Money Talk With Slater

Making Money Across the Board

Slater Bakh

Published: 85 articles

How to Save Up for a New Car (Part II)

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The safety features of a car are one of the main priorities when considering which car to buy.

Consider Safety and Fuel Economy

We should all be concerned about car safety. But, parents of young children must be completely informed about safety. You can see safety records online. Also, you can find out which auto models are most and least often stolen, which can alter insurance costs.

Fuel mileage is vital to most consumers. Though, since so many folks want vehicles that are more budget-friendly to drive, models with high gas mileage usually are high though they could retain value better than less fuel-efficient models as well. If you drive 20,000 miles per year, you can save around $2,000 per year on fuel costs by picking a vehicle that gets 35 miles per gallon compared to one that earns about 20 miles per gallon.

Insurance Costs

A new vehicle costs more to insure than the same model used. With new cars, you’ll pay more for collision and comprehensive parts of your insurance policy. Many folks forego this coverage on old “beater” cars, where the cost of coverage is greater than the payout for these repairs, but for new cars and newer used cars, you ought to have both comprehensive and collision coverage in addition to liability coverage.

Cars with low theft rates and good safety records tend to keep insurance costs lower. But insurance costs differ according to other factors than just the model, make, and year. For instance, folks in different cities, and folks in different neighborhoods within the same city might have different insurance rates on the same vehicle.

Budgeting for a Car

There are numerous things you can do to make it easier to pay for your vehicle. If you plan on trading in, think about selling the car yourself and using that money toward the cost of the new automobile. Selling directly usually gets you more than you would with a trade-in. Using a budget app lets you make progress quicker by establishing better saving and spending habits.

 

How to Save Up for a New Car (Part I)

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Cars come with a hefty price tag.

Cars are costly. According to research, the average cost for a new automobile was over $31,000. And used car prices are costly too. Research predicts the average used the car up to eight years old costs over $15,000.

In fact, after rent or mortgage payments, car loan payments are the next largest monthly budget item, so it’s vital that you understand how much for a vehicle you can truly afford and shop appropriately.

The cost of a car is just the baseline. Also, you will need to figure in insurance costs, sales tax, registration fees, and finance charges if you cannot save up and pay cash for a vehicle.

If you’re purchasing new, your warranty has to cover numerous big repairs for three years or so, but it won’t cover maintenance such as a new battery, oil changes or new tires or windshield wipers. With numerous used cars, you won’t get a warranty. You must be confident that the model you pick will have low-cost repair costs. Use a budget app to budget for a vehicle.

Car Loans

If you can save up to pay for an automobile with cash, you won’t pay finance charges and you won’t have a car payment every month. Though, most folks have to borrow to buy a vehicle. Even if you plan to get a car loan, you should use a budget app to help you incorporate the cost of the car into your monthly budget.

If you have a car loan, it’s solid if you can make a 20% down payment. If you can’t do 20%, you should possibly think about getting a cheaper car, or wait until you can put 20% down. A down payment under 20% puts you at a big risk of becoming “upside-down” on your car loan, where you owe more than the vehicle is worth.

What is the Difference Between a Broker and a Direct Lender (Part II)?

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Direct lenders may be a better option if you are looking for a house out of state since they have a nationwide license. 

Why Should I Work with A Direct Lender?

Working with a direct lender has many advantages. Interest costs and rates are typically a little lower with a direct lender than they are with a mortgage broker. While pricing differs somewhat between mortgage brokers and lenders, the devotion, knowledge, and expertise of seasoned a mortgage loan originator are crucial.

Here are another couple of reasons why you might consider partnering with a direct lender.

Speed – Since procedures are entirely in-house – from processing to underwriting to funding, they can usually close loans very swiftly.

Licensing – numerous big lenders have nationwide licensing, so they can help clients all over the whole nation. So, if you’re looking at out-of-state houses, they can assist.

Also, customer service plays a huge role when selecting a company to work with. Be sure they have a positive reputation. The home loan process necessitates a mortgage expert with plenty of experience, great communication, and great customer service.

The mortgage marketplace is a busy place. It’s natural to have questions about how it all works, particularly with hundreds of new apps, websites, and technology. Lots of businesses and entities claim to have the best solution when it comes to financing, but it’s critical to be able to tell the difference between these types of institutions.

Mortgage lenders have certain lender licenses. There are a couple of types of lenders, for instance, correspondent lenders or conduit lenders who serve as a broker-lender hybrid, closing and funding the loan or very quickly selling the loan to a direct lender.

Direct lenders have the money to fund mortgage loans. In some instances, they will use lines of credit. Also, direct lenders may hold on to and service some of the loans they originate. Or, they may securitize or sell them in the secondary mortgage market.

What is the Difference Between a Broker and a Direct Lender (Part 1)

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A mortgage lender, banker, and direct lender all mean the same thing. 

You’ve been on a mission to accomplish your financing goals and it’s now that time. With numerous options and information floating around out there about home financing, it can be difficult to know where to begin.

