Green Panda Treehouse

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Photo Credit: crowt59

I’m feeling a bit under the weather, so I decided to put up my round-up today. I started feeling a bit tired last night and it hasn’t improved today. Hopefully resting will help me ge back on my feet tomorrow. I have a couple of unfinished articles that I would like to complete.

Here are some posts that got me thinking this past week.

• Are You Rich? @ That One Caveman
• Time Budgets @ Plonkee Money
• How to Live More Simply, and Why It Is So Important @ Frugal Dad
• 7 Deadly Sins of Personal Finance: Raiding Retirement @ Blueprint for Financial Prosperity
• A Quick and Dirty Budget @ Get Rich Slowly
• 10 Tips For College Bound Students @ Moolanomy
• The Big Debate #4: Pay Off Debt or Save for Retirement? @ The Simple Dollar
• 66% Of American Corporations Pay Zero Federal Income Tax. @ My Two Dollars
  

Photo Credit:  Todd Baker << technowannabe

Walking: If you live close to campus and work, this is the cheapest option. It is also a healthy option, as walking can help you shape up. Make sure you use good shoes for your walks.

Bicycle: This seemed to be a popular option for the students that lived on campus at my university. You can get bikes for $50 or less used.

Scooter/Motorcycle: Scooters can get around 60mpg, but their tanks are usually small (1-2 gallons). They can make excellent short range vehicles. I checked my local Craigslist and I found some for $900 and less.  Motorcycles have bigger tanks and great mileage. You would have to get a special license for one and they cost more than scooters.

Bus/Mass Transportation: If you live in a city with reliable transportation, consider yourself fortunate.

Used Car: If you ask and dig around, you can sometimes get a fantastic deal on a used car. When I needed a car, but was lacking serious funds, I told everyone I knew that I was looking for a cheap car. I was able to get a Geo Prizm for $500. It was a manual, so I had to learn to drive it. It was too fancy, but I got 30mpg on it (Toyota engine). It was pretty cheap to insure it and I was able to go to work and school.

A lot cheap cars aren’t advertised. I heard from a friend of a friend about this car. The man was selling it as his daughter had gotten a new car. Th engine and transmission were in good condition.

Car Sharing: My university partnered with a car sharing company and offered this as an option for students who didn’t want a car, but needed to get around. The costs vary from location, but around here, I’ve seen it for $5/hour and that includes insurance and gas. Zipcar is available in many cites.

Finding cheap transportation doesn’t have to be impossible. Just use some creative thinking and you can even surprise yourself.

Photo Credit: by james.thompson

You’re thinking of getting a home someday. After seeing the current housing situation, you decide to be prepared for a home. How much house should you get? How much of a down payment are you going to need?What other expenses do you have to plan for?

There are many different opinions on how much house you can afford. The general consensus seems to be 2-3x your annual salary. Even if banks may suggest you can afford more, be careful. Look at your circumstances.

Do you have a high amount of debt? Considering pausing on buying a home and get that reduced as there are many other expenses included with purchasing a home (see below). It’s good to anticipate your financial needs ahead of time. Wat will bills be like after you purchase a home? Ask family and friends to get an idea.

Here’s how you can use Zillow to figure out a down payment.

Locate the city you want to live in. If you’re living in New York City or San Francisco, expect to need a HUGE down payment. Hopefully you income is also higher and can help you build your down payment. Use Zillow to locate affordable neighborhoods in the city and state you’re interested in.

Find the areas in the city with home you like. Within cities there are areas that have developed their own ‘personalities’. See for yourself if it’s the right area for you. Go there during different times and days.  If you’re a couple looking to start a family, you may not enjoy an area with a loud and active nightlife.

I also like to look at the Zestimate.  It can give you an idea if the asking price is reasonable. Select a couple of homes you would love to live in and determine the average price. Use this for your down payment fund estimate.

Aim for a down payment between 10-20%  the ‘dream home’. The advantage of this is that it will reduce your mortgage payment.

Stash your down payment fund in a high yield savings account. Speed along your savings by opening an account with banks with high interest savings like ING Direct, HSBC, Emigrant Direct, WaMu, and many others.

Remember there are other costs in buying a home (provided by Zillow). Try to include some buffer money for them. Also check the requirements for your state, as it can vary and you may have additional responsibilities.

• Appraisal
• Credit Report
• Closing Fee
• Title Search
• Homeowners’ Insurance
• Escrow Deposit for Property Taxes & Mortgage Insurance
• Transfer Taxes
• Recording Fees
• Processing Fee
• Underwriting Fee
• Loan Discount Points
• Pre-Paid Interest
• Property Tax
• Pest Inspection
  

Buying a home can be a great experience, but it can also be a nightmare. If you’re not in a position to buy a home, don’t worry. Rent can be a wise choice for many people. Don’t be impatient; wait for the right time.

Do you have more questions about getting a home and the basics of real estate? Here are some great articles I found n the web:

• So you want to buy a house…. @ Gather Little By Little
• The Continuing Saga of the First Time Home Buyer (That’s Me) @ Being Frugal
• 11 Tips for First-Time Homebuyers @ Get Rich Slowly
• The Real Scoop on Real Estate @ I Will Teach You To Be Rich