A new car is a costly proposition, and many of us can find getting that much money in one place a daunting proposition. But there are ways to save for a new car that can get you on the road much faster than you might think, and there are more of them than you realize.
Set A Weekly Savings Goal
The most simple way to do this is to simply set a weekly savings goal and hit that goal every week. Just sit down with your budget, work out what you can reasonably set aside without compromising necessities, and work to hit that goal every week.
The number is less important than the habit. Few of us make enough money that we can simply set aside enough for a new car in a month. But by getting into the habit of saving for it, you’ll be better able to save money for your goals, and by making it realistic to your budget, you’ll be able to stick to it.
Put Away A Percentage Of Windfalls
Most of us get windfalls of some sort at some point in the year. It could be the fifth paycheck we all see out of a month where the days fall just right; it could be the well-earned tax return you receive every summer; you could win a small prize from a raffle.
No matter what it is, however, make a point to set some of it aside. Simply set a percentage that makes sense; you could put away most of it for your car, or just a quarter. But make a point of setting it aside, no matter how much or how little it is.
Shift Your Expenses
Another way to do it is with the money you already spend. For example, some of us buy a coffee on our way to work every day, whether out of convenience or necessity. If, instead of buying that coffee, you save the money instead, you’ll collect a surprising amount of money. The average coffee drink costs $3, so every week, you’ll put away $15 towards a new car, every single week.
Keep The Change
The power of saving in small amounts really can’t be overestimated. For example, think about all the spare change you collect in the course of your daily business. Where does it reside? Often we toss it in dashboard slots, or on the nightstand, and stop thinking about it.
Instead, collect those small amounts of change in one place and make a point of cashing them in. When you have a goal to save for, it often turns out that every penny helps.
Make Your Money Work For You
No matter how you save, make it a point to put that money somewhere that it keeps making money. For example, a high-interest savings account may not put thousands of dollars in your pocket, but as you keep saving and adding to the pile, you’ll find that the interest helps to boost your total and makes your money work for you.
No matter how you do, whether you use one or a combination of these strategies, just remember: Saving works. And with smart saving you’ll find yourself behind the wheel before you know it.
This article offers up a handful of tips for someone looking to buy a new car. What are the keys to building up your bank account? How much do you really need to save?