How To Make More Money

Do you want to make more money at work, but you never get promoted? Ever ask yourself why you don’t get promoted even though you “work hard”? If that sounds like you, keep reading…

Before we get into the secret of making more money at work, here are a few reasons why—besides the obvious—it’s so important:

  1. The more money you make, the more you can save in your 401k, which will…
  2.  Help you become a millionaire faster, which will…
  3.  Improve your personal finance outlook.
Picture of George Washington pointing down towards the content below.
Below we’ll detail the secrets to making more money.
These are just a few reasons why you should be interested in making more money. And making more money often involves getting promoted at work.

Whether you’re fresh out of school or you’ve been in the workforce a few years and want to know the secret to getting promoted and therefore making more money, then you have come to the right place. Lucky for you, Dollabuzz has…

The Secret to Getting Promoted at Work.

Hello, Dollabuzz readers! Today, we’re going to fill you in on how to succeed and get promoted at work. In case you’re new to Dollabuzz, we’ve previously covered the secret to asking for a raise and getting it.

Getting promoted at work means getting paid mo’ money, and mo’ money is what Dollabuzz is all about. If you don’t know, now you know! So let’s get to the money and find out what you’re about to learn today. Here are the topics we’re going to cover:

  • What you think you need to do to get ahead and why it’s wrong,
  • How you get promoted by working less,
  • The one magic word that will help you succeed, and
  • The power of reciprocity

Dollabuzz is here to help you get your money right, and part of that involves showing you the secrets to success that you might’ve never heard before. Being promoted usually means mo’ money for you. But how do you do it? Work really, really hard? Well, maybe—but Dollabuzz has a better idea.

We’re cool with hard work, but why would you want to do more than absolutely necessary? We’re all about working smart and letting the non ‘buzzers do the really, really hard work. So let’s see how you can Dollabuzz at work and earn more money!

A businessman breaking through a wall while saying on the way to success.
Dollabuzz will help you break down barriers to success.

What You THINK You Need to Do to Get Promoted at Work.

Work really hard and you will succeed. That’s what we’re all taught from an early age. No one ever tells us, “Hey, do less and you can succeed.” Well, Dollabuzz is here to flip the script on the “work really hard” theory. Remember, we’re cool with hard work, but not more than necessary.

(1) Work Hard… but Not Too Hard

What do I mean by “work hard but not too hard”? This statement means do what is asked of you by your boss first and get that nailed down until it’s second nature. You run your current workload on autopilot and then you expand the amount of work you do. Once you’re on autopilot, then you volunteer for that special project.

Too often, newbies at work want to impress their boss, so they take on more work than they can handle. You get an “A” for effort, but nothing else. Taking on other projects before you get your basic workload on autopilot will lead to you working too hard. Staying late and working on the weekends to get caught up and hoping your boss will notice? Nah, brah—you workin’ too hard.

Be sure you work smart and Dollabuzz.
Working smarter and simpler will help you get promoted

Working smarter and not harder is the key. Smarter means finding a way to get more done while doing less. Work smarter by following these steps:

  • Check your email only three times a day.
  • Attend fewer meetings. And if you host a meeting, provide an agenda. Keep the meeting to 30 minutes or less.
  • Keep things simple. The simple answer or solution is usually the correct one.
  • Focus on what is truly important by asking yourself: Is what I’m doing providing value? How can I provide value, simplify a process, or improve efficiency?

Focusing on what’s truly important is what your boss will notice. When everything you’re supposed to do is done well and you provide value, you’ll start to get noticed. Then, your boss will see the efficiencies you’ve created and the value you add to the company. This is how you get promoted.

(2) Delegate Responsibilities: Tell Other People What to Do

You can’t do everything alone. Find ways to delegate if you want to succeed.

“Delegate” is the professional term for telling people what to do. You can’t do everything; nor should you. If there’s a menial task you can delegate to someone else, then do it. For example, we have one person keep track of all the timesheets for our jobs. Instead of us all entering the budgeted hours, we send timesheets to one person who specializes in doing it; and they get it done fast.

Another example is when I lead the C-Level interviews at work. I don’t take or write up the interview notes. We’re interviewing CEOs, CFOs, and board members, and I delegate note-taking to a less senior examiner. This allows me to focus on the interview and kick ass at the really important task of leading the interviews.

(3) Learn to Use the One Magic Word that Will Help You Succeed

Succeeding at work and being promoted requires using one magic word. That magic word is: “No.” Really, Mr. Dollabuzz? Yes, loyal reader. The ability to say no greatly influences our success, but saying no is hard. We are conditioned to help people, and usually that means saying yes. But often times saying yes to something comes at the expense of something else, like your own work and success.

You can be a team player and still say no. You just have to be very selective in what you say yes to. A “yes” answer should come only if it is truly going to benefit you and your team. Only say yes to the meeting if you have received the agenda and your active participation is required.

Be careful when you say yes, and don’t be afraid to say no.
Be Careful What You Agree To

Studies have shown that we are likely to act as we have in the past. For example, if you always say yes to one of your co-workers, then it will become very hard to say no to that person in the future.

Often, the requests start off simple, but future request will inevitably require more time and effort. You will have a hard time saying no to these more time-consuming requests because you’ve already set the standard of saying yes in the past.

(4) Understand the Power of Reciprocity

“People say yes to those they owe.” – Robert Cialdini

As we close out today’s post, I wanted to discuss the power of reciprocity. The great Robert Cialdini provides a quick overview of this secret power and how you can use it to your benefit. Be proactive and do something simple and easy for someone you work with, and they will be inclined to return the favor.

For example, if you see your co-worker’s report at the copier, bring it to them. Later, you can ask them for a favor that will help you out. Our society has conditioned us to return the favor. Additionally, if you want someone to like you more, offer them something warm to drink. People who like you will be inclined to help you.

Recap: The Secret to Getting Promoted…

  • Work hard—but not really, really hard,
  • Delegate (tell other people what to do),
  • Use the magic and powerful word “NO,” and
  • Understand the power of reciprocity

Remember these 4 keys and you’ll be promoted and Dollabuzzin’ in no time.

Do you want to learn how to become a millionaire?

Check out our How to Become a Millionaire page.

See the benefits you will receive for being an email subscriber.

4 Amazingly Simple Steps To Reach Your Personal Finance Goals

This Post Is All About Reaching Your GOOOOAAAALS!!

Hello, Dollabuzz readers! Here’s what we’ll be covering today:
  • The importance of personal finance goals
  • 4 well-known steps to achieve your  goals
  • Some cool and unique ideas that will help you succeed (and I bet you’ve never heard of them.)

