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Start The New Year Asking For A Raise

December 6, 2021 by Tamila McDonald Leave a Comment

ask for a raise

As the new year approaches, many professionals set new goals for their careers. One common one is finding ways to earn more money. If you’re in that camp, starting the new year by asking for a raise could be a smart move. It may let you increase your income without having to launch a job search, something that really works in your favor if you enjoy your current role and workplace. If you aren’t sure how to approach asking for a raise, here’s what you need to do. [Read more…]

Tamila McDonald

Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.

The Factors Causing Inflation

December 1, 2021 by Jacob Sensiba Leave a Comment

It’s no mystery. Inflation is becoming a problem. We thought it might be an issue a while ago when the economy started to come back and the FED continued easing. The FED then said the inflation was transitory, meaning it would only be here temporarily until it went back down to pre-pandemic levels. That no longer looks like it’ll be the case. What are the factors causing inflation? Is there a major force behind it? What are the industries that’ll be hurt the most and which industries will be unfazed?

Demand returns to normal

There are several factors causing inflation. Because of the pandemic, we saw demand evaporate instantly. Then, as vaccines started to roll out, demand started to pick back up again. Also, in the middle of the pandemic, the government sent out three stimulus payments and increased unemployment benefits. People realized what it felt like to bring in more money and sought out better-paying jobs, or demanded higher wages. Demand picked up and people started to make more money, so they had more disposable income.

The wage/price loop

The recovery got going, but the FED continues to buy bonds and keep interest rates low. What also happened was the supply chain crisis. Prices went up because demand stayed the same and supply dried up. There’s also a wage/price loop that takes place. Wages go up, so companies raise prices to make up for the increased cost of wages. Increased prices create wage pressures. Wages go up. Then prices go up to make up for the increased cost of labor. And so on.

What industries are affected?

There are several current industries and product lines that are being affected by inflation. The most notable is gasoline. But I don’t need to tell you that. I’m sure you’ve noticed when you go to fill up your tank. A lot of food items have also increased a bunch since before the pandemic. To be honest, I can’t think of many industries that aren’t affected by inflation. I would assume if you provide a service you can be more flexible with your charges.

Competition decreasing?

Something else that’s being said is industries are becoming increasingly centralized, so there’s less competition. If there’s less competition, companies are able to do what they wish with their product offerings and their prices. I really don’t know if that’s the case or not. I would think not because the current administration said they were going to limit anticompetitive practices, but who really knows what they’re actually going to do.

Related reading:

What Currently Presents a Risk to Markets?

What Does an Increase in Yield Look Like?

Why Financial Literacy Matters

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Jacob Sensiba

Jacob Sensible is a financial advisor with decades of experience in the financial planning industry. His journey into finance began out of necessity, stepping up to support his grandfather during a health crisis. This period not only grounded him in the essentials of stock analysis, investment strategies, and the critical roles of insurance and trusts in asset preservation but also instilled a comprehensive understanding of financial markets and wealth management. Jacob can be reached at: jake.sensiba@mygfpartner.com.

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

Is It Time for a Financial Power of Attorney?

November 22, 2021 by Tamila McDonald Leave a Comment

financial power of attorney

When it comes to finance. Many people try to put safeguards in place to ensure that everything runs smoothly. However, not everyone has a system in place in case they become incapacitated and are unable to manage their financial lives for a period. Luckily, a financial power of attorney can address that issue. If you’re wondering what a financial power of attorney is and whether it’s time to get one. Here’s what you need to know.

What Is a Financial Power of Attorney?

A financial power of attorney is a formal legal document that gives an appointed person – usually referred to as an attorney-in-fact or agent – permission to manage your finances in specific situations. Often, the document allows the person to handle basic tasks. For instance, depositing checks, paying bills, directing insurance benefits, and similar activities. However, you have complete control over the permissions. Thus, allowing you to pick and choose what you want the person to be able to do.

The goal of a financial power of attorney is to ensure that someone can manage your financial life during an unexpected event. It’s designed to provide you with peace of mind. It will also prevent money-related issues that could occur if no one was able to handle the types of tasks outlined above.

Technically, there are two forms of financial powers of attorney. A general financial power of attorney only applies if you are not incapacitated. Usually, it’s meant to reduce the burden of a person who is struggling to manage all of their financial lives but is still technically able to do so.

