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7.3 DON'T WAIT TO SAVE MONEY ON THESE EXPENSES; UNPLANNED EXPENSES AND PERSONAL
FINANCE, THE MAIN REASON PEOPLE GO INTO DEBT
Managing
your money wisely involves an understanding of knowing when to spend money and when not
to. Many people, for example, think an extended warranty is a good buy (see below) but it
is really just another impulse purchase. When an unplanned expense rears its ugly head,
learn the ropes.
For
some things it is foolish to try to save money. You should not put off any of the
following: car repair, treatment for infections or lingering illnesses, damage caused to a
home by water or the replacement of an old appliance.
Don't
Wait On These Expenses
Waiting
for any of these will cost you much more in the long run. A well maintained car will be
safer, run longer and costs less to run. Waiting to attend to a medical problem will only
cost you more in the long run.
Water
leakage in a house (either from a leaky pipe or rain) will do considerable damage over
time. The best thing is to fix it immediately.
It
is also often worthwhile to buy a new appliance if your current one is about ten years
old. Newer appliances may be much more efficient, costing you less in energy. In fact they
may pay for themselves over time. Repairing an older appliance may be a waste of money.
But
You Can Wait On These Expenses
You
can put off a lot of expenses if you need to with no problems.
==
Do you really need new clothes?
When
was the last time you looked through your closet? Can you mix and match the clothes you
already have? Your existing clothes might be repaired, cleaned, altered. More money is
probably wasted on new clothes than any other category.
==
Do you really need a new car?
Driving
your old car one more year should save you about $1000.
==
Extended warranties.
When
you do decide to buy that new appliance or computer count on a hard sell for an extended
warranty. You may think you are protecting yourself against sudden unplanned expenses but
are you?
These
products are not really warranties, but a form of insurance. You will be paying a high
price for minimal coverage. Salespeople push these because they make a ton of money
selling them. Avoid!
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