Being financially savvy is not simply about hoarding every penny you earn, and putting it towards paying off debt or towards your retirement. There are times when you need to actually spend money to make smarter budgeting choices.
While it seems contrary to popular belief, moving towards a debt-free lifestyle does require you to sometimes go against the flow and make purchases. This does not mean spending frivolously or making unnecessary purchases or going further into debt.
This is a collaborative post.
1. Automobile maintenance
Preventative automotive maintenance pays off in the long term and short term. When a vehicle is in proper working order, it uses fuel more efficiently, which results in you spending less at the petrol station every time you fill-up. And, when your car is maintained properly, there are fewer unexpected expenses to deal with.
When your vehicle is out of commission, you’re stuck taking public transportation, rental cars, or even purchasing a new vehicle. So, spending money on automotive maintenance is essential in saving money.
It is estimated that once you pay off your car loan, every five years you continue driving your vehicle, it saves you the monetary equivalent of purchasing a new car. By spending money on preventative maintenance to reduce breakdowns and unexpected issues, you are lengthening the time you are driving your vehicle, and essentially making money instead of spending.
This is not something you can just skip on. Whether you need automotive, home, or personal insurance, you need to make smart choices so that your assets are covered effectively. Again, paying down debt matters, but protecting your assets is not something you can overlook.
If you need help finding inexpensive car insurance, click here and you can get an automatic quote within minutes. (There is also home insurance if you need that as well.)
In the event that you are in an automobile accident, you can not afford to not have insurance, period. Budget your insurance into your monthly expenses.
In the same vein, one way you may be able to save on insurance is by bundling your policies, since certain insurance companies will reward you with lower premiums by keeping multiple policies.
3. Quality products
If you’re spending money each season purchasing new shoes, clothing items, or even home necessities, when you could spend double that and have quality products that last for years, you’re wasting money, not saving.
While children grow out of clothes and shoes quickly, you may want to consider investing in high-quality shoes or boots that you can use for years, not months, to come. If you find yourself replacing something repeatedly, look into other high-quality options to see if it would make more sense to spend more money on better products to pay off long-term.
It can feel odd spending money when you’re trying to save, but the idea of saving money and moving towards FIRE is only useful if you’re also making smart choices financially. While you may initially cringe when you purchase a high-quality item, or see the bill for your insurance, these are three places that you need to spend money to save money.