Should You Buy a New or Used RV? Analyzing the Pros & Cons

Should You Buy a New or Used RV? Analyzing the Pros & Cons

by | RV Tips | 50 comments

Should you buy a New or Used RV?

When it comes to buying your very first RV or even your second or third, there are so many things to consider. There is also the age-old debate that has many people confused about whether purchasing their RV new or used will be the better option.

For us, we thought about this the entire time we were searching for our home on wheels. We read Facebook groups, asked questions, and saw other people ask the same questions. We found that the majority of people said to buy “used”.

However, I was still so skeptical. Is buying used really the best option? During our research and purchasing timeframe, I set down and examined the pros and cons of purchasing an RV New VS purchasing an RV Used.

I also always kept in mind that I was purchasing our home. This was a place we will sleep, cook, play games, and live life full-time. I did NOT approach this purchase as the same as buying just a normal vehicle.  After all, a car doesn’t have a bathroom, fridge, sink, or propane tanks and generators.

So, let’s get to it and first examine the Pros and Cons of purchasing your RV New Vs. Used.

New & Used RVs for Sale Online - RVT.com

Pros and cons of purchasing a Used RV

Used – Pros

  • Usually cheaper than purchasing brand new. This make’s it easier to pay cash instead of financing.
  • Less guilt if you want to make any renovations whether major or minimal.
  • All the “Kinks” are worked out from others “breaking it in”.
  • Anything that needed to be fixed has usually been taken care of by the manufacturing warranty if the previous owner took advantage of the warranty.
  • Easier to negotiate price.
  • Lower Insurance
  • Less Depreciation from your point of purchase.

Used – Cons

  • Usually Sold AS IS without any warranties
  • If purchased used with a loan, you will usually have a higher Loan Interest Rate.
  • Unknowingly could purchase a LEMON or one that was not been maintained properly.
  • Could have mold, leaks, or more.
  • Unable to have your true pick of floorplans.
  • If purchasing a Motorhome, less fuel-efficient than a new motorhome.
  • Hidden Maintenance Issues.
  • Other people or pets misuse now becomes your problem.
  • Usually outdated appliances and décor (Unless you are going to be making décor renovations and upgrades, this isn’t a con)
Pros and Cons of Purchasing a New RV

New – Pros

  • It’s yours! No one has ever owned it before. (Nothing in the tanks that are foreign to you)
  • New Appliances, new furniture, and that new home smell.
  • Greater options and flexibility to search and choose the right amenities and floor-plan that is best for you and/or your family.
  • Manufacturers warranty
  • Ability to purchase directly from Manufacture and customize to your liking

New – Cons

  • Premium Price (Don’t be afraid to negotiate and check the prices nationwide for the same RV)
  • High Depreciation
  • Higher insurance
  • You have to work out the kinks and issues yourself

Now that you know the pros and cons of purchasing a used RV vs. a new RV, which is better?

Honestly, it really comes down to your own finances and your own personal reasoning. What is important to you and/or your family? Is it the money and not wanting a loan or is it making sure your floorplan and amenities supply the right needs for your family? I feel like there is really no “right” answer to the new vs used debate.

 

What we chose and why…

For Matthew and I, we searched all the floorplans and prices. After 6 long months of conducting comparisons on RV Trader and going back and forth on buying new or used, we found what we needed.

Ultimately, we decided to buy brand new, took out a loan, and got the perfect floorplan that fit us. We made the decision to buy new because we were going to live full-time and it needed to fit our needs. Making sure we were comfortable, happy and had a Washer/Dryer prep in our space was a top priority.

Also, we realized with our research that the type of RV we needed and wanted was the same price new as it was a few years older.

When you buy used, all the “kinks” are worked out, right?

Honestly, you can purchase a brand-new RV or a used RV and still have problems. There is no true guarantee that it will be perfect. We have only had one leak in a side window that was an easy seal up. So far we have been full-time living stationary for almost a year now.

So, just figure out your priorities and needs that are personal to you. I hope this helps and don’t forget to check out RV Trader to search for your perfect RV, whether you’re looking for a used one or a new one!

