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This is an interesting principle. Sometimes it’s important to spend more money now so that you save
money later. This does not mean you should spend more than you can afford. It means you need to
continue making appropriate tradeoffs so that you can follow this principle.
Here are a few examples where it makes sense to spend now to save later:
▪ Car maintenance—People always put this off but shouldn’t. Follow your car’s
maintenance manual and immediately check out any problems you see (or hear). The
few dollars it costs will save you thousands of dollars over the life of your car (and
tens of thousands over the many cars you will purchase in your lifetime).
▪ Home mortgage—If you pay one extra month’s mortgage (write, “Principal only” on
the check and send a note to the lender), you will take seven years off a thirty-year
mortgage.
▪ Fitness equipment—Unfortunately, a lot of inexpensive equipment is available. It
breaks down often and is expensive to fix. If you buy high-quality equipment (it will
cost more), it should last for years. I have the same gym equipment that I purchased
twenty years ago. It was the best quality and expensive, but I use it every day. Caveat:
Make sure you’re going to use it!
▪ Health care—While this may not even require money (if your company covers it), I
have to put my two cents in here. Get an annual physical, annual eye exam, and twice a
year dental cleaning. This will save you thousands of dollars in your lifetime. More
importantly, it may save your life and allow you to live longer!
I hope this principle teaches you that spending in the “right” areas is OK—and is, in fact, necessary—
to save you money in the long term. Just make sure you understand which areas are important.

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