Here’s a staggering statistic: About 15 percent of the average household budget goes to paying car-related expenses.
That’s according to a recently released report from AAA.
AAA estimates it costs about 58.5 cents per mile to operate the average medium-sized car over 15,000 miles. Sma
ller cars, such as the Toyota Corolla, cost less, while larger sedans, like Ford’s Taurus, cost more. Included in AAA’s estimate are the costs of fuel, maintenance, tires, insurance, license and registration taxes and finance fees.
So, if you drive your medium-sized car 15,000 miles in a year, you’re spending $8,776 in auto costs.
That’s pretty good incentive to take care of your car.
“It just takes a few easy steps to safeguard your investments and protect against hazardous breakdowns,” John Milbrath, AAA Washington’s vice president of automotive services, said in a statement.
As summer car trips wind down and winter-driving approaches, AAA encourages people to give their cars a good once-over. Members of AAA can get a free car inspection in October at AAA-approved auto repair facilities. However, the organization recommended a few basic checkpoints for all car owners as winter approaches:
•Examine your vehicle’s tires, regardless of mileage, for wear and proper inflation.
Check the car battery for cracks, bulges and corrosion.
Every 30,000 miles, have your brakes inspected.
Replace worn wiper blades.
For more car tips, go to www.aaawa.com.
More ways to save
Here are some more money planning tips for October:
Holidays ahead: There are 12 weeks left until Christmas.
If you haven’t started shopping yet, or even if you have, keep in mind the National Foundation for Credit Counseling’s top holiday tip: Develop a spending budget. Make sure it includes all facets of holiday spending, including food and decorations, postage and holiday entertainment.
Layaway plans are a good way to stick to a budget. Some retailers, like Kmart and Toy “R” Us, allow you to put items on a 12-week layaway plan. Wal-Mart, which decided to bring back its layaway plan in its stores this year, starts accepting items for holiday layaway on Oct. 17.
Health insurance: In the next month or two, many companies will update employees about their health insurance plans for 2012.
This year, employers saw an average increase of 9 percent in their insurance premiums, according to a recent survey by Kaiser Family Foundation and the Health Research and Educational Trust. However, the survey found that employees only saw their premiums rise an average of 3 percent, which could mean a steep increase in 2012.
What can you do? Review your existing health coverage and out-of-pocket expenses. Did you see a huge increase in your prescriptions this year? Having a good understanding of what you pay now will help you ask the right questions when the time comes to pick your plan for next year.
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