 

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5 Tips on Creating the Perfect Budget

5 Tips on Creating the Perfect Budget

by | Budgeting, Finances, Minimalism | 4 comments

Creating the perfect budget doesn’t have to be intimidating or overwhelming. But first, what is a budget?

A budget is just creating a plan for your money. Kind of like how you create a plan to write a paper or create a plan for a day of fun. A budget is similar.

Now, if you don’t know how to budget or the thought of a budget causes you to stress, I am here to tell you to not worry! Budgeting can actually help you relieve stress!

It’s all about taking it step by step. Just like when you plan your day, you start with a section of the day like the morning and then move on to the afternoon and evening. Budgeting is the same concept and it must be broken down into sections and taken one step at a time.

There are many different apps to help you, or if you enjoy writing things down, check out these budget planners.


Step 1: Look at your Monthly Income

Take a look at your paychecks and see how much you bring in every month. If you get paid Bi-weekly, then add 2 paychecks together. If you get paid every week, then usually that is 4 paychecks that need to be added together. By knowing what you make on average every month will help you become aware of what you can afford.

However, if you wait tables, bartend, or live on commissions, look at your deposits on your bank statements and average a least three months.

Step 2: Subtract your monthly expenses

Monthly expenses are usually the following:

  • Mortgage
  • Car/Gas
  • Insurance
  • Utilities (electric, water, gas)
  • Food
  • Credit Cards and/or Loan payments
  • Phone/Internet/Cable/Netflix or other programs
  • Memberships
  • Savings (Pay yourself)
  • Miscellaneous

Look at your bank statements from the past couple of months. Take all your expenses and add up your purchases by category. Categories can include bills, food, extracurricular activities, etc.

Once you’ve categorized all your expenses and added them all together, next subtract the total from your monthly income.

Is the number negative or positive? If it’s negative, it’s time to prioritize and cut back. If it’s positive, you did well last month, but you should still create a budget because you might be able to put more money towards savings or debt.

Step 3: Check your calendar and due dates

Now that you know how much your average income is every month, and how much your bills and expenses are, now it is time to check those due dates. It is important to know when your bills are due every month, this will help you make sure you have the money in your account, so you never miss a payment.

For example; if your rent is due on the first and your car is due on the 20th, write it on your calendar and budget spreadsheet. Then, you will want to make sure that the paycheck you receive before those due dates will cover those bills.

Tip: Always try and make your due dates for bills are spread out through the month instead of all being due on the first or all on the 15th.

Example:

Type of Bill Due Due Date Every Month Amount
Mortgage 1st $$$$
Car Payment 10th $$$
Insurance (Car, House, etc.) 15th $$$
Phone/Internet 20th $$
Groceries 5th & 20th (2x a month) $$$
And so on….. ……… ………
Step 4: Break it down and Create a plan

Okay, so now that you know your monthly income, you know the amount you spend on your bills, and you know when all your bills are due. Now is the time to break it down and create a plan. You can create that plan by working paycheck to paycheck or you could work it monthly. Whatever works best for you.

For Me, I know how much I make every month and I get paid bi-weekly. Therefore, I work by paycheck every two weeks, and the total amount I make covers all the bills for a month.

So first, I take what I currently have in my account, then I mark down my next payday. Once I know what and when I will get paid next, I then take all the bills that are due after that payday and before the next payday and subtract what is due.

For Example:

Take your current amount in account left over from the previous month: $100

Next paydays in January:

4th: $1000
18th: $1000

Bills/Expenses due between the paydays of the 4th and the 18th:

Bill/Expense Due Date Amount Due
Groceries 5th $200
Cell Phone 10th $300
Insurance 11th $190
Credit Card 12th $100
Loan (Student/Personal) 15th $110
Savings 15th $50
Total Due 4th – 17th $950

 (Total paid on the 4th) $1000 + (previous month remaining) $100 = $1,100

Total amount due in bills after the 4th but before the 18th = $950

$1,100 available – $950 bills = $150 remaining

Move on to next payday-> Payday January 18th: $1000 

Remaining after previous payday and bill paid = $150

Calculate what is due from Jan. 18th payday to Feb 1st payday.

