Three Purchases to Make if You Want to Save Money
Are you actively trying to save money? If so, believe it or not, there are actually three purchases you should make. While it might seem counter-productive to spend money when you’re trying to save it, these purchases can actually help you reach your budget goals in the long run – but if you don’t buy them, you could lose a lot of money. Let’s go over the three purchases, as well as how to spend as little as possible making them.
Purchase #1: Insurance
If you own a home, you probably had to buy homeowners insurance as a condition of your mortgage. Did you know that you can purchase something similar as a renter? Renters insurance is relatively inexpensive, costing just $15 – $20 per month on average, but if there’s a natural disaster, theft, or other problem that destroys your items, you won’t be paying out of pocket to replace everything you own. To save money, try bundling your renters insurance with other types of insurance that you’re required to buy (such as car insurance) and installing “safety items” like smoke alarms and deadbolts. Renters insurance also covers liability if a guest in your home is injured while visiting you saving you from medical bills which can easy be six figures – or even more.
Purchase #2: A Better Car
You might think that your old clunker is just fine to get you around, but in actuality, an older car can be a money pit. You don’t have to go out and buy a brand new car – just look for a reliable used option that is good on gas and has a history that includes no accidents. At most dealerships, you can find choices that fit this description for less than $200 per month, even if your credit isn’t perfect. As an added bonus, when you make payments on time, it will reflect well on your credit, and a good credit score is your key to lower interest rates on other loans.
Purchase #3: Education
College is super expensive, but biting the bullet and paying for more education can mean that you make millions of dollars more during your lifetime. Scholarships and grants are available to help students who can’t afford college, but even without them, you can find student loans with low interest rates. Many student loans also allow you to defer payment with no penalties until after you graduate and have about six months to secure a job in your field. If you can’t afford to be a full-time student, at least consider night, weekend, or online classes on a part-time basis. For less than $1000 per semester, you can at least work toward a degree.
This guest post is from Allison with RentersInsurance.org, where you can go to learn more about renters insurance or get a quote.