Close up of a post it note that says set goals

If you’re reading this, then chances are you came to Dollabuzz to learn how to Get.Your.Money. Right. We thank you for stopping by and we can help you succeed.

The beginning of a new year is a time…

for people to set goals, like getting out of debt, saving for retirement, and yada, yada, yada.

But we all know what happens…

We’re good for a few weeks, then the old habits come back from the dead. We find ourselves sliding back to our old ways that don’t work and have never made any lasting improvements. But…

This year is different. Because you want to keep your new year’s resolution this time, right?
So how can we make these new year’s resolutions stick? 
  1. Write them down,
  2. Make them timely,
  3. Have a plan, and
  4. Share them with someone you trust.

It’s really that simple. Do these four amazingly simple things, and your chances of success increase dramatically!

Goals are important, because…

they are key to our success and possibly even our happiness. However, what’s just as important is having a plan to reach your goals. Like the great Yogi Berra said, “You’ve got to be very careful if you don’t know where you’re going, because you might not get there.”

The best way to get there is to have a plan. In fact, that’s the only way to get there.

So how do we go about setting and – more importantly – achieving these goals? Let’s find out!

4 Keys To Reaching Your GOOOOOOOAAAALS

1. Write Down Your Goals 

This is the most important part of achieving your goals. They need to be written down. Goals that aren’t written are simply wishes and dreams. We wish for ponies and we dream about being rich, but we never take steps to make those things a reality.

Writing down goals is effective because it makes them come to life. You can visualize them, and they become real. You took time to write them down, and they are now officially goals.

2. Goals Need to Be Timely

After putting your goals down on paper, you need to set a timeline to complete your goals. This is important because if you don’t have a set time to complete your goals, then you’ll keep procrastinating and they’ll take forever to accomplish. And ain’t nobody got time for that!

Most things we do in life have some sort of time deadline involved, and setting a time or date to achieve our goals should be no different.

 3. You Need a Plan

After establishing your goals and writing them down, you need a plan. That plan is simply a series of smaller goals that, when accomplished, will lead to our ultimate goal. This plan should also be written down and revisited regularly.

4. Share Goals with Your Significant Other

It’s really helpful to share your goals with your significant other, or anyone else in your life who you’re close with. They can hold you accountable and encourage you when things are not going as planned.

Unique goal-setting tips
(That I bet you’ve never heard of)

These ideas come from a great podcast I listen to called Science of Success. Do yourself a solid and check it out right now. I love this podcast, and I know you will too!

 Step Outside of Your Comfort Zone

  • Setting goals is generally a good thing. (Yeah, we know, Mr. Dollabuzz.) But it’s important to step out of your comfort zone whenever possible and to set goals that are really challenging that will require some effort.
  • When we step out of our comfort zone and accomplish things we never thought possible is when we truly succeed. Plus it feels great!

How to Execute on Huge Goals w/ Neil Patel

  • Prepare a to-do list (mini goals) and go over it every day
  • Follow the 10-minute rule: break goals down into 10-minute chunks and if after 10 minutes you haven’t made progress, try something different
  • You don’t have to take the same path everyone else does. Think OUTSIDE THE BOX and look for CREATIVE SOLUTIONS to reach your goals

Build Mental Models (Charles Duhigg, a Pulitzer Prize winning author)

  • Charles explains his take on mental models and how you can use them to enhance your focus on the right things (your goals)
  • By taking the time to plan out your days and what you expect to see, do, and have happen, you can choose what you’re going to focus on and what’s most important that day
  • Break bad habits. Find out the reward for your bad habits. Once you know why you do something (the reward), you can break that habit
  • Build good habits like setting goals and planning. These habits will become part of your routine and become easy for you to do because, well… they’re habits!

So How Are You Going to Reach Your Goooooaaals?

With the new year here, there’s a lot of talk about setting goals. That’s all well and good, but goal-setting can be something you do all year round!

Here’s a quick recap on how to reach your goals:
  • Determine your goals
  • Write them down
  • Make them timely
  • Step out of your comfort zone when determining your goals
  • Think outside the box when planning to achieve your goals
  • Break bad habits that prevent you from achieving your goals

Looking to get started on your goals?

Become an email subscriber and receive a FREE goal-setting worksheet. As a subscriber, you will also receive other discounts, freebies, and other things you need to Get.Your.Money.Right. All for FREE!

How To Make Money As a Secret Shopper

Dollabuzz Shows You Another Way to Earn Easy Money

Looking to make some extra cash? Dollabuzz is here to show you how to combine secret-shopper and survey money to cash in during your free time.

Dollabuzz readers – hello and greetings! Now that it’s 2018, let’s continue learning how to make a little money on the side. Today, Dollabuzz will show you how to make money as a secret shopper. No, this isn’t a Craigslist scam – it can actually work!

If you’ve been ridin’ with us for a while, then you know how to make money taking surveys. I actually originally came across secret shopping jobs while researching how to make money by taking surveys.

Let’s get right down to it!

How to Make Money As a Secret Shopper: Step #1

Step number one is to register at Shadow Shopper. Once you register, you’ll receive an email confirming your registration. Once confirmed, and after you create your profile, you’ll start receiving emails about local jobs in your area. There are two levels of shopper status:

Bronze Status

The free Basic Bronze membership allows you to apply for selected job listings (those posted more than 7 days ago) through the Job Board, and it puts you onto a list for employers to contact directly. You can also apply for Promoted Jobs (the ones posted on top of the list due to the immediate need for shoppers).

Gold Status

There are four different price points for Gold status, starting at $6.95 for 30 days and up to $47.95 for 365 days. Gold status provides all the benefits of the Bronze membership, PLUS:

  • Higher ranking on the list for employers to contact directly to offer work
  • Access to the Mystery Shopping, Merchandising, Demonstrating, and Interviewing certifications
  • Emails of FULL job notifications of actual jobs posted in real time, or once daily, depending on your preferences.
  • Instant application to ANY job posted on the Job Board or from your email inbox.

How To Make Money As a Secret Shopper: Step #2

After signing up, you’ll receive an email from a marketing rep that covers your geography. I received notification from MarketWise Consulting Group informing me of several available jobs in my area. I was also asked to register at Gigspot and downloaded the app. Gigspot will also provide job openings in your area.

My First Two Jobs

My first job was to evaluate a local dry cleaners by providing feedback on things like customer service, storefront appearance, and quality of cleaning.  I had to complete and submit a report within one week from my visit. For this assignment, I would receive up to $20 for reimbursements plus $10. Not bad for an hour of work.

