How to Make a Personal Monthly Budget
Tips for Deciding How Much You Can Afford Every Month
Want to control your spending every month? Don’t have a set budget? Here, we will help show you how to make a personal monthly budget so you have a better understanding of how much you can afford every month. Here are a few tips you should follow.
Determine How Much You Make and Spend
Before allocating the amount of money you can spend onrndifferent things, you need to get an idea of your current income and monthlyrnexpenses. First, collect recent paystubs and calculate how much you make in arnmonth. Record the amount you take home each month after taxes are taken out.
Next, gather all of your bills that you paid last month. Separaternfixed expenses away from variable expenses. Fixed expenses are those that don’trnchange each month, such as student or car loans, monthly insurance payments, mortgage,rnand rent. Variable expenses will fluctuate month per month, such as the amountrnof electricity you use, how much you eat out, gifts, entertainment purchases, andrnthe amount of merchandise you buy from a store. If your variable expenses tendrnto fluctuate a lot, take a look at your expenses from the past two or threernmonths for an approximation.
[ READ MORE: Howrnto Make Money While in Quarantine ]
Review and Make Changes
Once you’ve collected all the numbers you need, add up the expenses, and see how it compares to your income. Your expenses should always be lower than your income, so if that’s what you see, you’re off to a great start.
Ideally, you will want to save roughly 20{e443ec709150c73baf180d3d8e0a41d703fa022f47b2bb5516b57735b7c7f19e} for savings and otherrnfuture investments. If you’re not saving quite enough, or are exceeding yourrnincome, it’s time to consider which expenses to drop going forward. Specifically,rnyou will want to review the unnecessary wants in your variable pile. These arernpurchases that you can live without. A few examples include dining out, movierntheater visits, and expensive merchandise purchases such as jewelry, video gamernconsoles, and home decorations. We recommend following the 50/30/20rnbudget rule to determine how much cash you can set aside for more luxuriousrnpurchases like these.
Track Your Expenses Moving Forward
It’s always good to set a budget before you start spending.rnHowever, that budget is no good if you don’t follow it. Track your expensesrnmoving forward to make sure you are staying within your budget as it can bernsurprisingly easy to accidentally overspend.
Need more tips and tricks like this? Follow the OkCarz blog for morerninformation on how you can better manage your finances.
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Budgeting for a Car Using the 20/4/10 Rule
Tips for Determining Your Budget on a Vehicle
Aren’t sure whether you can afford a certain vehicle? Don’trnknow if your loan offer is good for your financial situation? With the 20/4/10rnrule, budgeting for a car will feel easy. Here’s how you can use this popular rule.
[ SavingrnMoney with the 50/30/20 Budget Rule ]
What the 20/4/10 Rule Means
To apply the 20/4/10 rule, you will need to know what thesernnumbers mean and how to put it in practice. First, the 20 in the 20/4/10 rule equatesrnto a 20{e443ec709150c73baf180d3d8e0a41d703fa022f47b2bb5516b57735b7c7f19e} down payment. It’s highly recommended that you save enough money tornput down at least 20{e443ec709150c73baf180d3d8e0a41d703fa022f47b2bb5516b57735b7c7f19e} to reduce the amount of interest you pay as well as thernamount of money you owe every month.
Next, the 4 in the 20/4/10 rule means 4 years. When shoppingrnfor a car loan, it’s a good idea to keep the length of the loan to 4 years orrnless. This will help you save money on interest in the long run, reduce yourrnmonthly payments, and help you own the vehicle quicker.
Finally, the 10 refers to the percentage you can afford withrnyour monthly income. When calculating affordability, it’s recommended that yourndo not exceed 10{e443ec709150c73baf180d3d8e0a41d703fa022f47b2bb5516b57735b7c7f19e} of your monthly gross income on your car. This includes thernprincipal, interest, and insurance you pay on the vehicle. When you go overrn10{e443ec709150c73baf180d3d8e0a41d703fa022f47b2bb5516b57735b7c7f19e}, you may risk not having enough cash to make payments.
How Much Can I Afford?
Understanding the 20/4/10 rule is helpful, but not if yourndon’t know how to calculate your budget with it. Here’s an example calculationrnfor a person making $45,000 a year.
- $45,000 / 12 months = $3,750 monthly gross income
- $3,750 * 0.10 = $375 (this is 10{e443ec709150c73baf180d3d8e0a41d703fa022f47b2bb5516b57735b7c7f19e} of your monthly gross income)
- Subtract insurance costs from $375 to determine the amount you can afford to pay each month
- For example, let’s say your monthly car insurance costs $75. You will then have $300 leftover to make car payments with.
