We are all looking for ways to cut back or cut out spending. The economy is tight and consumers are becoming debt conscious. But there are a few items that you should consider spending money on today in order to save in the long run.
Tips for Spending Money to Save Money
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1. Flood insurance – most home owner’s insurance will cover leaks that come from above (like rain through the roof) but none cover flooding. You need to invest in flood insurance if you live any where near a flood zone. We purchase flood insurance each year for just $120 per year! Talk to your existing insurance agency about how to add flood insurance to your policies.
2. Car maintenance – getting a check up (or doing one on your own) is important to the life of your vehicle. Running a car with dirty fluids or no fluids will cause catastrophic damage that will cost a fortune. Get the oil changed, get the transmission fluid changed. Get the filters and belts checked and changed. Your car will run better than ever and you may be able to catch problems before they become too big to handle.
3. Home repairs – fixing things around the home when the problem is first revealed is the best way to keep the problem from getting beyond help. We had one tile come up in the bathroom floor – if I had repaired it then we would not be facing the prospect of having to replace the bathroom floor because of all the other tiles that have now come up around it. Home repair is no place for procrastination.
4. Warranties – this is one of the times when you will need to way the cost. IF there is a good chance you will need the services provided by the warranty then take advantage of it. We paid for four years of full coverage (even if the dog knocks it on the floor) for the new computer that we purchased. We have three boys that run through the room and it would cost as much as the warranty for just one visit from the computer repairman. Read the fine print and be sure that the warranty covers exactly what you need. If it’s not in writing then don’t take the salesman’s word that it will be covered. Get it in writing.
5. Health insurance – the Health Savings Account gives you the convenience of having money for all health care costs but still provides the protection for major health expenses through High Deductible Health Insurance. You can also find reasonably priced full coverage insurance if you are willing to do some research. The average emergency room visit will cost around $1200 (and that’s just getting seen by the doctor without tests). Most doctor’s visits will cost around $150. Getting insurance will save you plenty through out the year AND it will give you peace of mind.
Spending money may not seem like the best way to save money, but it can be. There are certain places where you need to make the investment in order to save in substantial costs in the future.