You need auto repair, whether you realize it or not. It’s sad to see people struggle financially. Research shows the average American doesn’t have $1,000 saved for emergency expenses. They are one home repair, car breakdown, or medical bill away from going broke. It can be tough, I get it. The biggest challenge with car ownership is it’s an expensive undertaking, and those financial constraints do not disappear
According to NerdWallet, it costs over $12,000 a year to own and operate a vehicle. This includes the monthly for the loan, fuel, tires, insurance, license/registration, repair, and maintenance, etc.
Note: Auto repair and maintenance accounts for about $1,400 of the total. Yes – it costs money!
In the long run you will save money because taking good care of your vehicle will add years to its life. Would you rather spend $200 (or even $2,000) for a necessary repair… or risk having to spend $40,000 to buy a new car? It’s a no-brainer!
Drivers Don’t Want Auto Repair (They Need Auto Repair!)
Auto repair is different from most life expenses. It’s easy to plan for fixed costs like rent, power, water, internet, and cellphones. There’s no mystery about when the bill is due or how much money it will cost. You pay the same amount at the same time every month.
You can even automate fixed costs. It’s easy and convenient! Auto repair doesn’t work this way. $1,475 is the average annual cost of auto repair, but that doesn’t mean you’ll spend that number. Auto repair is a variable cost.
One year, you might no big fees except routine oil changes and tire rotations (cost: $100-300). The next year, you might have a rebuild on a transmission (cost: $2,800-3,800). Preventive measures like keeping a close eye on fluid levels can help you avoid the most expensive repairs, but I want you to understand how much the cost of auto repair varies from year-to-year.
Drivers Don’t Want Auto Repair. They Need Auto Repair! Plan Accordingly…
Your car can’t take care of itself. That’s falls under your responsibility. Don’t expect a bail out. Responsible drivers are ready to invest in the health and longevity of their vehicle, as needed. You never know when that moment will happen. Life is funny that way. Uncertainty is the Universe’s way of keeping us on your toes.
I’m not a financial adviser. Fixing cars is what I do best. Still, I’ve worked with enough cash-strapped drivers to pick up on a few tips that might help you save money.
First, open a savings account. This probably sounds obvious, but 1 in 4 Americans don’t have a savings account. Checking accounts are for spending. Savings accounts are for (you guessed it) saving. Boundaries are the best!
Be careful about where you open a savings account. Some banks charge a monthly maintenance fee. Credit unions are often a better option. Suze Orman recommends giving your savings account a name – people care about stuff with names! Choose a name that makes you feel good every time you see it.
I’d like to borrow another tip from Suze: set up an automatic monthly transfer to your savings account. Today, you have the best intentions; but when payday rolls around, that can change within a heartbeat. “It’s been such a crazy, stressful week. I deserve to treat myself!” There’s nothing wrong with the occasional indulgence, but don’t get carried away with it.
How much money should you save per week? I don’t know. It depends on your income, cost of living, and other factors. Please aim high! When you think about it, how many expenses are necessary? Cooking at home is cheaper than eating out. Walking or running outside is cheaper than a fitness club. Netflix is cheaper than cable. I don’t mean to sound harsh, but Cut, cut, cut!
Drivers Don’t Want Auto Repair. They Need Auto Repair! Plan Accordingly… and You Will be Rewarded.
You go to the auto shop for an oil change, expecting to spend $50. The service adviser calls your name. They have bad news. The auto mechanic found a busted CV boot. Now your bill will be over $300. How would you respond in this situation? Most people would freak out because they don’t plan ahead. “Guess I’ll be late on (insert bill here) now…”
This is entirely too stressful. Let’s imagine a better world. A world where you feel safe and secure about your financial future. A world where you can shrug off unexpected auto repairs and other life expenses. No one likes to spend money when they didn’t plan on it… but it doesn’t have to ruin your day either.
Please prioritize your financial well-being! You will remove so much stress and anxiety from your life. Visit the blogs of Suze Orman and Dave Ramsey to learn more about financial planning. With time and patience, anyone can save money!
