their savings.
Starting or boosting your emergency fund with money saved on student loan payments is a great way to help keep your budget intact and stay out of debt.
How much should you save in your emergency fund? At least three to six months of living expenses (or take-home pay) is the rule of thumb. That way, if you lose your job, have an accident, or get sick, you’re likely to have enough to see you through until your situation improves.
3. Increase Retirement Contributions
Are you putting as much as you can away for retirement? Starting early can pay off big down the line, thanks to the magic of compound interest — and the fact that earnings grow tax-free in most retirement accounts such as IRAs and 401(k)s.
If your employer offers a matching contribution benefit, upping your game may be even more important. This is free money. Whenever possible, contribute the amount necessary to qualify for the full match so you take the best advantage of this key benefit.
4. Save for the Next Stage of Life
Life goes on well after student loans. Now with less student debt burden, you’re probably looking at what’s next. That may mean buying a car, saving for a down payment on a home, starting a family, or expanding a business.
Careful budgeting means you can put the difference between your old student loan payment and your new one toward other important life goals.
Once you establish the goal you’re saving for, consider opening a high-yield savings account dedicated to that purpose. You’ll earn interest while your nest egg accumulates but still have liquidity so your money is available when you’re ready to pursue your goal.
5. Invest
Starting an investment account outside of retirement savings can be an important financial goal in and of itself. The reason? Long-term stock market returns consistently outperform many other types of investments. Over the past decade through March 2022, the average annual return for the Standard & Poor’s 500 Stock Index was 14.5%.
Returns vary, of course, depending on the years you are invested and the economic environment. But over the long haul, investing in stocks early — even small amounts — can pay off in the future.
Mutual funds and exchange traded funds (ETFs) are two easy ways to start investing. A mutual fund is a collective investment which pools funds from many investors to invest in stocks, bonds or other securities. ETFs work much the same way but unlike mutual funds, ETFs can be bought and sold like a stock as the price goes up or down during the day.
How to Pay Off Student Loans Ahead of Schedule
As we’ve seen, a refinance can help lower your monthly payments and perhaps bring some much-needed wiggle room to the rest of your finances.
That may motivate you to keep the momentum going and look at ways you can repay your remaining student debt faster. Here are two tried and true strategies.
Pay More Than the Monthly Amount
Your monthly payment amount isn’t set in stone. You can always pay more than the minimum amount, and in most cases you probably should. Payments over the minimum monthly amount owed are applied directly to the principal. So even a little bit extra can lower the amount of your loan and help you save on interest over the life of the loan.
Recommended: Why Making Minimum Student Loan Payments Isn’t Enough
Dedicate a Windfall to Student Loans
Another strategy for paying student debt faster: Whenever you get a windfall, use some or all of it to make a lump sum payment toward your student loan principal. Think tax refunds, cash gifts, work bonuses, or income from a side gig or inheritance.
What to Avoid After Refinancing Student Loans
After refinancing student loans, be careful not to fall into a common trap: It’s called “lifestyle creep,” and it happens when you spend all of your discretionary income instead of directing some of it to financial goals.
To avoid creep, mindfully adjust your budget to account for any increase in income — such as lower student loan payments. That way the money will be put to good use instead of being frittered away.
Recommended: Living Below Your Means: Tips and Benefits
The Takeaway
Refinancing your student loans may help you lower your monthly payments, freeing up funds to put toward other financial goals. You might choose to pay down high-interest credit card debt, boost your emergency fund or retirement account, or even pay off your student loans faster. With the end of the federal student loan payment pause in sight, now may be a good time to consider refinancing all or part of your student debt.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
Photo credit: iStock/RossHelen
SoFi Student Loan Refinance If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.
CLICK HERE for more information.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
My mom has a sixth sense when it comes to bargain hunting. Where I’m thrilled to get 25 percent off and free shipping, she’s finding deals of 70 percent off and getting inside scoop from the salespeople, who probably have her on speed dial should a ginormous everything-must-go-or-we-torch-it clearance sale come along.
Okay, so I’m exaggerating, but not by much. The point, however, is that the key to finding bargains is timing—off-season, end-of-season, new models bringing down prices on the old models. There’s a pattern and a perfect time to buy just about anything.
When possible, plan your purchases by using the following list to score the best deals and to keep more of your money in your high interest savings account:
House and Home
Real estate—March through August are active months for buying and selling, so a buyer looking for a deal will have better luck negotiating on an offer in autumn and winter.
Flooring—Carpet and flooring goes on sale near the end of the year due to slow sales, though discounts are possible throughout the year from independent retailers.
Furniture—January and July, when stores need to make room for new inventory.
Gas grill—Like air conditioners, the best time to buy is during winter months, when demand for outdoor grills is low.
Cookware—April and May (think graduation and wedding prime time) and October and November (holidays approaching).
Linens—January “white sales” and the end of each season (i.e. as spring approaches, winter-colored linens will go on sale). It’s common to see linens (in all colors, not just white!) on sale for up to 60 percent off retail.
Mattress—New mattresses arrive in stores in May, when you’ll find a good deal on the previous year’s models.
Vacuum cleaner—June, when new models hit the floors, and end of winter.
Hardware—Big sales occur around Father’s Day and between Thanksgiving and Christmas.
