Are you in the market for a new vehicle? Maybe you have had your old car so long that it’s time for an upgrade. If this is you, learn how you can start saving for that new car without having to take out a big car loan.
Saving is hard for most people without a strategy in place. It is easy to say that you want to save money each month, but it can be very hard to do. When it comes to big ticket items like cars, the challenge can seem like an overwhelming task you can’t pull off.
If you want a new car in your life, read on. Here are 7 savings strategies that anyone can take advantage of rather painlessly.
Painless Ways to Save for a New Car
Create a separate bank account
This is an important first step in getting started in saving for your new car. Now you have some place to put funds that are specifically for buying your new car, and you will be motivated to keep adding to the account when you can see the balance growing.
Bank your bonuses and raises
Many workplaces pay their employees a bonus around the holidays or throughout the year for performance appraisals. Instead of adding that money to your current income, place it in your separate savings account so that it can grow for you.
Research how much it will cost to buy your dream car. And be realistic about what your dream car actually is – remember cars are a depreciating asset! Figure out a likely monthly payment and send that to yourself. You are the bank, so any money comes to you. Place it in your separate interest bearing account to accumulate.
Set up an automatic transfer for each month, or even better, every payday. Instead of hoping you have money left over to put towards saving, have it automatically deducted from your account before you have a chance to spend it. Since you don’t see it each month, you are less likely to miss it, especially when you have a goal in mind.
Keep your car in mint condition
When it comes time to buy your new car, you can sell your existing car or use it for a trade-in. But, nobody will give you much money for it if the tires are bald, the seats are stained or the upholstery is torn. Regular maintenance is important. Taking care of your vehicle will not only help to ensure that your car runs properly, but help you maximize the amount you get from it to put towards your new vehicle.
Bag your lunch
Instead of spending five dollars here or ten dollars there on food at work, bring your lunch as often as possible. Lower your food budget while you build your car fund.
Save your change
Place any loose change that you have in your pockets in a jar at night. Also, be sure to check sofa cushions and your car for dropped coins. Before you know it you will have a jar full of coins that you can put towards your car fund.
Do you want a new car? Give yourself time, do lots of research and use these simple ways to begin paying for it now.