Top Tips to Save Up for Your First Car!
It’s finally time for you to buy your very first car. This is an exciting time and one where you’re likely to be surveying a lot of different models, makes and colors. Should you buy a car from a dealership or should you splurge for one online? There are so many options available! The most challenging one, of course, is financing it. Your first car can be a bit of an expensive deal, but don’t worry about it. You can start small and save up for it.
Your first car is a challenging and exciting investment. However, you must be careful about all your expenses. Don’t allow your car to get towed, or wind up collecting a sheaf of parking tickets. All these are unnecessary costs that you would do well to avoid. overall, you should still know what to do if your car gets towed or you get a ticket. Knowing how to save money getting towed in las vegas is a good skill to have when visiting, as is negotiating with a traffic officer about tickets. But enough about cost-cutting. Let’s talk about savings!
Tip #1: Make a Savings Plan
When you’ve decided on the car you want, construct a proper savings plan for it. You can start off by saving up some of your monthly income for about a year. A good percentage to go about would be anywhere from 30-35% if you can afford it. For example, if the car you want costs $10,000 and you want it in a year, you can save around $900 per month. After 12 months, you’ll have $10,800. You can use the extra to pay off your insurance for a while.
A smart savings plan can set your plan in motion and ensure you see it all the way through as well. There’s no better skill than knowing how and when to save.
Tip #2: Use Debit, Not Credit
Cut out all means of credit spending that you currently use. Ditch all your credit cards and use only debit if you want to make transactions. If you use credit cards, not only will you be paying off money you don’t have yet, but you’ll be paying additional interest as well. The best thing about using only debit is that you’ll be aware of how much you’re spending and won’t be able to spend more than you’re allowed to, according to your savings plan.
Tip #3: Reach Out to Parents or Guardians
Hey, there’s no shame in asking your parents for a little help! You can always ask to borrow some money from your parents or guardians, provided they’re in the state to loan it to you. If you receive any gifts that include cash, don’t spend them on useless things. Save them all away for when you can finally purchase your car. When asking your parents for a loan, let them know you’re going to save up at least 50% of the amount on your own and you will manage your own insurance as well.
If your parents agree to give you some seed money, that’s great! You’ll be farther on your road to eventually get your shiny new car.