You might have heard the phrases “upside down” or “underwater” when it comes to real estate.

The same can apply to your vehicle.

The meaning of this phrase refers to owing more on the loan balance than what your home or car is worth.

For the purposes of the writing, we are discussing auto loans.

The very first thing you have to do is find out whether or not you are actually “underwater”. If you happen to be “underwater”, you need to know by how much. Finally, we will discuss how to remedy this situation.

Find out the balance of your auto loan. Review your most recent loan statement. If you don’t have one available, contact the financial institution that financed your vehicle and request the balance. Also, take note of your interest rate. (We will go into more detail about interest rates in another post.)

Find out the value of your vehicle. This can be easily found online with sites such as KellyBlueBook.com, Autotrader.com, Edmunds.com, and NADAguide.com

Compare the value vs. the balance. If your balance is lower than the value of your car or around the same amount, you are in good shape. If the balance is higher than the value, you are considered to be “upside down” or “underwater”. If you fall into this category, don’t fret. Here are a few ways to turn that upside down loan right side up:

Make principal payments: Any time you have extra funds, make a payment towards the principal of the loan. Ex. If your monthly payment is $400, try to pay $100-$150 extra towards the principal.

Whenever you receive bonuses, birthday money, income tax refunds, make an even larger principal payment.

*This will also assist you in paying the loan off faster.

Refinance your vehicle: Your credit may have improved since your loan was originated. Refinancing with different terms could bring the balance more in line with the value.

*Don’t stretch the term too far out, though. The longer the term, the chances of you going underwater again increases, as the value of the vehicle continues to decrease.

Sell your vehicle: If you have funds saved, you could sell the car and start fresh. Try to get the highest amount for it.  Keep in mind that you will have to cover the difference between the sale price and loan balance, hence the need for funds saved.

I hope this was helpful in assisting you with identifying whether or not you are upside down on your auto loan. If you happen to find yourself in that situation, I hope that one of the suggestions mentioned will be a good solution for you.

Since it is the beginning of the year, I’m sure you have several goals….Perhaps fitness, financial, spiritual or otherwise. I have a question…

Are you putting your goals in writing or are they just in your head? Goals that are only in your head are just dreams. While dreams are awesome, and they are the inception of goals, there are additional steps that have and need to be taken in order to manifest those dreams into existence.

Here are a few of my thoughts and experiences regarding goal setting.

Write down your goals…There is POWER in seeing written goals. It incites action!
Revisit your goals often. This will serve as a reminder to keep you on track to achieving those goals. Don’t let them become an afterthought. You may become tired at times during this journey and you will also probably encounter distractions or deterrents.

I like to post my goals on sticky notes and place them in locations where I have to see them at least daily.(i.e. My bathroom medicine cabinet)

This helps me with holding myself accountable. In the morning, I ask myself what can I do today that he get me one step closer to reaching my goal? At night, I ask the question, what did I do today to bring me closer to my goal? If I don’t like the answers, that means that I have to work harder and be more intentional the following day.

Keeping my goals visible allows me to pray and meditate on them often as well. I usually place an inspiring Bible verse or verses near the goals. I am acutely aware that I cannot accomplish my goals on my own.

I encourage you to try this practice of writing down your goals for at least 90 days and see how it goes. I am willing to bet that if you have never done this before, you will see a significant difference in your goal achievement results.

Don’t just make a resolution and let it fade away in a few weeks. Set goals and crush them!

Not too long ago, I discovered another really cool channel on YouTube! Me being the Corvette guy that I am, the Corvette in the thumbnail caught my eye. As I watched a few videos, I became more and more interested in the channel. The creator of the channel was making videos on his likes, and dislikes of his corvette. The transparency is what really caught my attention. He did videos on the purchase of his corvette. He was transparent about the cost and financing of his purchase. I felt that this added a lot of value to YouTube viewers. Being so intrigued, we reached out to “Mr. Cars, Costs, and Technology” for a Q & A session.

What inspired you to create your YouTube channel?

I’ve always had a passion for cars and videography/photography. YouTube seemed like the perfect outlet with the best of both worlds.

We know that you are a Corvette guy, so what do you like most about Corvettes?

Corvettes have always caught my attention even as a child. They’re like America’s automotive superheros. Corvettes offer an incredible experience and performance that’s actually attainable for an average person.

