Personal Finance Links

I haven’t posted some good articles in a while, so I thought it was time.  I wanted to share some interesting articles I’ve read lately with all of you, with my thoughts about them.  Enjoy!

  • YNAB has a great post talking about why you might still add debt to your credit card when first starting out with a budget.  It’s more important to continue using the budget than to try to change all your spending habits right away.  That’s just a guaranteed way to quit using the budget.  They do a great job of explaining that, so take a look.  Here’s an update on that post as well, with a great explanation from a financial “coach”.
  • Mr Money Mustache talks about spenders vs savers.  It’s a great article on the different mindsets between people who spend money and people who save.  I lean more toward the saver side, but do still have some tendencies toward spenders.  I’d like to think that as people grow wiser, they tend to move more toward the savers side.  I try to, but still have plenty of room for improvement.
  • Afford Anything explains that all countries aren’t fueled by debt.  She goes on to explain  that you should be careful about taking out a loan for items most people consider normal (such as a car).  I agree with pretty much everything she says in this article, especially about using debt for leverage.
  • I wanted to put this out out there because I don’t agree with it. 🙂  Trent over at The Simple Dollar talks about comparing costs between new and used cars.  He completely missed the maintenance aspect though.  The problems that develop on a car that’s under 5 years old is essentially non-existent.  The older the vehicle gets, the more parts that fail and need to be replaced.  This is not counting regular, routine maintenance, such as changing the oil and wiper blades, filling up fluids, etc.  The expensive part of car maintenance happens when you need to start replacing parts, such as CV joints failing, spark plugs needing to be replaced, changing the timing belt, etc.  Those happen as the car ages, not when it’s new.  Newer cars have higher insurance rates, but less replacing of parts.  Older cars have cheaper insurance, but you’re paying even more in parts (and labor if you don’t do the work yourself) that need replacing due to age/miles.

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