Tips for Saving up to Buy a Car

Tips for Saving to Buy a Car
Depending on where you live or what you do, owning a vehicle can be a necessity. While cars can be indispensable for some, they can also be expensive, which it’s why it’s important to save up a little before purchasing one.
Unless you have some sort of financial background, you may not have the greatest understanding of how to accumulate extra money in a relatively short time span.
Here are some tips on how you can save for your next vehicle:
Determine Your Monthly Spending
Look at your credit card and bank statements, and figure out where you’re spending your money. Chances are, you’re likely spending on items that you don’t really need, like extra clothes, expensive dinners and nights out with your friends.
These types of expenses are fine in moderation, but can end up hampering you if the majority of your money is being used on these goods.
Make a Budget
After going through old statements, you should be able to determine how much you need to get by, factoring in expenses such as rent, food, utilities, and your phone bill.
You should aim to spend a certain amount every month, and use the remainder of your savings towards your future car. Depending on the type of vehicle you’re looking for, you may have the necessary cash in just a few months.
Devote a certain amount of your paycheck towards savings
It’s tough to spend money that you don’t have.
Instead of letting your extra money sit in your chequing or savings account, consider calling your bank, and asking them to transfer a predetermined percentage of your paycheck into a Tax-Free Savings Account (TFSA). This money is yours to get whenever you want, but it’s sometimes easy to forget that you have it, so you won’t be as tempted to take from it.
Reward Yourself
Saving can be a lot more painful if you attempt to remove all forms of entertainment from your life. It’s ok to treat yourself every once in a while, just try your best to cut back.
For example, if you find you regularly eat out 4-5 times a week, try cutting down to just 1-2. It may not seem like a big deal, but everything adds up over time.