This is so relevant to me right now as I’m personally several months into saving for my first car. It’s been a goal of mine for ages now but I’m finally in a position to save for it. If you’re in a similar position and need a few tips read on. I’ve listed 5 steps I’m personally using to save for my car. This is for anyone who wishes to pay cash for their car. If you’re looking at getting a loan, then the only advice I can give is to do your research.
1. Set a car budget
Firstly you need to have an idea of how much you want to spend on a car. Make sure you factor in additional costs as they can quickly add up. By additional costs I mean license plates, insurance, registration, possible dealer costs if you get the car from a dealer. The best thing to do is have a buffer of a couple thousand dollars.
2. Create a budget
In order to save for a car you’ll need to create a budget. Get a notepad and pen and write down your income and expenses. Work out what you can comfortably save each week/fortnight/month and make a commitment to yourself to save that amount. The more you save the quicker you’ll reach your goals and be able to purchase a car. If your budget is a little tight and you’d like to reach your goals sooner perhaps you need to access your expenses and see what you could cut out until you reach your goal. Having a budget will give you an idea of when you’ll reach your car budget.
3. Set goals
Goals are key to keeping you on track. You may find yourself getting weak and wanting something else while you’re saving. Having a goal list you can refer to in order to remind yourself of why you’re saving can be such a lifesaver. I can’t tell you how many times I’ve wanted to purchase something only to remind myself why I’m sticking to such a strict budget. It’s also a good idea to set monetary goals. For example, reaching $5,000 saved reward yourself with a little treat.
4. Save, save, save
The hardest part is saving your cash. As the months pass you’ll see it grow and it’ll get easier the closer you get. Refer to your goals if you slip up and spend some of your savings.
5. Buy a car
The best part is buying a car. Congratulate yourself on saving for such a big purchase. And enjoy your new car.
Did you save for your first car?