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Be smart and don’t overpay for some of life’s common expenses

Savvy financial people make sure they don’t overpay for many of life’s regular expenses. These savings can be significant depending upon your current financial situation. We can all lower our expense for a few surprising financial obligations we all may have sometime in our life.
What is a common expense that people tend to overspend on regularly?
The most common can be categorized as insurance. First, if you always buy the extended warranty, you might be overspending on something that isn’t needed. A second place that people overpay for insurance is that they don’t evaluate deductibles on auto and homeowners insurance. As we mature, we might be able to increase our deductible and lower our expenses.
Is there a loan that people often overpay for on a regular basis?
Without a doubt, many people don’t get the best deal on their credit card. Either they don’t get the best rate or they don’t get the best rewards for their situation. Generally, this is because we tend to get a credit card early in life and don’t ever think of looking for a better card.
Are cars another place that people can overpay?
Yes, and usually it’s because most people don’t think about how they are going actually use the car they are getting. If you plan to trade often and keep your car for a short period of time, used might be your best option. If you plan to keep your car for years, then you might be okay buying a new vehicle. The key factor to understand is how new cars depreciate quicker than used cars.
Is there a common mistake with homes?
Many people spend too much on getting their home ready to sell. Many renovations won’t really provide the positive ROI that people are hoping for when they start them. It is important to remember to make your home seem as neutral as possible so that buyers can see the potential for them to make it their own. Depending on the renovation, you might be better off financially reducing your purchase price versus the cost of the renovation.
Why is it that milestone events create the biggest opportunity for overpaying?
From weddings to new babies these events are emotionally charged. People often start planning the event and don’t keep track of what they are spending on each component. And there is a common thought that this will be the one and only milestone event. In reality, most people will have 5 – 7 milestone events in their lifetime. To keep from overpaying, always start with a maximum budget for the event so you can make smarter, less emotional decisions on how much to spend on each component.

Posted: 7/31/2018 with 0 comments

Categories: Buying a Car, Homeownership, Money Matters, Spending

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