You’ve been referred to a mortgage broker, been told to look at several banks, or even been exposed to the term direct lender and mortgage lender. Below is the difference between a direct lender and a mortgage broker.

What Is A Direct Lender?

You’ve heard the terms mortgage lender, mortgage banker, and direct lender. While they sound different, they mean the same thing. A direct lender is just a lender or bank that works directly with a homeowner, with no requirement for a broker or middleman.

Direct lenders fund loans and then once funded will sell them in the secondary market to investors or agencies like Freddie Mac or Fannie Mae. At times, instead of selling the loan, the direct lender won’t sell the loan and will serve as the mortgage loan servicer, taking mortgage payments too.

What’s A Mortgage Broker?

A mortgage broker is an intermediary who brings homeowners/mortgage borrowers and mortgage lenders together but doesn’t use its own funds to offer mortgages. A mortgage broker collects paperwork from a borrower and forwards that paperwork on to a mortgage lender for underwriting and approval. A mortgage broker is thought of like the middleman of the industry.

It’s good to explore your various options. If you’re reading this, you’re already on the correct path to accomplishing your financial goals. If you still can’t make up your mind, it might be best for you to get in touch with and look around between mortgage brokers and direct lenders. Or, you can do your own online research to see which one works best for you.

 

What is Equity?

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Equity is an asset that can be used in a few different ways.

What is Equity?

Equity is the amount of your home or vehicle that you own after calculating the debt. To get that figure, deduct your loan balance from the market value of your automobile or home.

If you get a negative number, your car or home is valued less than what you owe on it. You have negative equity.

Example: Your home is worth $250,000, and you owe $100,000 on your mortgage. $250,000 minus $100,000 equals $150,000 of equity in your home.

How You Can Use Your Equity

Equity is an asset. With it, you can:

  • Borrow against it with an auto or home equity loan.
  • Get cash after you sell your home and pay any associated costs.
  • Use it as a down payment or to purchase another house.

How to Build Equity

If you have a nice amount of equity, the better off you will be. There are a few ways to increase equity:

  • Your debt amount reduces.
  • Your property value increases.
  • You can take an active or passive approach to build equity, based on your goals and your resources.

When you get a job, the first two things you put on your to-get list is a car and a house. Though as life goes on and you find yourself in need of some cash because of a big expense such as fixing a leaky pipe in your house or a new the plumbing in your home or a new motor for your vehicle, an equity loan could be the solution you are seeking.

Though, before you go down this road, it’s critical to completely understand equity, what it is, how it works, what you can do with it, and where to get it.

Regardless if you’re interested in an auto or home equity loan, contact a professional banker to guide you through the process.

Reasons for Your Teen to Work (Part III)

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Teen jobs help teens establish independence.

Working during school years encourages balance

Although it’s true that holding down a job can disturb school work, this strain is also a crucial lesson. Teens who work while still going to school learn about the hardships of an adult life full of responsibilities and have a chance to explore how they will balance all of the commitments as an adult.

Part-time job searching is a good exercise for future job searches

When an adult has trouble finding a job, it’s a huge deal, but teens who work to find employment don’t have so much at stake. Doing a job search as a teen is a good time to teach kids skills like filling out an application, putting together a resume, learning how to dress professionally, and learning how to give a good interview.

Learning these skills at a young age can help teens to be ready when it’s time to do a career-launching job search. This also includes learning not to procrastinate when either looking for a job or returning a phone call for an internship or job interview.

Part-time jobs may spark lifelong careers

One would hope that a teen’s part-time job as a dishwasher doesn’t turn out to be a career move. But work little odd jobs as a teen can prove to be a career booster. Teens who work in a restaurant in high school may be encouraged to start their own restaurant or bakery after college or become a chef. Others might be turned on to a field they might not have considered before. For example, a summer job at the local airport might spark an interest in aviation.

Teen jobs develop confidence

As teens work at a part-time job, they learn just how able they are, developing self-reliance and confidence. This can aid teens in being more independent and creating a sense of responsibility as a young adult.

 

Reasons for Your Teen to Work (Part II)

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Teens can build connections through part-time work

Another good way that part-time work benefits a teen’s resume? References. By working part-time, teens can get contacts with adult employers that can act as references and give recommendations in the future. These connections may even be able to provide future job opportunities.

Students can help with their own college fund

Having a job as a teen helps develop a work ethic.

Obviously, teens want to spend their part-time earnings on the fun stuff. But they must spend it responsibly as well. By saving all or some of their part-time earnings, teens can put a big dent in their college expenses, relieving a load off their parents and eliminating costly student loans that can halt post-graduate financial growth.

Work offers a constructive use for free time

Teens who might be bored find something good to do in their hours after school. Working offers adult supervision for teen workers, giving them a positive activity after school. Keeping teens busy, instead of just talking and texting on their cell phone, just might be vital in keeping them out of trouble in the afternoon and evening.

