3 times when taking care of relatively minor costs can help you save big over time
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Sometimes, spending a little extra money now can save you more down the road. Even on a tight budget, putting money toward paying down loan interest or maintaining your car can pay off big because it can keep your expenses lower over the long-term.
1. Spring for Routine Car Maintenance
While regular auto maintenance can cost an average of $1,000 per year, it can cost upwards of $8,000 to repair a vehicle that hasn’t been maintained.
2. Tackle Student Loan Interest While in School
Say you have a $5,000 loan at 6.8 percent interest. If you pay off $340 of accumulated interest on that loan while you are still in school, you will save $469.20 over the life of your loan.
3. Make Minor Home Repairs
A small leak in a roof that is in otherwise good condition can cost $1,000 to fix, whereas a roof replacement costs an average of $21,500.
âTrue Cost of Not Maintaining Your Car,â Bankrate.com
âPaying a Little Now Will Save You A Lot Later,â Student Financial Services, Columbia College Chicago
âRoofing: Repair or Replace?â Sept. 2009, HouseLogic.com
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If you’re cutting it close with your finances every month, or not setting aside anything for your future, then your routine could use some tweaking. Identifying the financial habits tripping you up is the first step to moving toward life’s bigger goals.