5 Steps to Save Money to Buy a Car
At first sight, it seems to be quite a simple rule: if you want to save something, you have to waste less money. Save less in general and less than you earn, of course.
However, in practice we can notice quite a curious thing: it occurs that the four-grade pupil can do this arithmetic task efficiently, but the forty-years-old adult experience some severe troubles doing the accounts of his/her budget.
The specialists have had a perfect decision for people who are going to save a significant sum of money for their new car. – What is it? – A compiling an individual plan, of course. Following the experts’ points of view, it should help you to become more disciplined and to avoid unnecessary expenses.
So if you want to realize your dream and to purchase the car, here is a list of our recommendations. – Just a few steps and you will be successful!
Step 1: Think about the price limits
Well, if you are not going to have a car loan, skip this paragraph and come to Step 2.
However, unfortunately, many of us are not able to pay a necessary sum in full and immediately, so they are recommended to take some time and to think carefully, how much they may pay monthly.
And, please, do not forget about the so-called wiggle room, necessary for vehicle maintenance, represented, for example, by new tires, insurance costs or oil changes. You see, the car payment is undoubtedly the most significant expense; however, it is not an only one.
Step 2. Take into account the sum you need down
This paragraph shouldn’t bother you again if you are going to pay the whole sum immediately. You are free to skip it and start reading Step 3.
In the case, you want to have a monthly type of payment, and we recommend you to use the special Internet services, as they will help you to find out the final cost. The sum may be different as it depends on many parameters of your future car.
The Auto Loan Calculator on Cars.com is in a list of the most successful resources. Why? – The matter is that it is considered to be somewhat functional and you can use it quite quickly, filling all the fields, such as trade-in value, tax at selling and loan terms, up. The conditions represented by Bank of America are somewhat favorable as well.
You are free to choose other Internet researches, however, be careful and use some of them, before you make a final decision.
Step 3: Determine the time when you want to have your new car
So you have already found out how much you are going to spend on the car of your dreams, you have discovered everything about monthly loans and down payments. That is why it is high time to choose.
Here we ask you to consider your future purchase if you are going to save. You see it would be quite stupid to pay $5000 loan every month, under the conditions you earn $4000 only. Perhaps, it will be better to choose another model, which is much cheaper. Or sometimes the best decision is to wait for some month and to do some additional savings.
Step 4: Make obligatory savings
And now we have come to the most significant paragraph. – Only a few people know how to save the necessary sum properly on the required date. The best way to succeed is to considerate every single purchase you are doing. As a result, you will have less temptation and less stress.
For example, if you are going to save $5000, the automatic programs can take $500 from your account every two weeks automatically. The rest sum can be used as usual. By the way, this is a rather convenient way to save the required amount. There won’t be any worries about accidental and casual wastes.
There is another solving of the required sum of money for your future car is to ask the nearest bank for the help. Many of them would be glad to represent you another debit card for free, and you will be able to keep your so-called car money there.
So it is up to you to decide. The more natural way is to visit your bank manager. However, you have a strong will, and you may leave a necessary sum at home in a special box or drawer.
As a rule, it is not a severe problem in fact as we have already used to set aside the certain sums for insurance as well as for tax payments.
Don’t forget about enjoyment
Life is boring without entertainment and attractions, so we shouldn’t forget about them even you are saving money for the new car. Be realistic, after making an important decision and compiling a serious plan, and you need some relax. You see, if you struggle for every penny, you as well as all your family members will get severe stress. Try to find available substitutes. For example, if you can’t have a seaside vacation this year, perhaps it is the perfect idea is to have a picnic on the bank of the local river.
When you can’t allow having luxuries, do not kill the ordinary pleasures: having tea in the family circle, evening walking, morning running and fruit in the summer house instead of dinners in expensive restaurants.