Category

Money Management

Buying a Used Car? This Tool Could Potentially Save Your Life

By Money Management No Comments

Recalls are nothing to shrug off. 

Image source: Getty Images

It’s often recommended to buy a pre-owned car over a new car because of appreciation. It’s a well-known adage that new cars lose value the minute you drive them off the lot.

But there are also some important downsides of used cars to consider. Particularly, you often don’t know much about the vehicle’s previous life. Was it treated well? Was it maintained properly? Did it have consistent insurance coverage?

Has it had any important recalls?

Of them all, that last question could very well be the most important. Luckily, there’s a tool for that.

Manufacturer recalls can be life or death

A modern vehicle has thousands of parts, each and every one of which — in theory, at least — undergoes extensive testing to ensure its safety and durability. But even the most reliable parts can fail.

When a part or system fails repeatedly, across vehicles and owners, that’s when you have a bigger problem. And when that faulty part leads to a potential safety issue — well, that’s when you tend to get recalls.

A vehicle recall means the manufacturer and/or the National Highway Traffic Safety Administration (NHTSA) found an issue that needs to be fixed as soon as possible, typically at the manufacturer’s expense.

In other words, a vehicle with an active recall doesn’t just have a faulty part. It has a faulty part that could greatly impact the vehicle’s overall safety, putting your life (and the lives of your loved ones) at risk.

Think of it this way: The manufacturer probably wouldn’t volunteer to pay for your repairs if they didn’t have to, so it must be pretty important if they’re the ones footing the bill.

Check your car’s VIN for current recalls

When a new recall is issued, the manufacturer is required to notify all current owners via first class mail within 60 days of notifying the NHTSA. If you receive one of these letters, it’s best to contact your local dealership or the manufacturer’s customer service department as soon as possible to arrange repairs.

But what if the recall occurred before you purchased your vehicle? May I introduce the NHTSA’s vehicle recall tool: NHTSA Recall Lookup.

This website allows you to use the Vehicle Identification Number (VIN) to see any active recalls on a particular vehicle. So, if you’re purchasing a used car, one of your first tasks is to enter the VIN into the NHTSA tool to check for unrepaired recalls.

The VIN is usually found on the vehicle’s lower left windshield. It may also be within the driver’s side door, on your registration, and may even be listed on your insurance cards.

Niche brands may not be included

This tool is essential for the average used car buyer. But it’s important to note its limitations. (No tool is perfect, after all.)

For one thing, the NHTSA tool only shows active, unrepaired recalls. If the vehicle had a recall that has since been addressed by a previous owner, it won’t be listed. Similarly, it’s reserved for safety recalls. A non-safety recall or manufacturer customer service notice won’t be listed.

Additionally, it’s also best used for major U.S. manufacturers. If your vehicle is from a niche manufacturer (such as an ultra-luxury brand), it may not be included. Similarly, vehicles from international manufacturers (those not doing business in the U.S.) aren’t typically included in the listings.

Finally, recalls over 15 years old may not be included in results. However, if the recall has been updated or the manufacturer still offers service on the problem, it will definitely be listed. For example, the recent Do Not Drive order for certain models of Hondas and Accords should definitely show up for those vehicles.

Outside these limitations, the tool covers millions of vehicles — including most used cars on the market today. As such, anyone buying a used car should plug the VIN into the NHTSA’s recall tool as a matter of course. It very well could save your life.

Our best car insurance companies for 2022

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More 

Can You Trust Financial Advice You Get on Social Media?

By Money Management No Comments

You don’t want to put your trust in the wrong person. 

Image source: Getty Images

Social media has changed our lives forever in good ways and bad ways. We can now connect with people all over the world and come together for causes we support. But it can also promote harmful messages and misinformation. You’ve probably heard about issues like unrealistic standards of beauty and false news reporting. But that might not be all you have to worry about.

Nearly 80% of millennials and Gen Zers report receiving financial advice from social media, according to a recent Forbes survey. But not every influencer is giving out great information. Here’s how to know when to listen and when to move on.

Check their credentials

When getting information from a financial advisor or a site like this, it’s not too difficult to know whether you’re dealing with people who know what they’re talking about. But that can be more difficult to assess when you’re talking about any random person with a blog or a camera.