Who doesn’t like easy money? Dollabuzz readers like easy money. Fo’ $ho

The second job involved visiting a church and providing feedback about my visit. Specifically, they were asking for feedback regarding the treatment of new visitors to their church. For this feedback, I received $45. Hallelujah!

What I Like About Secret Shopping So Far

My first jobs were simple gigs that offered decent pay. Getting paid $10 for a dry cleaning visit plus reimbursement was an easy score.  I was going to get those clothes cleaned anyways. Getting paid to attend church? That’s a no-brainer Dollabuzz.

A higher-paying job I came across requires you to be a “tough negotiator” but pays $75 a visit with up to 4-6 jobs a month! This involves negotiating the price of a car at a dealership. If you thrive at being a ball-breaker, then this could be for you.

What I Don’t Like

I can’t help but wonder if the premium upgrade would be worth the $6.95 for a 30-day trial. This may provide better opportunities, because a lot of the non-premium jobs require quite a bit of work for only $10. For example, one job was to evaluate a gas station. You’re required to take pics and buy something without reimbursement. Then you have to tell the people working there you’re a secret shopper. Yeah… that’s not how I Dollabuzz.

In addition to being a lot of work, some jobs are over 40 miles away… and at $10-$15 per visit, it’s just not worth my time. I’d rather take surveys from my house and wait for another dry cleaning gig. At Dollabuzz, we don’t work hard for peanuts, nah mean?

How To Make Money As a Secret Shopper: Conclusion

Making money as a secret shopper is a ludicrously simple process. Register and complete a profile with Shadow Shopper and Gigspot. Once completed, you can apply for various jobs in your area and then get paid. Easy as that.

That said, I would recommend upgrading to Gold or Premium status. There are better-paying jobs available that are worth your time. Also, be on the lookout for random phone numbers that call you. I received a call about handing out free skin-care products for $15 an hour! I would have taken this gig, but I had family obligations. This gig would have paid $96.

Easy Money Take Away

Combine your Secret Shopper money with your survey money and you can make some easy cash money. We’re not talking chump change, either. Between secret shopping and online surveys, you can make an easy $300-$400 a month. Easy money is how we like to Dollabuzz, and we assume that’s how our readers roll, too.

Let us know in the comments if you have any hot tips on easy money-making gigs, and we’ll be sure to check them out!

The Money Mindset of Personal Finance Success

Dollabuzz Your Mindset For Personal Finance Success

Personal finance is more than just budgeting, saving, and investing. You need a certain mindset to succeed at the money game. Dollabuzz will show you the mindset you need and how to get there.
Money and personal finance success
A strong mindset is key to personal finance success

I got my mind on my money, my money on my mind….oh hey wassup Dollabuzz readers! As I write this, I am thinking about money, Dollabuzz, and listening to Gin and Juice . Ahhh, the early 90’s when Snoop D-O-Double- G was just a young G.

Anyways, back to the lecture at hand. A STRONG Dollabuzz requires the right mindset and that is why I read Mindset: The Psychology of Success by Dr. Carol Dweck. Dr Dweck will show you how the right mindset will help you get your money right.

Dr. Dweck shares her research about the fixed and growth mindsets and how a simple belief about yourself guides a large part of your life. This post will discuss how these mindsets impact our Dollabuzz. Keep reading and I’ll show you the Dollabuzz mindset and why you should read this book.

Here is what we are covering today:

  • The fixed mindset and its negative impact on your money and personal finance goals
  • The 3 da’s  of personal finance and how they get in the way of your money
  • The growth mindset and how it is key to your personal finance success.

The Psychology of Personal Finance Success: How the Fixed Mindset Kills Your Dollabuzz

The fixed mindset? You’re losin’ me bro. Stay with me. The fixed mindset is that little voice of doubt in our head. We all have that self-doubt in our head and it manifests itself in different ways. For example, maybe you don’t open a 401k or a Roth IRA because you don’t know how and don’t want to look dumb by asking a “stupid” question.

If you have a fixed mindset you may be afraid to try something new and make excuses to protect your confidence. You say things like “I’ll never have money and always be broke” or “only rich people retire.” People with the fixed mindset are always right, don’t like criticism, and try to explain failures away. Using excuses will prevent you from achieving your personal finance goals.

money and personal finance
Keep reading to learn about excuses that get in the way of your money and personal finance goals.

The 3 da’s of Personal Finance: Coulda, Shoulda, and Woulda

At Dollabuzz we refer to common excuses of the fixed mindset as the “3 da’s.” I coulda got his or her phone number. We shoulda went to the after party. The Detroit Lions woulda won the Super Bowl. Yadda, yadda, yadda.

Dr. Dweck explains that fixed mindset people have inflated views of themselves, their abilities, and when they don’t succeed a built in excuse (the three da’s) are right there to make them feel good.

In personal finance  there are numerous da’s. A few common da’s are:

  • We shoulda invested in stocks
  • I shoulda made a budget
  • We woulda paid cash
  • I coulda been a millionaire
  • I shoulda invested in my 401k

Don’t let these excuses kill your Dollabuzz! I hate to point out the obvious but, a GREAT da is Dollabuzz. See what I did? Ta-da!

The Psychology of Success: The Growth Mindset Will Help You Dollabuzz Your Money

A growth mindset will help you reach your money and personal finance goals
A growth mindset will help you reach your money and personal finance goals
The opposite of the fixed mindset is the growth mindset. The growth mindset is the “can do” and “I will” mindset. The growth mindset allows you to succeed when you don’t think you can and allows you to overcome obstacles. This mindset is critical to your personal finance success.
It’s important to know that we all have a fixed mindset. But don’t forget that we can move to the growth mindset as well. Dr. Dweck states that “your efforts, strategies, and the passion for stretching yourself and sticking to it when it’s not going well is the hallmark of the growth mindset.”
Expressions like “work harder and smarter” and “if at first you don’t succeed” are the heart of the growth mindset. Enough of the textbook geek talk and let’s see the growth mindset in real-world action.
My Growth Mindset and Personal Finance Dollabuzz
Last year we purchased a rental house for $45,000. My fixed mindset said what if you can’t find renters or they trash the place? The growth mindset said we’ll make the house nice so it will attract good tenets. Guess what? The house is nice and we have good tenets.
 
