5 Practical Tips to Help You Save For Your Dream Car
Wouldn’t it be nice if you can drive your dream car?
It’s something a lot of us hope for.
Unfortunately, for now, you have to wake up from that wishful thinking. The sad reality is that you just can’t afford it. For now, at least.
Buying a car, especially your dream car always comes with a price. Unless you won the lottery and had millions of cash, to buy a dream car would mean a long-term commitment to saving, saving, and saving. But with all the bills you need to pay, it might take you years to save up for that dream car.
Fret not! Here are a few tips to help you quickly achieve that goal.
Create a budget
At this point, you’ve probably checked the price of your dream car already. So, it’s time to create a budget plan.
First, consider how much you earn in a month and how much you’re willing to set aside for your car. Keep in mind that you also need to save for your car’s insurance, gas, and maintenance. It would be great to set aside a few savings for these even before you have your car.
Then, project and designate a budget for all your expenses. Aside from your car, you also have bills and other necessities to pay for.
Think of other ways you can cut off some of your expenses so you can set aside more money for your car. If you are thinking of buying something, ask yourself first if you’re spending for a want or a need. If you don’t need it, maybe you can take a pass at purchasing something.
It would also help to compare prices, like when you’re in the grocery. You can save a few more bucks if you pay attention to prices.
Open a savings account
The bank is still the safest place to keep your money, whether you believe that or not. So, open an account and keep all your savings there.
But, before you do, make sure to look for accounts where you can earn high interests. Also, consider getting a passbook savings account so it wouldn’t be easy to withdraw anytime.
If you already have an existing bank account, it’s still highly recommendable to open a separate one for your car budget.
Apply for Alternative Financing
So, you already saved but you’re still a long way from purchasing your dream car. Why not speed it up a little?
You can apply for alternative financing, like salary or pay-day loans, bank loans, auto loans and car title loans. These can help you acquire fast cash with less paperwork.
You still have to continue saving, though.
These alternative modes of financing could only give you a fraction of the cost you need. You can opt for a car title loan to borrow a higher amount, but this would require a car title in the first place. Also, you should remember that it is still a loan. You will still have a monthly payable even after you already bought your car.
Always try to inquire first on the payment terms, collateral needed and the interest rates before you resort to alternative financing.
Invest Your Money
You have loaned an amount of money, but maybe it’s still not enough to buy your dream car. Well, how about investing part of it for the meantime?
Look for ways where you can invest around 10% to 20% of your loaned money and expect a good ROI from it at the end of a quarter or even a year. Make sure that your ROI will be higher than the interest you pay each month for your loan.
This way, your horizons expand and your money grows. By the time you’re ready to buy that car, you have more than what you hoped for. You now have your dream car and a great business investment to boot.
With all these considered, are you ready to commit yourself to saving money so you can buy your dream car?
Start saving now and learn to cut off some of your expenses. You’ll see yourself in the driver’s seat, maneuvering that steering wheel in the future.
For now, save and invest. Be frugal, if you must.