Should I Finance Or Pay Cash For A Used Car Habits and Your Financial Health

You are searching about Should I Finance Or Pay Cash For A Used Car, today we will share with you article about Should I Finance Or Pay Cash For A Used Car was compiled and edited by our team from many sources on the internet. Hope this article on the topic Should I Finance Or Pay Cash For A Used Car is useful to you.

Habits and Your Financial Health

There is a saying “you are what you eat”. There is another saying which is equally important – “You are the product of your habits”. Using an analogy of an ocean liner – how would you steer it to change course in a meaningful way? Very slowly but steadily. If you could imagine an ocean liner, you would turn the heading slightly – a fraction of a degree in the direction you want to go. Some of the people watching the ship don’t even know anything has happened. Over time, the effect of small changes in direction compounds and becomes larger and larger. By the time you reach your destination, you may be hundreds or even thousands of miles away from the original navigation. If you tried to steer that ocean liner at once, would you succeed? You will probably overdo it and cause an accident, or go so far that you lose time to correct direction again.

What does this have to do with money and habits? everything If you have a goal to make or save a lot of money and get a ton of great ideas, and then try to implement them all at once, what could happen? Failure! None of the many changes you try to make will stick and there will be no effect. How about going semi-narrative and choosing one change that you can easily make, and that you make this change for a long time? You will likely be more successful. Here’s the secret to changing money habits and letting time do its magic. If you make a change that is barely perceptible (ie painless), then this method will hardly be a strain.

What are some examples of this? Have you heard of the late factor? The late factor is making one incremental change per day – not saving money by buying that cup of coffee. Depending on the frequency of how many cups of coffee a person buys over the years of their lifetime, this will add up to meaningful savings. Another version is that instead of buying a latte, you buy regular coffee and add your milk or cream to it. This will save you $2 per day as an example. After 365 days, you’ll have saved over $700 per year from this one incremental habit change. The ocean liner analogy shows the effect of compounding change to make it even bigger. What would you do with $700? Let’s say you invest it for 10 years. On top of contributing $700 x 10 years, you’re also making a return on this investment. As a wild guess, let’s say you earn $3500 over 10 years – averaging about 5% per year. Now its effect is added. You can then take this money and deposit it into an RRSP and get a tax refund that extends the effect even longer.

The late factor has been hammered in many blogs and financial circles. The point of the latte factor is an example of a small habit that, if implemented consistently, can lead to big changes over the long term. There are many other habits that can achieve this result. How about saving $1 a day buying bananas from your local grocery store? How about negotiating a slightly better rate on your cell phone plan? How about purchasing a basic gym membership instead of a deluxe one that’s less involved but will suit your needs exactly? How about wasting a little less food each day and buying a little less? Maybe computers, cell phones or cars that you keep a year longer than you used to drive? Ask yourself what the trade-offs might be for doing these things – but if there’s really nothing to lose then you’ve found a habit that will create more money.

There are techniques that say you need to do the routine for 21 days to stick to it. It’s basically saying that by doing it long enough, you’re making the habit automatic. It will get to the point that when you don’t do it, you’ll miss it! Why not get creative and see what habits you can change that add up to incremental effects over time?

Video about Should I Finance Or Pay Cash For A Used Car

You can see more content about Should I Finance Or Pay Cash For A Used Car on our youtube channel: Click Here

Question about Should I Finance Or Pay Cash For A Used Car

If you have any questions about Should I Finance Or Pay Cash For A Used Car, please let us know, all your questions or suggestions will help us improve in the following articles!

The article Should I Finance Or Pay Cash For A Used Car was compiled by me and my team from many sources. If you find the article Should I Finance Or Pay Cash For A Used Car helpful to you, please support the team Like or Share!

Rate Articles Should I Finance Or Pay Cash For A Used Car

Rate: 4-5 stars
Ratings: 3180
Views: 18402674

Search keywords Should I Finance Or Pay Cash For A Used Car

Should I Finance Or Pay Cash For A Used Car
way Should I Finance Or Pay Cash For A Used Car
tutorial Should I Finance Or Pay Cash For A Used Car
Should I Finance Or Pay Cash For A Used Car free
#Habits #Financial #Health

Source: https://ezinearticles.com/?Habits-and-Your-Financial-Health&id=10186141

Related Posts

default-image-feature

Should I Finance Or Pay Cash For A New Car Build Affordability in Your Spending Decision Process: Part 1 of 2

You are searching about Should I Finance Or Pay Cash For A New Car, today we will share with you article about Should I Finance Or Pay…

default-image-feature

Should I Finance On Things Other Than House Or Car Some Things to Consider When Buying Second Hand Cars

You are searching about Should I Finance On Things Other Than House Or Car, today we will share with you article about Should I Finance On Things…

default-image-feature

Should I Finance My Start Up Business Or.Pay With Cash Business Start Up Loans – Get Finance to Establish Your Business

You are searching about Should I Finance My Start Up Business Or.Pay With Cash, today we will share with you article about Should I Finance My Start…

default-image-feature

Should I Finance My Phone Or Buy It Now Tmobile The Most Popular Mobile Phone Service Providers

You are searching about Should I Finance My Phone Or Buy It Now Tmobile, today we will share with you article about Should I Finance My Phone…

default-image-feature

Should I Finance Car Through Capital One Or My Bank Bank Sales Management – 4 Steps to Boosting Sales of Corporate Finance-Capital Markets

You are searching about Should I Finance Car Through Capital One Or My Bank, today we will share with you article about Should I Finance Car Through…

default-image-feature

Should I Finance An Rv Through A Bank Or Dealership How to Buy Trailer Repos and Finding Repo Trailer Auctions

You are searching about Should I Finance An Rv Through A Bank Or Dealership, today we will share with you article about Should I Finance An Rv…