Of course, the 20/4/10 rule is only a recommendation. Forrninstance, you may be in a situation where you must purchase the vehicle but can’trnput down the full 20{e443ec709150c73baf180d3d8e0a41d703fa022f47b2bb5516b57735b7c7f19e}. In this case, put down less if you are able.
[ HowrnCredit will Affect Your Car Loan ]
Need a reliable and affordable car? Browse our used vehicle inventoryrnright on the OkCarz website. Have with financing for one of our vehicles? Our NornCredit Finance Specialists will be happy to answer any questions at 863-286-3822.
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Tips for Improving Gas Mileage
Do you find yourself at the pump frequently? Want to save somernextra money every month on gas? Luckily, there are ways to reduce the amount ofrnfuel your car consumes, and it’s easier than you may think. From maintaining yourrnvehicle properly to changing some driving habits, here are a few tips yournshould follow if you want to improve your fuel economy.
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Take It Easy on the Brakes
Do you tend to ride the brakes? If you keep your left foot on the brake pedal, get in the habit of keeping it off. In addition, avoid hard braking unless you are in an emergency. Frequent hard braking isn’t good for your brakes and it will take more effort from your vehicle to get back to the speed limit. Also, hard braking can be quite dangerous as it is sudden, and others may not be able to react in time.
Watch Your Speed
This one seems obvious, but avoid speeding no matter if you are in the city or the highway. Not only are speed limits enforced to protect you and other drivers, but your fuel economy will be impacted based on how fast the vehicle is traveling. The faster the speed, the more fuel that will be required.
Turn Off the Engine When Idle
Picking someone up and they’re falling behind? If you are going to be idle for a while, turn off the engine. This will save you lots of fuel, especially if that two-minute wait turns into ten. Of course, there are times where you want to keep the vehicle running, such as keeping the AC unit on during the hot summer months or waiting in a fast-moving drive-thru. Use your best judgment on when to power the vehicle off.
Check Your Tire Pressure
A common reason why cars tend to lose some efficiency is duernto improper inflation of the tires. Be sure to check your tire pressure andrnfill up as needed. This can also help your tires last longer.
Clear Out Unnecessary Weight
How long have you had some belongings sitting inside yourrncar? Keeping too many things inside your vehicle will force the engine to workrnharder to compensate for the extra weight. Take some time to clear out anyrnunneeded items.
[ READ MORE: WhyrnYou Should Get an Oil Change for Your Car ]
Interested to learn more tips and tricks? Browse the OkCarz blog!
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How does car financing work?
What car financing and loan options are available at OkCarz?
Buying a new car is probably one of the most expensive purchases that you’ll make. Even with a reasonably priced used vehicle, most people wouldn’t be able to pay the entire price upfront, and even if you could, there are some advantages to using a loan to finance a new car. Before you can decide if an auto loan to buy a vehicle, it can be helpful to understand how car financing works.
How you finance your vehicle depends on your credit score and your monthly budget. Even if you’re approved for a high loan amount, you need to make sure that you’ll be able to make your monthly payments. If you aren’t able to make your payments, it can affect your credit score, which will make it harder for you to qualify for other loans.
With an auto loan, you won’t have to worry about making a big purchase and draining your accounts, and you can instead spread your payments over a pre-determined amount of time with some interest. Most vehicle loans are between 36 and 72 months, with a minimum payment you have to make every month. If you can pay more every month, that will lessen the time you have to spend paying off of your vehicle.
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Where can you get a car loan?
There are multiple ways that you can get a car loan. Many people will go through a bank or credit union, which can be a great option for drivers who have a bank that they trust. That means that you’ll be working with someone that you trust, but it can be difficult to schedule a time to meet, since banks normally close fairly early on weekdays, and aren’t open long or at all on weekends.
Another avenue that you can pursue is getting a vehicle loan from the dealership. You are already trusting them with your business and safety when you purchase your car, and you can figure out the financing while you’re choosing your vehicle. If you’re interested in learning more about dealership financing options, you can find information on the OkCarz website. If you’re already considering financing through a dealership, it is easy and safe to apply for pre-approval online.
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Is Driving Under the Speed Limit Dangerous?
Why You Should Not Drive Too Slowly
You always hear about accidents being caused by drivers thatrndrive too fast and can’t react in time. Those that tend to speed are often toldrnto slow down for the safety of themselves and others. However, is driving underrnthe speed limit dangerous as well? While much less common, driving at a speedrnmuch lower than the posted limit can be just as dangerous. Here are a fewrnreasons why you should not drive too slowly.