Home appliances—New models arrive in September and October, when you’ll find good deals on last year’s models. Holiday weekends—Fourth of July, Labor Day, Columbus Day, Presidents Day—also are good bets for deals. If you’re willing to buy an appliance with a ding or a scratch, you can save hundreds.
Air conditioner—Winter months, when demand is low.
Flora
Flowers—Tulips are less expensive in February, peonies in May. Flowers are at their best when in season.
Shrubs, trees, etc.—Autumn is a good time to buy bulbs (store them according to directions on the packaging) and trees and shrubs (nurseries are trying to clear out inventory).
Recreation
Outdoor (general)—Swings, beach and pool toys, swimming gear, and other outdoor items go on sale in August, when retailers are trying to make room for fall and winter items.
Outdoor gear (bicycles, for example)—February and March, when new models replace last year’s models.
Boat—Boat shows, held from January through March, generally offer the best prices.
Gym membership—Membership sales soar in January as everyone resolves to lose weight, but lag in spring and summer. You’ll find lower fees and waived enrollment fees to lure you to their treadmills.
Movie tickets—Matinees are an established way to spend less at the theater (as is smuggling in your own M&Ms, not that I’d condone such behavior or ever do so myself…). A.M. Cinema (AMC Theaters) sells discounted tickets before noon from Friday to Sunday and on holidays.
Broadway tickets—Find bargains hours before the show, or try the well-known TKTS booth in Times Square.
Electronics
Blu-ray player—Black Friday sales and after-Christmas sales offer some of the best deals.
TV—Sales can be found throughout the year. Times to note include Black Friday, between Thanksgiving and Christmas, right after New Year’s Day, before the Super Bowl, and in May and June. New models hit stores in August and September, when you’ll find sales on new models and discounts on the previous year models.
Cell phone—New customers get the best deals. For new phones, wait six months if you can. Search online for coupon codes, as well.
Digital camera—The Consumer Electronics Show and Photo Marketing Association convention mean new models will arrive in stores. Shop in January and February for deals on last year’s models.
Computer—Back-to-school season yields a few sales, but the best deals can be found when a technology is outdated and retailers want to get rid of the older models. Look for a few extras (free shipping, bundled accessories, etc.) around the holidays.
Tip: In general, you’ll find a good deal when an electronic item is outdated. Wait until after technology shows like MacWorld and the International Consumer Electronics Show to see if your iWhatever will be discounted to make way for the next big thing.
Auto
New car—New models roll into the lot in fall, so shop in September for last year’s model. Shop on a weekday at the end of the month to get the undivided attention of a salesperson trying to make their monthly quota.
Used car—Dealers increase their inventory in April to start the spring selling season. You’ll find a good selection and willing negotiators.
Recreational vehicle—Dealers sometimes offer specials in winter, but generally buying an RV works like buying a car (see new cars).
Gasoline—Fuel up on a weekday, early in the morning if gas prices are rising or in the evening if gas prices are going down (prices are usually changed between 10 a.m. and noon).
Oil change—Look for early bird specials in your area.
Tires and auto parts—During April (National Car Care Month) and October (Fall Car Care Month), you are likely to find buy-three-get-one-free deals on tires, free oil changes, and other checkups.
Car wash—Early birds (before 8 or 9 a.m.) can often find deals at full-service car washes.
Travel
Airline tickets—For domestic nonholiday travel, look for the lowest fares 21 days from your departure. Fares are updated at 10 a.m., 12:30 p.m., and 8 p.m. on weekdays, and airlines file one update on Saturday and Sunday. Lowest fares are filed on Tuesdays, Wednesdays, and occasionally on Saturdays. Wednesday is generally the cheapest day to fly and Sunday the most expensive. (Exception: the Wednesday before Thanksgiving—the busiest travel day of the year.) For holiday travel, start looking in September to get a good price. Fares can change quickly, and much depends on the carrier and the market.
Travel (general)—The off-season or shoulder-season for your destination will offer the most savings on lodging, recreation, transportation, etc.
Food
Groceries (supermarket)—On Sunday evenings, you’ll save money through store sales (typically run Wednesday through Thursday), and by shopping in the evening, you can save even more on items that must be sold by day’s end. If you clip coupons from the Sunday newspaper, you’ll enjoy additional savings.
Coupons—While coupons are available throughout the year, the most coupons appear in the Sunday paper during November and December. The best deals on turkeys can be found two weeks before Thanksgiving to Christmas. In spring, you’ll find coupons on seasonal produce, ham, and frozen food (apparently March is National Frozen Food Month—who knew?). Summer coupons offer discounts on grilling items and ice cream. Autumn brings coupons on soup and other canned items.
Groceries (farmers market)—Vendors often lower prices near closing to avoid having to pack up perishables and take them back to the farm.
Champagne—With steep competition to be your New Year’s Eve bubbly, Champagne houses drop prices during the holidays.
Clothing and Accessories
Clothing (general)—Got your heart set on something in particular? Shop on a Thursday evening six to eight weeks after the item arrived in the store. By Thursday, the weekend sales have started and the selection will still be good. Season-end clearance sales also offer up savings.
Baby clothes—Shop during your pregnancy for end-of-season clearance items. If it’s springtime and you are due in winter, look for winter closeout sales now for infant clothing.
Jewelry—Avoid the holidays, when you are most likely to pay full price.
Weddings
Wedding (general)—The off-season can mean big discounts. If you live in a cooler climate, you’ll find savings during the winter months. Hotter climates mean likely deals in summer months.
