Managing your finances

This posting was originally to discuss the pitfalls of obtaining an auto title loan. After beginning I realized that the article should reflect rather on the reason you are considering a “cash for car title” loan in the first place. We at Cash 4 Cars Cleveland do not endorse the practice of obtaining auto title loans for a variety of reasons. First, if you are dependent on your vehicle to earn income, putting yourself at risk for having the car repossessed is a bad idea. Next, the rates of interest on these loans are too high. Being in a position where you’re considering a cash loan against your car is an indication that you need to make a change. It is actually an opportunity to make a change for the better. Obviously, if you are at the point where this kind of loan is your only option then you have no access to more traditional or affordable means of obtaining credit. Seizing the opportunity to make a change in how your finances are handled is the key.

Please note that if you live in a high-cost of living area like New York City, this is not applicable, but otherwise continue on. In this example you earn $30,000/ year. If your gross wages are 30K, then after 21% in taxes you net 23,700/year or $1,975/month. The first concern here is that if earning less than 30K, this needs to change ASAP. Find a higher-paying primary job (that you can tolerate) or a 2^nd job ASAP. 30K is a baseline for a semi-comfortable existence and if below that, you leave yourself with resources designed for failure. (Obviously if you receive money for child-support or are content living for free with parents etc… then this may not be applicable)  So at $1,975 of take-home pay the breakdown should be:

• Your housing expense should ideally be 20-25% of income. At this modest income level, it is difficult to do this if, so we extend it to $600 a month when living alone its 30% of your take home pay. It is recommended here to get a roommate. You can get a decent 2-bdrm apartment in Cleveland for $730. With $150/month in utilities plus $100 for TV and internet the total cost is $980; thus divided by you and the roommate it’s $490/month each. This means you’re allocating 25% of your income toward housing.
• Transportation should not exceed 22% of your take home pay, which is $513 per month. This expense includes $125 in fuel ($31 weekly), $70/month for insurance and $60 in maintenance, which leaves you at a mere $258/month for a car payment. (barely enough) In this 30K example, we recommend moving transportation expense to 26%, which when coupled with the 25% for housing brings the cost for both to transportation and housing to 51% of your income. Further in the article you will see the ideal situation as it relates to transportation expense.

So we have allocated 51% of your $1,975 take home pay, which leaves (1,975-1,003) $972 in monthly income available. Next we account for $90/month for cell phone, $300/month for food and $40/month for basic household items such as toilet paper, deodorant, shaving etc…

So far the summary is as follows:
Housing/Utilities: $490; Transportation/Fuel/Auto Insurance/Maintenance: $513;
Cell: $90; Food: $300; Toiletries: $40; Miscellaneous: $300
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TOTAL: $1,733
Savings: $242

So the bottom line here is that if proactively combining modest income & proper planning, this scenario results in savings of $242/month. Keep in mind that as income grows, the easier the model becomes to adhere to. The best part is that the need for desperate measures, such as auto title loans, ceases to exist!

Here at Cash 4 Cars Cleveland, the area’s leading scrap car hauler who buys scrap cars, we handle vehicle scrap in Euclid, Garfield Heights, Eastlake and Parma Heights 7 days a week. For a junk car quote, or to “sell my car for cash” contact (216) 359-1010. Residents of Lakewood, Linndale Village, Newburgh Heights, Parma and Seven Hills seeking a scrap car hauler for vehicle scrap can visit https://www.cash4carscleveland.com. Are you wondering who buys scrap cars in Beachwood, Bedford, Bentleyville Village or Tremont? Look no further. To sell my car for cash in Bratenahl, Chagrin Falls, Mayfield Heights or South Euclid, simply contact our junk car buyer today. To complete the vehicle scrap for cash process in Cleveland Heights, Wickliffe, Brecksville, Bainbridge and East Cleveland, you simply must have the vehicle title and an ID. Our scrap car hauler will pick up your junk car, truck or SUV from Firestone Service Centers, Conrad’s locations, transmission shops, Goodyear stores, Midas locations, NTB locations and Monro Muffler & Brake shops.