Having a car is probably on every person’s list in 2020, but the inability to save is one of the reasons why most people won’t achieve this goal. Saving for your first car will mean denying yourself comfort to archive this ultimate goal. When it comes to saving for first car, self-control and discipline are the fundamental obligations to deploy. If you are determined to buy your first dream car, you might be wondering how to save for it. By following the tips below, you can acquire your first set of wheels regardless of your income.
1. Determine The Type Of Car To Buy
Knowing the kind of car you want will significantly help you to determine how much money you require to have on the table before the end of a specific period. Decide if you’re going to buy it by cash or finance offers. Purchasing a car in cash comes with advantages, like acquiring the logbook immediately after purchase. You should also evaluate purchasing a new or used car and get the average amount of money you require.
2. Start Small
If this is your first time to opt for a personal car, purchasing a modest car will be the best option. However, no one wants to go broke after buying a vehicle due to expensive insurance premiums and high maintenance costs. A modest vehicle will enable you to familiarize yourself with engines work and how to go about the minor repairs.
3. Establish A Saving Plan
After you figure out the car you want and how much it costs, you will need to set the date of purchase. Then come up with a saving plan. For instance, you can break down the total amount and determine the specific amount of money you need to save either weekly or monthly. You can start by saving 30 % of your monthly income, where if you are persistent, believe it or not, you can be able to purchase the car in 12 months. Stick to the plan to achieve your goal in time.
4. Open A Fixed Bank Account
Smart saving involves fixed bank accounts. At times, you might be tempted to break into your savings, but harsh conditions of a fixed bank account ensure you don’t withdraw your money prematurely. Most banks retain 30% of your savings if you withdraw your money before the agreed date. It will be painful to lose your money for unplanned expenses.
5. Reduce Non-Basic Expenses
Most of the people suffer from saving through going for unplanned purchases. If you want to obtain your first car with fewer struggles, you need to shun off this behaviour completely. Reduce unnecessary expenses like entertainment, going on vacation, and use the money for upkeep. Besides, develop a habit of buying what you only need.
6. Increase Your Income
If you have just one stream of income, you might need to look for a side hustle job. This can help you achieve your dream car earlier than expected. Besides, through a side hustle, you will increase your savings; for instance, from 30% to 60%.
After the money is ready, you need to compare several dealers to acquire the best quality. Remember, you’re in control of your finances, and you can negotiate the deal. You need to read and understand the terms and warranty agreements for the car you wish to purchase. Buying the first car is exciting at the same time, overwhelming. However, planning makes the process easier. With the tips mentioned above and healthy spending habits, soon you can be cruising behind the wheel of your ride.