Keeping vehicles for 15 years could save $20,000 over that time versus buying a new car every five years, according to Consumers Union (the organization behind Consumer Reports). Using a Honda Civic as an example, the organization factored in the purchase price, depreciation, taxes, fees, and insurance. It also listed the vehicles
most likely to make it to 200,000 miles. Honda, Toyota, and Lexus make all of the vehicles in the top ten.
Matt's View
People love their cars and they love to trade them in often. So often, in fact, that nearly 40 percent of new car buyers owe more on their trade-ins than they're worth. In many cases, such buyers roll what they still owe into their new loan, thereby ensuring that they will stay in debt for approximately forever.
Moving through life without vehicle debt is one of the smartest money management ideas around. Of course, that may mean moving through life without heated side-view mirrors, but I'll take the financial freedom.
Less than two-thirds of people eligible to participate in 401(k) savings plans actually do, according to an article in the Wall Street Journal. What's most surprising is the fact that the participation rate hasn't grown for the past six years, despite frequent warnings that many people are not saving enough for their future.
Matt's View
Time is the most important ingredient when saving for our later years. To understand the importance of getting started with saving sooner than later, consider this: A person who saves a set amount each month beginning at age 21 and then stops adding to his or her savings after 10 years will end up with more by age 65 than a person who waits until age 31 to get started and then saves the same amount each month as the first person (and gets the same rate of return) for the next 35 years! If you're in your 30's, better to get started now than waiting until you're in your 40's. If you're in your 40's... you get the idea.
In their quest to be cool, people choose products and brands that "signal" their membership in desired "in-groups" while carefully monitoring whether less desirable "out-groups" are starting to buy such products as well--a clear sign to stop using such products. That's the conclusion of a marketing study described on Knowledge@Wharton, the Wharton School's online business journal.
In an experiment that appears to prove the point, college students in one dorm were sold yellow wristbands "signaling" support for cancer research. A week later students in a dorm "with a social reputation as a 'geek' dorm" were sold the same wristbands. After the less popular kids started wearing the bands there was a 32 percent drop in the number of students in the first dorm wearing them.
Matt's View
What's helpful about reading such research is that it tells us what to watch out for--sort of like getting our hands on the other team's playbook. For example, with companies now "imbuing" even washers and dryers with "social properties" such as designer colors, it's helpful to recognize that they want us to view such products not just for their ability to clean our clothes; but also for their perceived ability to enhance our self-worth. We're certainly free to choose such products, but by understanding all that's gone into the marketing, we gain the freedom to choose products with more practical "properties" such as high quality and a fair price.
It may be a bit early to start hanging Christmas lights on the house, but an article on Bankrate.com noted that now is a good time to prepare financially for what is often the biggest budget-busting season of all. Among the ideas for a more joyful/less financially painful Christmas: Plan your gift list and holiday budget now; start setting aside some money for presents; be on the lookout for appropriate gifts that are on sale since the best sales are usually not found the week before Christmas!; and if you're planning to travel for the holidays, book your trip now before all the inexpensive seats are taken.
Matt's View
One of my all-time favorite books about having a more joyful/less "debtful" Christmas is Hundred Dollar Holiday
. It describes the fascinating history of Christmas and offers great ideas for adding joy to the holiday while spending less. Another good book on the topic is Mary Hunt's Debt-Proof the Holidays
.
