How to maintain your car without breaking the bank

When you purchase a car, new or pre-owned, you don’t necessarily factor in the cost of maintenance or repairs. Ensuring your car is in good, working condition helps keep you safe and extends the life of your ride. Routine maintenance keeps it running every time you step on the gas. So why do most people stall when caring for their vehicle?

Car maintenance isn’t cheap, and it’s somewhat inconvenient—especially in our hectic lives. Think about it, though. If your car breaks down on the side of the road, it’ll likely be more expensive and ill-timed than the alternative.

It’s smart to add a line item to your monthly budget and start planning your car’s recommended maintenance schedule. All maintenance doesn’t need to be done at the dealership, unless you have a new car with a warranty—those services must be completed by your dealership at the required intervals to maintain coverage. If you’ve purchased a used vehicle, or your car is no longer under warranty, it’s time to make friends with your local mechanic or even test out your own skills.

Here’s how you can maintain your car without breaking the bank:

Change your oil

Changing your oil is one of the easiest care requirements to follow. Check your owner’s manual to see the manufacturer’s recommendation, but the majority suggest an oil and oil filter change every 3,000 to 7,000 miles.

Consider checking out local high schools or technical schools that offer free or discounted oil changes carried out by their students. While you could attempt to do it yourself, it requires certain initial expenses, such as an oil drain pan, a jack, a jack stand, a funnel, and towels. Although doing it yourself may save you money in the long run, it poses environmental concerns and can get messy. If you prefer not to engage in DIY projects, use a coupon or Groupon before visiting a drive-through oil change shop.

Replace your air filter

Your air filter keeps dirt and debris out of your engine and should be changed every 15,000 miles. A technician will almost always ask you if you want it done while changing your oil, but it’s much less expensive to do it yourself. YouTube offers quick tutorials, and it’s an easy 15-minute DIY project that’ll save you some cash.

Change your brake pads

Now, changing your brake pads sounds a lot harder than it is. It requires an initial investment to buy the necessary tools, plus the cost for replacement pads. It might take a few extra hours to determine the process, but after the first time, you’ll be an expert. In the future, one afternoon is all it will take. You’ll also save hundreds of dollars over the life of your car, and you can put the money you would save into a high-yield savings account, like a CD or Money Market.

Replace your windshield wipers

Worn-out windshield wipers are not only frustrating, but they’re also dangerous. The cost to replace your wipers will vary depending on the type, length, and number of blades—don’t forget your rear wiper blade if your car has one. If you prefer, you can replace them yourself or visit an auto parts store and a technician will install them for free rather than having them professionally replaced. While you’re there, you may also want to refill your windshield wiper fluid. It’s a simple process and is as easy as pumping gas. Open the hood, locate the windshield wiper reservoir, and fill it until it reaches the full or max line.

Most cars have an indicator informing you when you’re low on fluid—if you don’t have this feature, you’ll need to show extra caution. Avoid activating windshield wiper fluid when the reservoir is empty. If there’s no fluid, the pump could overheat and fail, resulting in a not-so-cheap repair.

Flush the radiator

Keeping your car’s radiator coolant fresh is essential to maintain optimal performance and prevent overheating. Regularly flushing the coolant prevents rust build-up and keeps the metal engine components in top condition. You can perform a DIY flush at home using a flushing agent, new coolant, and distilled water. This will save you a considerable amount of money compared to taking it to a mechanic. It’s a smart investment in the long run.

Repair your flat tire

If you have a spare and some elbow grease, you don’t need to run out to buy a replacement tire or even pay for a tire repair. If you have some tools and a patch kit, you can save yourself at least $20 and maybe the cost of a new tire. Better yet, if your tire is underinflated and leaking air or completely flat, take it to a tire shop that will fix your flat for free.

Ensure your tires are always inflated to the appropriate pressure and rotated as recommended by the manufacturer. You’ll get greater fuel efficiency, and the tires will wear more evenly and extend their useful life. Check the shop where you purchased them since many offer free tire rotations. If you have a jack, it’s an easy DIY, too.