My fixed mindset said “you know nothing about blogging” and “no one will read it.” But now, the blog is up and running and I am writing about topics I am passionate about. My fixed mindset gave me every excuse not to do something but my growth mindset took over and allowed me to Dollabuzz.
Why You Should Read Mindset: The Psychology of Success by Dr. Carol Dweck
Dr. Dweck does a great job providing numerous examples of the fixed and growth mindsets. These examples include stories from everyday people to sports and business icons who have failed or succeeded based on their mindsets. Dr. Dweck shows how we move in and out of our mindsets and the importance of knowing when we are in the fixed mindset.
A strong Dollabuzz is not easy and requires us to thrive when challenged and embrace failure (growth mindset). Most people are not born with a Dollabuzz and have to WORK at it through discipline and developing their skills to get their money right.
I highly recommend the book which you can purchase for your Kindle here 
or the book here

 

How to Invest in Residential Real Estate (Part Two)

In part one, Dollabuzz showed you the key risks when it comes to investing in real estate. We also showed you how to vaule a property to so you can make money investing in real estate. In part two, we cover the importance of location.

Welcome back, Dollabuzz readers. Glad you’re here! If you read Part One of this series, you should have a pretty good idea of how to value a property. The next step is to locate the right property. “How to Invest in Residential Real Estate (Part Two)” covers selecting the location, location, location of your investment.

The location of your real estate is critical when investing in (RRE). Location determines the type of tenant you attract and the value of your investment. In this post, we discuss how “smart money,” the local job market, and affordability is determined based on the location of your investment.

Today We Cover The Keys To Location Which Are:
  • Following the smart money
  • The local job market and,
  • Affordability and profitabilty

Follow the Smart Money

My business partner and I wanted a house in Downtown Lansing because we believe this area has upside potential. Dollabuzz is not the only one who thinks this. “Smart money” was planning to invest hundreds of millions in Lansing. At Dollabuzz, we follow the smart money and realized developers planned to invest in hotels, apartments, retail, and restaurants right in that same area.

It’s hard to go wrong if you follow the smart money

According to the Gilespie Group website, “ongoing revitalization projects, delicious cuisine, and diverse nightlife make Lansing the perfect setting.” This sounds like a Dollabuzz upside, and we had to get in on this action.

Look at the Job Market

As we noted, the smart money was investing in Lansing. In addition, Downtown Lansing is home to Lansing Community College, Davenport University, and Cooley Law School. Furthermore, the State of Michigan offices, Sparrow Health System, and Accident Fund are located in Downtown Lansing. These learning institutions and well-paying jobs are perfect for attracting our ideal tenant. But wait… who is the ideal Dollabuzz tenant?

Our ideal tenants are younger professionals, and the location has to match.

For Dollabuzz, our ideal tenants are young professionals. Nothing against college kids or families – we would rent to them as well. In fact, it’s against the law to discriminate against tenants. But every business has their target customer, and our target is the young professional. Downtown Lansing has the jobs, educational opportunities, and nightlife that young professionals tend to be looking for.

A vibrant downtown enhances a property’s location.

Affordability and Profitability

Many investors look to invest in East Lansing, since it’s objectively a very desirable place to live. However, the cost to rent in East Lansing is expensive. A quick internet search shows the average rent for a two-bedroom apartment in East Lansing is $956. By the same token, the median home price in East Lansing is $200,000. For us, investing in East Lansing just wouldn’t be profitable.

Downtown Lansing was our target location. However, we discovered quickly that there was a shortage of nice and affordable houses for sale. As a result, we struggled to find a viable investment property in Downtown Lansing. So now what? Give up? I don’t think so!

Invest Near Downtown

The trend for young professionals is to live near the city, their job, and the local nightlife. The logical conclusion is to find a house that would attract our ideal tenant. However, as we just discussed for East Lansing and Downtown Lansing, those options were not available to us. At this point, we determined that our solution was to look just outside of Downtown Lansing.

We located a house within walking distance of Downtown Lansing and a five-minute drive from East Lansing.  Prior to investing, we drove around the area numerous time to get a feel for the neighborhood. We noticed a few people walking toward Downtown Lansing carrying their laptops, which indicated they were heading towards either work or school. With a walkability score of 56, this area is the second-most walkable zip code in Lansing and appeared to offer solid investment potential.

Looks Can Be Deceiving: “Look Real Close Cuz Strobelights Lie”

Dollabuzz: Look for hidden gems in a prime location.

So we found our house. Yeah, she looked rough – no doubt about it. However, we saw the potential this property offered. The open floor plan, good-sized kitchen, deck(!), and detached garage provided a solid investment foundation. New siding, vinyl flooring, and fresh paint are relatively simple and inexpensive cosmetic fixes. The key to this investment property is its location and the tenants it would attract.

A good-size deck offers plenty of potential, especially to our target demographic. Backyard BBQ, anyone?
BEFORE: An open floor plan along with a deck enhance a property’s location.
AFTER: Peel-and-stick vinyl and fresh paint are easy ways to make a kitchen feel bigger.
New siding and fresh stain are easy cosmetic fixes that will help your property Dollabuzz.

Prior and Current Tenants

The first tenants we had were a young couple. She was going to grad school at Michigan State University and he worked 10 miles away. They wanted a nice house close to East Lansing and the highway. This house fit their needs perfectly! Now, our current tenants wanted to live near Downtown Lansing because there’s plenty to do and the house is near Lansing Community College. In my opinion, it appears we struck location gold – and that’s how you Dollabuzz!

Listen Money Matters and Roofstock.com

At Dollabuzz, we’re always on the lookout for interesting and informative books, blogs, and whatever else we think will help our readers get their money right. A few months ago, I came across Listen Money Matters. I liked what I read and subscribed to their emails. A few weeks ago, I received an email blog about investing in residential real estate through Roofstock.com. Strangely enough, I’d never heard of Roofstock, but I was intrigued.

RAISE THE ROOF!

What I like about Roofstock is the ability to invest in RRE in a different part of the country. Roofstock does A LOT of the work for you and makes investing in RRE as simple as possible. Consequently, I was very excited to learn about Roofstock. I’ve been trying to figure out how to invest in RRE in another part of the county, and Roofstock will allow me to do just that.

If you want to learn more, I strongly encourage you to read Andrew Fiebert’s review of Roofstock.com over at Listen Money Matters, which discusses his experience investing through Roofstock. It’s truly a great read. I read it twice and will use Roofstock if I have trouble finding a good property on my own from now on.

Be on the lookout for Part Three! See you then.

The Money Plan: Get.Your.Money.Right

The Dollabuzz Money Plan

To get your money right, you need to have what we call a “Money Plan.” You need a Money Plan because…

if you don’t have a plan, then your money won’t do what you need it to do.

At Dollabuzz, we believe in keeping things as simple as possible. The Dollabuzz Money Plan is a three-step process that will show you how to:

  • Get rid of debt
  • Save and invest money
  • Boost your income
Image result for money
Money Plan: Rubber band it, cuz it ain’t foldin’.

