Money Saving Articles

After several years of my husband listening to me talk about posts, deals, and all things money saving, I offered my husband the opportunity to do a post himself!  I tossed out the idea about car payments and he took me up on it.  Read up on his thoughts and facts regarding the true costs of auto loan payments.  Maybe you’ll re-consider an auto purchase with a loan the next time you are in the market or have the “itch” to by that new ride.

Many of us have gotten that itch to have that first brand new car (or truck as in my case).  Yes I’m a truck guy, love my trucks.  I’ve had four trucks.  Quite frankly I’ve borrowed money to pay for three of these trucks.  One I bought for $2,500 cash, and then spent a lot repairing it, got tired of repairs and thought I needed a new one that didn’t need repairs.  Oh and that new truck needed to be an extended cab for more seating room.

That was November 1996. On a whim, I saw a new extended cab on sale in the newspaper.  So I drove my little Toyota to a GM dealership and asked how much can I get for a trade-in.  He told me $1,600.  My heart sank.  I had spent over $2,500 on that Toyota in repairs alone in one year, plus what I paid for it.  And they tell me they’ll give me $1,600 like they are doing me a favor.  Seriously?  So with some reluctance and excitement, I traded my Toy for a brand new GMC extended cab.  It cost something like $16,995 and I went to the bank and borrowed the money.  Yes I remember my 60-month payment being about $315/month.  It didn’t occur to me at the time, but looking back, I paid about $3,500 in interest over the term of the loan. That’s a lot of dough. And you wonder why banker owners are wealthy?

The vast majority of American’s finance their auto purchases and we love our automobiles.  I am not sure whether we American’s love car payments more than our cars?  So what if I had driven my Toyota a little longer and saved some money to buy another truck for cash?  Maybe I could not have purchased a brand new one, but with cash I could have bought a used extended cab for $9,000.  What if I had invested the $3,500 in interest I paid in a growth and income mutual fund over five years at a 9% average return?  I would have made $1,623.63 in interest plus got my original $3,500 investment back.  Let’s not forget to that almost all cars and trucks go down in value over time, they need repairs, they are not an investment. Automobiles are a money pit!  But yet almost all of us need one to function in modern society, there is no getting around that.

Automobile loans are one of the largest impediments to financial freedom in our American culture.  We are told by the car industry that “we’ll get you financed – no money down”.  Folks here is the deal, a couple of points to remember:

First, repair what you own, as most of the time it’s much cheaper to fix an auto than to take on the costs of a loan.  If you have some mechanical skills and tools, fix your car on your own within reason.

Second, if you need a new car or truck, buy what you can afford with cash what meets your needs (not wants).  For most people, a used vehicle will suffice.  Today’s cars and trucks can be driven literally hundreds of thousands of miles without major mechanical repairs if they are maintained properly.  Don’t be lulled into thinking you need a new vehicle after your current one turns over 100,000 miles.  My current truck is a 1999 model with 206,000 miles on it and it still runs and drives fine.  It’s got rust, but it’s paid for and the personal property taxes are much cheaper due to its age.

And third, when in the market for another vehicle, don’t get impulsive.  There are plenty of used vehicles on the market, there is no shortage.

Take your time in shopping.  A vehicle is the second largest purchase most people make in their lifetime next to a home purchase.

When it comes to Mother’s Day, many worry about what will make that perfect gift for Mom.  For many of us, the perfect gift seems like it would be out of our budget.  However, that is not true.  The truth is, most moms would be happy with the simplest gift.  I received this last year (and honestly, am crossing my fingers to get the same one this year).

My daughter baked me a cake and decorated it.  She put her heart and soul into it.  The smile on her face when she presented it to me was worth more than all of the diamonds and jewels in the world.   All 3 of my kids each made me a card.  The spelling was wrong and I could not read some of the letters, but I fell in love with each one of them (and still have them in my drawer).

In fact, the best gifts I ever receive are the ones that are free and from the heart.  Those gifts are priceless, but yet, hold the most meanings in our hearts.  Don’t rush out to spend a lot of money on mom this year – give a gift from the heart – it is free!

Find this entry and other great Mother’s Day Tips at Nerd Wallet!

If you look around your house and feel like you have more stuff than space, you might consider donating your items to just clear out the clutter.  Why not turn those “treasures” into cash?  After all “One Man’s Trash is Another Man’s Treasure.”

However, before you just throw everything onto a table or your driveway, there is some prep work that you need to do. I am actually having one here next week and have begun my work. So, I will start to make some posts about what I am doing to get ready, so that you can have a successful sale yourself!

1. Pick the right day and time. This all depends upon where you live. In my area, Friday nights and Saturday mornings are the best times for sales. For other regions, it my be a Wednesday. You can easily look in your local newspaper for listings to see what is the norm for you.

As far as the time of day and length to run your sale – that is really personal preference. However, if you are going to have it on a weekday, try to run it into the evening so that you can catch those people who have to work as well.

2. See if you can have a neighborhood sale. Many times, when you can post a neighborhood or subdivision sale, you can have a larger draw, as people know that they can drive to one area and hit several sales.

