Saving for a car can be both exciting and hard on the nerves. You have a goal you want to reach, but then you have to be willing to really do something about it. The easiest way to attain your goal is to do all the math, set your goal, save, spend less and build your car savings fund. This is the trusted way and a sure way to get it done!
First of all, do some car shopping, either at car dealers or on the internet. This will enable you to get an idea of what you can afford. This is also where you decide whether you want to save for a deposit or to buy the car cash. Most often, paying cash for a car is almost impossible, but if you are able to save enough each month, you may just be able to do it.
A good rule of thumb is to add an extra amount to your supposed goal amount, to be sure that you will be able to cover any additional fees that may arise. These include transfer fees, license and registration and any other expenses. So, find out what these costs usually amount to and add that amount to the amount that you want to save – your final goal.
Now that you have established your final goal amount, you have to work out a time frame.
If you can save enough money in a year, then you have to divide your goal amount into 12 equal parts. This will give you the regular amount you have to save each month.
This may be easier said than done, but once you get into the habit, it will become a part of your life. You can open a savings account and use that as your car savings fund. Deposit the specified amount in that account each month and NEVER withdraw money from it. Just pretend it isn’t there, especially if you want to go on a trip or payday seems miles away. Once you start dipping into your car fund, it will become easier and before you know it, half of your savings will be gone!
Okay, this is the not so nice part when you are saving for a car, but the reward will be well worth it. You can save a lot of money by watching what you buy. Don’t keep on buying the most expensive brands and start giving up some of the things you can do without. If you regularly eat take-aways, stop that and rather prepare food at home. Leave the snacks and donuts, spend a little less time on the phone … you get the idea …
Your car savings fund should be coming along nicely. Whenever you feel despondent and wonder if the effort is worth it, think about the lovely car that waits for you. Think about the freedom you will have with your own set of wheels and DO NOT withdraw even a teensy amount from your car savings fund.
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