The Money Plan: Step Number One

The first step of the Money Plan is to get rid of and stay out of debt. Make a list of all your monthly bills, from lowest to highest. Then grab your scissors and start the hair cutting!

Credit cards will kill your Dollabuzz faster than a shot of Jager at the Wayside Central, and we’ve done a post on the evils of credit cards. The point is that “little” bills will quickly add up to kill your Dollabuzz.

If you have credit card or student loan debt, use the money saved from “hair cutting” to pay those balances off as soon as possible. Getting rid of all these “little” bills will allow you to start saving and investing money so you can Dollabuzz.

After you’ve given your budget a haircut, you need to save $1,000 for emergencies. An unexpected car repair or medical bill qualifies as an emergency. A winter vacay to somewhere warm does not count as an emergency.

A $1,000 emergency fund is important because…

it will keep you from going broke. $1,000 will cover most expenses. That $1,000 not going on the credit card is even more important, especially after your budget “haircut.” There’s  nothing more annoying than paying off your credit cards and two months later charging $1,000 to fix your whip. Trust me. It is NOT fun.

Image result for jager alcohol
Credit card debt will kill your Dollabuzz faster than a double shot of Jager.

The Money Plan: Step Number Two

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Step #2 of the Dollabuzz Money Plan is saving and investing.

The second step of the Money Plan is to save and invest all the money you freed up during step number one. A great option for saving is setting up a Roth IRA. What’s a Roth IRA? It may sound complicated, but a Roth IRA is an investment account where you contribute after-tax money into your account, making all future withdrawals 100% tax-free.

The Roth IRA offers flexibility in that you can access your contributions (but not your earnings) any time, tax-free and penalty-free. Any time without penalty?? Any time, my friend; and that flexibility is how you Dollabuzz. See more benefits of a Roth IRA and check out our post on opening a Betterment account.

The Money Plan: Step Number Three

Step number three is to Dollabuzz your income. If you are single and not making at LEAST $50,000 a year, then your money ain’t right. Straight up. To Dollabuzz, you need to be bringing in the cash money by getting paid more or working more hours. It’s that simple.

One way to upgrade your skills is by checking out the skilled trades program at your local community college. There’s a shortage of skilled trade workers in my home state of Michigan right now. Shout out to all my readers from the Mitten! Binary Star!! Okay, okay. Back to gettin’ money.

Electricians, plumbers, and welders (just to name a few) are great-paying job,s and you won’t go broke upgrading your skills to pay the bills. It’s okay to work long, hard hours, but Dollabuzz is all about working SMART.

A Hustler’s Holiday Is to Dollabuzz Every Day
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“To Dollabuzz is to Hustle.”

In addition to upgrading the skills to pay the bills, you need to have a certain mindset. What mindset is that? A hustler’s mindset. Jeezy sums it up nicely on “Hustlaz Holiday” when he says, “I got hustlin’ on my resume.”

Granted, Jeezy don’t need to hustle like he used to, but he’s still out there gettin’ it, and you better be out there hustlin’ too. That hustlin’ can be working 60 hours a week or taking five classes a semester to finish that degree.

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Jeezy has a Money Plan. Do you?

Hustlin’ simply means doing whatever it takes, 24-7, to Dollabuzz. It’s a mindset, where you channel the emotions of determination and perseverance to Dollabuzz.

Money Plan = Dollabuzz

A Money Plan is essential for a Dollabuzz. The Money Plan is a three-step plan, and it’s guaranteed to help you get your money right.

The first step is to get rid of and stay out of debt. Make a list of your monthly bills and do this using EveryDollar or one of the budget tools available at Mint.com. Have fun with hair cutting your bills. Snip snip!

Step two is saving and investing the money freed up in step one into your 401k or though a Roth IRA. A great resource for investing is Betterment.

The third step in the money plan is to boost your income, which requires obtaining the skills to pay the bills and having a hustler’s mindset.

Follow these three steps and you will Get. Your. Money. Right.

How to Invest in Residential Real Estate (Part One)

Investing in residential real estate is risky but can be very lucrative. Dollabuzz shows you a few key risks and how to value a property so you can make money by investing in residential real estate.

Two story house that is well maintained and rented for a profit
Investing in residential real estate is risky but can be very profitable.
Dollabuzz will get you ready to invest in residential real estate.

How to invest in residential real estate (RRE) is one of the more common questions we’re asked here at Dollabuzz. It seems like 2008 was yesterday and investing in RRE was “risky” – but, in reality, it was a great time to buy. Today though, with a healthy housing market where demand exceeds supply, RRE is once again the “in” investment.

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If you’re looking for how to invest in residential real estate, now’s the time. The housing market is once again on fire!
What We Cover Today
  • Top 3 risks of investing in residential real estate
  • Financing your investment and,
  • How to value a property

The overall housing market is hot, which makes investing in RRE more appealing but also riskier. Since the supply of homes is tight, it can be challenging to find great deals – but that doesn’t mean deals aren’t out there.

It might sound counterintuitive, but rising prices is a good thing. That’s because as RRE becomes more expensive, people are forced to rent while they save money for a house.

This is part one of a three-part series on how I invested in RRE – specifically, the rental house we bought in the spring of 2016. Part one will cover the risks associated with RRE, financing your purchase, and how to value a property. “How To Invest In Residential Real Estate (Part Two)” will discuss the importance of location, and part three will focus on finding your house and how to attract quality tenants.

What Are the Top 3 Risks of Investing in Residential Real Estate?

Before we get too far along, let’s cover a few risks associated with investing in RRE. We can’t cover all the risks associated with investing in RRE in one post, but here are a few of the top risks:

Risk #1: No Liquidity

The biggest risk when investing in residential real estate is lack of liquidity. In other words, your money is “tied up” and you can’t get it out quickly.

The biggest risk when investing in RRE is the lack of liquidity. You can’t sell a house at the click of a button like you can with a stock. According to Murphy’s Law, you will need to sell at the worst possible time and the process will take twice as long. Tied-up money is a risk that can really kill your Dollabuzz.

Risk #2: Bad Tenants

Nothing will kill your Dollabuzz faster than bad tenants. Concerns over deadbeats not paying their rent or trashing the place is the number-one reason I hear about why NOT to invest in RRE. This is why location is so important to you. A good location will help attract good tenants, and good tenants are critical to investing in RRE. Part Two will show you how to find (and keep!) those perfect tenants.

Risk #3: Investing in RRE Costs More Than You Think

A “fixer-upper” ALWAYS costs more than you think it will

A good rule of thumb when estimating the cost of a fixer-upper is that it will cost twice as much and take twice as long as you think it will. Even if you have an inspection, things always pop up. For example, our inspector didn’t notice that some of the pipes in the basement had been removed. As you’re about to see, our inability to keep costs down impacted our Dollabuzz.

