6 Major Purchases That Need To Be Made Every 5 or So Years — and How To Afford Them
Every so often, you’re going to want to replace certain things you own. Whether it’s your car tires or your mattress, nothing is meant to last forever.
But some of these major purchases can be rather costly, which is why it’s good to be financially prepared. If you have the funds ready when you need them, you won’t have to worry about how you’re going to afford the purchase — or worse, have to pull from your savings account or charge your credit card.
Check Out: 6 Valuable Everyday Items You Should Never Throw Away
Up Next: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
While it’s hard to be prepared for absolutely everything, here are some major purchases you’ll need to make every five or so years and how to afford them.
Tires
If you own a car, keep an eye on your tires. They’re going to need to be replaced eventually, or you could experience issues like reduced traction on the road or difficulty steering.
The more you drive, especially if you frequently find yourself on rough terrain, the sooner you’ll need to get new tires. But as a general rule, you’ll want to replace them every five to seven years.
“The general rule of thumb is that tires last about six years, or for 36,000-75,000 miles. But factors like maintenance, climate and even how you drive can all impact how long your tires will actually last,” said Todd Stearn, founder and CEO of The Money Manual. “Tires should never be used longer than 10 years, as there could be risks by that point from wear that may not be obvious.”
Replacing even one tire can be costly, but you could be looking at over $1,000 if you need to swap out all four.
“Midrange tires average $100 to $300 each, so you’re looking at shelling out $400 to $1,200 when you replace them,” said Stearn.
Fortunately, there are a few ways to prepare for this expense. One option is to shop around and compare prices until you find the cheapest one that still suits your needs. Another is to negotiate for a lower price.
You can also extend the lifespan of your tires by rotating them every 3,000 to 5,000 miles. This can help even the wear and tear on them, though you’ll still need to replace them eventually.
Start setting aside some money in a separate fund for your car as soon as you can. That way, you’ll have it when the need arises.
Read More: I’m a Frugal Shopper: 4 Items I Always Buy Secondhand To Save Money
Home Repairs and Renovations
Homeownership is expensive enough as it is, but if you haven’t factored in necessary repairs and maintenance, you could find yourself in a tight spot financially.
According to American Family Insurance, you should budget at least 1% of the value of your home for annual repairs and replacements. Say your home is worth $300,000. That means you should ideally have $3,000 just in case. You might not need to spend this much every year, but it doesn’t hurt to have the cash in an emergency fund.
And it’s not just repairs — you might also want to do some simple renovations every five years or so just to give your home a fresh look or keep up with the current trends.
Adam Horvat, director of finance at Digital Silk, said home renovations can cost anywhere from $10,000 to $50,000. This does depend heavily on the size of the project and whether or not you’re doing most of the labor yourself.
To cut costs, you can keep things simple by painting your home’s interior every five years or so.
“Interior painting has an incredibly high return on investment (ROI) of over 100%, so freshening up your home’s paint every five years as recommended is a worthwhile investment,” said Stearn. To help with the cost, he suggested starting the job yourself. If the project is too big for you, you can always hire a professional later.
Technology Updates
Technology isn’t designed to last forever. You can generally get good use out of your devices for the first few years, but then you’ll likely need to upgrade or replace what you’ve got.
Some things, like desktop computers, can last five or more years with proper care. Others, like cellphones, might need to be replaced sooner. Even if your electronics last longer, they’re bound to show signs of age — a shorter battery life, less storage space, a slower processing speed — in time.
“A lot of people replace their phones every two or three years. But unless you’re having problems with yours, you can save quite a bit by continuing to use it until issues do pop up, like the battery draining too fast or the phone freezing up or having other issues that require frequent resets,” said Stearn.
The average cellphone goes for $790 retail, according to Stearn. Other devices, like laptops, desktop computers or televisions, can easily run you $1,000 to $2,000 or more.
You might be able to cut costs on mobile phones by negotiating a new contract with your provider. For more expensive electronics, do some price comparison and consider going with a slightly older model. If it’s newer than what you’ve got now, it’ll still feel like an upgrade, but it’ll cost less than the latest model.
Children’s Safety Equipment
According to the American Academy of Pediatrics (AAP), you should replace certain children’s safety equipment — such as the car seat — after about five to six years. If that car seat has been in an accident, you’ll probably want to get a new one sooner.
Car seats can cost as little as $50 at places like Walmart, but you can also find them for $600 or more. While a minor expense is probably something you can cover with your monthly income, you might want to set aside some extra cash for more expensive replacements. Start small or draw from your emergency fund if something happens and you aren’t otherwise prepared for it.
Used Car
New cars can last much longer, but if you bought a used car — especially one with a lot of miles on it — you might need to replace it after five or so years. But purchasing any car is expensive.
“Depending on the brand and model, a new vehicle could cost from $20,000 to $35,000,” said Horvat. “I recommend implementing a five-year savings plan, which would involve setting aside a designated amount monthly or annually toward these recurring expenses.”
Say you know you’re going to need another car in roughly five years and that it’s going to cost $25,000. That’s about $416 a month. Considering that might not fit into your regular budget, you can always save up for a down payment of around 20% and then use an auto loan to cover the rest. If your credit score needs work, take this time to improve it so that you get the best rates and terms when the time comes.
Mattress
While there’s no set rule for how often you should replace your mattress, the Better Sleep Council suggested swapping it out every five to seven years. This can help promote better sleep and reduce discomfort.
A new mattress can cost several hundred or several thousand dollars. If you’re in dire straits, you can always pull from your emergency fund to cover the purchase. Otherwise, set aside some extra money in a high-yield savings account or apply for 0% interest financing when the time comes to get a new one.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 6 Major Purchases That Need To Be Made Every 5 or So Years — and How To Afford Them