Wedding dresses—After Thanksgiving and before Christmas. Boutiques are stocked with gowns for Christmas engagements, but it’s a slow sales period.
Other
Toys—October and November offer good bargains as retailers gear up for the holiday season.
Wrapping paper—January, of course!
I might not ever be as good as my mom at bargain hunting, but knowing when to shop might make me almost as good. If you’re one to make resolutions every new year, resolve to save money and correcting your small errors by including a check on your free credit report to make a huge difference in your purchases in 2010 by timing your purchases.
If you found this helpful, don’t forget to follow Get Rich Slowly on Facebook and Twitter.
Investing isn’t new to me. I opened my first CD in high school back in the good old days of 5 percent interest, and I started contributing to my 401(k) as soon as I was eligible (at age 21). I did everything right according to the articles I read. I:
Contributed enough to get the maximum employer match
Saved/invested around 10 percent of my income
Opened up an IRA
Before I break my arm patting myself on the back, let me tell you that I made a huge error. I stopped too soon in my investing education. Instead of continuing to learn, I rested on my investing laurels — and who knows how much money I’ve lost out on because I forgot that no one cares more about my money than I do.
And my huge error led me to make many mistakes. For instance, I didn’t realize until (embarrassingly) recently that different funds in your 401(k) have different fees. Selecting funds with low fees can make a huge difference in returns. Or “buy and hold” is not the same as “buy and forget about it.” And then there’s the issue of investing and taxes.
But doing something (even if I didn’t evaluate or understand my choices) is better than nothing, right? So there I stayed, comfortable in my stinky 401(k), letting my financial adviser make fund recommendations for my IRA.
Until this year. This year, I vowed to tackle my investing fear and ignorance. I’ve been reading old posts on Get Rich Slowly, collecting a list of investing books I want to read and perusing investing websites. I’ve created this list (along with my impressions of each resource) to help me learn more about investing, and I hope it helps you, too. It’s not an exhaustive list, of course. Also, in the interest of full disclosure, I get no compensation for including any of these resources.
Get Rich Slowly Blog Posts
For new readers, I dug through the GRS archives to find some solid investing posts. I wanted the posts to highlight different investing strategies and philosophies. I’m sure I missed a few, but this should save you from poking around the Investing archives — at least a few minutes, anyway.
Dividend-paying stocks This is a fairly recent post, focusing on dividend-paying stocks.
Roth IRAs Here is a great post on Roth IRAs.
Developing an investment policy statement – Before starting to invest, analyze why you are investing. What’s the point? Figuring that out first will help you form an investing strategy.
How the stock market works – The day this post ran was the day I understood more about the stock market. Sure, things have changed since this 1952 video, but the basics are still the same.
DRIPs This post succinctly covers dividend reinvestment programs.
Mutual funds Here is a great introduction to mutual funds.
Index funds This post describes why many people (including J.D.) have most of their portfolios in index funds.
Bonds No list would be complete without mentioning bonds.
Mutual fund prospectus Part of becoming an educated investor involves understanding where your money is going. Here’s how to read (and understand) a mutual fund prospectus.
Books
Best books on investing – This post covers eight well-known investing books, but it’s missing some good ones.
One of the good ones it’s missing is Peter Lynch’s “One Up On Wall Street.” It’s old, but I like his focus on simplicity and buying what you know.
“Control Your Cash” by Greg McFarlane and Betty Kincaid is another favorite. This book actually covers all the usual financial topics (credit scores, buying a car and a house, taxes, etc.), but has a couple of chapters on investing and securities. What I like about this book is that it explains investing in a way that I can understand, using a writing style that is funny and still pertains to a wide variety of investors.
Other Blogs and Websites
Bite the Bullet Investing This just-launched blog appears to be created for the investing novice. Posts cover terms such as equity and return and topics like using other people’s money. Great if you’re just starting out.
SEC guide Use this guide to learn how to read financial statements. I think this is a very easy to understand set of terms.
The Oblivious Investor This site is organized well and Mike Piper writes clearly, without a lot of “fluff.” I found his information on index funds to be easy to understand. I haven’t checked out any of his books, but he’s written several on various topics. I think he appeals to a wide variety of investors.
Seeking Alpha This site has been mentioned several times in the comments of various GRS articles, so I thought it was worth checking out. It covers individual stocks and has some great articles. To read the entire article, you must register (though it’s free, I dislike the extra step). If you’re serious, it has a Pro subscription service in addition to the free information. I think there is some great information here, but it’s too advanced for me at this time.
The Motley Fool One of my favorite articles on the site is “13 steps to investing foolishly.” Like Seeking Alpha, they offer a premium subscription service along with their free information. This site has something for a range of investors. (GRS contributor Robert Brokamp is the Fool’s adviser for its Rule Your Retirement service.)
Morningstar has 172 free investment courses. Topics include “Investing for the long run” and “The magic of compounding.” Did I mention they were free?
Guide to Transparent Investing Frankly, I’m overwhelmed reading my own list. But if you pick anything from this list, please read this guide. Published in 2007, this 53-page discusses DIY financial planning, risk tolerance, and how to create a portfolio to minimize the bite of taxes. It explains fundamental concepts well and includes charts. I wish I’d read this guide years ago.
When doing a list like this, it’s so easy to miss lots of great resources. Which ones would you add?
