Beating Broke

Personal Finance from the Broke Perspective

Beating Broke Guide to Your Credit Score

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Almost a year ago, I released the Beating Broke Guide to your Credit Score.  Since then, a lot has happened and it seems to me that your credit score could become more important than ever as we recover from this economic disaster.  Previously, I had it set up such that you had to sign up for the newsletter to receive a copy.  I’m changing that now.  The graphic in the right sidebar now links directly to the guide in it’s pdf form.

It’s one hundred percent FREE, so please grab a copy and take a look.  I think you might learn something.

You can download it at https://beatingbroke.com/BBGCS/BBGCS.pdf

The guide is now available for the Kindle as well!  Please note that the kindle version is not free as the pdf version is.  The pdf version will remain free for downloading.

Cash Back Rebate or 0% Financing?

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Let me begin by saying that I don’t see any real value in buying a car new.  You’d be better off waiting a year or two and buying the same model after the initial devaluation happens.  If you insist, however, and you have to choose between a cash back rebate and 0% financing, here’s how it breaks down.

I’m taking liberties here and using a few assumptions.  The first, and most important, assumption is that you’ll use the cash back rebate as an addition to your down payment.  I’m also assuming a 5 year loan because that’s pretty standard for a new car loan.  I’m assuming that you’re going to use the cash back rebate as an addition to your down payment, because you’d be an idiot not to.  No really.  Why would you buy a $20,000-$50,000 car that will lose at least 10% of it’s value the second you sign the dotted line and then also take the $2500 (Or however much) in cash?  Also, if you do take it in cash, will you drop me a line?  I’ve got some ocean front property in Oklahoma to sell you.

Assumptions aside, the deciding factor here is the interest rate.  The lower the interest rate if you take the cash back, the better that side looks.  Somewhere around 5.8% they are about even over the life of the loan.  Of course, if you make extra payments that will change things as well.  If you can get a rate of 4% or so, the difference is pretty good and you should use the cash back and run with it.  At something like 8%, however, you’d be pretty silly to not take the 0% financing.

In the end, there are several variables that need to be taken into account such as trade in and sales tax.  And this is far from a scientific study I did here, nor is it meant to detail exactly how to buy a car.  What I would suggest is using a loan amortization calculator and punching in the numbers.  For this little experiment, I used a calculator built for just such a calculation at interest.com.

Unautomate Your Finances

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Unautomate Your FinancesIsn’t that a funny title.  Even I had to double take to make sure that it wasn’t typed wrong.  But, yes, unautomate it is.  And the man with the plan is Adam Baker.  You likely know him from ManVsDebt.  Maybe not, but if not, you should.  And he’s got a plan to help you unautomate your finances.  From reading his blog, it certainly seems to have worked for him and after reading the review copy of the ebook, it might just work for a few of you out there too.

The concept is pretty simple.  Automating your finances can go to far.  It can cause you to “set it and forget it”. And that can lead to expenses getting out of control.  Which is where Baker’s Unautomate Your Finances comes in.  The eBook is 83 pages of wonderful advice for minimizing your financial footprint and living a life of controlled finances.  He’s got a pretty impressive list of bonuses that you can get when you buy the eBook too!  There’s two awesome interviews.  A video one with Leo Babauta, who writes a ton on minimalist living.  And there’s an audio interview with J.D. Roth of GetRichSlowly.com (And author of Your Money: The Missing Manual).  He’s also throwing in the templates that he’s created for the program’s minimalist budgeting system.  One in .pdf for printing and one in excel for use on a computer.  And finally, he’s giving you all the updates you can handle.

And he’s only charging you $17 for the whole shebang.  I know he’s planning on upping the price to $27 eventually (I don’t know when) so I wouldn’t wait too awful long if your interested.  This program could be a great thing for those of you who are feeling out of control of your finances and want a more simple way of getting them back under control.

You can read a bit more on the program and the eBook by visiting: Unautomate Your Finances

Disclaimer: I’m an affiliate of both Amazon and Unautomate Your Finances.  If you click through and end up buying either the books I’ve linked or the eBook from Baker, I will get a portion of that sale.  That didn’t sway my review, I really do believe all those things I said up there.  Affiliate links like those are how I pay to keep this site operating, so I appreciate when you do click through.  Thanks.