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Student Loans: Use Your Cash Or Take The Loan?

At Your Smart Money Moves, we get questions that we get from clients, through the website, or others that I see on the internet.   Here is a great one I recently came across around student loans. Q: I have about $40,000 saved up with an additional $6,000 in liquid assets that I am using as my emergency fund.  I’m attending graduate school, which will cost me about $50,000 by the time it’s over.  I will be working full time for the years of graduate school, so I believe that I will be able to save the extra $10,000 by the time I need to pay for it.    Should I pay the tuition out of pocket, or take out a low interest student loan at 5%?   I may be wanting to put a down payment on a house in the next five years, but I don’t want to begin accruing interest on student loans that I don’t necessarily have to incur. ...

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Should I keep my old car or buy a new one?

I get this question all the time, especially in Atlanta where people are car conscious. The debate around how long to keep the old car you have been nursing the scratches and bruises versus getting the latest and greatest new ride to put on the highway. Take the emotions out of it, and I can give you some sound advice around how long to hold on to the clunker. Remember, the car you buy (unless it is a collector’s item) is one of the sure fire assets to constantly depreciate on an annual basis the moment you take it off the lot. However, here are some thoughts you should consider before you make the plunge. Compare your current overall repair and maintenance bills versus the cost of the new car payment. While a new car will have some maintenance on a yearly basis, you really need to compare the total annual cost of all of your repair bills versus the ...

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