With a durable financial power of attorney. The person you select as your agent can make decisions if you’re incapacitated. Although their capabilities end if you pass away. This version is more common for end-of-life planning, as well as addressing certain unexpected situations. This includes such as a sudden incapacitating illness. It can also be used during scheduled events, such as during planned surgeries that involve anesthesia, or to address issues relating to mental decline, such as dementia.

How to Tell If It’s Time

Generally speaking, it’s wise to have a financial power of attorney in place as part of your estate planning endeavors. By getting a durable financial power of attorney in place, you’ll have an agent who can act on your behalf should you become incapable of managing your finances.

Since events like accidents, illnesses, strokes, and other potentially incapacitating issues can occur without notice. Being proactive is best. Regardless of your age or family situation. Having a durable financial power of attorney ensures someone can handle critical tasks either until you recover or until your passing. Which can prevent a range of financial issues.

However, if you’re waiting for a triggering event, preparing to undergo surgery could be one. Since going under anesthesia is risky and there may be decisions that need to be made during the procedure, setting up a durable financial power of attorney before the surgery is wise.

Similarly, if you’re diagnosed with a degenerative condition that will impact your mental capabilities, you’ll want one then as well. Setting it up while you’re of clear mind is always best, as it increases the odds that your chosen agent will be respected once your abilities decline.

Even a medical diagnosis for a hard-to-manage condition could indicate it’s time for a financial power of attorney. For example, while cancer may not directly influence your cognitive abilities, the impact of treatment and the stress of battling the condition could make you forgetful. By appointing an agent to assist you during that time, you have someone who can ensure that something important doesn’t fall through the cracks.

Picking an Agent

Whenever you’re setting up a financial power of attorney, you’ll need to select a person to serve as your agent. The decision is ultimately yours. Ideally, you want to choose someone that you trust to act in your best interest who is also capable of handling the assigned responsibilities above all else.

You aren’t limited to specific relationships with the chosen individual, and you aren’t required to favor one option over another. Depending on your situation, you could choose a spouse, family member, or friend. If the decisions relate to a business you run with another person, selecting a business partner may be wise.

In some cases, you may even want several financial powers of attorney. That way, you can divvy up various tasks between individuals that are best suited to those tasks. For example, you could ensure a spouse can handle your personal finances, while a business partner manages company-related matters.

It’s also important to note that you can change your mind and revoke a financial power of attorney. As a result, if your situation changes and you want to ensure someone can no longer act on your behalf. yYu can do so as long as you’re considered mentally sound. Then, you can select a new agent. Thus, allowing you to adjust your choice whenever necessary.

Have you set up a financial power of attorney before? If so, what prompted you to do so? If not, is there a reason you haven’t moved forward? Share your thoughts in the comments below.

Tamila McDonald

How to Teach Children about Budgeting through Holiday Shopping

November 17, 2021 by Jacob Sensiba Leave a Comment

Teaching kids about money is a worthwhile endeavor no matter what time of year it is. Holiday shopping might be one of the better times to take them to school, though. Here are some ways to teach children about budgeting through holiday shopping.

You can take your time

Because of the internet, the majority of the shopping is done online. You are able to take your time and actually show them what you’re doing and why you’re doing what you’re doing.

Let’s say you’re on a website and you’re buying several things for your family members (as long as it’s stuff for them…no spoiling surprises). The items in your cart total $200 and your budget per person is $50. With those numbers, you’re able to show your children that you’re buying for 4 people. You’re able to show that you set a number and you’re sticking to it.

Saving money

With spending comes saving. Another item you can incorporate when teaching your children about budgeting is saving money.

Our family has a separate savings account specifically for holiday spending. We determine how much we’re going to spend per person and add up how many people we’re going to buy for. Then we take that total and divide it by 52 (for 52 weeks in a year). The next thing we do is take the total from that equation and set up an automatic transfer from checking to holiday savings. That way, we have the money saved and ready when we start buying gifts for people. That enables us to continue with our normal budget and financial plan without eating into our regular cash flow.

How to teach

I think there are a lot of parts of the holiday season that you can model for your children. When you walk into a store, there’s typically someone outside ringing a bell for the Salvation Army. That could be a good opportunity for you to teach your children about paying it forward and giving it to someone less fortunate than them.

