Are you tired of driving around the same piece of gas-guzzling junk that you’ve been driving for years now? If you are wondering how to save for a new car? These are a few ways you can start preparing your budget for the purchase of a newer vehicle.
We all know that saving money means spending less than we are earning. But much like losing weight, it sounds simple and fast, but really can be a struggle when you try to put it into practice.
1: Think about your car payment
If you are thinking about a car loan, then you have to consider how much you can pay monthly. You’ll want to leave a little space for unexpected repairs or maintenance (oil changes or new tires).
If you want to skip the loan and save up enough to cover the whole car, then your planned monthly payment would be zero.
2: Figure out how much you can put down
If you’ll have a monthly car payment, you should take some time to calculate what you’ll need to put down. Many calculators are available online. This is a good way to figure out what kind of car you can afford.
3: When do you need (or want) the car?
The sooner you need the car, the faster you’ll need to save up. More time will make things less stressful. However, if you need the car next week, you might just have to consider a cheaper option to make ends meet.
4: Save up!
Having the savings taken directly out of your paycheck and into your savings account is a great way to avoid skipping on your goal each month. If you don’t have direct deposit, have somewhere where you are keeping the money saved up to avoid spending the money you meant to put towards the car.
The most important thing is to do this first before spending anything. Otherwise you’ll probably blow it.
5: Don’t make life horrible
You have to make the saving process better than a punishment. If you let it create negativity and frustration, you are much less likely to succeed.
It’s like a diet. For your safety and the safety of others, try and keep yourself out of trouble and try to be realistic with the goals you set for yourself.
If you are in the market for a car, check out our inventory of new and used vehicles at Palmen Dodge Chrysler Jeep Ram of Racine.