Bill/Expense Due Date Amount Due
Groceries 18th $200
Car Payment 20th $200
Cable/Internet 25th $150
Utilities 25th $100
Total Due 18th – 31st   $650

       (Total paid on the 18th) $1000 + (remaining from last month) $150 = Total available $1,150

Total due from the 18th until next payday on Feb. 1st is: $650

$1,150 available – $650 bills = $500 Remaining

And so on…. Work paycheck by paycheck. If you find yourself with not enough money to pay your bills in between paydays, that is ok! Just cut back on some expenses. Work out paying just the necessities only.

If you still don’t have enough, take from your savings to cover it until you can get to a point by working this method where your amount from the previous paycheck can overlap to cover the expenses. Also, once you get to the point where you always have the money available to pay and have extra, pay yourself back

5. Work your plan and revisit it every paycheck or more.

After every paycheck is deposited in my account I check my budget. After every bill is paid, I check my budget and mark it off. I re-budget, and if I have extra money or need more money towards something that has come up, I move money around and cut back on non-necessity purchases. This has helped me never go NSF in my account.

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This is the exact method of budgeting I use and have used for over two years now. I have completely paid off two loans, one was over $6000 in 5 months and the other I had over $2000 left to pay and paid it sooner than expected.

By working paycheck to paycheck and being conscious of where my money was being spent every week, I have been able to have more money left over after bills to pay off debt faster. I cut out the expenses of eating out and instead started to meal plan before grocery shopping to prevent overspending on food. I have canceled memberships such as gym and massage envy to save money.

If I can do it, you can too! You can pay off the debt, save more, and live without stressing about money again. Budgeting does help relieve the stress because knowing what you spend money helps prevent you from overspending. If you spend $200 eating out every month and it has caused you to go NSF (non-sufficient funds) in your account, you can now say no or at least budget a certain amount for eating out monthly without going over.

Don’t be afraid to budget for those fun things like going out or purchasing a new outfit. But, make sure the necessary bills are always paid first.

I hope this helps to see another way to create a budget. It’s truly helped me overcome a lot of financial bumps and as I said helped pay and continuing to help me pay off the debt.

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How to take control of your finances while living in an RV

How to take control of your finances while living in an RV

by | Finances, Minimalism, RV Tips | 6 comments

Oh… Finances! We all have them. Money is universal and some are completely unaware on how to truly manage it. According to an article written by CNBC, 78% of Americans live paycheck to paycheck, 56% are in way over their heads with debt, and 56% save $100 or less a month.

Those numbers are surprisingly high, but with everything becoming more expensive it is understandable. Our incomes are having a difficult time keeping up with rising prices and many people often live above their means to keep up with social society.

Matthew and I weren’t living above our means, but we also weren’t living below either. So, we began our journey of getting out of debt, learning to live below our means, and started to take control of our finances. We saw that a couple of years of making sacrifices by not going out as much and living in an RV with a small loan payment was going to help us get out of debt.

Our goal is to one day pay for everything with cash, and never have another loan or credit card to pay back. We want to take amazing vacations without going into debt, save for retirement, give to others freely and live financially free.

So, we have done an extreme amount of research and are really digging deep to understand finances, how to best pay off debt, and make our financial dreams a reality. These are the 6 tips that have been helping us take control!

Step 1: Create a budget!

When you create a budget this forces you to look at your monthly income, your monthly bills, and where you spend your money. It also allows you to consciously “trim the fat” meaning stop spending money on all the miscellaneous things that you don’t really need or can substitute for cheaper alternatives. I wrote a blog called “Why it is important to create a budget”, you should read it if you’re still questioning why a budget is a necessity.

Step 2: Stop spending money!

Seriously, cut the “fat” as they say. When you start budgeting, you begin to see all the unnecessary purchases as I said before. Purchases may include eating out, coffee runs, or unused memberships. The extra money you save by cutting out the extra expenses will allow you more money to pay off the debt and save. Which brings me to step three.

Step 3: Save an emergency fund!

Having an emergency fund is so important. Try saving at least $1000 to have just in case you need to go to the doctor, or you need maintenance on your car or RV. This prevents you from placing those expenses on your credit card. Once you have that emergency fund saved, now is time to focus on step 4.

Step 4: Pay off the debt!

