Category Archives: Life

Dedicated to all seven (yes, seven) of my cars

Yesterday, I wrote about the pros and cons of financing vs. buying a used car with cash. At the end of the post, I briefly mentioned that one of the reasons I don’t mind financing is because I’ve driven six unreliable cars since high school. While I hated most of those cars by the time they died, they certainly left me with a lot of stories, and I’m sharing them in this post.

This is a long one, and it’s a little off topic, but if you’re interested in reading a different kind of writing than what I usually post here, please click through.

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Financing a car vs. paying cash for an older vehicle

Let’s say you have $5,000 available to purchase a car, and you need it right now. You can technically afford to add a monthly payment to your finances, but of course that will take away from the amount you’re able to save each month.

You need to decide whether you want to use that $5,000 as a down payment for a financed car or use it to pay cash for an older car with a lot of miles on it.

Let’s look at some of the pros and cons of each:

Paying cash for an older car

Pros

  • No monthly car payment
  • More money to put toward savings
  • Lower insurance rates
  • Lower taxes

Cons

  • Higher maintenance fees
  • Unreliable
  • It’s a gamble. You may drive it for years with no problems, or the engine could die and leave you without a vehicle a few months later.
  • Depending on the age and type of vehicle, gas consumption is likely to be higher than a newer car.

Financing a used car

Pros

  • Certified cars come with warranties that promise reliability.
  • Less likely to have problems soon

Cons

  • Still a gamble. You don’t know how the previous owner cared for the car, so you could end up with a car payment and high repair costs.
  • Higher financing interest rates than brand new vehicles

Financing a new car

Pros

  • Guaranteed reliability through warranties.
  • If you’re the only owner, you can care for it diligently and drive it for 10+ years.
  • Possible tax incentives on cars with better gas mileage.
  • Lowest possible interest rates for financing.

Cons

  • High monthly payment.
  • High taxes.
  • High insurance rates.

I don’t really have an answer. To me, it’s a toss-up, and used cars are a gamble. You might save a lot of money, but you’ll end up funneling it back into the car for repairs. We haven’t decided what we’ll do for our next car, but we’re leaning toward financing a certified used car.

Here’s why:  I drove a lot of old beaters in high school and college. My dad is a relatively good mechanic, so this wasn’t a problem in high school. When I broke down, he’d pick me up, and get my car running again. But in college, I ended up stranded a lot with no choice but to tow my car to a garage and charge the repairs on a credit card. Ouch.

When we moved to North Carolina, Tony and I made the decision that we’d rather share one new, reliable car than have two unreliable beaters. So that’s what we did. And I don’t regret it. We bought a reasonable economy car, but it was brand new. Yes, there’s a payment every month, but I’d rather pay a car payment every month than wonder when I’ll be stranded again by a breakdown.

Many personal finance bloggers will say, “Yes, you’re likely to pay for repairs on a used car, but it still won’t add up to the amount you’ll lose in depreciation and interest on a financed car.” That’s true. But honestly? It’s not about the money for me. There was absolutely nothing I hated more than breaking down at a stoplight or being stranded in the cold after working late. I’d rather pay 100 car payments than deal with that again.

What about you?

Photo by smcgee

Pixar & pain killers

I made it through the surgery just fine, and as all of you predicted it wasn’t nearly as bad as I thought it would be. I can’t thank you enough for sharing your experiences with me. The scariest part was not knowing what I was getting myself into, so your encouragement and advice helped calm my nerves more than I can even express.

I’m swollen and sore, but I’m content because I’m all cuddled up with a very concerned Howie, and Tony has canceled classes today to take care of me. A Pixar movie marathon and lots of pain meds are the only thing on my agenda.

Happy Friday to all of you, and eat something delicious tonight for me! It’s nothing but applesauce and ice cream for me for the next couple days. :)

Note to self: Never Google “wisdom teeth death”

Tomorrow, an oral surgeon will be ripping my wisdom teeth from my skull.

I’ve been putting this off for over five years, and my fear of surgery is now bordering on pathological. I know I’m being a wuss, but I’ve never had any kind of surgery. I’ve never been sedated in my life. And since I’m a textbook type-A control freak, the idea of being knocked out for an hour while someone drills into my head with power tools is just a little terrifying. It’s not the pain that scares me. It almost seems more appealing to stay awake for the surgery. Almost.

Last Thursday I went in for a consultation. I ended up waiting in the scary little room staring at the x-rays that had doomed me for 45 minutes. I could hear the oral surgeon loudly consulting with the man in the next room. Apparently, he was about 100 years old with a 215/95 blood pressure. They canceled his surgery and called an ambulance because the doctor was convinced he was about to suffer a stroke. I hope he’s okay, and it seems they caught his symptoms early enough that they would be able to treat him, but seriously? Why did I have to end up in the room next to the guy who left the office in an ambulance? I could just picture myself being carted away in a speeding ambulance due to my rare but life-threatening complications.