They don’t necessarily need a finance degree or any credentials after their name in order to provide sound advice, but they should have some relevant background. For example, if they’re teaching you how to pay off your debt, ideally, they have some experience paying off a large amount of debt themselves. If they’re giving advice they haven’t tried — or wouldn’t try — themselves, that could be a red flag.

See what you can find about the person giving the advice before you follow it. If you can’t locate anything that explains how they know what they claim to know, either move on to another source or reach out to them directly to ask.

Be wary of extreme moves

You’ve probably heard the stories of people who invest in a stock or cryptocurrency, sometimes at the suggestion of others on social media, and make a fortune. Those people do exist, but there are a lot more who try these strategies and end up losing money. So it’s important not to let an influencer sell you on the idea of getting rich quick.

If they’re suggesting that you dump a lot of your popular investments and pick up some of their favorite penny stocks instead, that should set off an alarm. It’s always best to keep your money diversified while investing, and if a lot of these sudden, risky moves were worth it, everyone would be making them.

Keep a level head and get a few different opinions before you make any major changes to your financial strategy. If you can’t find any other financial expert who agrees with your influencer, that’s a good sign it’s not a smart move.

Make sure it’s the right move for you

Some pieces of advice can be great for some people and bad for others. For example, saving at least 10% of your income for retirement is a sound suggestion for a lot of people. But if you’re drowning in credit card debt, focusing on retirement first probably isn’t wise. Your credit cards will continue accruing interest, probably faster than your investments will make you money. Pay off your credit card debt first, then focus on retirement savings.

Hopefully, the person you’re getting information from will provide the necessary nuance about who the target audience is. But if not, you may have to do some research on your own to decide if it’s a good decision for you.

Watch what they’re selling

Influencers and bloggers often make money by selling products to you. It might be a book or a physical item, but often in the finance world, they could also be getting money by encouraging people to sign up for a new bank account or credit card through their affiliate links.

There’s nothing wrong with this and it doesn’t mean what they’re recommending is bad. But you should recognize that their income is probably a significant concern for them as well. They might recommend a product they’ll earn a commission on before a better product they’re not affiliated with, just so they can earn a little money.

Take their suggestions into consideration, but do your own research as well. Compare a few products and dig into their features and fees before deciding which one is best for you.

The above tips apply to any source of financial information you come across, not just social media. By reading widely and getting a few different opinions, you’ll probably learn more quickly and be better able to spot bad advice when you come across it.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More 

HOAs Aren’t All Bad. Here Are 3 Benefits You Might Enjoy

By Money Management No Comments

You may not love the fees, but you might really appreciate the perks. 

Image source: Getty Images

If you’re looking to buy a home, you may come across listings that require you to join a homeowners association, or HOA. HOAs are common among townhouses and condos, but sometimes, even a standalone, detached house can end up being subject to an HOA.

It’s estimated that 20% to 25% of Americans live in a home that’s part of an HOA. And buying a home that’s part of an HOA will generally mean having to stick to specific rules, some of which might impose on your lifestyle. If your HOA says you can’t run a small business from your home, for example, and that’s something you want to do, well, it’s a problem.

Also, HOAs commonly charge monthly dues, and those can sometimes be costly. And when you’re already grappling with a mortgage payment, you may not want to deal with the extra expense.

But despite these potential drawbacks, HOAs have their benefits, too. Here are a few you might appreciate if you end up buying a home that’s part of an HOA.

1. Your property might gain value, or retain its value more easily

HOAs come with strict rules with regard to property maintenance. Those might seem like a hassle at first. But actually, they help serve an important purpose — keeping property values high and/or helping them rise. That could benefit you tremendously if you decide you’re ready to buy a new home and sell your current one.

2. You might gain access to terrific amenities

The higher your HOA fees, the more amenities you might get access to. And some amenities are ones you probably wouldn’t get with a standalone home in a non-HOA community.

It’s common for an HOA to include things like a community clubhouse, fitness center, tennis courts, and swimming pool. Private properties generally can’t accommodate most of these features. And even if you do manage to find a house with a pool, maintaining one on your own could end up being prohibitively expensive. With an HOA, you get to split that cost with your fellow homeowners rather than face the burden on your own.