You could give your children $20 or some other dollar amount of your choosing. With the money you gave them, you could give them some options. Buy something for yourself, buy something for someone else, or split up the money and buy for a few people. Depending on what they do, it could be a good opportunity for your to teach them about thinking of others instead of thinking about yourself.

Disclaimer:

Jacob Sensiba

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

Anyone Can Become a Millionaire-Here’s How!

November 15, 2021 by Tamila McDonald Leave a Comment

become a millionaire

Many people dream of becoming millionaires but assume that it isn’t possible. In reality, practically anyone can get on the path toward a seven-figure nest egg; you just have to use the right approach. If you’re wondering how you could potentially become a millionaire, here’s what you need to do.

Say “No” to Debt

Few things can hold you back from your financial goals quite like debt. A buy-now, pay later attitude comes with consequences. Monthly debt payments will take bites out of your budget. Additionally, you spend far more overall for the things you buy if you aren’t repaying your debt right away. That’s money you could be using to improve your financial standing essentially slipping through your fingers.

If you’re hoping to become a millionaire, saying “no” to debt is essential. Instead, focus on only purchasing essentials, saving for what you want to buy, and maintaining things you own. That way, you can focus more of your money toward your goals.

Start Investing

Gathering up a seven-figure nest egg doesn’t mean you have to save a full one million dollars. Instead, you need to set aside as much as possible using an approach that lets your money grow.

By investing early and regularly, you get to take advantage of compound interest and long-term gains. With compound interest, the interest you earn also starts earning interesting, helping even modest deposits grow.

Other types of earnings can also help. For example, reinvested dividends can boost your balance, adding a bit of something extra while you continue making deposits. Even stock value increases matter, as that’s money you make without increasing how much you’re personally saving.

Now, even though your savings can grow, that doesn’t mean you shouldn’t be setting a significant amount aside. While a general rule of thumb is to save 15 percent of your income for retirement, you may want to invest beyond that if you’re hoping to become a millionaire. That way, you can stash away as much as possible, allowing you to get to a balance that makes you happy faster.

Boost Your Income

Since you need to set money aside if you want to become a millionaire, increasing your income is a good idea. That way, you’ll have more cash to stash, allowing you to grow your balance as quickly as possible.

There are several ways to boost your earnings. You could ask for a raise if you’re exceeding expectations at work or seek out a new job where you’re paid fairly for your contributions. Volunteering for overtime is an option, as well as getting a second job or launching a side hustle.

Acquiring new skills that let you qualify for a better-paying position should also be on the table. While heading back to school could potentially help, there are alternatives. Internships, apprenticeships, and other forms of on-the-job training could do the trick. Going online and using free resources may also work.

Stave Off Lifestyle Creep

One issue with boosting your income and savings is staving off lifestyle creep. If you start thinking that luxuries are suddenly affordable, you may forgo savings and start spending instead. As a result, you may not have enough set aside to reach a $1 million balance.

If you increase your income and start thinking about moving to a new home, buying a new car, or something similar, pause for a moment. Consider whether what you’re contemplating is based on needs or wants.

If what you’re thinking about doing is a legitimate need, then moving forward may be okay. However, you want to do it as frugally as possible, ensuring you don’t end up spending more than necessary to cover that requirement.

However, if it’s a want, remind yourself about your dream of being a millionaire. That way, you can focus on your goal.

Do you have any other tips that can help someone work their way toward becoming a millionaire? Share your thoughts in the comments below.

Tamila McDonald

Set a Holiday Budget That Works

November 10, 2021 by Jacob Sensiba Leave a Comment

With the holidays right around the corner, it’s time to get your shopping and holiday preparation done. That means you’re going to have to spend money. The holidays can be rather expensive for people. Especially, if you have a lot of people to buy gifts for, you have to travel, or you’re hosting a party. Here are some tips on how to set a holiday budget that works for you.

Start by asking some questions

If you want to make progress, it all starts by asking questions.

How many people do you have to buy gifts for?
Would your friends or family be open to a gift exchange?
Do you have to travel?
Do you have to host a part?
Would you be open to a potluck?

Having answers to these questions would help a lot when budgeting for the holidays. While we’re here, you should ask these questions far in advance so you can save throughout the year.

