| How to Save Your Money, Part 5 |
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Give yourself permission to spend money on health and safety items, especially if they will save you money in the long run. If paying a few dollars more for your children's bike helmets or sports equipment will keep them safer, it's money well spent. This also applies to buying a low-cost cellular phone for emergencies or that car repair you've been putting off. After all, the mechanic's bill will be much higher if you wreck your car because the brakes don't work. If you need to replace your vehicle, buy a late-model used car. New cars cost you thousands of dollars more than used cars, which may still carry the factory warranty. If you spend two hours inspecting a used car and having it reviewed by a mechanic, and then buy it for $3,000 less than you'd spend on a new car, you've just saved $1,500 an hour (probably a lot more than you earn at your job). Pay cash for the next car you buy. Instead of losing ground by paying the interest that goes into every car payment, gain ground by replenishing the cash you spent for the car. Instead of taking two steps forward and one step back because of your interest payment, you could be taking two steps forward plus another step forward by earning interest on your savings. |
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