Diagnose your car for free

Is your check engine light on? When it is, it’s critical to find out why, but paying $75 -$100 for a technician to hook it up to a computer and spit out a report will only add to your frustration. Head to AutoZone or Advanced Auto Parts, and they’ll happily diagnose it for free. If it’s a fix that you can handle, you’re already at the store, so pick up the parts you need and get to work. It’s an answer and a solution in a matter of minutes.

At the end of the day, it’s important to keep up with scheduled maintenance and make the necessary repairs to your car as soon as they’re needed. An inexpensive repair can grow into hundreds or thousands of dollars when not addressed. With tons of information and DIY tutorials, there are many things you can do to save money, but don’t sacrifice the safety or the quality of your ride.

3 steps you should take to back up your data

Our digital devices contain vast treasure troves of data, from family photos and music collections to financial data, health records, and personal contacts. Storing all this information on a computer, tablet, or phone comes with the risk of loss if all that data is contained in one digital location.

Data can be wiped out in many ways. Maybe your computer gets wet, or a software update malfunctions. A fire or natural disaster can destroy your device. A virus could steal all your data and erase your machine. Or, a bad actor might target you with ransomware, which is when they hold the data on a device hostage unless you pay a fee.

To prevent losing precious data, documents, and files, back up your files regularly and often. You might want to back up your files daily or more frequently.

A data backup is a simple three-step process:

1. Create copies of your data.

2. Set up automatic cloud backup, select the hardware for storing your data, or both.

3. Safely store your copied files on a backup device or service.

Create copies of your data

It’s likely that your computer already has backup software installed, which means you may have an option available. With most backup software programs, you can copy all files and programs on your computer or only the files you’ve changed since your last backup.

Where to back up your data 

Nowadays, it’s common to back up your data to the cloud (i.e., online servers outside of your device). However, you should also back up to a physical device. These devices include external hard drives, USB flash drives, CDs, or DVDs. It’s recommended to back up your data both on the cloud and on a separate device.

CDs, DVDs, and flash drives

These are best for storing small quantities of photo, music, and video files. The number of files these devices can hold is usually limited.

External hard drive

You can easily back up your entire computer on an external hard drive that plugs into your computer (often through a USB port). If your computer serves as the family photo album and music library, an external hard drive can contain a large amount of data. This way, you can assure more adequate storage space for all of your files. Copying information will also be faster (and often automated) with these devices.

Online cloud backup services

Backing up files online has become common and usually costs a small recurring fee. Some security software includes this service with your subscription, so check that you don’t already have this service available. You simply back up your files to a secure server over the internet. These services have the added advantage of safely storing your files in a remote location, and the files can be accessed anywhere you have a connection to the internet. Online backup services can be valuable for people who travel a lot and may need to recover files or live in areas prone to natural disasters that might require evacuation. Again, it is best to use both cloud backup services and physical backups together.

Safely store backup devices 

Keep your physical backup devices secure—it’s best to keep them in a separate location from your main device, especially if the data is sensitive. You could ask a trusted neighbor or place them in a fireproof safe, but even putting the backup device in another room adds security. Remember that you should back up your files regularly, so ensure your devices are easily retrievable.

This is part six of an 11-part series on cybersecurity and how you can protect yourself online in today’s digital age. For more educational tools and tips, visit our resource center.

What are ancillary products (and are they really worth it)?

If you’ve ever purchased a vehicle, you’re probably familiar with the same old spiel—the finance representative at the dealership sits you down and begins offering you product after product to protect your interest, and if you’re like most people, you end up feeling overwhelmed and confused.

You may be wondering what other ancillary products exist and if they are really worth it? Ultimately that decision is up to you, but here we’ve highlighted some features and benefits about different loan protection options to help you make an educated choice the next time you’re faced with the decision to add ancillary products. Check them out below.

GAP Insurance

If you’re in a serious accident or your car’s been stolen, the last thing you want to hear is that you owe more on your car loan than the car is worth. GAP insurance (or Guaranteed Asset Protection) is protection offered by finance companies, either through a dealership or through your credit union or bank, to cover any difference on your loan (that your insurance doesn’t pay) if your vehicle is totaled and/or stolen.

