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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In 2016, nearly seven out of every 10 graduating seniors needed to borrow for their educations and are on average saddled with in excess of $37,000 of student debt as they enter the workforce. Not only does this emerging “debt crisis” place an immediate heavy burden on the shoulders of new graduates, it can have an adverse long-term impact on both the individual and the economy.
It's tempting to spend money to keep up with your friends and family. But splurging can lead to stress if you don't plan ahead. Check out this infographic for strategies to help you indulge on occasion without the guilt.