Financing Your Investment

Traditional Financing Requires 20% Down

To finance RRE as an investment, you need to put down 20% of the purchase price. This is a very common way that investors purchase RRE, and why not? You only put up 20% while the bank finances the remaining 80%. In addition to requiring lower upfront cash, interest is tax-deductible, so let the bank finance the majority of the purchase.

However, some people will say that borrowing money for RRE is too risky. “Risky for who, exactly?” is my question. If you don’t pay, the bank is on the hook for the remaining balance.

All-Cash Purchase Is Riskier but Simpler

All cash in is much more risky than financing.

For this purchase, we went all-cash for one reason: Simplicity. Since we paid in all cash, no banks were involved, which means a lot less paperwork. No tax returns, pay stubs, or appraisals.

However, all-cash is much riskier. Instead of 20% down, we are 100% down, which ties back to risk number one: lack of liquidity. The only way we can get this money out is to sell the house or wait for the tenants to pay us back each month.

How to Value a Property

Assist to the Wu Tang Clan for helping me out on this one. How do you make a blog about investing in RRE not boring? Why are you asking me? You’re the one writing this post! Talk about CREAM. Cash money. Dolla dolla bills. Investments are valued on how much free cash flow is generated. To quote my man Mike Soo, who’s a real savvy investor, “I love me some free cash flow!” PREACH, Mike!!

Dollabuzz preaches that real estate investing is all about the free cash flow.

There are many ways to value RRE. At Dollabuzz, we focus on the cash flow, yo. Investing in RRE is essentially purchasing the future cash flows generated. The two methods Dollabuzz likes to use are the discounted cash flow analysis (DCF) and the cap rate (CR). Dollabuzz uses those two methods to ensure as much accuracy as possible. What in the world is DCF? Don’t worry, loyal reader – we got you.

DCF: The Value Today of Future Cash Money

It’s all about the cash flow, yo.

This is where things can get confusing, but hang with me and it will make sense. The DCF method simply determines the present value of an investment based on future net cash flows given a discount rate (DR). The projection of future net cash flows requires you to estimate future rental income and operating expenses.

Operating expenses keep the property operating and include property taxes, insurance, utilities, etc. The difference between your rental income and operating expenses is your net cash flow from operations.

Please note: Principal and interest payments are NOT operating expenses.

But What’s “Discount Rate”? My Head Is Buzzin

As we previously noted, DCF requires a DR. The DR is the rate of return you require given the rate of return you could earn in a similar investment at the same level of risk. The DR combined with the projection of all future net cash flows from operations gives you the present value of those cash flows, which is the net present value of the property. For this investment, our goal was a 15% DR. Let’s see how we did.

How Did We Do?

I’ll spare you the details here, but the current projected DR using the DCF is 11.5%, which is 28% below our target return of 15%. Wow that’s a pretty big miss. Waaaaay off. What happened? Risk number three killed our Dollabuzz hard. It cost us a lot more to make the house nice.

But the silver lining: This will allow us to attract quality tenants in the future. Yes, we missed our target return, but not having a nice house would cost us more in the long run. If you have a nice house, tenants are far more likely to treat it nice. Have a dump, and it will be treated as such.

The Biggest Drawback to DCF

DCF relies on future assumptions, which is its biggest drawback. However, I really like the DCF method because it puts a current value on net future cash flows. In other words, the DCF provides a current value (net present value) of future cash flows, which is used to determine what a property is worth. Knowing what a property is worth from a free cash flow perspective allows you to determine what to pay for a property.

Dollabuzz Note: The DCF method requires the use of a net present value calculator. This calculator is very useful and easy to use, and for my readers’ sake we’ll skip the “how to use it” discussion and simply refer to the calculator.

Cap Rate: What Is Cap Rate?

Can It All Be So Simple?

The Cap Rate (CR) method is much simpler than the DCF method, but it may not be as accurate over a long period. However, this is a popular way to measure the value of a potential property versus a similar property.

CR data for a particular location is easy to calculate, or it can be provided by a real estate agent. Compare the CR for the property you want to purchase versus others in the area to determine whether you’re getting a good deal or someone is trying to play with your money.

How to Use Cap Rate

Simply calculate your annual net free cash flow and divide that amount by the value of the property. For example, cash all-in cost us $45,000, and that’s roughly its market value. Our annual net cash flow is $6,200, which is a 13.7% CR and below our target return of 15% but above our DCF return of 11.5%.

Dollabuzz Your RRE Investment

DCF is a measure of the investment’s performance over a time period, while the CR is a measure at a point in time. Since the DCF measures an investment performance over a longer period of time based on operating cash flows, it is an excellent valuation tool, which is why I prefer this method.

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Dollabuzz will show you how to invest in RRE

Location, Location, Location

Now that you have the first step toward understanding how to invest in residential real estate – which is how to value RRE – spend some time experimenting with the DCF calculator, which will allow you to value a property under various assumptions. The next step is to find the right property, and that requires finding the right location. Part two of this series will show you how to find the right location.

The Geeky Nerd Numbers You Need to Know When Investing in Residential Real Estate

Knowing the “numbers” is key to investing in RRE. In this post, I can’t possibly cover every metric used to invest in RRE. I respect my readers too much, because don’t nobody got time for that.

However, after we purchased the house, I came across an excellent resource: a book titled What Every Real Estate Investor Needs to Know About Cash Flow… and 36 Other Key Financial Measures. The author is Frank Gallinelli, and he does an excellent job of explaining how to value a property. This book is a MUST for investors. To order the book on Amazon, click here.

See you in Part Two!

Wedding Flowers On a Budget

Dollabuzz Shows You How to Have Wedding Flowers on a Budget

With wedding season in full swing, we thought we’d do a series of posts on how to Dollabuzz your wedding. Flowers can be expensive but with these tips you can have beautiful flowers on a budget

Today’s post is about how to Dollabuzz your flowers, assuming you will be using real flowers. Let’s be honest – real flowers are much, much nicer than fake (silk) ones… but they can also be much more expensive. Let’s take a look at several ways to lock down beautiful wedding flowers on a budget.