Some things you may want to consider as you think about GAP insurance include:

• The cost of GAP can range from $300 to as much as $900 depending on where you purchase this coverage (e.g., through a credit union or bank versus a dealership).
• If you are upside down (meaning you owe more than the vehicle is worth), GAP can be a huge money saver. For a relatively small investment of $300 (competitively priced GAP), you could save thousands down the road. On the other hand, if you end up paying $900 (on the higher end of GAP coverage), your margin of savings will be much less.
• The key is knowing your loan-to-value (LTV). LTV is a percentage based on the amount you owe divided by the value of your vehicle. Example: if you owe $20,000 on your vehicle, but it’s worth $15,000, your LTV is 133%. Generally speaking, if you are over 90% LTV, you could benefit from GAP coverage. On average, cars depreciate roughly 19% in the first year, and as much as 50% in the first three years—unless you plan on paying off your car in three years, GAP could be a huge money saver.
• Another factor to consider is some GAP policies will also pay your insurance deductible, so instead of paying $500 or $1,000 or higher (depending on your deductible), you pay nothing out of pocket.

GAP insurance doesn’t necessarily make sense for everyone, though. If the amount you owe is less than the car’s value, or only a little more, there’s no reason to keep GAP insurance because there will be little or no payout possible. Additionally, you should remember to cancel GAP insurance if you ever sell your car.

Mechanical Repair Coverage

When that weird sound coming from under the hood turns into a big repair bill, having Mechanical Repair Coverage can come in handy. Mechanical Repair Coverage (MRC) or extended warranties are offered in addition to the manufacturer warranty. The cost of extended warranties varies greatly depending on the make and the model of the vehicle, and who you purchase the extended warranty through.

It is important to note the difference between MRC, an extended warranty, and regular car insurance. Your car insurance covers damage caused by a collision, theft, weather event, or other incident, while MRC typically covers vehicle parts after a mechanical breakdown that’s a result of normal use. MRC pays the cost of covered repairs directly to the repair facility, with no out-of-pocket expenses for you aside from any applicable deductible. Similarly, extended warranties cover vehicle parts after a mechanical breakdown that’s a result of normal use. There are also extended warranties that cover only specific areas of the car, such as powertrain warranties, which cover the powertrain and associated parts.

Here are a few key questions you should ask yourself before considering the purchase of an extended warranty:

• How many years/miles does my manufacturer warranty have left on it? Most manufacturers offer a three-year/36,000-mile factory warranty.
• What is the difference between the basic manufacturer warranty and the powertrain warranty? The basic warranty typically covers everything bumper to bumper, whereas the powertrain warranty only covers the powertrain and associated parts.
• How long do I intend to keep the vehicle?
• How much will repairs cost if I encounter them down the road?

Most extended warranties cover you well over 100,000 miles—if you plan on keeping your car for longer than that, an extended warranty could be a great money-saving option. Some institutions will allow you to extend the term of your loan in order to absorb the cost of coverage while keeping your monthly payment the same. Of course, doing initial calculations and analyzing your budget and needs is necessary before making any financial decision. Mechanical repair policies can be quite comprehensive, but like any insurance product or extended service plan, they won’t cover everything, so be sure you understand what is covered.

Loan Protection

Loan Protection is just like it sounds: protection that covers your payments or the entire loan balance following a significant life event, such as loss of life, unemployment, disability, and family medical leave. Some institutions, such as Georgia’s Own, provide additional protection for accidental dismemberment, terminal illness, hospitalization, and loss of life of a non-protected dependent. The cost and coverage vary from institution to institution, so it’s important to do your research. Most institutions have a cost per hundred dollars of the current loan balance.

Some highlights of loan protection programs include:

• The events covered by most loan protection programs are: loss of life, disability, unemployment, and family leave.
• Most institutions offer various loan protection packages that can cover one, two, three, or all four of the life events mentioned. Some institutions offer additional coverage.
• Loan protection programs are available for most types of loans.
• There is typically a cap of coverage over a certain dollar amount.

Benefits of loan protection programs:

• Loss of Life protection can ease the burden on your family, and your debt can be completely canceled.
• Disability protection could cover your payments for you when your income might be drastically reduced due to a disability event (most competitive employers only offer as much as 60% of your salary for a short-term disability).
• Unemployment protection could be invaluable in a time where you’ve lost your job unexpectedly and are unable to make your loan payments.
• If you are unable to work for an extended period of time, family leave coverage can help you maintain the same level of income.