[ READ MORE: ToprnWays to Improve Your Fuel Economy ]
Short Reaction Time for Other Drivers to Brake
The primary reason why you should never drive below thernspeed limit is due to that you can cause a chain reaction of accidents. Driversrnthat are driving at the speed limit may not have enough time to brake and willrnrear-end you. Anyone behind them may rear-end that vehicle, turning thernsituation into a domino-effect. This is especially true when going aroundrncorners or over hills.
Obstruction of Traffic and Road Rage
If drivers behind you have noticed you and were able to slowrndown, it’s important that you either speed up to speed limit or move over andrnlet them pass. By driving too slowly, you will start obstructing the flow ofrntraffic. Also, other drivers may start losing patience, and the possibility ofrna road rage incident occurring spikes.
Drivers that Tend to Drive Slower
Which people are most likely for driving significantly underrnthe speed limit? Here’s a list of drivers that tend to drive slowly and whatrnyou can do to avoid this drop of speed.
- Distracted drivers – put down the phone whilernbehind the wheel. Always pull over if the text or phone call is important.
- Seniors – Talk with family about giving up yourrnlicense and getting rides. They can help you with setting up taxi services orrnenlisting some trusted neighbors or other family members if they aren’t able.
- New drivers – continue practicing so you getrncomfortable with your vehicle and various situations. Focus on what you arerndoing and don’t feel intimidated by other drivers.
- Non-local visitors – if you are new to the arearnand wish to sightsee and take pictures, leave the driving to a local tourrnguide. That driver will be familiar with the area and you won’t have to worryrnabout what is happening on the road.
If you are ever worried about driving the speed limit or arernunable to due to car problems, pull over, turn on your hazards, and call forrnhelp.
For more tips like this, browse the OkCarz blog. Interested in anrnaffordable vehicle? Explore ourrnonline inventory here.
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What Can I Do at Home for Memorial Day?
Memorial Day Activities While Social Distancing
Wondering what you can do this Memorial Day while everyonernis still social distancing? There are many fun activities you can do for MemorialrnDay right at home. Here are just a few examples.
- Watch a patriotic movie
- Take a virtual tour of the White House
- Sharpen your U.S. history knowledge
- Grill out – and take the food and drinks outside
- Write letters to soldiers
- Decorate the house with red, white, and blue
- Watch the National Memorial Day Concert on PBSrnat 8:00 pm Eastern
- Show your gratitude by creating some patrioticrnchalk art
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rn
No Credit Finance Program Requirements
Do you have bad or no credit? Did you know that making timely payments on a car loan can help your credit grow? As long as you make payments on time for your other bills, customers participating in the No Credit Finance Program here at OKCarz can see significant improvements after just 12 months! Wondering what it takes to take part in this popular program? Check out our eligibility requirements regarding identification and income stability below.
[ Bad Credit UsedrnCar Loans in Central Florida ]
Proof of Identification and Florida Residence
This program is available to Florida residents that maintain stable income. Customers must prove Florida residence by simply providing a recent utility bill or bank statement. In addition, a valid U.S. driver’s license must be presented for identification.
Income Stability
Regarding income, the customer must make at least $1,500 a month in order to qualify. To prove your income, customers can present their choice of their most recent paystub or 3 months of bank statements. Information regarding your economic stability will also need to be provided, including how long you’ve lived in Florida, how long you’ve worked your current job, and how often you have moved.
[ Explore our Used Vehicle InventoryrnOnline ]
If you are ready to get your credit back on track with our No Credit Finance Program, you can get started by contacting our team of No Credit Finance Specialists by dialing (863) 286-3822. Our experts will be happy to answer any questions you may have.
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Should you buy a used car from a private seller?
When you’re buying a used vehicle, there are plenty of options to consider, such as whether or not you should buy a vehicle directly from a dealership, or from a private seller. A private seller is anyone selling their vehicle, whether it’s off the side of the road or from Craigslist. There are some advantages to each method, but one may be better for you.
Advantages of buying a used car from a private party
When you’re buying a used vehicle, you might be able to get a better deal, since most private sellers might not know the best price for their vehicle. They also may just want to get rid of the vehicle, which can work to your advantage when you’re negotiating the price. It might also be easier to negotiate with them, as most of the information they have is easily accessible online.
