How Closely Are Your Finances And Vehicle Intertwined?
Reliable transportation is critically important.
There are some expenses that are essential in today’s world. Internet access and a mobile phone are two good examples. For most people, a reliable car or truck is a real necessity. We need it to get to work, to social events, to the shops, and so on.
While the upfront cost of a car is well known, there are other costs to consider, too. Consider how the purchase and maintenance costs of a car impact your finances.
Why Safety Is Important
In this day and age, it’s not enough just to have a car; we need to ensure that it’s able to adequately navigate the roads, in a cost-efficient manner. That means buying a vehicle with high MPG; modern cars are good on this front – old ones can be anything but.
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To ensure the safety of our loved ones, and ourselves, we need to have a car with all the latest safety features. This may mean spending a little bit more than a cheaper model, but investing in safety is a wise choice.
Long-Term Risks
It’s just a fact of life that driving is dangerous. Even if your car has all the latest safety features, you’ll run the risk of being involved in a truck crash or fender bender.
This can result in long-term injuries, which can have a significant impact on your financial standing. Suddenly, your car won’t just be taking up your money; it might mean that you’re unable to work for a significant period of time, substantially reducing your income.
Paying For Insurance
No-one likes paying for insurance, yet it’s part and parcel of being on the road. But did you know that your finances and the amount that you pay for your insurance might be more closely linked than you realized? It’s true.
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While car insurers don’t look at how much money you make, they do look at a person’s education, and where they live, before giving a car insurance quote. If you’re saving up to move to a better neighborhood, you might want to do it before your car insurance renewal is up. Generally, you’ll pay more for insurance in a more expensive neighborhood.
Facing an Emergency
We’d like to think that we’re buying a vehicle that will be reliable for many years to come, but there are no guarantees. If you own a vehicle, then it’s imperative that you have some money tucked away in order to pay for those essential repairs.
Again, your neighborhood might have something to say about this; if you live in an area where the local council doesn’t spend money ensuring the roads are in good shape, then you might find that you’re dealing with more frequent car problems than you’d like.
The Cost Of Getting From A To B
And then, of course, there’s the matter of gas, which is never quite as cheap as we hope it’ll be. Learn how to drive correctly, choose public transport when possible, and you’ll keep your gas expenses to a minimum.
A Big Expense
Buying and maintaining a reliable vehicle can be a big expense. Use these tips to educate yourself and make smart decisions about your vehicle.
This post is for educational purposes only.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
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