There are a number of loan protection options available to help protect you when faced with the unexpected. Although these services come with a cost, it may be worth investing in the peace of mind these protection programs offer. Review your financial situation in detail so you are confident that getting a policy is the best approach for you. And regardless of your choice, be sure to have some emergency funds available for any unexpected expenses.

Key Takeaways:

• GAP insurance is an optional car insurance coverage that helps pay off your auto loan in the event your car is totaled or stolen and you owe more than the car’s depreciated value.
• Mechanical Repair Coverage is a protection plan for your vehicle that prevents you from having to pay for damage due to a mechanical breakdown or part failure.
• There are various loan protection programs available that cover your payments or the entire loan balance following a significant life event, such as loss of life, unemployment, disability, and family medical leave.

Overall, these ancillary products are add-ons that may not be essential, but enhance the protection of things like your car or even your loan, and can help you cover any unexpected expenses. Ultimately, the decision to purchase an ancillary product is up to you and what you decide is best for your situation.

5 ways to save on your electricity bill this summer

Summer is finally here in full force. But, as temperatures start to climb, so can your electric bill. It doesn’t help that Georgia ranks number four in the country for the highest utility costs, averaging $438 per month. However, there are simple ways you can save on your electricity bill—without sacrificing your comfort. Here are five things you can do to start saving on your power bill today.

1. Raise your thermostat’s temperature

While you’re at home, set your thermostat to a high (but comfortable) temperature to keep you cool. When you leave or if you’re asleep, you can increase the temperature by just a couple degrees. Raising your thermostat’s temperature can save at least 10% per year. The smaller the temperature difference between outside and inside, the lower your overall power bill will be. Don’t set your thermostat to a drastically lower temperature. Your home won’t cool quicker, and it could result in a higher electricity bill.

2. Switch to a programmable thermostat

More people have switched to programmable thermostats and for good reasons—they maintain a consistent temperature throughout your house, keep your home energy efficient, and save money. According to a study by Nest, using a programmable thermostat saves almost 15% in cooling costs. Also, a huge benefit is that they allow you to set schedules, so you spend less time adjusting the thermostat when you leave your home or before you go to bed.

3. Clean your air conditioning vent and unit

A clean air conditioning unit is more effective than a dirty one. If you’re reading this and can’t remember the last time you cleaned your a/c unit, it’s probably time you should. Filters, coils, and fins should be maintained to help a unit run efficiently and properly. Ideally, your a/c unit should be serviced at least once or twice per year. But, filters should be changed frequently—replacing a dirty filter can lower your air conditioner’s energy consumption by 5-15%. Most HVAC companies recommend changing your air filter every 90 days. That can change based on your location, if you have pets, and your equipment’s age.

4. Turn on the ceiling fan

This seems obvious, but use the ceiling fan to your advantage. While ceiling fans don’t cool a room down, they create wind that circulates throughout the room, thus cooling you off. During the summer, your ceiling fan should rotate counterclockwise, so cool air is pushed down. In the winter, your ceiling fan should rotate clockwise, so hot air rises.

Your ceiling fan’s rotation also depends on the room. For example, if you have vaulted ceilings, it’s best to leave the fan rotating counterclockwise year-round. In dining rooms, allow your fan to turn clockwise on a medium or low speed to avoid cooling your food too quickly. You’ll still have air circulation, but it won’t be as intense. If your fan is not rotating the way it should, turn your fan off and flip the direction switch. When you’re not in the room, turn your fan off so you aren’t wasting power.

5. Use electricity during off-peak hours

Companies charge more for electricity during peak hours when the demand for it is greater. You can reduce the cost of your electricity bill by limiting energy use to early in the morning or late at night. You’ll help reduce the load on power grids and save money. From June through September, 4 pm-9 pm are considered peak hours.

Despite the sweltering heat, it’s possible to cool your home without foregoing your comfort—or your wallet. This summer, try these tips and watch the dollars drop off of your power bill. Need a place to store your savings? Put your money to work with a high-yield CD or Money Market account!