When it comes to tough decisions, buying a new car is certainly ranks high on the list. If you’re young and still in the process of growing your career, things can be even tougher. Although a new car is a major financial undertaking, owning one provides you with the freedom and flexibility that is unmatched. Whether you are on the lower or higher end of the budget, buying a new car is always a decision worth pondering, which is why following tips like the ones below to save money is a great way to achieve your dream.
1. Set savings goals and establish a time-frame
Depending on your monthly income, decide on a limit for your budget when it comes to cars to buy. It is a good idea to have a lower and upper end in mind, helping you make a better decision when it comes to short-listing potential new cars like the Ford Fusion. For instance, if your monthly income is $4,000 and your other expenses add up to $2,000, you might want to budget between $300 and $500 for monthly payments, if you decide to finance your car.
2. Keep a strict record of your expenses
When it comes to saving money, realizing just how much money you are spending in the first place can be quite an eye opener. Keep a strict record of every expense you incur and determine which ones are no longer necessary. Seeing a list makes the money you spent much more tangible and real, resulting in a realization that you may not actually need that coffee every morning or eating out for lunch. Every little bit adds up, letting you save towards your goal of buying that new Toyota Corolla. Take a look at this article from TD on how to create a budget for more information.
3. Master the thirty-day rule
Not familiar with the thirty-day rule? The premise is simple. If you’re considering buying an item that may be unnecessary, wait thirty days and then ask yourself if you still want that item. Often, you may find that you no longer desire the item, saving yourself precious money. The more expensive the item, the better off you are waiting it out.
4. Open a savings account
Online savings accounts are an inexpensive way to get some interest out of your extra funds while you save up for a new car. They offer a high interest rate, which compounds, so you can earn interest on top of interest and keep growing your savings.
5. Drop the change in a coin jar
This one is deceptively simple but it works. At the end of each day, take all of the change you have accumulated and toss it in a jar someplace safe. You’d be surprised how much money you can save that way. Some people have managed to save more than $500 a year in change!
6. Find the right price
If you can’t afford certain vehicles no matter how much you save, lower the bar a little bit. Your financial situation may improve eventually, but if you get into a loan you can’t really pay for, you might find yourself in more trouble than it’s worth. You should also rely on rebates and incentives because they can save you tons of money – we’re talking thousands here. You can find the most recent information on pricing and various discounts right here on Unhaggle, so be sure to take a look!
Buying a new car is a financial burden, but it does not have to be unbearable. With some planning and a few tricks, you can save enough to buy a car regardless of your financial situation, giving you the flexibility and peace of mind that owning a new vehicle brings.