Once you can create a budget and see where your monthly income is being spent, then trimming the unnecessary spending habits, this will give you some room to put more money towards debt payments. So, check your balances for all the credit cards, loans both personal and student, cars, and mortgages as well as the interest rates! Pay off the smallest loan first while making the minimum on the rest. Then take the amount of money you used to pay off one loan to pay off the next smallest one and keep going until it’s all paid. This is also called the “Snowball effect”.

Depending on the amount of debt and income you bring in, it could take years, but it is so worth it! Getting rid of that debt is going to bring freedom for you and your finances. If you dream of taking those bucket list travel trips, having no debt will allow you to save more for those once in a lifetime experience.

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Step 5: Stop using credit!

Instead really try to develop that habit of paying cash only. If you can’t pay for it outright, then choose to save for the purchase until you can pay cash. When you use credit you not only increase your debt, but you will also end up paying interest on that purchase.

Step 6: Stick to the plan!

This is extremely important! You can do the budget, check your loan and interest amounts, and create a pay off plan but unless you stick to it, it won’t become a reality. Again, getting out of debt can take years. That means for some that can be years of living with a budget and living below your means. Don’t forget to continuously check the budget, adjust as needed, and focus on paying off the loans.

There you have it! 6 steps and tips on how to get control of your finances. This is a personal decision that is going to take strategy and implementation. You can do it! You don’t have to live every month paycheck to paycheck and you can pay for a house or car with cash instead of credit. It is completely doable with patience and persistence.

If you have a spouse, run through these steps together and work together on your finances. It’s important for couples to be on the same page.

We are excited for the day when Matthew and I are completely debt free and saving for our retirement and vacations. It is a dream that I know will become a reality! Stay tuned to our monthly blogs in the sections “goal setting”. Every month we talk about our monthly goals and our journey to a debt free life. You can sign up below for our monthly newsletter to stay updated!

Stay Motivated! You can take control of your finances!


References: Dickler, J. (2017, August 30). Most Americans live paycheck to paycheck. Retrieved from https://www.cnbc.com/2017/08/24/most-americans-live-paycheck-to-paycheck.html

16 Best Frugal Living Ideas You Can Start Today!

16 Best Frugal Living Ideas You Can Start Today!

by | Finances, Minimalism | 4 comments

So, what does it mean to live frugally? We see people talk about this subject a lot!

All it really is about is money management and never living above your means.

Living frugally is the ability to stretch the dollars you spend.

It is also the conscious ability to substitute items that are less expensive and never wasting what you have purchased.

Frugal living can help you free up your income to give more, to save more, and in some way makes you more grateful for what you have.

Frugal Living

When you become grateful for what you have you focus less on what you don’t have and more on what you do.

It’s not always easy to live frugally, but it is worth it.

So, I have put together a list of frugal living ideas anyone can master and implement into their lives.

1. Don’t waste a drop!

Frugal living begins at not wasting anything. This includes Toothpaste, Lotions, hair products, makeup, sauces, and the list can go on.

2. Buy products that are multipurpose

Don’t buy shaving cream. Instead, use a little bit of your hair conditioner for shaving cream. Works wonders.

Also, Dawn dish soap can be used in more places than just the dishes; such as cleaning counters, toilets, sinks, and even bathing the dog.

3. Meal plan and prep!

This is the best and easiest way to not waste any food or money. You only purchase what you need to make the meals and then cook in bulk.

This is why we love the $5 meal planning service. This allows us to have our meals planned ahead of time and they even provide a grocery list with everything you will need.

Tip: always check your pantry and fridge before you go to the store and take note of what you already have. 

4. Use a Cash Back Service

Download an app that gives you cashback on your groceries and other purchases.

Here are three services I have used to get cash back on groceries items after purchase and cashback on other items at the time of purchase.  

1. IBOTTA – Get cash back on groceries, extra coupons, and more!
2. Ebates – Get cash back at the hottest store you already shop at plus on Travel and Hotels too! Earn $10 Walmart Cash Or $10 Ebates Free Cash for Signing up! 
3. Swagbucks – Earn Cash Back on purchases plus Daily Trivia Games, Searches, and Surveys.

5. Read More and Watch Less.

Reading is always better than watching T.V.

