One of the hardest things about purchasing a new (or new to you) car is the act of saving for it. Here’s a few tips on how to save money for a car.
Set a Goal
Before you learn how to save money for a car, you have to define what you want. For example:
- Are you saving for a new vehicle or a preowned vehicle?
- Do you want to purchase the vehicle outright or do you plan to make payments?
Search for the Car You Want
There’s always a chance the car you want won’t be available when you actually save up enough money for it. So instead, find an average price for the vehicle you want and use that as a price point.
You should now know if you’re saving for a down payment or if you’re saving for a full vehicle. Additionally, you should also now know how much of a loan you might need. Don’t forget to add in extra for title, tags, and insurance.
Once you know exactly what you want, it will give you a concrete goal to strive for. An actual number can work to help you save money by presenting you with a number that you can watch get smaller and smaller. It’s a psychological tool that can help keep you excited about saving.
Give Yourself a Deadline
A deadline can help you in many ways. A deadline gives you something to strive for along with your monetary goal. It will keep you focused and on point. It will also give you another powerful psychological tool to keep you going.
Most people work harder towards a goal when there is a ticking clock involved. You may go the extra mile to meet a deadline. It often helps if you tie the deadline into something you already planned to do like going on a trip or a special date.
Putting away money that you probably need for other things isn’t easy to do, but you have to do it. One of the best ways to do this is to set up a direct deposit.
Either have a portion of your check split and sent to a separate account, or have an amount automatically deducted from your checking into a savings account. You can always do this manually as well, but it takes diligence and will power.
Make More Money
If you cannot meet your goal by your deadline with just percentages of your normal earnings, you will have to do more. Getting a second job is an option, so is doing odd jobs for money.
No matter what you do for extra money, remember the extra is strictly for your car. It’s not money for spending on other things, even if you need it. That mind-state is how to save money for a car.
Start with a Loan
While you’re doing all this saving, try to avoid creating any new debt for yourself. In fact, you should be trying to cut back on your spending and finding new ways to save money. However, you can start the whole process by taking out a personal loan for a vehicle.
If you start with a loan, the same rules apply as they do for savings, except you will apply them towards your loan repayment rather than towards saving. After all, the loan is like a reverse of the savings process. It takes out all the hassle and helps you get the car you want sooner than later.
If you’re curious about personal loans, contact Fast Access Finance today before you do anything else.