Cars

The Brief Guide That Makes Saving Money for a Car Super Simple

The Brief Guide That Makes Saving Money for a Car Super SimpleOwning a car is a huge expense, but a necessary one. Nothing provides the same kind of independence a car does.  They have been glamorized since first invented and featured in many music videos, TV shows and commercials, movies and more!

They give you the power to go wherever you want whenever you want. With a car, you’re unrestricted… and free.

This doesn’t change the fact that saving money for a car can be challenging.

Fortunately, it doesn’t have to be! Read on to learn the smartest steps to take to save up for a car.

Determine the Cost

It may seem obvious, but first things you first you need to figure out how much you need to save up for a car. This depends on several factors.

One of these factors is what you want from your car. Do you need new or used, four-wheel drive, space, speed, reliability, or something that just gets you from place A to B?

Depending on your budget or how long you want to be saving up, you’ll need to choose which factors you need and can live without.

Another factor to consider is the car’s brand and the company you want to support. Some people feel particularly loyal to certain brands, and some companies have better ethics than others.

All of these factors will help you determine the cost of your future vehicle. From there, it’s suggested by financial experts that you save up enough to make at least a 20% downpayment upon buying.

In addition to that 20%, you’ll want to consider other costs that come with a vehicle, including gas, maintenance, and license plate and vehicle registrations.

Set up a Savings Account

Now that you know how much you need, you can start saving money for a car!

The first step to saving up is to create a savings account. This is an account separate from your checking account that you can gradually add money to. It allows you to see your progress.

It’s best to automate a set amount to transfer into your savings on a weekly or monthly basis, and then add extra when you can.

Cut Down on Unnecessary Purchases 

If you’re saving up for a car, it’s important that you start limiting your spending on items and services you don’t need.

This includes leisure activities like going to the movies, eating out, getting coffee from coffee shops, and ending unnecessary subscriptions.

The average person spends over $1,000 on coffee a year, and that’s only one item. Cutting down on these expenses adds up quickly.

It’s difficult at first, but setting a budget for yourself will help.

Pick up Side Jobs 

If saving is taking too long, you can speed up the process by occasionally picking up side jobs.

A side job can be anything from mowing the neighbors lawn to doing freelance work. If you’re an artist or baker think about selling your work or desserts.

No matter your skill set, there’s side hustles for you.

Saving Money for a Car Can Be Easy 

Saving money for a car can seem daunting, but it doesn’t need to be. As long as you’re proactive and follow the right steps, you’ll be well on your way.

Just remember to calculate the cost in advance, set up a savings account, limit your extra spending, and pick up a side job if you’re in a hurry.

If you’re ready for step one, start by checking out our vehicle reviews.

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