Surviving College Life

Posts filed under 'budget & finances'

10 Secrets to Getting the Best Deal on a New Car

It has been a little over two years since I wrote a check for my first car payment–I bought it the summer before my junior year of college, and because of some hard work (and the help of a trade-in) I was able to keep the payment low enough that I could afford it even on a college student’s miniscule budget.

To celebrate my 50^th post here at Surviving College Life, I’m going to let you in on the ten car-shopping tips that helped me really drop the price of my car!

Know What You Want. If you’re on a budget, you probably aren’t buying your dream car, but it is still important to know what you want. Know the exact specs of your future car–not just the make and model, but the details, too–how many airbags and cup holders, power steering, manual or automatic transmission, manual or power windows, alarm or not, everything. Choosing exactly what you want beforehand will give you the confidence to tell a dealer NO when they try to sell you something “bigger and better.” (And they WILL try to do that!)
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Know What It’s Worth. Too many people walk on to a car lot with only a vague idea of what the car they want is worth, making impossible for them to spot a good (or bad!) deal. Whether you’re buying new or used, you should find out the current value of the car you want to purchase. The Kelley Blue Book’s list of car values is a great place to start.
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Pre-Set Your Monthly Payments. Before you even set foot in a dealership, you need to figure out your ideal numbers, especially if you will be financing your purchase. Pencil out how much you can afford to put down, and how much you can afford to pay each month. Find your “upper limit” number for a monthly payment, but don’t tell the dealer a number that high! Don’t forget to figure it tax, license, and registration. When you’re sitting down with your sales rep, make him figure out your total monthly payments and give it to you in writing.
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Shop Around (and Don’t Be Shy About It). I’d recommend going to at least 3 dealerships when you’re looking for a good deal. Make sure you get the exact same car so you can compare prices accurately, and if you can, get the number in writing before you move on to the next. Also, don’t be shy about letting salesmen know that you’re shopping around–it can sometimes get them to give you a better deal if they feel a little insecure.
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Ask for a LOW, LOW Price. For some reason, a lot of people don’t do this. In fact, a lot of people walk in to a dealership ready to pay the retail price. But to get the best price, you need to start low. Lower than you think they’re willing to go. Then you work up from there, negotiating until you get a price you like. Salesmen will NOT offer you a price unless it works out well for them, so you just need to worry about getting a price that works out for you.
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Be Ready to Walk Away. Nothing makes the point that you are serious about your price requests more than your readiness to walk away. I continually repeated to my sales rep that if we couldn’t get the price I was looking for, I didn’t want to spend any more time there–and I meant it. I could just have easily bought a car somewhere else, some other day. No rush. He responded by getting the price down to where I wanted it, and even figured out how to include a car alarm without raising my price by more than a couple dollars a month.
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Bring in Backup. Bring someone along when you go shopping–or at least during final negotiations. (Preferably someone who knows about cars!) Having someone to back you up will give you a confidence boost, and give you someone to talk to if you’re tempted to make an impulse buy. Salesmen can be intimidating, so it can really help to have someone on your side.
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Get a Co-Signer With Great Credit. You’ve probably seen car commercials offering something like “a 4.5% APR on approved credit.” That means if you have a high enough credit score, you can get a really low interest rate if you finance your car. If you’re in college or even your early twenties, you probably don’t have a perfectly stellar credit score yet. Instead of forfeiting those savings, try to get a parent or grandparent with a good score to co-sign for you so you can get their low interest rate.
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Shop Summer for the “Clearance” Advantage. The new year model cars usually appear on the lot around the end of summer, and that means that dealerships want to get rid of their current year’s stock ASAP! Shopping towards the middle of June through the middle of July can garner you great deals on current year stock, because they basically go “on clearance.” Plus, it’s still a brand new car!
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Shop Sunsets. Timing is everything when it comes to car shopping–not just the time of year, either, but also the time of day. If you want to up your odds of getting a good deal, go in to make your final purchase towards the end of the day. Salesmen work on commission, and they’ll want to get their last sales of the day wrapped up–that means they’ll be more likely to work through a deal quickly and maybe even negotiate down more. (Shopping on the last day of the month can also result in a lower price out the door since dealerships want to meet quotas for dealer discounts given to them by car manufacturers if they sell a certain volume of cars for the month!)

Happy car shopping!

photo: Keys 1 by tap78

1 comment March 27th, 2008

3 Easy Ways to Build Your Credit Score

Now that you know what a credit score is, it’s time to figure out how you can make yours stronger. The nice thing about credit scores is that they’re pretty easy to build–it really doesn’t take a lot of effort on your part.

Here are a couple of ways you can build your credit.

Open a Checking and a Savings Account
You can’t get a credit card until you are 18, but some banks will allow you to open accounts with them at a younger age, so this is a great way to get a head start. You could also consider opening a joint account with an adult if your bank won’t let you open one on your own.