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How much did saving and planning play a part in the purchase of your Corvettes?

Financial planning and saving played a huge part in the purchase of both of my Corvettes. At my age the odds were stacked against me to own a car like this. It was imperative that I research every cost involved
from the sticker price to the maintenance and insurance premiums. Taking a disciplined approach to savings was the only way for me to purchase my Corvettes without putting my other financial goals at risk.

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How long was the savings/planning period, before purchasing your first Vette? What about the second?

Saving to purchase my home was the most challenging obstacle within the last 5 years. Once that process was complete, I never changed my spending habits which allowed me to save up for my first Corvette very quickly.
The first Corvette took about 2 years after purchasing the house. There was a roughly 2 year gap between the first Vette (C6) and the second one (C7). Luckily I was able to
use the equity from the first Corvette to expedite the process of purchasing the second one.

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What was your first car?

A 1998 Ford Expedition.

What is your dream car?

It’s hard to decide on just one, but currently my dream car is the rumored C8 mid-engine Corvette. If I had to choose one that is currently available it would be the Koenigsegg One:1 .

Favorite driving music?

I like a little bit of everything, but believe it or not I’m a Christmas music fanatic. Outside of the few months that I can enjoy Christmas music I prefer the sound of my Corvette.

Where did you get your love of cars from?

I raced motocross as a kid, so I had a passion for engines and speed at a very early age. As I got older, cars began to open doors for me that dirt bikes could not. I still love that sport though and follow it closely.

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They say that cars represent traits of the owner…What traits does your car have that represent you?

I would say consistent, practical, and made in America!

What do you think will be your next car purchase?

Z06!!

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Lets say you have a dream 3 car garage? What vehicles would we find in it?

Koenigsegg One:1
2018 Corvette ZR1
2018 Ford F150 Raptor

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Check out Cars, Cost, and Technology on YouTube.

Over the past few years there has been a resurgence of podcasts.  Right now you can find a number of podcasts out there on any given subject.  As my life has become increasingly busy, I have found that podcasts are a great source of information and entertainment. With efficiency being a main goal, podcasts and audio books are are a great way to learn new things while on the go. I have listed below my current favorite podcasts.  They feature topics ranging from personal finance, real estate, to entrepreneurship in general.  There is a wealth of information in these podcasts.  On your daily commute, I would invite you to give these podcasts a listen.

Side Hustle School – I have found this podcast to be super inspiring. Real stories from real people are being shared. Side Hustle School features stories on how people have started profitable side businesses while maintaining their day job. It is awesome to learn how creative some people are. The business ideas on this podcast are so clever! One of the key things I like about this podcast is each episode only lasts an average of ten minutes. It is a great way to keep your entrepreneurial side motivated. The narrator of the podcast is Chris Guillebeau, who is an author and speaker.

Bigger Pockets – Bigger Pockets is about all things real estate. If you are a real estate investor or thinking about real estate investing, you should definitely be listening to this podcast. The interviewees are very knowledgeable and the hosts do a great job of dissecting the information that the guests provide. The guests are very transparent on how they were able to get started as well as current projects. They share the challenges they have encountered along with the successes they have experienced. My advice is to keep a notepad close when listening to this podcast…lots of gems to capture.

School of Greatness – One word…gratitude. Lewis Howes, an author and speaker, does a great job emphasizing the importance of gratitude while interviewing intriguing high profile guests, such as Tony Robbins, Marie Forleo, and Michael Hyatt, who is mentioned later in this post. If you are looking for motivation as an entrepreneur or just a self-help podcast, you should definitely give this podcast a listen.

This is your Life-Michael Hyatt – Michael is a great host, who is all about teaching you the dos and don’ts of building your platform as well as being intentional about the things you do in business and in life. This is a great podcast to learn best practices and “how-tos” to be more efficient and successful in business and life.

His and Her Money – His and Her Money is a personal finance podcast. Married couple, Talid and T, share their own stories as well as others on how they were able to pay off large amounts of debt and how to build good savings/investing habits. The stories and interviews are ultra inspiring and motivating. No matter how much debt you are in, it is definitely possible to get out of it.

Honorable Mention

Business Boutique – Business Boutique is a podcast targeted towards female entrepreneurs. I stumbled upon it by reading a blog post that was sent to me. The host, Christy Wright, shares tips and how-tos that any entrepreneur can put into practice.