Inside: Learn why you may want to drive a beater car. Plus find tips to make sure you are getting a good deal.
Okay, let’s preface with… my dad has been in the car industry for over 40 years. So, I have grown up in dealerships, car garages, and service centers. My friends call me an expert, but I prefer to just be helpful so they don’t overpay when buying or getting repairs done.
Now, that authority is established, let me help you understand the beater car mentality.
If you are looking for a cheap used car, but don’t know where to find one, check out this guide that will help you get started.
Buying a used car can be tricky. It’s not just about finding one that is inexpensive, but also getting the right size for you and your lifestyle.
There tends to be more mystery surrounding what it’s like buying a new car from the dealership than an old one from somewhere else.
The main reason is that usually, they do not disclose how much of the price tag is going towards depreciation. What happens when your brand-new vehicle goes through years worth of wear and tear? It depreciates at a staggering rate and you end up with the same old car that’s only worth what is left of it.
Did you notice that keyword in the last paragraph – depreciation!
For many who are choosing to lower their costs and pursing FIRE movement, they know that a brand new car will depreciate the most within the first five years.
In this article, I will be shedding some light on how to find a cheap used car in your area if you are shopping for one. Also, if you are maintaining a beater car, you will find the tips to make sure your car lasts many more years.
Driving a beater car is not a sign of being poor or reckless. You still need proper auto insurance to drive.
With this guide, you’ll find out which cars have what features and quality that will fit your needs and lifestyle. Now, let’s find a car with features that are important to get around town and save your wallet!
What Is a Beater Car?
A beater car is usually an older, higher-mileage vehicle that still runs and is legal to drive.
The term “beater” was coined because many of them have cosmetic damage and mismatched paint.
A beater car is rarely pretty but “gets the job” when it comes to getting you and yours from here to there.
What is the point of a beater car?
A beater car is a reliable and easy-to-fix car that is cheaper than a new car.
The point of a beater car is to save money and reduce the amount of maintenance that needs to be done on it.
It has little intrinsic value, & while not “easy on the eyes,” a beater car is generally a smart choice to wear into the ground.
There are many advantages to buying a used car, including insurance savings, tax breaks, and lower operational costs.
Beaters can also provide peace of mind because they are easier to repair if something does go wrong.
Should you drive beaters?
People are in different situations when they are buying cars.
The best customers for cheap cars are either first-time car buyers or people who have to save some cash to reach a financial goal they set in place.
On the other hand, if you like reliability, make income from your car, enjoy looking good, or do not know your way around a car, maybe you should skip a beaters car.
How Can You Recognize a Beater Car?
A beater car is a car that is older and cheaper than other cars in its class. It may also have high mileage or corrosion on the body. You can look for these signs to help you identify a beater car.
More than likely, they will be easy to spot. Many common ones include Honda, Toyota, and Suburu. Those are the engines that can keep on running!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Is a Beater Car Worth It?
Well, there are two sides to the coin on this one. So, we will present both arguments first.
Definitely Worth It
Simply put, a beater car is one that doesn’t cost a lot of cash. You can find reliable and affordable beaters if you know where to look. In most cases, the best way to find a cheap used car is by checking out local classified ads or online listings.
Beater cars are a great way to save money on all sorts of fronts.
For starters, they’re cheaper to buy than most other cars. Additionally, used cars can help with taxes, insurance, and maintenance costs.
In short, a cheap car is a great way to get around while keeping your expenses low.
Um, Hello – No!
A beater car is not worth it. There are many reasons why you should not buy a beat-up vehicle. The first reason is that they are cheap, and the owner will most likely not take care of them properly. Not only will the car need repairs, but you could also have to buy a new one.
Didn’t you know that you can lease a vehicle for next-to-nothing with a low-interest rate? (p.s. don’t fall for that line. Leasing a car is the worst thing you can do financially. That is a post for another day on leasing vs buying a car.)
All in all, it depends on what you need and what you can afford at the moment. For many, the answer to this question is yes, but only if you are looking for a cheap car.
What is the price of a beater car?
A used car is a vehicle that has been previously owned, so it has depreciated in value.
The price of a beater car is difficult to determine and varies depending on the quality of the vehicle, its condition, and what it might have been used for. Typically, you can find a solid mechanical vehicle for around $5000.
You can always check against the KBB price and run the VIN to check its reported history.
Beater Car Benefits:
The benefits of a beat-up car are listed here. Many people are proud of their vehicles and proudly want to be a part of the 200k miles club.
They include the opportunity to drive around with no maintenance, the ability to use it for parts, and the freedom from monthly payments.
A used car is cheaper upfront than a new car.
Cheaper on insurance. Beater cars require minimum coverage, so they’re cost-effective for monthly expenses.
A beater car is cheaper on gas (this is true for sedans; not so much for SUVs or trucks.)
The car will retain its value and not depreciate much more.
The car can still be sold for what was paid for it, as long as it is in the same condition.
Now, let’s dive a little deeper into each of these.
#1. Cheap Price
One reason to prefer a cheap car is because of the low price point.
For the first time ever, the price of a new car tops $47000 – an all-time high (source). That is a whole lot of money especially when it loses most of its premium in the five years.
Driving a beater may not feel as luxurious as driving a newer car, but the cheap price point lets you save money.
#2. No Car Payments
There are many benefits to not having car payments.