Have a Credit Card
Okay, first of all, credit cards can be dangerous for college students. Once you have one, it’s tempting to use it for anything and everything, and that leads a lot of students into debt. So, my advice would be to get one card (only one!), and use it ONLY OCCASIONALLY and ONLY like a debit card–only spend money you already have in the bank, and pay off your entire balance at the end of each month.

Caution: Paying your card of on time will build your credit. Overspending on your card will put you in debt. Be careful.

Pay Off a Loan
I’m not saying to rush out and get a loan–if you don’t need a loan, don’t get one just to build credit. But, if you already have a loan on a car, or if you have student loans, the simple act of paying your bill on time will help with your credit. Easy!

So, the bottom line on building credit is–Pay your bills on time! That’s basically zero effort, since really you should be doing that anyway.

Having trouble getting everything in order by the payment due date? Check with your bank, credit card company, lender, and other companies you pay bills to, and see if you can set up auto-bill-pay. All you have to do then is make sure you have enough money in your bank account every month, and the company will withdraw the payment for you. (Need to save more money to fill that bank account? Check out these 50 ways to save money in college!)

photo: number 540 by Scyza

Add comment January 31st, 2008

50 Smart and Easy Ways to Save Money in College

Finding college a little more expensive than you expected? Check out these tips to help you save cash during the college years—I’ve used a lot of them myself (and now that I’m paying of student loans, I’m finding even more!)

School & Textbooks
1. Try to get a tuition discount. (Fox College Funding’s founder, Deborah Fox, talks about how to do that on her Pay for College blog—look there for other good college & money saving info).

2. Check if your job has tuition assistance or education reimbursement program—if it does, use it!

3. Check to see if your 4-year college will give you credit to take lower division classes at a community college. They cost less to take, and should be basically the same classes.

4. DON’T buy textbooks from the campus bookstore! They are almost ALWAYS overpriced.

5. Buy your text books used (CampusBooks.com compares prices on a lot of sites for you), or to save even more, ask your professor if you can use an older edition—those are usually MUCH cheaper.

6. Sell your textbooks at the end of the quarter/semester. You’ll probably get more selling them online than you would selling them back to the school.

7. Apply for scholarships–and increase your odds by applying to quirky scholarships that apply to you, or to local ones. They have a smaller applicant pool, so they’re easier to win!

Groceries
8. Use meal points or other college meal credits that are built into your fees to their fullest (you probably won’t get a refund at the end of the year).

9. Buy store brand groceries for things that taste the same. For example, store brand cereals sometimes don’t taste as good, but I haven’t noticed a difference in canned goods, pastas, and salad dressing.

10. Buy bulk packages of the things you use the most—toilet paper, shampoo, soap, etc.

11. Don’t use paper plates and plastic utensils if you have to buy them, just wash some dishes instead. Little luxuries like disposable utensils add up.

12. When you go shopping, make a list of all the meals you are going to eat for the next week first. Buy ONLY what you need to make those meals.

13. Don’t shop hungry, and don’t give in to the impulse buys at the checkout stand.

14. Buy groceries that are on sale, but DON’T buy things you don’t need just because they’re on sale.

15. Learn how to eat well (as in real food, not ramen noodles) cheaply. Check out these $3 recipes from Cheap Eats for starters.

16. Buy local produce at a produce store or farmers market. It is fresher AND cheaper. In San Diego we have a store called Henry’s–you can also try to find cheaper fruit & etc. at stores like Trader Joe’s.

Transportation & Travel
17. Gas is expensive. Take the bus (a lot of colleges offer free shuttles or bus passes—check with your school’s transportation department).

18. Carpool and split the cost of gas. This is especially good if you’re taking a long road trip.

19. If you still need to buy gas, check GasBuddy.com to find cheap rates in your area.

20. Use student discounts when you travel. Check with the bus, train, or airline you are using, or use a student travel site like StudentUniverse.com.

Rent
21. Share a room. It’s tempting to pay the extra for your own room, but unless you REALLY need it, you may as well share. It’s good practice at getting along with someone, and it costs less.

22. Fight yearly rental increases if you live off campus! Landlords and apartment complexes will usually lower your rent increase if you just ask. Tell them you want to stay in the complex, but you can’t afford so much of an increase—they will usually compromise with you.

Utilities & Phone
23. Reduce your electricity bills: turn off your computer when you’re not using it, turn off lights when you leave the room, unplug appliances you aren’t using.

24. Track your cell minutes diligently so you don’t get charged extra. Better yet, cut down your cell minutes use and get a cheaper plan. Cut down on the frills (like texting or video messaging) that you don’t need, or see if you can get them for free.

25. Calling information? Don’t pay a fee! Call for free information at Google’s (800) GOOG-411, or another free service, (800) FREE-411.