3. You might save yourself time and money on maintenance

Your HOA fees will generally include maintenance of all common and outdoor areas. That means that if it snows, it won’t have to be you going out there with a shovel to deal with the mess. Not only might you save yourself time by not having to do all of your own maintenance, but you might also save a fair amount of money.

4. You might have an easier time meeting people

If you’re a social person by nature, then you might appreciate the community aspect of an HOA. When you have shared amenities, it sets the stage for meeting new people and getting to know your neighbors. If that’s a positive thing in your book, then it’s all the more reason to purchase a home in an HOA.

You may be inclined to run the other way when it comes to HOAs. But before you do, think about the upsides. You may find that despite certain costs and restrictions, living in an HOA ends up benefiting you quite a bit.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More 

19 Tips to Save at Lowe’s

By Money Management No Comments

 Coupons, promo codes, and design tools — Lowe’s makes it easy for you to save. Andrey Burmakin / Shutterstock.com

Editor’s Note: This story originally appeared on The Penny Hoarder. We’ve all been there: You’re staring down the end of a home improvement project and wondering how the bill got so high. You thought you’d calculated all of the costs, but of course, it turned out to be more. And the rising cost of inflation means you’re seeing that price increase not just at home stores but everywhere.

 Read More 

How to Find Flexible Jobs With Startups

By Money Management No Comments

 More startups are embracing flexible work environments. See what that means and how to find a flexible startup job. Jacob Lund / Shutterstock.com

Editor’s Note: This story originally appeared on FlexJobs.com. When you think of startups, you may picture teams of people pulling all-nighters in a shared office space. The hours required to get emerging tech firms and other startups off the ground might also seem like the antithesis of flexibility. But that doesn’t mean that there aren’t opportunities to find flexible jobs with startups…

 Read More 

Self-Employed? This Simple Move Could Help You Avoid IRS Penalties

By Money Management No Comments

It’s an easy step to take. 

Image source: Getty Images

One of the challenges of being self-employed is not having taxes taken out of your earnings. You’d think that would be a good thing, because it means getting your hands on your money sooner. But in some ways, it can be a bad thing, because it’s on you to make sure you’re paying the IRS on a quarterly basis. And if you’re late making your estimated tax payments, you could face penalties.

That’s why it pays to put those payments on autopilot. Doing so could not only spare you from penalties, but also, help you better manage your money.

An easier way to deal with tax payments

The IRS insists on being paid as you earn money. That’s why you can’t just ignore your estimated quarterly tax payments and pay the IRS in one fell swoop when you file a tax return.

Meanwhile, the IRS sets a deadline for when quarterly tax payments are due. This year, those payments must reach the IRS by:

April 18, which covers the first quarter of the yearJune 15, which covers the second quarter of the yearSept. 15, which covers the third quarter of the yearJan. 16, 2024, which covers the fourth quarter of the year

Now, you’ll notice that these payments aren’t spaced out completely evenly. There’s only a two-month gap, for example, from when your payments are due for the year’s first and second quarter.

And if you’re wondering why your final payment isn’t actually due in 2023, but rather, in early 2024, it’s because the IRS recognizes that you might get some payments very late in the year. And you might need time to reconcile those so you can calculate your payments accurately.

It’s important to be timely with your estimated quarterly payments and meet these deadlines. But you might run into issues with forgetfulness. Or you might run into financial issues. That’s why automating your payments is a good bet.

To do so, a good bet is to open a separate bank account where you transfer money from your earnings every month. That sum should suffice in covering your tax bill each quarter.

This setup will help ensure you aren’t late with your payments. But it might also help you better manage your money.

If you’re moving funds into a separate account to cover your quarterly tax payments, you won’t be tempted to spend that money. Rather, you’ll know it’s reserved for the IRS.

Make your situation work

A lot of people who are self-employed get tripped up by tax obligations. Setting your quarterly payments to autopay could help you avoid penalties and stress.

If you’re not sure how to calculate your quarterly tax payments, your best bet is to consult an accountant. They can look at your total income picture and help you arrive at the most accurate estimates.

Keep in mind that your estimated payments might have to change over time as your income changes. But an accountant can help you navigate that situation and get those numbers right.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More