Your financial situation is similar to your grade point average in high school. Once you get an F, it can hurt you forever, and working your way back to a decent GPA can be difficult. The best way to keep your finances healthy from the start is by not making the major mistakes that can end up costing you the used car of your dreams. Ride Time is awesome at getting most people the financing they need to afford the car they want, but you have to help us by helping yourself not make these major financial errors.
1. Carrying revolving credit
Credit cards are an excellent tool to use — if you use them right. The problem is that most people see them as usable cash instead of what they are, which is borrowed cash. When you allow your credit card balances to revolve, the minimum payment every month isn’t touching your principal. It is just covering the cost of the interest the company is charging you to borrow their money. The more money you let revolve the higher your minimum becomes, and the less likely you are to pay down the principal of what you owe. When possible, pay your credit cards off every month instead of carrying a balance from month to month. It is incredibly easy to get into some serious financial trouble if you don’t watch your credit card usage carefully.
2. Not putting money away
Have you ever heard of money burning a hole in your pocket? Unfortunately, most people budget by using everything they make. If you take money right off of the top of your earnings and put it away, you will have some savings for a rainy day. More importantly, if you have an emergency, you will have the reserves available so you don’t have to go into debt. If you use a money app to transfer just $50 every month into an account for savings, you can have a healthy emergency fund quickly. The best part is that you probably won’t even notice it missing. This is also an excellent way to quickly save money for a down payment on that used car you have been dreaming of. Budget not by how much you have, but by subtracting off the top, and then devising a budget.
3. Determining needs versus wants
When you start to make your own money, it can be very alluring to make impulse buys or to consider things that are actually “wants” to be “needs.” There is a difference between what you really need and what you want, though. A need is something you absolutely can’t live without — like a car to get to work. A want is something that you can survive without; it may be a luxury like your daily afternoon latte. Once you drink it, it has no use. One of the biggest financial mistakes made by those just starting out is not being able to distinguish between a need and a want. If it is a need like wheels, make it a priority. If it is a want, then treat yourself once in awhile, but only in moderation. That will keep you from spending money needlessly. It will also stop you from spending your hard-earned cash on junk. If you save your money, you can also afford to make investments like financing a used car from Ride Time.
4. Working for minimum wage
There is a reason that jobs that pay very little are called “minimum wage” — it is because they pay the absolute minimum allowed by law. The Millennial generation is expert at finding career opportunities and ways to make money that don’t involve taking a minimum-wage job. If you don’t have a college degree, that also means you don’t have college debt. What it doesn’t mean is that you have to be satisfied with a minimum-wage job. Be creative and look into industries that allow you to work overtime, on your own schedule, and be in charge of your earning potential. Things like DJing, blogging, or other online opportunities are excellent ways to earn way more than the minimum. If you are really ambitious, you can work for minimum wage and supplement your income to make sure that you aren’t in the red every month and that you have a little extra to save.
Purchasing a used car from Ride Time is totally doable if you keep your credit clear, make good financial choices, and avoid making mistakes that can cost you the ride of your dreams. We can help you get the financing you need if you keep your financial situation healthy and avoid the things that can cost you most. If you need a little incentive to save your money, check out the awesome used cars at Ride Time today. Let us help you drive away in your dream car today!