Budgeting

Pay Now to Save Later

3 times when taking care of relatively minor costs can help you save big over time

Pay Now to Save Later
 

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.1

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.2

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 $21,500.3

Sources:

1 True Cost of Not Maintaining Your Car, Bankrate.com

2 Paying a Little Now Will Save You A Lot Later Student Financial Services, Columbia College Chicago

3 Roofing: Repair or Replace Sept. 2009, HouseLogic.com

This content does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

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