One of the most obvious is that you save money. In addition, not having car payments can also reduce stress and anxiety levels, because you’re not as tied down to a monthly payment.
It is not normal to have a car payment your whole life. That lifestyle will cost you a fortune with lifestyle creep.
#3. Cheaper Gas
Old and beaten-down cars that don’t require premium fuel will be heaven for your wallet, saving you hundreds, maybe even thousands of dollars per year.
Gas prices vary throughout the day, so drivers should plan their trips around the cheapest prices. In addition, using a cheap car can save you money on gas in the long run.
#4. Cheaper Parts
First of all, you need to find a reliable mechanic or be able to do some of the work by yourself.
In addition to being cheaper, older car parts are also easier to find. Car parts are still available from common car manufacturers, so you don’t have to go through a premium supplier to get what you need.
Additionally, the older vehicles do not have the fancy chips like the newer cars that make the cost of parts increase and the difficulty of getting those types of parts.
#5. Minimum Insurance Coverage
Buying a used car saves money on car insurance.
You only need to meet the minimum insurance requirements of your state, and you don’t have to worry about finance companies taking out full coverage collision and comprehensive insurance.
However, you may want comprehensive coverage if the cost is minimal compared to replacing the car. For instance, if you pay an additional $50 per year for full comprehensive coverage that will give you the $5k worth of your car back if something happens. That may be worth the extra cost.
Plus driving a car with a lower resale value can help save on vehicle taxes.
#6. Less Depreciation
Older cars have already depreciated in value over the years, so they aren’t going to lose much more during the period of your ownership.
Plus if the engine gives out, you can always sell it for scraps and parts at the local junkyard. That will help you recoup costs for another one.
Remember, you wipe away value from your brand new car once you drive off the dealer’s lot (source). This is a hot debate on whether your car is an asset or liability.
#7. More Freedom
When you are not bogged down by expenses of maintaining a high-value car, you have more freedom.
This is more freedom in your budget and more time freedom as you don’t have to work hard to pay for your mode of transportation.
Think about it… if you invested $500 a month for seven years at the average rate of return of 8%, you would have accumulated $55,000. Compounding interest will do amazing things for your net worth.
Beater Car Downsides:
Saving money is the biggest benefit of buying a used car.
Beater cars are potentially less safe than modern cars.
Long-distance car rides might not be possible with a cheap car
Downsides to having a good beater car include the possibility of breaking down and being far away from home if needed.
Possible more maintenance.
There is more risk. You don’t want to gamble.
#1. Less Safety
Cars from before the 2000s don’t have the same crashworthiness as newer cars.
This is a factor that you cannot deny and a serious factor when considering your purchase.
In a collision, they are more likely to sustain damage and injure the passengers inside.
#2. Low Probability of Longer Trips
These are great for commuting around town and getting you to and from.
However, there is a low probability you want to use them on longer trips.
Given there are many things that could go wrong, you don’t want to break down far from home or even a nearby city where you can get repairs done.
You don’t anticipate needing to take this car on long trips in the near future because there is a low probability of needing to take it on longer trips. This is due, in part, to the fact that it doesn’t have great gas mileage and you don’t think you’ll need to use it for long distances.
#3 – Higher Maintancence Costs
You always need a sinking fund for repairs when you own a beater. Period.
You are one drive away from something going out and needing to be repaired.
Also, you need to find a quality mechanic that thrives on keeping older ones running without nickel and diming you along the way.
You cannot use a dealership service center to maintain your baby.
Which Are the Best Beater Cars?
The best beater cars are cars that are cheap, have low mileage, and are easy to repair. The cars are great to use as a daily driver, but they are not ideal for long distances.
Cheap cars can be a good option for car buyers on a tight budget or for young drivers.
There are many reasons to consider buying a used car over a new car, but the decision ultimately depends on the buyer’s needs and preferences
What are some good beater cars?
These reliable beater cars can be a great way to save money on car buying.
Some of the better cars to choose from that would make for a great beater include Toyota Corolla, Honda Accord, and Honda Civic.
They are old, but still in pretty decent shape. All in all, you want to look for one that is very well maintained and highly cared for. The ones sitting in your grandparent’s garages that were hardly driven and immaculately maintained.
What to Check Before Buying a Beater Car
The best way to ensure that you’re buying a good quality car is to do some research and make sure you know your facts.
All dealers are not created equal, so it’s important to check out what other people are saying about the dealer. Also, make sure that the car you’re buying is in good condition and has a clean title.
Many times, a beater is a car that is used to transport things such as furniture, trees, etc. Sometimes they are usually not very well maintained and maybe not very well cared for.
However, a used car can still be a good car for someone who is looking for a cheap car and does not care about the condition of the car.
Specifics to Look For:
Low mileage
Consider the brand/model
Fuel economy
Exterior and interior condition
Reliability
Maintenance history
Number of owners
Number of accidents
Anything rebuilt like the engine
For example, one of the Toyota Corollas I owed was older but had a new engine installed. Thus, the value of the Corolla was higher as the engine had minimal miles on it.
In fact, here is a picture of it… doesn’t look like a junker right?!?!
Questions to Ask Yourself:
Before buying a used car, you should check the following:
Is it in good shape?
On the engine, is it manual or automatic?
Is it the right size for your needs?
Does it have enough power?
Does it have enough room?
Is it reliable?