Budgeting

For example, you have 10 people to buy gifts for. How much do you want to spend on each person? Do you want to spend more on your parents than you do on everyone else? Let’s say you plan on spending $50 per person. That’s $500 worth of gifts. If you save $10 per week, you’ll have enough saved for gifts in your holiday budget.

Traveling

Knowing ahead of time if you have to travel is useful too. Then you can be picky about your flight, but buying in advance is usually more economical than waiting until the last minute.

When it comes to buying your plane tickets, it might not be a bad idea to put them on a credit card and pay off the balance right away. When you do this, you’ll show some activity to the credit card company, show an on-time payment, and accrue some rewards points.

Planning ahead

Another point about planning ahead – supply chains are disrupted and products are more expensive. If you plan ahead, you a) allow enough time for your purchases to be sent to you and b) you’re able to find deals on the things you want to buy.

Decorating

When it comes to holiday preparation and decoration, it might make sense to get a few items to get you through this holiday season, and then when everything goes on sale, load up for next year.

Gift exchange

A gift exchange could relieve a lot of financial pressures during the holiday season. If you get a group together and establish a budget, you could enjoy the gift-giving and receiving process without breaking the bank. You could also have fun with it and make the gift exchange a white elephant, where you buy gag gifts instead.

Buy Now, Pay Later

One last thing you can keep in mind. With the rise in popularity of Buy Now, Pay Later (BNPL), you might want to consider it if your finances are tight. BNPL gives you the ability to spread payment over several months. Be careful though, you can get into trouble if you start missing payments, and your credit can take quite the hit.

The holidays can be expensive, but if you plan ahead it doesn’t have to have an impact on your wallet. Set a holiday budget that works for you.

Disclaimer:

Jacob Sensiba

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

How to Prep your Finances Before you Quit your Job

November 3, 2021 by Jacob Sensiba Leave a Comment

There are a lot of jobs open right now. Maybe you’re not particularly happy in your current role so you’re looking for other opportunities. Before you leave, you need to make sure you have your affairs in order. Here’s how to prep your finances before you quit your job.

Some things to make note of first.

Plan Ahead

If you want to quit, but don’t have anything lined up yet, get that process started ASAP. There may be a plethora of jobs available right now, but that doesn’t mean you’re going to get one right away.

Ideally, you’ll have an accepted job offer before you quit your current job, but that won’t apply to everyone.

You could be leaving a hostile work environment, you could have a bad work/life balance, or you’d like to explore different opportunities.

That’s why you must do your best to always be prepared because you never know what is going to happen. You can’t predict the future.

Before you quit your job, here’s what you have to do.

Have Money Saved

Make sure you have money saved. You truly don’t know how long it’s going to take to find another job. That’s why I say you should have one lined up before you quit your current job. That’s also why the common advice is to have 3-6 months of living expenses saved in case you lose your job.

It’s also important to see what’s out there. As I mentioned in the beginning, there are a lot of jobs available, but that doesn’t mean you’re going to find a better one. Do your research.

Prep Your Finances

If you want to be able to have less liquid money available, work on your expenses. Cut down where you can. If you’re servicing debt, get it paid off so you don’t have that liability sitting out there. If you don’t have any liabilities, you remove the chance that you’ll miss a payment (which is bad for your credit score). Your credit score is important in today’s economy, especially when looking for a job.

Back-Up Plan

Whether you are exploring a different field entirely or looking for a better role in your current industry, it’s a good idea to have something to fall back on. Even with a record number of job offerings, the job market is still unpredictable. Make sure you have a contingency job picked out that matches your skillset and expertise just in case the role you’re pursuing doesn’t work out.

Make Money in the Meantime

Learn how to make money…quickly. If the job hunt is taking longer than you expected, find a way to supplement the income you lost. There are several ways to hustle your way into a wage nowadays. Uber, Lyft, Instacart, UpWork, Fiverr, and more. There are plenty of companies that’ll hire you as a contractor. If you’re making money, that could enable you to be very picky on the job you take.

Health Insurance

Last thing. Don’t forget about healthcare costs. If you get benefits from your current job, figure out how/if you’re going to get health insurance while you are out of work. Short-term plans might meet a need if you’re just looking for disaster coverage, but if you’re someone that requires ongoing medical care, there’s probably something else that’ll meet your needs better.

Prep your finances BEFORE you make a move.

