How to Save Money for a Car: The Basics Explained

Did you know that the average car costs a whopping $40,000 in the United States?

But as costly as it is, buying a car is essential if you need to do more than just get from A-B. These days, it seems impossible to live without owning a vehicle.

So, how do you go about getting enough money together to make such a big purchase?

Here’s how to save money for a car.

Decide What You Want

If you want the official A Team van, go for it. Set your sights on something grand. Just understand that you’ll need to work very hard to achieve it.

Make a list of things that you want out of the vehicle you’re planning on buying. If buying classic cars is your thing, set yourself a realistic saving plan to suit.

Be Realistic About Your Needs

Wants and needs are two different things. While you may think about buying famous cars like the A-Team van that you’d dreamt of since you were seven years old, you may only need a 1-liter car with enough room in the trunk to store your shopping.

Make a list of the things that you actually need and try not to get swayed by something you might not need.

Set a Budget

Have a look at a few cars that fit what you’re looking for and get an idea of how much you’ll need to save. Then, break down your main savings target into weekly or monthly installments.

Having a figure to work to will help to keep you motivated and let you know whether you’re on track.

Cut Down On Your Expenses

If you really want to save up quickly, you’ll need to look for ways to cut down on your expenditure. There are quite a few ways you can do this.

Firstly, look at all of your outgoings and start shopping around for cheaper equivalents. For instance, you may be able to move your cell phone contract to a different network or switch to another electric provider in your home.

If you eat out or get take out a lot, try and cut down. Similarly, if you vape, drink, or smoke, there are probably savings you can make by cutting back on these indulgences.

If you have any unused subscriptions that you’re not making full use out of, cancel these. For example, you may have been paying for a streaming service because you loved one show they had on there—if that shows finished, it’s time to say goodbye.

Get a Side Hustle

If you’ve already got a job, you may want to consider getting a side hustle that you can do in your spare time.

Amazon’s Mechanical Turk is a great example of a small side job that you can do when you have a few spare minutes. You pick up small jobs that computers can’t do. Most jobs take minutes.