Teen employment fosters a healthy transition to adulthood

Having a job is a vital stepping stone to adulthood. With a job, teens are able to practice self-reliance and independence. This is very true for teens coming from a life of poverty, giving them a chance to have a better life.

Teens who work may earn higher grades in school

Another good part of the balancing lesson that comes along with teen work: better grades. Research has shown that students who work 10 to 15 hours a week during the school year get higher grades than students who don’t work at all. It’s probably having a limited amount of time to get school work done inspires teens to actually do it rather than put it off and forget about it.

 

Reasons for Your Teen to Work (Part I)

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When your teen works they are gaining valuable experience.

Working teens can be a double-edged sword. Research indicates that some teens could get lower grades and even get into trouble with alcohol and drugs as a result of after-school jobs. But for plenty, the advantages outweigh the risks. Building experience, self-reliance, and vital skills are among some of the top advantages many teens see from part-time work, and they’re among the top reasons for teens to get an after-school job. Read on and see the great reasons teens should work while in school.

Working makes adolescent life more affordable

Parents of teens today know how costly it can be to have a teenager in the house: electronics, clothes, even a car can all add up to big bills. Some families can afford these things for their teens, but not all can or want to pay for them. When teens get a part-time job, they are able to help with the cost of their expenses or completely pay for them.

Earning money provides an opportunity for financial education

Sure, children can learn about personal finance from getting an allowance. But that’s small potatoes. When teens start to earn their own money, the real lesson starts. As they earn money and spend it, parents have the chance to teach their children about responsible money management. Helping with car expenses and their college fund, making a budget, and learning just how much things such as gas and food cost are all lessons that are achievable with a teen’s paycheck.

Teens get valuable work experience

These days, the job market tends to favor those with experience over education. Although a college degree is still quite valuable, it’s even more valuable when linked with work experience. Students who are able to work while in high school and college can demonstrate this experience and build valuable entries on their resume. This also shows that they are able to productively balance work and education at the same time.

 

What is Wealth Management (Part II)? 

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It Optimizes Your Plan

Your wealth management advisor will help you stay on the right track.

Given you’re reading an article about wealth management, there’s a solid chance you’re already doing plenty of the right things to achieve your financial goals. A financial professional isn’t going to alter your destination, but they might assist you in getting there sooner.

You can compare wealth management to an app such as Waze. When you put in a destination, you get the best way from point A to B. But if there’s heavy construction or an accident, Waze will recommend changing routes to eliminate those traffic headaches and save you time. Your endpoint is the same, but you took a somewhat different route to get there.

Likewise, an advisor can make little changes, like put a little more of your portfolio into a specific sector of the market using her or his expertise and your personal goals. These tiny adjustments along the way are like little detours that can help you sidestep trouble.

Since an advisor is watching the store all the time, they could see changes that would otherwise go unnoticed. That’s because they aren’t just depending on their individual expertise, they’re also using the collective knowledge of the staff of financial minds at the institution they represent.

It’s Personal

This is maybe the most unique feature of wealth management: It’s very personal. A financial professional will sit with you to come to know who you are and where you want to be. They’ll learn how much risk you’re comfortable with. They’ll help you realize how your new business venture affects the kids’ college tuition.

It’s for Everyone

When it comes to the idea of managing assets in your best interest, don’t let the word “wealth” scare you off. Wealth management isn’t just for the rich. Even if you’re just beginning your career, you’re still building wealth. Wealth management is for everyone.

 

What is Wealth Management (Part I)? 

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When it comes to wealth management, speaking with an advisor will help you stay on track with your finances. 

An affluent retiree desiring to visit every country might define wealth management way differently than a 30-something small business owner wanting to push his or her enterprise past those critical first three years. Talk to a banker and a stockbroker about wealth management, and you’re going to get two very different viewpoints. Here’s the issue: every definition would be right.

That’s because, in the finance world, wealth management isn’t just one thing; it’s everything. It’s like financial planning, but more widespread.

Broadly speaking, wealth management rolls financial and investment advice, risk and insurance planning, accounting, taxes, retirement planning, legal advice, estate planning and more all into one. Someone who is managing your wealth keeps an eye on all these important parts of your financial picture and connects them in a way that keeps you on track to accomplish your long-term objectives.

Though, wealth management isn’t just number-crunching and moving funds from account to account. It goes far deeper than that. Here are some of the main characteristics that make wealth management truly distinctive.

All-Encompassing

If you have a life insurance policy, you worked with an agent. For that business loan, you possibly met with a banker. During tax season, you might go to your accountant’s office to crunch the numbers. Need legal advice? You call an attorney.

All these folks are working in your best interest when you come to them for help. But they’re also driving in their individual lanes. No one is really seeing your whole financial picture. For instance, given your current asset allocation in your retirement funds, where does your life insurance policy fit in? That’s not of much concern to a banker managing your loan, but it really would be to an advisor managing your wealth.

A wealth management advisor will make sure no individual part disturbs the balance of the whole.