We all have dream cars, but sometimes they seem out of our price range. But what if you could save enough to buy it? It takes a lot of discipline and effort to save money, and not everyone has that. It’s estimated that about 58% of Americans have less than a thousand dollars in savings.
When it comes to saving, most of us claim to never have enough. Here is the trick, once you start saving it becomes like an addiction. As buying a car is a major financial decision, it pays to be a smart decision maker. Read on below to get some tips on saving money for a car that can spare you the disadvantages of getting into debt.
Take a Look at Your Monthly Income and Expenses
Most of us have a rough idea of our monthly income. If you want to start saving money for a car, you need to have a closer look at the exact money coming in, and the exact amount you incur on expenses. Thanks to the digital age, you can download an application that will provide insights and feedback into your spending habits.
Have a Serious Budget
Think and decide how much you can afford on a car. How much one is willing to spend on a car is personal to everyone, but some people would like a tip to guide them. We would spend roughly 35-40% of my annual income on a car. However, only you can decide what is best based on your financial state and how vital the car is equated to other expenses.
When saving money for a car, don’t forget to budget for car insurance. Everyone hates the negotiation process you have to go through after an accident but having auto accident lawyers will help assess the true value of your claim.
It’s hard to save your money when it’s easily available to you. With automatic deductions, your employer to deduct a certain amount of your paycheck to your savings account. You can also have the bank set up automatic transfers. Savings becomes a priority without trying!
Over time, you will forget about the automatic savings and soon you would have a substantial down payment for buying a new car.
Cut off Unnecessary Spending
Saving money for a new car can be simple if you reduce spending elsewhere, which has the biggest challenge. Daily bills seem small and unimportant but their collective result can be huge. You can decide to cut down energy bills at home by installing LED bulbs or unplugging unused electric devices. You can also skip the takeout and make meals at home at least thrice a week.
Inquire for Better Deals
Settle on the model car you wish to buy and start researching on which car dealerships have the best deals. Walk into a few showrooms or call to find out the prices while test driving some to know if it suits you. Do more research on the dealerships that sell by visiting their websites and going through online reviews.
Saving Money for a Car
Having a budget and sticking to it will help you in saving money for a car. Read more on easy ways to create a budget and sticking to it. Timing is everything! Set out a plan and follow these tips that could save you thousands of dollars.