26. Use free internet phone software like Skype to make free computer-to-computer phone calls (it will help cut down your phone bill!)

27. Use the internet at school, and skip getting it at home. Doing that saved me about $30/month.

28. If you’re buying software, hardware, or computers, check out Fry’s Electronics (Frys.com). They often have rebate deals that allow you to get software for free.

Shopping
29. Use RetailMeNot.com to find coupon codes for thousands of websites—That College Kid used it to save $70 on her textbooks.

30. Refashion old clothes (or thrifted clothes) into something you love. Check out Wardrobe Refashion and T-Shirt Surgery for inspiration, and get free patterns at Burda Style.

31. Make your own gifts. Check out these DIY gift roundups: for girls, for guys, for kids, & for teens/twenty-somethings. I made a gift for my brother this year that he LOVED, and it cost less than $5 (you can find it in “gifts for guys”–its the Monster iPod Cozy).

32. Buy the floor model for expensive items (but make sure it has a warranty). I got a floor model mattress for a few hundred dollars cheaper.

33. Bargain anywhere you can! It never hurts to ask for a lower price. I’ve gotten discounts on mattress box springs, a motor scooter, and my car just by talking the salesman down!

34. If you have a credit card, use it like a debit card—never spend more than you actually have in the bank.

Credit, Fees & Bills
35. Understand what your credit score is, and keep it healthy! It will help you save money later when you’re looking for low interest rates on car or home loans.

36. Pay your bills on time, always. Late fees for most credit cards START at $20—they could be more.

37. Ask to have yearly or monthly fees waived from credit cards or bank accounts. The worst case scenario is that you get a “No,” the best is that you save those fees!

Food & Entertainment
38. Check for student discounts at museums, zoos, restaurants, and movie theaters. They may not be listed. The San Diego zoo had a deal that allowed me to get a year pass for just a little more than the price of one regular admission, but I had to ask for it—the deal wasn’t listed.

39. Don’t eat out. It adds up quickly, and if you’re not getting fast food, you have to add a tip.

40. Use the gym at school, or exercise for free at parks or beaches.

41. Make your own coffee, or at least skip the $3 lattes.

42. Find free, legal music downloads instead of paying $1 per song. Ruckus.com has free downloads for students, and Librivox has free audiobooks.

43. Borrow books and movies from the library instead of buying them or paying a rental fee. Return them on time.

44. Buy discount movie tickets at Costco. They have discounted tickets for chains like Edwards and AMC.

45. Go to matinees, and take advantage of your local theater’s cheaper days—our AMC shows movies for less than half price if you go before 11 on a weekend morning.

46. Try to find a local discount movie theater. We have one on campus! The movies are a little older (almost ready for release on DVD), but still fun to watch on a big screen.

47. Avoid buying snacks at the movie theater; they always overcharge you. If you really want something to munch, pick up some goodies at a grocery store beforehand.

48. Sign up for freebies with your favorite restaurants. Two of my favorites–Pat & Oscar’s and Quizno’s–send out coupons via email, and you can get a FREE “Love It” (medium) size ice cream at Coldstone if you join their birthday club. Mmm!

49. Ask for a lower rate on hotel rooms and rental cars. Since they are travel industries, they are more likely to give you some kind of discount. Be polite, not pushy.

50. Look for freebies in your local paper or school paper: Some museums are free on certain weekdays, some bands play with no cover charge, and your college will probably have some free events for students. UCSD has at least two free concerts with big name artists every year.

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Photo: Piggy Bank 1 by Lynne Lancaster

14 comments January 28th, 2008

Five College New Year’s Resolutions That Don’t Involve the Gym!

It’s the same thing every year–somehow I always make resolutions that I can’t (or, okay, don’t) follow through with (like the infamous “Go to the gym 5x a week!!!”). I do like having the opportunity to start over, though, especially on the school front, so here are a few college goals that you CAN (and should!) follow through with:

Go to Class, and REALLY Be There
It’s a big temptation to spend class, doodling, checking your email, reading as many blogs as possible, or researching the lowest price on tickets for the next Ben Lee concert. But if you really make yourself pay attention to the lecture, it will make studying WAY easier! Try to be passionate about what you’re learning-it will probably help you boost your grades! (See also: How to Stay Awake in Class!)
Get to Know at Least One Professor
There are so many good reasons to get to know some of your professors! They can be great contacts for tutoring and TAing positions, they can write you letters of recommendation for scholarships and grad school, and they can help you with coursework. It just takes a little of your time, so why not go to office hours once a week, send some helpful email suggestions about the class, or even just ask some questions about the homework!
Become More Financially Savvy
Financial experts agree that your teens and early twenties can have a major impact (good or bad!) on your later life. So take a closer look at your finances this year! Find creative ways to save money, learn what a credit score is and how to build it, guard your spending habits, know the difference between private and federal student loans, and maybe even think about how to save a little for later.
Know Your Deadlines
One of the best things I ever did in college was to make a simple list of all my due dates for the quarter. When I got home on the first day, I took out all my syllabi, found all the due dates, and typed them up in order. Then I tacked it above my computer, and crossed off each item as I finished it. It was SO simple, but it helped me make sure I was never surprised by a paper or test.
Find Something to be Passionate About
Whether it’s a class, a club, a language, or anything in between, find something on campus to be passionate about. It will give you a goal to strive for, and something to look forward to during long study hours. That’s a pretty easy one, right?