If you have your favorite shows though, there are great services like Hulu and Netflix that are way cheaper than cable.

You can also purchase an antenna to get local channels. 

6. Purchase things of Value.

Buy quality clothes that you can wear over and over again knowing that they will last.

It’s ok to be caught in the same t-shirt and jeans more than once. I have clothes that I have had for over 10 years.

I have my favorite pieces and I’m not afraid to wear them again and again. 

7. 48 Hour Rule

Wait 48 hours before making a purchase that is more than $48.

I like to call this the “48 Hour Rule”.

After 48 hours, if you still want it and can afford it, go get it. 

8. Buy a water filter and drink more water.

This is one of my favorite frugal living tips. We use a Brita water filter and glass water bottles to reduce waste and cost.

Drinking more water and buying a filter will not only save money but help the environment too.

So, skip the sugary soda, juices, and teas.

Water is cheaper and also better for you, especially if you have a water filter. 


9. Cancel Unnecessary Memberships.

We live in the days where it feels like everything is a membership and on a monthly retainer fee. 

You have Music like Apple and Pandora, Gym Memberships, Makeup Memberships, Shoe Memberships, and the list can go on and on.

If you don’t use the items or go to the gym or massage parlor then evaluate the importance of the membership.

10. Be Patient

Never purchase anything full price. This includes clothes, new toys, new gadgets like phones and game consoles.

Always buy items on sale, clearance, or have a coupon! Thrift Shops are great!

Plato’s closet is the place to go if you looking for a new outfit for a date night or pictures.

Remember, just because you purchase at a thrift store doesn’t mean you can’t find good quality designer items. 

11. Always Pay Cash

Try and prevent any spending on the credit card, especially if you can’t afford to pay off the credit card on the next due date. 

12. Always try to do things yourself

If something breaks, try to figure out a way to fix it yourself before paying someone else to come out.

Now, there are things that do need a professional for so know when to call and when you can fix it yourself is important.

13. Skip the Hair Salon

For Women, hold back on dyeing your hair.

I know for some this can be difficult with roots, but you can always work your way back to your natural color.

14. “X” out the Extensions

Don’t buy extensions, whether it is Hair extensions or eyelash extensions. Extensions are expensive and you’re beautiful just the way you are! 

15. A little goes a long way

Minimize the amount of makeup you wear. I personally work from home so the only time I actually put any makeup on is if I’m going to an event of some sort of meeting with friends.

Makeup is expensive, so the less I wear it, the further my money stretches.

If you do have to wear makeup on a daily, then I suggest using it sparingly. When I was working in an office, I had my mineral foundation, blush, concealer, chapstick, and mascara.

Those were my only go-to makeup products that I used every day. Very minimal and I didn’t over purchase products that I knew I wouldn’t use. 

16. Don’t compare your life to others.

You don’t have to have the latest and greatest gadgets that the “Joneses” purchased.

This goes with being grateful for what you have and what you can afford.

Final Thoughts

There you have it! 16 of our favorite frugal living tips that we implement and use daily.

Remember no one is perfect, I love my coffee so we don’t only drink water but it is cheaper than all the sugary drinks out there.

Also, living frugally is just being mindful of your money and the items you purchase.

I enjoy living frugally because it makes me grateful for what I do have.

It also allows me to save more money and give more back to the community.

If you enjoyed this post, please feel free to share! 🙂 As always, Thank you for stopping by!


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Frugal Living

Why Creating A Budget Is So Important!

Why Creating A Budget Is So Important!

by | Budgeting, Finances, Minimalism | 3 comments

Do you feel like you’re always living paycheck to paycheck? Often find yourself with overdraft fees?  How about owing money on loans and credit cards? Is your savings account consisting of less than 3 months of living or maybe you don’t have savings at all?

If you answered YES, to any one of those questions then creating a budget should be top priority. When creating a budget, it really allows you to dig deep into your spending habits. Breaking down how much you spend opens your eyes to the reality of where your money is going and maybe why your paycheck seems to disappear.

Just being honest here, I use to not budget at all. For years I lived paycheck to paycheck, and when I wanted something that I didn’t have the cash for it was put on the credit card or taken out of my savings. I would think, “oh, I’ll just pay that off next month”. Then that balance on the credit card continued to grow because I couldn’t pay more than my minimum payment.