Disclaimer:

Jacob Sensiba

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

Here Is What To Do If You Have Debt In Arrears

October 25, 2021 by Jacob Sensiba Leave a Comment

This article is a response to a reader’s question about paying off debt on an irregular income. They write:

Can you advise me how to manage to settle my absa loan & credit card because they are in arrears

At my work I earn with commission , sometimes I didn’t earn.

Here is my answer:

Being in debt is a challenge. It takes away money you could use for more productive things. It’s even more difficult when you’ve missed payments and your debt is now in collections. If that’s you, here are some tips to help you settle your debt that’s in arrears.

Pay down debt

Utilize some debt repayment strategies.

Debt snowball – pay your smallest balance first while making minimum payments to your other debts. When you pay off your smallest balance, move on to the next smallest balance. As you get rid of debts, you’ll be able to make larger payments to the following debt.

Debt avalanche – pay your highest interest rate first. Similar strategy as the “snowball”. Once your highest interest rate debt is eliminated, pay as much as you can towards the debt with the next highest interest rate.

Use retirement funds to pay off your debt. You’ll likely, depending on your age, pay a 10% tax penalty, however (if you’re under 59 1/2). Do you have any cash accumulated in a whole life insurance policy? Use that cash value to pay off your debts

Negotiate

How much, in terms of dollars, can you pay to your creditors as a settlement? Figure out what that number is before you start contacting creditors.

It may take a couple of phone calls, so don’t get discouraged. If you don’t like what you’re hearing from the representative you’re talking to, try and get a hold of a different one. Remember the dollar amount you can pay and don’t go over that amount. If you can pay 50% of what you owe, start with an offer to pay 30%. The creditor will counteroffer and hopefully, the agreed amount is 50% or lower.

Make sure you’re clearly communicating the financial hardship you’re experiencing that put you behind on your debts. Getting sympathy from a representative could help you! Get any settlement or repayment plan in writing as soon as possible.

Make sure you’re speaking to your creditors, not collections agencies. Collections agencies will take a settlement amount and sell whatever is left to another agency. Before you’ll know it, they’ll be after you again. Speak to the creditor you initially owed. Also, be prepared to pay taxes on the forgiven amount.

Bankruptcy

Nobody likes to think about it and it would be a very difficult decision, but it might be one to strongly consider if you want to settle your debt.

If you don’t have luck with negotiations, you might have to consider bankruptcy. There are generally two options – Chapter 7 and Chapter 13. Chapter 7 clears all of your debts. Chapter 13 is more of a reorganization.

Check credit reports

Clarify with the credit reporting agencies how things were settled. Clean up the report and it could help your score a little. Late payments and charge-offs stay on your credit report for 7 years. Debts in collections stay on your credit report for 180 days.

Debt settlement is about commitment. There are penalties if you miss ONE payment of your agreed-upon settlement, so don’t miss!

One more thing. Know your rights. There are several things collectors can’t do:

They can’t threaten you
They can’t shame you
They can’t force you to repay your debt
They can’t falsify their identity to trick you
They can’t harass you

It’s a tough road, but getting out of debt is paramount for your psyche and your financial success. Utilize strategies to pay down debt. Speak with your creditors about negotiating. If negotiation doesn’t work, consider bankruptcy. Once you settle your debt, review your credit report and dispute errors.

Disclaimer:

Jacob Sensiba

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

Financial Planning Month

October 20, 2021 by Jacob Sensiba Leave a Comment

October is Financial Planning Month so I want to go into a little detail about why financial planning is so important and what aspects need to be considered.

Now let me start by saying money is not the end all be all, but having some is better than having none. Being financially prepared is incredibly important, both for your psyche and for your budget.

Why financial planning is important

Saving some of what you earn is the first step to financial preparation. Having an emergency fund is essential. Those who don’t have emergency funds probably have to pay for emergencies with credit cards. That leads to debt and money wasted on interest.

What about saving for medium-term goals? Being able to save for a down payment for a house can save you money on your monthly payment, and can make your offer to buy more enticing in this competitive market. The less you “finance” the more you save because you’re not paying (or you’re paying less) interest.

Saving for retirement is paramount. Social security will not pay all of your expenses. You need supplemental income to be able to live when you no longer can earn money.

To be able to save, you need to plan. That plan is called a budget and you need to set one so you know how much you HAVE to spend on necessities, how much to save, and how much you COULD spend on wants.

