Did you know that people bought roughly 54 million new and used cars last year? Buying a car is usually one of the first big purchases that young people make. It’s also incredibly expensive.
On top of the car payments, you also need to worry about insurance, repairs, maintenance, fees, and loan interest. Saving up for a car can indeed feel like it’s taking forever.
But, it doesn’t have to be this way. In this article, we’ll give you five tips to remember when saving for a car. That way, you can get on the road as soon as possible. Let’s get started!
1. Record Your Spending
It’s hard to start saving if you don’t know how much you’re spending. As such, that’s a great place to start. Track how much you’re spending on a weekly or monthly basis.
Then, make categories for everything that you spend on. Like food, mortgage, bills, and things like that.
2. Make a Budget
Now you can start making a budget. To do this, line up your spending record with your income. Look for how much money is leftover at the end of the week or month.
Ideally, you want to be saving between 10% and 15% of your income at the end of each month. However, the more you can save the better.
3. Cut Your Spending
It’s hard to cut spending. But, doing so can help you afford a car more quickly. Start with entertainment costs, like TV subscriptions and bar costs. Then, try to limit going out for food. Eat at home instead. And, pick free events to go to on the weekends.
4. Try Enrolling in a Competition
There are a lot of car competitions that allow you to purchase a car for only a few dollars instead of the asking price. Winning these types of competitions can be a long shot. But it’s always worth it to try.
Who knows? You might get lucky and have the opportunity to buy your dream car for next to nothing.
5. Get a Side Gig
Not getting money at a fast enough rate? Consider getting a side gig that you can do on the weekends or after work. Walking dogs or pet sitting is a great option. Or try selling some art projects at a farmers market.
There are truly an endless amount of possibilities.
Enjoy These Tips For Saving Up for a Car? Keep Reading
We hope this article helped you learn some tips for when you’re saving up for a car. It’s important to remember that everyone saves at different rates. As such, you shouldn’t feel bad if it’s taking you a while to reach your goals.
At the end of the day, patience is key. So, make a plan and stick to it. You’ll be on the road in no time. Did you enjoy this article? If the answer is yes, then you’re in the right place. Keep exploring to find more topics that you’re sure to love.