To help you Dollabuzz your flowers, we reached out to Blooms by Bri. Bri is a certified florist and wifey of Mr. Dollabuzz. Bri has been in the flower game for a few years now and comes highly recommended. According to Blooms by Bri, the three keys to Dollabuzz your flowers are:

  • Stick with seasonal flowers,
  • Keep arrangements simple, and
  • DON’T attempt to DIY your arrangements.
Hand-Tied Bridal Bouquet consisting of Roses, Garden Roses, Dahlias, Stock, Astilbe and Dusty Miller in a vase.
With wedding season in full swing, we thought we’d do a series of posts on how to Dollabuzz your wedding. Flowers can be expensive but with these tips you can have beautiful flowers on a budget

 Seasonal/Economical Flowers

Selecting seasonal flowers is a great way to keep floral costs down. As a bonus, seasonal flowers will help ensure peak freshness. Many floral wholesalers/florists use crops that come from local farms in order to keep shipping costs down. When there’s an abundance of a certain flower that’s in-season, they usually sell them at a lower price per stem, bringing your cost down (example: sunflowers in the fall).

Some flowers are always in season, such as roses & carnations. They come from all parts of the country and even the world. Carnations get a bad rap, but they’re actually very sturdy and do well out of water (think of those HOT, flower-wilting summer days). Other economical flowers that can make a big impact are stocks, mums, & alstroemeria.

red carnation with two white carnations

 

Another great way to Dollabuzz your flowers is to use fewer flowers and more greenery. Or, instead of flowers, you can use all greenery! Say what?!? No flowers?!? You cray-cray!!

Let me explain myself. Greenery tends to last longer than flowers, it can be less expensive, and it’s the hottest trend this year thanks to Pantone. Pantone? Isn’t that a shampoo? No, no… You’re thinking of Pantene. Ask your florist for recommendations about the latest greenery trends.

KISS Your Arrangements

We all know the ‘KISS’ acronym: “Keep It Simple, Stupid” (or “Sexy,” as Mr. Dollabuzz says). KISS also applies to flowers. Whether you need 2 arrangements or 200, sticking with the same flower(s)/greenery throughout the entire event will simplify everything. More intricate designs require more work/labor, which means a higher cost. Talk with your florist about some ideas that would require minimal labor/product while still having a big impact and giving you more bang for your Dollabuck.

Don’t believe the hype: Do NOT DIY your flower arrangements

DIY sounds great in theory when you go online to your “big bulk” box stores and see the flowers you want for your arrangements. You submit your order and a few days before your wedding, they show up on your doorstep. Guess what? What? Your hydrangeas are wilted, your roses have brown edges, and the carnations are the wrong color. Now what? Your big day just hit a big speed bump. A florist will help ensure these last minute ruh-rohs never happen in the first place.

I belong to several forums where brides brag about their floral DIY intentions, and I cringe just about every time. Please realize the skill, time, and tools needed to create successful and beautiful arrangements. A florist knows how much to order and how to prep the flowers so they’re hydrated and ready for arranging. In addition, a good florist knows approximately how long each arrangement will take and – most importantly – they have the tools to make it happen.

You’re not only hiring a florist, you’re hiring a professional to provide a service. Your baker is making your cake, your caterer is making your food… So for crying out loud, let a florist handle your flowers! They arrange, they deliver, and they set everything up (sometimes they even take it down). Let’s face it, you have other stuff to worry about, like taking shots of Fireball with your bridesmaids. Whatever you say, Mr. Dollabuzz.

Wedding Flowers On a Budget: Dollabuzz Your Flower Game

This may seem strange, a Dollabuzz post telling you to spend money. But sometimes you end up spending more in time and money trying to cut corners. Here at Dollabuzz, we’re committed to making your money and time work for you. Dollabuzz your flowers by sticking with seasonal flowers, keeping arrangements simple, and NOT attempting to DIY your arrangements.

A special thanks to Bri at Blooms by Bri, who really does amazing work. Check her out on her Facebook page.

Which Is Better a 401k or a Roth IRA?

Dollabuzz Your Money

Yo, Dollabuzz readers… It’s debate time! A frequent question we hear is: “Which is better, a 401k or a Roth IRA?” The answer, like many answers in life, is: “It depends.” The 401k and Roth IRA options are great ways to invest, and they both have their pros and cons.

The sooner you begin investing, the sooner your Dollabuzz will be right. This post will compare a few of the benefits and drawbacks of the 401k and Roth IRA options. After reading this post, you’ll have a better understanding of the 401k vs Roth IRA debate, and you’ll be able to make the right decision for your financial plan.

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NOT a good investment plan

Why Invest in a 401k?

For those of you who are new to investing, “401k” refers to the IRS code section which regulates the 401k retirement plan. A 401k plan is usually offered through your employer, and you make pre-tax contributions into this plan. Your employer may offer a matching contribution, and these combined contributions are usually invested in stocks, bonds, or a combination of the two.

Having contributions withheld from your take-home pay makes it easy to save. Your investments can grow faster since you’re able to invest money that has not yet been taxed. However, you will be taxed once you withdraw the money. The government always wants their take.

What Are the Drawbacks of a 401k?

The biggest drawback to the 401k is that it’s difficult to access your money. In addition to being taxed, you will be hit with a 10% penalty if you withdraw early.

But it’s MY money. Why do I have to pay a penalty?

The penalty is designed to keep people from withdrawing their money before retirement.

You may be able to borrow money through a 401k loan, but you will be taxed twice. These loans are repaid with after-tax dollars and taxed again upon withdrawal. Due to the double taxation and the risk of missing out on a stock market run, it is not advised to borrow from your 401k. I know its tempting, but just don’t do it!

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Which is better, a 401k or a Roth IRA? Both are great ways to invest, but they have their pros and cons.
Image by: cafecredit.com via flickr.com

Why Invest in a Roth IRA?

A Roth IRA is a special retirement account where you contribute after-tax money into your account, and all future withdrawals are tax-free! The Roth IRA offers greater flexibility, since you can access your contributions penalty-free. In addition to a retirement account, the Roth IRA can be used as an ordinary investment vehicle.

Although contributions to the Roth IRA are limited to $5,500, the Roth IRA is great for younger investors. Looking for an easy read with an overview of the Roth IRA? Dollabuzz got you here.

So, Dollabuzz… Which Is Better, a 401k or Roth IRA?
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Should you choose a 401k or Roth IRA? This can be confusing, but Dollabuzz can help.

If I had to choose one, I would go with the 401k for two reasons: First, you can save more money annually by investing through the 401k. These investments grow tax-free for decades. Second, a 401k offered through your employer often comes with a matching contribution, which is free cash money. Dolla dolla bills!

The Dollabuzz Exception to Every Rule

Like every other rule, the wisdom of a 401k being better than a Roth IRA has its exceptions. At Dollabuzz, we encourage our readers to start investing as early as possible, which can be done through a Roth IRA. In addition to its flexibility, a Roth IRA is beneficial for younger investors and those who don’t have access to a 401k yet. They still wanna Dollabuzz! If you’re a young investor and investing through a Roth IRA, you can withdraw your contributions to buy a house or pay for a wedding without having to worry about any taxes or penalties.