Is it comfortable?
Easy to drive?
Is it safe?
How to Buy a Beater Car
When buying a beater car, you should check the following things:
1. Finding One to Buy
Many times, this will be the hardest part. Sometimes, the easiest if someone needs to get rid of one quickly.
Try buying a beater car from friends or family.
The next place to check is your mechanic. Remember, they are your best friends in this process and always know the movement of these types of cars.
Also, you can check online – Facebook Marketplace, NextDoor and Craigslist are great options but follow your instincts.
Lastly, you can try a local dealership. However, be very careful as you don’t want to be scammed or pay more than the car is worth.
2. Check the VIN Number
VIN stands for Vehicle Identification Number. A VIN is a serial number that identifies the make, model, and vehicle type of a motor vehicle.
The VIN number is a unique identifier for a car that can be used to learn about the car’s history and identity. The number is usually 17 characters long and contains both numbers and letters. It can be found on the dashboard, driver’s side door, or engine of the car.
More importantly, it can be used to learn about the car’s history and identity, including its make, model, year of manufacture, and more. Even if the car was stolen.
3. Look at Mileage
Beaters usually have high mileage, but how high is too high?
Do your research for what could be a red flag. Look up how the specific make and model you’re considering holds up in high mileage.
In this regard, lower is better, although beaters will generally have higher mileage than a newer used car. Look for beaters with 80,000 to 150,000 miles on the odometer, but don’t go over 150k miles. You want to drive it into the 200k mile club, right?
4. Run the Auto History Report
You want detailed information on a car’s history, including maintenance and repair records. This can be helpful in determining whether or not a car has been well taken care of. If a car has had many owners in a short period of time, it may be an indication that the car was neglected.
The VIN number (vehicle identification number) helps you obtain a vehicle history report by running through a service, like CARFAX. Companies like VINCheck.info and AutoCheck provide vehicle history information, too.
A good indication that a car may have been neglected or doesn’t run well is the fact that it has had many owners in a short period of time.
5. Checked by Your Own Mechanic
If you haven’t figured it out by now, a trusted mechanic is a must!
Before agreeing to the purchase, you must have the vehicle independently audited by your own mechanic. This may come at a small cost, but it is better to know the condition of the mechanical systems before you purchase.
Also, your mechanic can tell you what you should pay for it as well as any outstanding repairs or maintenance that needs to be done.
6. Passed State Inspection
When buying a car, it is important that it passes state inspection. If it doesn’t, you may end up spending more cash on repairs and/or fines.
You can ask for the last inspection report. If it has been more than a year, it is worth testing it again.
In any case, you don’t want to buy a car only to have it break down on you soon after.
7. Take it for a Test Drive
When you’re looking to buy a used car, it’s important that you take it for a test drive. This allows you to listen to any loud noises and also gives you a chance to feel the car out.
If something doesn’t feel right, then it’s probably not the right car for you.
When you’re looking to buy a used car, it’s important that the seller allows you to take the car to a mechanic for a test drive. If they don’t, it’s probably because they’re trying to hide something and it’s best to move on.
Fixing a Beater Car:
The best option for fixing a beater car is always to do the repair yourself. This will save your finances and allow you to learn more about how your car works. There are a variety of resources available online that can help you with this process, including videos, articles, and forums.
If you find a car with engine problems, you will need to consult a mechanic. The problem may be something simple that is quick fixes with a tune-up, or it may be more serious.
If the cost of repairing a used car is almost as much as what you paid for the car, then it may be time to move on.
Selling a Beater Car:
The process is very similar to buying it except now you are the seller!
The same places you would look for one would be the same places you would sell it – friends, NextDoor, Craigslist, mechanic, or Facebook Marketplace.
You might even be able to get some cash for your beater car by trading it in at a dealership. The dealership will likely give you less than if you had sold the car to a private party, but it’s better than nothing. However, some dealerships have pretty awesome trade-in policies to get you in a new and more expensive ride!
Reasons NOT to Buy a Beater Car
The most common reasons not to buy a used car are that they are very expensive to fix, impractical in terms of fuel efficiency, and require more time and effort than expected.
However, those of us who have owned older sedans, SUVs, or trucks know the significant savings associated with it and get many weird looks for others.
Top 10 Reasons NOT to Buy a Beater Car:
You want/need a good-looking car.
High reliability is a priority.
You are a one-car family.
You will lose your mind trying to fix it.
It’s going to break down and you’ll be stranded somewhere, losing money.
You will have to get a new car eventually anyway.
It’ll cost you more money in the long run because it’s not worth fixing up and selling later on.
You won’t be able to sell it for what you paid because it’s too beat up.
You think leasing a car is a better deal.
Deep down, you think a car payment is normal.
Is an Older Beater Car an Issue for You?
Beater cars can be a good option for people who want to save money on their car costs.
There are many advantages of a cheaper car including avoiding car loans and down payments, cheaper gas, and minimal insurance requirements. Plus used cars have already lost much of their value and are a better investment.
Maybe a full one beater isn’t right for you, but maybe a seven-year-old minivan with 85,000 miles is perfect.
In all honestly, people who are looking for a cheap car should consider buying an inexpensive car instead of a luxury car.
Now, I want to hear your favorite stories about your precious gem and how many miles it lasted…
Know someone else that needs this, too? Then, please share!!