When the doctor finally came in to talk to me, he spent 20 minutes telling me about risks and possible complications and explaining stitches in my gums and dry sockets and nerve damage. I couldn’t help but think this whole wisdom teeth removal thing was just a bad idea. Those teeth aren’t hurting anything. They’ve been there for years. The only reason I’m removing the things is because my dentist has been telling me to do it for five years.

But this is the responsible thing to do. We don’t know if we’ll continue our dental coverage when we move since we’ll be paying so much for health insurance already, so we’re trying to get any potential problems out of the way now. I’d be lying if I didn’t admit I had some serious doubts when I saw my estimated bill, though. Let’s just say, I can think of a million other things I’d rather do with my weekend and my money than have teeth ripped from my skull.

When I got home, I broke my number one rule when it comes to medical care: I Googled my condition. If there’s one thing I’ve learned from Google searching any symptom or medical condition, it’s that Google only gives you one prognosis: IMMINENT DEATH.

Sniffles? You’re suffering a rare strain of the flu that will kill you. Headaches? Rush to an emergency room immediately before that aneurism kills you. Mosquito bite? YOU HAVE WEST NILE VIRUS, AND YOU ARE GOING TO DIE.

So I guess I shouldn’t have been surprised when I found this.

All of this is to say, I won’t be around this weekend as I recover, and I might not get back to regular posting until Tuesday or Wednesday. I want to try to get some writing done this weekend, but I have no idea how out of it I’ll be. Wish me luck and strength to stop being a wimp.

Learning to jump right back on the wagon

This post originally ran on January 22, 2009. A year later, I’m still struggling to stay motivated, especially after temporary setbacks. Besides, I think we can all use a little encouragement as the novelty of New Year’s resolutions fades.

These days, I’m thinking as much about fitness as I am about finance. I’m still working on losing weight and living healthier, and I’m constantly fighting my vices — with overeating and overspending.

With the novelty and motivation of New Year’s resolutions wearing off, you may find yourself slipping up, too.

One thing I’ve learned is that it doesn’t matter how often you fall off the wagon. Everyone lapses. The real test for success is how quickly you rebound.

It seems that too often one little mistake can snowball into a catastrophe. In a moment of weakness you eat a donut or splurge on an expensive pair of shoes. Suddenly you’re thinking, “Well, my diet/budget is blown for today. I might as well make it count.”

That kind of logic led me to gain more weight and rack up more credit card debt in college than I care to admit.

This time I’m trying something new — forgiving myself and starting over. Not tomorrow or next week or after the weekend, but right now, right after I realize I’ve made a mistake.

After overeating or overspending, I used to bargain with myself. If I ate too many pieces of pizza on Friday night, then the weekend was shot, so I might as well wait until Monday to start over. In college, I used the same bargaining process when it came to my finances. “Starting next month I’m not going to use my credit card anymore,” or “After this weekend, no more eating out.”

The truth is, one mistake never really derails anyone. The real catastrophe comes from the self defeat that follows that one mistake. If you decide to give up for the rest of the day, week, or month, then you only make a bad situation worse. Your one mistake becomes a major derailment.

When you give up, even temporarily, after every little mistake, you find yourself feeling defeated a lot of the time.

Next time you find yourself straying from any goal, don’t put your efforts on hold. Don’t wait to start over. Do it right away.

Once you’ve eaten the donut or spent too much money, there’s nothing you can do to take it back. Don’t dwell on it and let one mistake derail you. Instead, wipe the slate clean, and move on.

I’m about four years late on this one

It’s Thursday. Which means tomorrow is Friday. So how about something fun?

Today I’m sharing some free music. First listen to the adorable Drinking with You, a fun little song about the beginning of a relationship. And then download the hauntingly beautiful but depressing When You Go , an all acapella song about the end of a relationship.

Both songs are by Jonathan Coulton. This guy has been Internet famous forever now, but I never heard about him until October when my sister played some of his stuff for me. I love his music, but I also love his story. Instead of seeking a traditional recording contract, he built a simple website, and started posting a free mp3 of one of his songs every week. He quickly built a huge following, and now he’s a real-live musician without a day job. And the best part is he did it on his own terms.

It’s just another reminder of the power of sheer will and determination when it comes to getting what you want. No record deal? No problem. Make it happen.

I wish I’d have heard about this guy five years ago when the rest of the Internet did.

Photo by abletoven

Lucky

I’ve spent the last few days immersed in coverage about the devastation in Haiti. Like the rest of the world, I am heartbroken by what’s happening there, and feeling helpless. Sending money is all that we can do, but I wish I could do more.

Suddenly everything that worried me so much has vanished. None of it matters in the least as I watch people scramble through the rubble that was once their city, hurt and scared and desperately searching for family. I hate that it takes a disaster of such proportions to remind me just how insignificant my worries are. After all, my family is safe and warm with a roof over their heads and food on the table. They’re healthy and happy and safe, and isn’t that all that really matters?

I do hope you’re able to free some money in your budget to help the people of Haiti, even if it’s only $5 or $10. If you would like to donate clothing, food, or blankets, you can check with churches with missions in Haiti and donate to them.

At the very least, keep all of the people of Haiti in your thoughts and prayers and hug your family a little closer tonight.