If you’re living this way, like I was, it’s time to start budgeting.


5 reasons why creating a budget is so important, no matter your income!

 

1. Helps you understand your spending habits

When you understand and see where your money is being spent, most of the time you start to see the random expenses on things you don’t really need. So, take a look at your card charges and receipts. Some items to start looking for are maybe coffee runs, eating out or on random subscriptions and memberships that you don’t use.

Often times, we don’t even realize how much we spend on things that are not a necessity until we create a budget. I like to call this “Blind Spending”, I don’t even know if this is a real term, but let’s go with it! Which leads me to our second reason.

2. Helps see where you can cut spending!

Seeing the truth of where your money goes allows you to consciously think twice before eating out and it helps you cut out the things that are not a necessity.

For example, if you’re a coffee lover and grab a coffee at Starbucks or local café more than once a week that is at least $5 a cup.   It is much cheaper to make coffee at home. If you have a gym membership or any other type of membership but you find yourself going only on occasion or not at all, time to reevaluate where that money can be spent.

When you begin to cut your spending, you start to have more money to pay off debt and more money to put away into a savings account. If you don’t have a savings account, I highly recommend you open one soon.

 

3. Helps you pay off debt!

By understanding what you spend money on and reevaluating items that aren’t a necessity, this allows for more money to be used towards paying off those credit cards and loans.

Paying off debt should have high priority because the longer that debt sits, the more interest accrues. Whether it’s student loans, personal, mortgages, vehicles, or credit cards. The more interest that is accrued the more money you’re paying. So, the quicker you can pay off the debt, the quicker you will free up money from your paychecks. Trust me, this takes time but is completely attainable.

4. Helps you Save more money.

Who doesn’t want to save more money? Saving money for personal reasons, emergency funds, or even travel is a delight. Being able to say yes to that beach trip because you saved to go on vacation instead of buying that Coffee latte every week is such a reward. When you budget, you are able to dedicate amounts monthly to put away while still making sure your important bills are paid.

Check out our related post: 10 simple ways to save more in 2019.

 

5. Helps you give more

Giving to Charity, Family, or Churches is a really nice way to give back. When you budget, just like savings, it enables you to set aside money specifically to help others. Give more than you receive and good will come back to you.

So in conclusion, now you know why it’s important and what a budget can do to help you financially, but you might be asking “how do I budget?” or “Where do I start?” Maybe, you are asking this because you’ve never budgeted, or your checks are different every time because you bartend/wait tables. We know how that is!

Currently, my husband bartends, therefore, we understand the fluctuation of income. One week you’re making $600 and the next you make $300. It’s not easy. However, even with the changing income you can still create a budget and work towards any goals you have like paying off credit cards and student loans.

To do this, we suggest taking the average amount made from 3 months. This will help you see on average what you accumulate, and budget accordingly. If you have a set amount you make per month, start by taking a look at your bank account statements to look at your purchases.

As I mentioned, creating a budget no matter your income is important because whether you average $2k a month or $10K a month it’s good to know your spending habits. Sometimes the more you make, the more you spend. I have known people who make $10k a month that still lived paycheck to paycheck. Therefore, it doesn’t matter how much you make, living off a budget is important.

When I first started Budgeting I created my own in excel spreadsheet. I did this because I had taken a class on excel in college, so I knew my way around the basics. I have been using my excel budgeter for over a year now. It has helped so much, but one thing I wish I had was the ability to see and edit on my phone.

So, I just recently found this service called Every Dollar by Dave Ramsey. I just signed up for it and giving it a try. So far, I am liking it, but not ready to really review it or not. If you would like to check it out here is a link www.everydollar.com (this is not an affiliated link, I do not get a commission).

Since I have been budgeting, Matthew and I have been able to pay off the IRS, save to purchase our RV and Truck, and now in January, we will be getting rid of my smallest personal loan. We are working towards a debt free life, so we can have more money to give and more to travel.

So, no matter where you are in life or how much you make a month, it is never too late to start budgeting, get out of debt, and save more money.

Related Posts: 10 Simple Ways To Save More In 2019


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