Happy New Year!!!

photo road trip 1 by markmiller

Add comment January 3rd, 2008

What is a Credit Score (and Why Should You Care)?

Your Credit Affects Your Future

Chances are you don’t know your credit score. In fact, a lot of students our age don’t even know what a credit score is—or how it can affect their future. Scroll down through this credit score quick guide to make sure you’re up on your credit info:

What is a Credit Score?
A credit score is a three-digit number (ranging from 340 to 850) that helps define your credit history and reliability—basically, the higher your credit score, the more trust you receive from those who look at your score.

Who Looks at Credit Scores?
This is the “why you should care” bit—your credit score matters to a lot of people. Take a look at these examples:

Loan Companies. Whether you’re taking out a car loan or a private student loan (remember to take out federal ones first—they have better terms!), lenders look at your credit score to help determine the interest rate to charge you—or if they will even give you a loan! If you have a high score, you will almost definitely be qualified and get a lower rate. (Another way to get a lower rate is to have someone with a good credit score co-sign your loan). Even mattress stores check your credit score before they’ll finance a mattress for you!

Credit Card Companies. If you apply for a credit card, a low credit score (or no credit score) could mean you get denied. My first card (which I got my freshman year) was a student credit card I got through my bank.

Cell Phone Companies. When Mom and Dad decide it’s time for you to get your own cell plan, your carrier of choice will probably run a credit check on you. A low credit score could mean higher rates or, once again, a denial!

Insurance Companies. Car insurance companies use a lot of factors to calculate your rate. Age and car model are two of them, but guess what? They also check your credit score. Same rules apply: a higher credit score usually means a lower rate!

Landlords/Apartment Complexes. If you’re renting off-campus, you will probably need a good credit score to rent an apartment. A low credit score—or no credit score at all—could mean you’ll have to find someone to co-sign your lease.

How to Get Your Credit Report
Want to see your credit report? The federal government created a law that allows you to get a copy of your credit report for free once every twelve months. Just go to www.annualcreditreport.com to get started. You should request your credit score from all three of these companies: Experian, TransUnion, and Equifax since your credit history is tracked separately by each company and may therefore have different information on each report. If you want to see your actual credit score, you will have to pay a small fee.

The most common score is called your “FICO” score that is calculated by a company named Fair Isaac & Co. and combines your credit information from all three credit reporting agencies. In 2005, the three agencies created their own combination credit score called “VantageScore” which calculates a scale of 500 to 990.

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Photo: Tramway by Herman Brinkman

8 comments December 27th, 2007

Inexpensive DIY Gift Roundup #4: Gifts for Teens & Twenty-somethings

I’ve been busy making gifts for some of my family (including the Monster iPod Cozy for my brother!), and its actually been surprisingly fun–it seems much more personal. Here is a little assortment of fun DIY holiday gifts you can give to the teens and twenty-somethings in your life:

Redesigned Suitcase Backpack. To keep this unique project inexpensive, scour thrift stores for good-quality suitcases, and embellish with cool scraps you thrift or discover around the house.

Rice Heat Therapy Pillow. Schoolwork, new jobs, and all that comes with this age can mean stiff necks and headaches. This aromatherapy rice pillow will soothe all those aches and pains. This tutorial also includes ways to change the pillow into a cold pack and an eye-pillow.

Toaster Pastry iPod Cozy. This is the easiest iPod case I’ve found yet—just a needle, thread, and a couple pieces of felt. Plus it looks just like a Pop Tart! (Also check out the other iPod cases I posted in this entry and this one. I made the “Monster iPod Cozy” for my brother–it looks great and cost less than $5!)

Lavender Bath Salts. A bottle of these can cost $16 or more in stores, but they smell just as good (or better!) when you make your own.

Paper Lantern. Take your origami skills to the next level by making this gorgeous paper lantern for your friend, sibling, or roommate. It’s very straightforward, but looks stunning when its finished!

Recipe Book. Perfect for anyone taking on the first few years of living on their own, fill this book with favorite family recipes or scour the web for recipes you can make with just dorm supplies (microwave, fridge, toaster, etc.). To cut costs a bit, you can use a regular binder instead of a scrapbook album.