How to Save for a Car and Pay for It in Cash
You’ve weighed the pros and cons, now you’re quite certain that the best way to buy a car is to pay cash. Whether you’re already half way with your target amount or just starting out, here are five ways to ramp up your saving efforts and buy that car as quickly as possible.
1. Know what car to buy
To know how much you need to save, you need to have a goal, and this starts with knowing what car to buy. There’s nothing wrong with wanting every available luxury option, just keep in mind that those features add to your car’s final price. You may not be able to afford all your wants, but you can always purchase what you need. Make a list of your priorities so you can keep your saving efforts in check.
2. Get a side gig
Quite simply, the easiest way to save money is to earn more. See if you can get additional income beyond your 9-to-5. Look for a sideline or online job that play to your strengths. There are many websites that connect you to people from around the world who can use your talents and let you earn money from the comfort of your own home.
3. Tighten your belt
Lay off from any extravagant purchases for the time being until you reach your savings goal. So how do you know what’s luxurious and what’s not? Simple: if there’s a cheaper version, avoid paying for the more expensive stuff. Forgo that Grab ride and choose public transport instead. Skip out on Starbucks and make your own coffee. Remember that with great sacrifice comes great rewards.
4. Set up a savings account
You need to find a safe place for your money–somewhere you won’t be tempted to shave a little off the top for that new Starbucks flavor. For this reason, it may be worth opening a bank account solely for your car savings. Try putting your money in a high-interest savings account such as a time deposit or investment account. Make sure to shop around for the best rates.
5. Make your savings automatic
Set up your salary account to do automatic transfers to your savings account. It’s easier to do this nowadays with a bank app and a mobile phone. Try to keep your transfers within 33 percent of your monthly salary so you’ll still have enough for bills and other necessary expenditures.
Are you ready to save up for the car of your dreams? Keep these five tips in mind and you’ll be driving that car home in no time at all. Happy saving!