How Do I Invest Without a 401k or Roth IRA?
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Investing is key to getting your money right

Whatever side of the 401k vs. Roth IRA debate you fall on, the key is to invest and to start as soon as possible.

Looking to get started on your Dollabuzz and not sure where to start? We got you covered like stink on dog poo. In addition to this post, we recently wrote a post on investing through Betterment. Betterment is a great investing tool, and we couldn’t recommend it more highly. Check out that post here.

One Final Dollabuzz Takeaway

Please do NOT withdraw or borrow money from your retirement account. In addition to shortchanging your future, most withdraws are used for dumb stuff. I know someone who borrowed $10,000 from their 401k to pay off their car… and then they sold the car for $7,000. That’s a 30% loss! Since that time, the stock market is up at least 30%. What he did is NOT how you Dollabuzz. Don’t act a fool!

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Should You Buy a New Car?

The True Cost of Buying a New Car

Should you buy a new car? Who doesn’t want to drive a new car? Mr. Dollabuzz sure does. So why doesn’t he? Dollabuzz discusses how a new car will get in the way of your personal finance goals and it’s impact on your money.
Dollabuzz readers whaaats up? Ya’ll know what time it is. Its time to talk about money! With auto sales near record highs today is an opportunity for us to answer  the age-old question of should you buy a new car?
Everyone wants to drive the hottest auto and I am no different. I want a new(er) car so bad. Ask my wife and she will tell you I drive through the dealership quite often.
So why don’t you buy a new car Mr. Dollabuzz? First, buying a new car would not allow me to reach my personal finance goals. The money I would pay for that new car would cost tens of thousands of dollars more than the actual price of the car. We’ll cover this in more detail later but lets get to the money!
Today, we are going to show you:
  • The true cost (opportunity cost) of a car and its impact on your personal finances
  • How To Dollabuzz your car so you get more for your money
  • Why you should not buy a warranty for the car you just purchased
  • The exception to every rule

My Story: Used Cars and Money

I have driven used cars my whole life and I am tired of driving my 2008 Focus with 177,463 miles. Talk about BORING! Since graduating from college I have owned three cars. All used, boring cars purchased for around $10,000 and driven for 200,000 miles.
My previous car had over 200,000 miles and  was beat up. I sold it to a guy working at a liquor store for $350 and a 40 oz of Bud Ice. I sold it because the widows no longer worked and it was almost the summer . I drove the car all winter with no power windows.
But these boring cars have contributed greatly to my Dollabuzz and  allowed me to reach my personal finance goals. The money saved buying used cars allowed me to invest and put me on track to get my money right.
How cars impact your personal finance and money goals
How I Dollabuzz. 2008 style.
I can “afford” to buy the car I want. The bank would approve the loan faster than a screamin demon commin down yo street. Dang. What car have you buzzin like that? A 2013-2014 black Charger with chrome rims and a moon roof. As an additional bonus there is plenty of room for a car seat. So how come you haven’t bought one? Buying this car would get in the way of my Dollabuzz and personal finance goals. Lets see how loyal Dollabuzz reader!

True Cost (Opportunity Cost) of A New Car

In 2016 the average new car price was $33,000 but lets say you find a smooth ride for $25,000. Toss on sales tax of $1500 and now you talking $26,500.  Five (5!) year car notes seem to be very popular and allow you to “afford” this car with a “low” payment. Pay your new ride off over 5 years and you have a $475 monthly payment.

A new(er) will cost a lot of money and interfere with your personal finance goals.
Should I borrow money for a car? Not If I wanna Dollabuzz.

Over five years you’ll also pay $2000 in interest. That is A LOT of cash money. Tack on $150 a month for insurance and now that car costs $625 a month. Insurance adds an extra $9,000 to the cost of the car so the true cost of that new whip is $37,500.  Zoinks!

 Dollabuzz Your Car and Your Money

Dollabuzz your car, money and personal fiance goals
Dollabuzz Your Car and money
You can have a nice car but at a fraction of the price of a new car. You simply Dollabuzz your car and here is how you do it:
I drove past a dealership the other day and there is a 2009 Lexus IS250 for $11,000. Add $660 in taxes, $1000 for interest and that Lexo now cost $13,660 but lets round up to $14,000 and keep our math simple. You now have a payment of $216 and add on $100 for insurance and now you are at $316 a month. Total cost of your Dollabuzz ride: $13,660
Did I mention its black with a moon roof and a sharp-looking ride? Yes it has a lot of miles (over 80,000) on it but when you buy a Lexus you will get a very reliable car. This Lexo will save you at LEAST $23,840(!!!) compared to that new car. Instead of a $625 a month payment, your payment is $316 which is a savings of $309 a month. This Lexo is HALF the new car!
 Opportunity Cost: Show Me The Money!
Opportunity cost? Mr. Dollabuzz you are losing me! Hang on loyal reader because here is where the Dollabuzz comes in. Invest that $309 a month you saved buying that tight Lexo in your Roth IRA or 401k for five years at 7% and you would have $22,264.
In addition to the $23,840 not spent buying the new car, the $22,264 in investments would give you a total net gain of $46,104! Cha Ching! The $46,104 is the opportunity cost, the real cost of buying that new car.
We can talk about budgets, coupons, and frugal living all day like other blogs but at Dollabuzz, we are about big money and want our readers to think big, dream big, and become millionaires. Budgets etc are important but sometimes you need to think big about your money and personal finances.
That my readers and loyal followers is how you Dollabuzz your car. Feel free to do the money dance.

Please Don’t Buy the Warranty!

Please don’t buy the warranty the dealership will pressure you to purchase. Warranties are the gritz n gravy, the cash money cow, the cats meow of auto sales and are big profit center for the dealership.

Would a business sell you something if they were going to lose money? Oh hell no. The dealership aint got no time for that and neither should you. Do not buy the warranty!

Should You Buy a New Car? Not if You Wanna Dollabuzz

I cant emphasize enough how driving used cars has helped me get my money right and strengthen my personal finances. In addition to investing in myself through education, buying used cars for $10,000 is how I Dollabuzz.

My current car is paid off which helped me purchase a rental house last year. This house cost us $45,000 but we are netting $6,500 a year for a 14.4% return. Last year I had two choices: buy that Charger or invest in real estate. Knowing the true cost of that Charger made it easy to Dollabuzz and answered the question should I borrow money for a car?

Rental House Paid For In Cash = Dollabuzz.