Cost Effective Living

During times when you can hardly afford your basic necessities, it can be really testing to try to be financially secure. This is particularly difficult when you wish to enjoy your life but you have to shoulder all these bills and it seems like you will never be able to afford going on a vacation. You might find it unbelievable but the fact is that if you only make several adjustments in your spending in one year, you can have a few extra dollars in your bank account and you can enjoy the effects of being cost effective in your lifestyle. Moreover, if you are able to practice saving money, you can largely improve your stress level and your general health.

By being temperate and being careful about planning your expenses, you can save so much. Here are several things that you can do in order to save cash and let yourself enjoy a more carefree life.

One thing that you can save on is the cost of transportation. This can be quite high – some families allot a thousand dollars per month on their car payments, gas, repairs, and insurance.

When it comes to purchasing cars, you do not want to buy one that is not more than 2 years of age because cars depreciate really fast anyway. In fact, the moment that you get the car out of the dealership, the value already starts to go down.

See to it that you only take one car loan at a time. Finish off the first loan before you proceed with your second one. Do not be impulsive in your car shopping! Prior to making the purchase, look around and see if there are better prices that you can get. Read up on reviews by other consumers and stick to a car that has a high value when you resell it.

Stick to a small car unless you really need a big one. For instance, if your job requires you to annually make one or two drives to a Home Depot, this does not mean that you should buy a truck that will let you haul a good amount of stuff. You can opt to simply pay $20 to hire a truck for an hour.

Prior to financing your car, set aside what you will pay for insurance and monthly payments before you do so. In case you cannot do this or you think that by doing so you will not have enough money to pay for your usual monthly expenses, it would probably be better for you to put off buying the vehicle for a while. But if you think that you can readily do this, and still be able to have enough cash for the monthly expenditures, you can use your savings to make the down payment.

For those who are thinking of going on a vacation any time soon, and the car that you currently have is not something you can rely on for long drives, you can choose to just rent a car instead of purchasing a new one. A new vehicle can cost about $250 per month which means around $3,000 in annual payments. If you choose to get an older car that has already been paid off fully, you can expect to spend at least a thousand dollars in a year for the repairs. These are all things that you need to consider before you spend.

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