[Related: Craigslist Car Buying Tips]
Why you should buy from a dealership
When you buy from a private seller, you may get a better deal, but there are a lot of things that can go wrong. For instance, while all vehicles on a used car lot are inspected before they go up for sale, you can be sure that the vehicle you are looking at doesn’t have any underlying issues or problems. Most dealerships also provide you with a report detailing the vehicle’s history, whereas, with a private seller, you have to take them at their word. Buying from a dealership also means that you can get a warranty and that you are working with someone who knows what they are doing when it comes to paperwork and making sure that everything is in order.
For some, buying a vehicle from a private party makes the most financial sense, as most are looking for a flat, one-time payment. However, most drivers aren’t able to afford a single payment, especially if they’re looking for a nicer vehicle. Buying your used car through a dealership like OkCarz means that you have access to financial help, no matter what your credit score is.
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What to do this Thanksgiving in Lakeland, FL
2017 Thanksgiving Race events in Lakeland, FL
For most people, the best part of Thanksgiving is the delicious feast. While it is great to be able to stuff yourself with turkey, potatoes, and other scrumptious delights. Before you settle in for a Thanksgiving meal, consider undertaking one of the Thanksgiving race events happening near Lakeland, FL.
Run for the Pies 8k
November 23, 2017
There are many things to enjoy about Thanksgiving, and one of them is definitely dessert. While you may love that extra slice of pie, your waistband likely won’t. If you want to enjoy your Thanksgiving dinner without all the guilt from gorging yourself, spend Thanksgiving morning on the trails during the Run for the Pies 8k at Holloway Park in Lakeland, FL. You can register online until November 22, 2017, or in person on November 22, 2017, at Fitniche Lakeland until 6 pm. You’ll also be able to register at the race until 7:50 am. The race begins at 8 am on November 23, 2017, and the first 200 finishers will receive an apple pie.
[Related: Ways to give back Thanksgiving 2017 in Lakeland, FL]
Double Down 5k
November 25, 2017
Beat that post-Thanksgiving lethargy with the first-ever Double Down 5k in Lakeland, FL on November 25, 2017. Registration online is open until November 22, 2017, at 11 pm, or in person until November 25, 2017, before the race. In addition to the race, The Double Down 5k is a location where you can bring a new toy for the Rudolph Round-Up Toy Drive. The race will begin at 7:30 am on November 25 in Fletcher Park at Lake Bonny.
Happy Thanksgiving from OkCarz!
Thanksgiving is the kick off of the holiday season, which means that you’ll likely be traveling quite a bit, whether it is to and from holiday races, or to relative’s houses. No matter where you’re going, you’ll likely want a reliable vehicle to get you there. Visit one of OkCarz’s five locations to view the available used vehicles, and to learn more about financing your used vehicle this holiday season.
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Easy and Quick Vehicle Maintenance
Car maintenance you can do yourself
For some, car maintenance is simple. All you need to do is look at the icons that are lighting up the dashboard, and then cover them with a piece of tape. If you aren’t partial to the “out of sight, out of mind” approach, you’ll likely end up at your nearest mechanic more often than you’d like. While there are some aspects of vehicle maintenance that are better left to the professionals, there are some that can be easily done in an afternoon.
As with everything, there is a slight learning curve when you start fixing problems with your vehicle. When you first get started, you might not know the difference between a screwdriver and a wrench, but afterward, you’ll be filled with a sense of accomplishment. If you’re looking for some easy maintenance to start out with, start out under the hood
[Related: How to jumpstart your vehicle]
Changing the Air Filter
You should be replacing your air filter every year or 12,000 miles, depending on which one comes first. This is one of the easier things to do, as all it requires is that you locate the already installed air filter, remove it, and replace it with the new one. The first time you change your air filter, make sure to take note of how the old one is sitting inside, and insert the new one the same way. Generally, the casing for the air filter is secured with metal clips so you won’t need any additional tools.
Replacing Windshield Wipers
For the most part, you likely don’t think about your windshield wipers, until you need to use them and they leave massive streaks on your windshield. Even then, you might put off getting them replaced, even though it only takes roughly ten minutes for you to change them yourself. Like with the air filter, you should look at how your current wipers are installed before removing them, usually by lifting the arm away from the windshield and pressing a tab on the underside. You can then slide the wiper off, and replace it with the new wiper, making sure that everything lines up and that your new wiper clicks into place.
While these are some of the easy things you can repair on your vehicle, when a light comes on, it might be best to visit a service station. In some cases, you might have to decide if it is worth it to keep your vehicle, or if it is smarter to replace it. If you do choose to upgrade your vehicle, visit one of the five OkCarz locations, where there is a wide array of used vehicles, and financing help.
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