If you are participating in one of these, I recommend a Seller’s List. This is where each household participating provides their address and the types of items they have for sale. It would be available at the entrance of your neighborhood – by the signs – for people to grab to see where they may want to go shopping.

Example:

123 Main: Kids’ items, furniture, housewares, misc.
125 Main: Tools, sporting goods, linens, misc.

3. Organize your items for display – and do so neatly. If you walk up to a sale and everything is literally thrown onto a table and you can’t even see what is for sale, more than likely, you will turn and walk away. Taking the extra time to have several tables and items split out can yield you even more money.

I have the following tables/locations for my sale: Home Decor, Electronics, Housewares, Linens, Toys, Baby Items. They are all on their own tables and set up nicely on the table so that my customer can easily see what I am selling.

Another plus of having a nice display is more appeal. It comes across to the buyer that you take pride in your items you are selling, showing that you took care of them when you own them.

4. Make sure your items are clean. When you are pulling your items out to set on your tables, be sure it is clean. Nothing is worse than picking up a plate with food on it, or a picture covered in dust. Just taking a few minutes to wipe the dirt off of something, or wipe down the smudges can earn you a little extra money.

5. Launder and fold/hang clothing items. If you are selling clothing, be sure to take the time to launder everything before you sell it. Would you really want to purchase a coat that you can tell a 2 year old enjoyed his chocolate ice cream cone before Mom put it up for sale? Probably not. However, if it was clean, you may have more interest.

I take the time to wash and fold all of my items. I display them nicely on a table and fold and sort according to size. This makes it very easy for my buyers to find what they are looking for. Plus, it is clean and they are more willing to purchase.

As far as outfits go, I take the extra time and press everything. I know, ironing is NOT fun. However, a nicely pressed outfit could bring you $1-$2 more. So, it is worth it.

I also HIGHLY recommend to hang outfits. This helps you in more than one way.

ONE: It helps your customers to look through all of your items without rummaging through a table resulting in a mound of wrinkled clothes.

TWO: It can increase the value of the outfit. By hanging an outfit all on on hanger or grouped, it makes it worth more to the buyer. It also helps you as all items are already together at the time of the sale and you aren’t looking over 3 tables trying to find the matching hat or socks.

THREE: People feel like they are shopping in a store rather than a garage sale.

6. Clearly mark all items with a price tag or use signage. While you may be willing to negotiate your price, having your entire sale marked “Make Me An Offer” can turn many people away. Most need to know what you are asking.  If you hang a few “We Negotiate” signs, then people will see you are asking $10 for that side table, but know that you may be willing to wiggle a little on the price.

If you are not sure what to price things, you can go and check out Ebay or Craigslist so that you can be sure you are asking a fair price for your items. Just be sure you don’t under price your stuff!

7. Advertise your sale with signs. Be sure to set up signs with directional arrows to help guide people to your sale. I recommend to start with a larger one at the busiest intersection closest to your house and then set them up every so often to help guide people to your sale. If you don’t advertise, people can’t find you. I even will put one in my yard so that it helps to just really draw people in.

8. Don’t forget your change (and accept cash only). Be sure that you have enough ones, fives, quarter, etc. so that you can make proper change for your customer’s purchases. I usually get $75 – $100 in change to have handy. But I do NOT put it all into my container at once. I keep the additional change in the house and as I run short of any denomination, I can just run in and get what I need.

I also recommend to keep your money in a cash box or even a carpenter’s apron. Never let it sit in the open as it is just too tempting for the wrong person to grab it and run.  Another recommendation I have is that when you start to get a large sum in your box, take some of it into your house so that you don’t have as much available for others to see. Even the person who seems harmless could try to grab and go, leaving you hanging.

Make sure you accept cash only.  You don’t want to deal with potential returned check charges.  You should also be wary of large bills as you don’t want to end up being paid with counterfeit bills!   If someone is making a very large purchase, I will have them make a deposit on the item and they can go and get the cash and then come and complete the transaction.  That way, if they say they want it (and then I don’t sell it) and they never return – I don’t miss out on a potential sale with another customer.

9. Be ready to start when you say you will. When you advertise your sale will begin at 8:00 a.m., be ready to open your doors BY that time. Many times, people arrive early so that they can find the best deals and if you don’t open on time, you could lose someone who is willing to part with many of your “treasures.”

10. Don’t be married to your prices. Be willing to talk with someone about the price of an item. Always know how much you MUST get (or really WANT to get for the item) so that you know how low you are willing to go. That way, you have wiggle room and come across as someone who is willing to wheel and deal with people.

The last few hours of your sale is a GREAT time to help get rid of those last piles of junk that you really don’t want to have to box up to cart away. I will offer a 50% off all marked prices deal during the last 1 – 1 1/2 hours of my sale. It is amazing what you can unload when you say that it is marked down….even something that someone can pay .25 for vs. .50 is a deal to many and after all, .25 in your pocket is more than you’ll get to have to get rid of it later on.

Hopefully you are all set and ready to make your sale a success.  Oh – and don’t forget about the most important detail — What are you going to DO with all your new found money!??!