According to the Motley Fool, the average American family has $7,630 in credit card debt, $11,244 in student loans, $8,163 in car loans, and $70,322 on a mortgage.
However, before you think the above amounts seem low, these figures include those who don’t have any debt. So, for example, when you only factor in those who actually have a credit card balance, the average amount shoots up to over $15,000.
All of the above shows that the average family has a lot of debt.
You’re different, though. If you’re reading this post, you are either close to paying off your debt or already have.
Paying off your debt, whether it be from credit cards, student loans, a mortgage, or something else, is an exciting time. A person works extremely hard and sacrifices many things in order to beat the “norm.”
But, what’s next?
Many don’t think about what to do after they pay off their debt. This can be a mistake and may even lead to someone falling back into debt.
As everyone probably knows, debt is easy to fall into, and that’s the last thing anyone wants after they have worked so hard to pay it all off. Here are my tips for life, after paying off your debt.
Carefully celebrate your debt-free life.
I recently heard about someone who paid off their debt and then threw a HUGE party to celebrate. This person bought drinks for everyone, had a caterer, and more.
I can only imagine how much this newly debt-free person had to pay for this kind of celebration and whether or not it put them back into debt. For some, this may be a fun way to celebrate, but it’s definitely not for everyone.
There are plenty of ways to commemorate your new, debt-free life. You don’t need to spend a ton of cash, or go back into debt to celebrate.
Here are several examples of how you can celebrate your new, debt-free life:
Throw a frugal potluck. Just as much fun as a catered party!
Have a nice family dinner at your favorite restaurant.
Pay for a fun experience with cash that you’ve saved up, such as a vacation, skydiving, a visit to a theme park, or something else.
Do a debt-free dance.
Scream “I’M DEBT-FREE!”
Think about getting rid of your credit card.
If you fell into credit card debt but still have a credit card, you may want to think about getting rid of your credit card completely.
While there are many benefits of having a credit card, there are negatives as well. For some, credit cards can easily lead to racking up more debt.
You should carefully examine your credit card behaviors and decide if having one causes you to spend more money. You may not truly need one.
The last thing you want right now is to fall back into your old spending habits and go back into debt!
Start an emergency fund.
Only 40% of families have enough in savings to cover three months of expenses, and even fewer families have the usually recommended six months worth of savings.
The percentage of people who have emergency funds while in debt is even lower. Many of those paying off debt don’t have emergency funds whatsoever, or they just have very small ones.
Well, now that you don’t have debt, you should focus on building an emergency fund.
These are just a few of the many reasons why.
An emergency fund is there to ensure you don’t fall back into debt due to unexpected expenses.
It can help you if you lose your job.
It is wise to have one if you have a high-deductible health insurance plan.
It is a good idea to have an emergency fund if you have a car. Your car may need a repair, get totaled, or some other unpredictable expense may occur.
It is necessary if you own a home. We all know, one of the lucky things homeowners often get to deal with are unexpected home repairs.
Emergency funds are always helpful to have, because they offer peace of mind if anything costly was to happen in your life. Instead of building onto your stress, you will know you can afford to pay your bills and focus on more important things.
Related: Everything You Need To Know About Emergency Funds
Keep your budget.
After you pay off your debt, you may want to get rid of your budget, as you probably have a little extra cash. However, right now is the perfect time to keep budgeting.
This wiggle room may have you tempted to spend all of this extra cash, but now is the time to be smart and think of something useful to do with it.
I recommend putting this extra cash towards a new financial goal of yours, such as one listed below.
Work towards a new financial goal.
Just because you’ve paid off your debt doesn’t mean you are done with your finances. Right now is the ideal time to start a new financial goal, because you are likely very motivated after finishing your debt payoff goal.
If you haven’t already, there are many other financial goals you may want to start working towards. These include possibly saving for:
Retirement.
An emergency fund.
Travel.
Starting a family.
Buying a home.
Buying a car.
Have you ever fallen back into debt? What happened? How much debt do you currently have?
Today’s post is all about the best car buying tips so that you can save money when buying a car.
Not all car dealerships and car salesmen are bad. I know this for a fact because my husband used to be a new car salesman (and he was nice! I promise!). My husband knows all about the flack that salesmen get.
Despite the reputation car salesmen get, the car buying process is not perfect either.
Whether you are purchasing a new or used vehicle, there are several car buying tips and tricks you should know of so that you can walk away with the best deal possible. There are so many options and extras that come up when buying a car, which means there are many ways for you to end up leaving confused or paying more than you should be.
Whether you are buying a $500 car or a $50,000 one, you want to get the best deal possible. To make sure you don’t walk away from a deal angry or regretful, it’s important to be as knowledgeable as possible.
According to Edmunds.com, the average person in the U.S. spends $483 on a new car payment and $361 on a used car payment.
That’s a lot of money, which can leave a lot of room for mistakes and overpayment.
Before we begin, I want to tell you about several ways that car dealerships make their money. These are things you will want to be mindful of:
Your trade-in vehicle. To make a profit on your used car, they will want to offer you less money than they can sell it for. Of course, this is normal, but you want to be mindful of this so that you can get the most money out of your trade-in vehicle.
Incentives and bonuses from the car manufacturer. This means that if you can buy a car when a dealership hasn’t reached their selling quota, you may be able to get a great deal on your car purchase. Many times car dealerships will take a loss on the vehicle if it means that they will be able to reach their quota.