Planning also matters so you stay out of debt. Unplanned expenses come up and it’s vital to have money saved up during those times.

What goes into a financial plan

A few of them I’ve mentioned so far – having an emergency fund, having a savings plan in place for medium-term goals, having a retirement plan in place for when you need it, and budgeting.

A great financial plan takes two approaches – macro and micro. A macro view of your financial plan is more of an outline. How much do you save for this, that, and the other (emergencies, short-term and medium-term goals, and retirement).

The micro has to do with the details and how you meet those goals. What kind of debt payments do I need to make in order to have it paid off in three years? How much do I need to save per month to have my down payment ready? How much do I need to save, given a projected ROI, to meet my retirement nest egg goal?

Insurance

Another important piece to your financial plan is your insurance. Are your home and vehicles adequately protected? Are you protected? Is your ability to earn a living protected? Making sure you have proper coverage for your property, liability, and your life is vital.

Estate planning

Creating a plan for yourself and for your family is the last step. If you have assets you want to leave them and/or liabilities you want to take care of, you need to spell that out in a legal document (like a will or a trust). An estate plan is all-encompassing and needs to include your investments, property, liabilities, and insurance.

Disclaimer:

Jacob Sensiba

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

What Are The Most Expensive Cars to Maintain?

October 18, 2021 by Tamila McDonald Leave a Comment

most expensive cars to maintain

When you are buying a vehicle, the purchase price isn’t the only cost that should be on your mind. Maintenance expenses also need to be a main consideration. If it takes a large financial investment to keep a car running properly, you may discover that a car you thought you could afford is actually a budget buster. By understanding which cars are the most expensive to maintain, you can avoid that issue. Here’s a look at some of the costliest vehicles to keep on the road.

BMW X1 / BMW X2

Luxury brands tend to come with higher price tags, and not just at the time of purchase. BMW X1 owners typically spend close to $17,700 over the course of 10 years just on maintenance. Considering that a new X1 usually costs around $40,000, that’s a lot of extra money to put toward the vehicle.

Still, the X1 does have a great reputation when it comes to comfort and style. As a result, some people may feel it’s worth the investment.

The BMW X2 is in an incredibly similar position to the X1. It has a purchase price of a bit less than $44,000 on average. However, its 10-year maintenance cost comes in just a bit under $17,800, putting it more than $2,000 above similar vehicles in its category.

Mercedes Benz GLA Class

Another vehicle on the luxury side of the spectrum, taking care of a Mercedes Benz GLA Class is far from cheap. Usually, it’s because parts costs can be particularly high. Additionally, there can be some specialty servicing in the equation that pushes the price up.

Still, spending nearly $14,000 in maintenance over the course of 10 years is a big ask. That’s especially true since the car costs just a bit more than $35,000 new in most cases.

Nissan Murano

Originally launched in 2003, the Nissan Murano breaks the mold when it comes to maintenance costs. While a typical Nissan has upkeep expenses close to $7,600 over the course of 10 years, the Murano comes in closer to $14,700. Considering Nissan isn’t classified a luxury manufacturer and the Murano has an MSRP starting near $33,000, that’s pretty spendy to keep the vehicle on the road.

Audi A4 Quatro

The Audi A4 is considered an entry-level model for the manufacturer, giving those who want to take their first step into the luxury vehicle segment a relatively affordable place to begin. With a starting MSRP of close to $40,000, most wouldn’t assume the car would cost around $12,800 to maintain for 10 years.

The total maintenance cost just slightly outdoes the brand average, which comes in at $12,400. However, since the sales price of the A4 is lower than essentially every other Audi, it could make the entry-level model unaffordable for some.

Mazda 6

Generally speaking, Mazda vehicles are known for having quite a bit of pep in their step. The Mazda 6 is one of the manufacturer’s sedans, offering a pretty sporty experience in a somewhat unassuming form factor. However, the performance comes with a high price tag.

When the starting MSRP for a Mazda 6 is under $25,000, its 10-year maintenance costs run close to $12,700. Considering that the average 10-year maintenance cost for the brand is just $7,500, that could easily catch new Mazda 6 owners off guard.

Do you know of any other cars that are expensive to maintain? Do you own one of the vehicles above and have a firsthand account of the maintenance costs? Share your thoughts in the comments below.

Tamila McDonald