Saving money is not an easy thing, particularly when it involves anticipating future spending. Many folks are focused on just dealing with the here and now, paying down immediate needs or expenses. The idea of generating savings down the line isn’t often high on the monthly priority list.
However, especially with durable goods and long-term activities, making wise decisions now can make a big difference in costs months and years later. Here are a few examples of how such thinking and planning can work:
One of the most obvious ways to save money in the future is to put funds away in retirement accounts now. With the use of IRA tax shelters, a person can avoid spending unnecessary costs on taxes as well as have funds available for retirement costs rather than having to work longer for a paycheck. Instead of worrying about the next social security check, or even the future of social security, those who begin saving at for retirement a young age can live their retirements comfortably.
Food that doesn’t spoil quickly makes a great option for eating when traveling. With a few tools like a can opener, a bowl and utensils and good lunch bag with a freezer block, a person can save $5 to $10 a day on buying lunch at work. Multiply that cost by 20 work days a month and 12 months a year, and that small cost becomes a sizable savings down the road each year.
Bringing your own lunch is not only smart for your wallet in the short-term, it is also smart for the future. Those who eat home-cooked and home-prepared foods have better control over portion sizes and ingredients. Consequently, those who eat at home are at a lower risk for obesity, cardiovascular problems and other health issues. Having a healthier body will result in a decrease in future medical costs.
Maintaining a car with timely checks
A simple oil and filter change on a regular basis as well as maintenance checks can prevent far costlier work down the line for a vehicle, extending the life of a car and avoiding the need to spend on a new car sooner than necessary. The difference can be in the thousands of dollars just in repair costs, and the maintenance cost is fairly cheap when compared to repair costs.
I have a friend who takes care of car maintenance religiously. He takes care of the oil changes on time and replaces car parts when needed. To this day, he has not had a car die on him. He is able to get many, many miles out of the cars he drives resulting in long-term saving since he does not need to replace his car often.
Car and truck tires can be expensive when needed and have to be bought as a set to maintain vehicle safety. However, going too cheap on a new set can mean having to replace tires sooner or having more failure issues sooner when driving.
I have another friend who waited to replace her tires and wore them incredibly thin. Around the time she was thinking about getting them replaced, she hit a curb and two of her tires ended up bursting from the force. She then had to pay for a towing as well as new tires. If she had not waited so long to replace her tires, she probably could have avoided that situation and the cost of the tow-truck.
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Category: Money Basics