Financing the vehicle. Dealerships make money when you finance vehicles through them.
Extra options, such as an extended warranty.
Buying a new car can be fun and stressful at the same time. You don’t want to get tricked or duped, so here are car buying tips and tricks before you start shopping!
The best car buying tips:
Don’t just think about the monthly payment.
The most important car buying tip I can offer in this blog post is that you should not just care about the monthly payment.
You should only purchase what you can actually afford. Just because the monthly car payment looks affordable, it doesn’t mean that it actually is.
There are car payment terms that are as long as 96 months, which is just crazy to me. A car salesperson may stretch out the car payment so that it looks to be more affordable for you, but you should be aware of the whole cost, which includes things like interest and taxes.
Please, please, please, look at the whole cost and see if that’s actually an affordable amount for you to be paying.
Shop around for your own financing.
If you have to finance your car purchase, make sure you shop around before you agree to the dealer’s interest rate. Sometimes the dealer has the lowest rate, but sometimes they don’t.
You may be able to save yourself hundreds of dollars a year by simply shopping around. Plus, it’s extremely easy to shop around for the best interest rates – start with local credit unions and banks!
Go to a few car dealerships.
You can shop around car dealerships both online and offline.
I recommend shopping online before you go to a dealership, this way you can be prepared by learning as much as possible in advance. You also won’t be wasting your time at car dealerships that can’t get down to the price you want.
Don’t add small and unnecessary extras at the end of your purchase.
When you are about to purchase a car, you will be encouraged to buy many small options that you may not need. This may include extras such as:
Tire replacement
Paint protection
Extended warranties
While you may believe that you need some of the above options, you should make sure that you’re not just thinking about the monthly cost. The financing manager will offer you these extras in a way that makes it seem affordable. But, these extras only appear inexpensive because they are padded into your monthly cost, so don’t be fooled by how “affordable” they seem.
Yeah, $1 or $5 each month may not seem like much, but it can add up to a lot over a 5 year period!
Trust me, you are paying for these, and it’s not just a good deal that you are getting.
Related: 30+ Ways To Save Money Each Month
Determine how much your trade-in is worth.
If you have a trade-in vehicle, you should figure out how much it is worth before you step foot into a car dealership.
Kelley Blue Book is a great resource for doing this. While you may not get the exact amount that Kelley Blue Book claims you will get, it can be a good estimator or starting point when negotiating with the car dealership.
Know the right time to go.
There are certain times of the month and year that are better for car shopping than others. If a dealership is trying to meet their sales quota, they are more likely to give you a deal than when they’ve already beat their quota or if it’s the beginning of their quota.
This is because car manufacturers will give bonuses and extra incentives to car dealerships who sell a certain amount of vehicles. This gives car dealerships extra motivation to give really good deals if they are close to their quota.
I know someone who was able to lease a brand new car for just $70 per month, with no money down, because a car dealership needed to meet their quota. They got one heck of a deal!
To know the best time to go, you may want to make friends with a car salesperson, find out when their end of month or end of quarter is, and so on. Or, you could just ask. My husband would always tell people when the best time to buy was and would even call them, but many people did not believe him. If they only knew!
Don’t be afraid to negotiate.
Even if you get a discount, such as a car manufacturer discount, you should still negotiate. Many times, those friends and family discounts mean that you are not able to haggle at all, which can lead to you actually paying a higher price.
Cars sales are meant to be negotiated, whether it is a brand new vehicle or a used one. If you don’t haggle, you will most likely lose out on a lot of money, because negotiating is expected.
Other aspects of the vehicle buying process can be haggled on as well, this includes your trade-in vehicle, warranties, interest rates, add-ons, and more.
Learn more about negotiating at How To Rock At Negotiating On Everything.
Be nice.
No matter what, you should be a decent human being.
Being rude won’t get you the best deal, instead it may make the salesperson and the dealership not want to help you. After you purchase a car you are asked to go through the car manufacturer to grade your car salesperson. If the salesperson knows that you might give them a bad grade, they may not want your deal because it’s not worthwhile to them to have a bad score (which decreases their salary/income).
Plus, you should always be nice anyways. Salespeople are just doing their job and trying to make a living, and the majority of them are good people.
Miscellaneous car buying tips and tricks.
Here are several other car buying tips and tricks:
Never shop when you’re hungry or tired. You should always be well-rested and ready for an eventful day.
For the car dealership to beat their quota, sometimes they will buy a new car themselves and put it on the “used” car dealership side. The car is still brand new, but is now considered pre-owned. This can allow you to save a good deal of money. However, you do want to be mindful of the warranty, because the warranty has most likely started once the car was officially bought the first time (by the car dealership).
Purchase a car at the end of the car’s model year. Dealerships want to move out last year’s model to make room for the new ones, which can lead to a good discount.
Look into car insurance rates before you purchase. You may want to contact your car insurance agent so that you are not surprised by a high insurance rate after you make a purchase.
Don’t tell the salesperson what your budget is for a monthly payment. You should always negotiate on price first. A dealership will try to get you into something that will just barely fit your monthly payment budget, which can cause you to spend a lot more money in the long run.
Be confident. When negotiating, you should always be confident in what you are saying, and do not be afraid to walk away. If it’s not meant to be, then it’s just not.
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What other car buying tips and tricks do you know of? Share in the comments below!