Driving Forward: Saving for a Car Without Derailing Your Progress
Buying a car is becoming more and more of a necessity—but it’s also one of the biggest financial decisions you’ll make. The key to owning a car while staying financially sound is to plan so your car doesn’t become a money pit.
Decide What You Need
Now that you've learned how to save, you can think about purchase goals like a car. The first thing to think about are priorities. Do you need something brand-new, or will a reliable used car do the trick? What about fuel efficiency or insurance costs? Don’t suddenly buy a lambo or a mercedes if it doesn’t fit your utilitarian needs.
How to Save
- Set a Target: Research the total cost, including taxes, fees, and insurance.
- Create a Dedicated Account: Open a separate savings account just for your car fund.
- Automate Your Savings: Treat your car fund like any other bill and set up automatic transfers.
- Create a Goal in our App: Seeing a visualization of your progress can help you stick to your goals.
Plan for the Long Run
Remember, owning a car isn’t just about the purchase price. Budget for ongoing expenses like maintenance, insurance, fuel, and repairs. Don’t forget registration fees, parking costs, and unexpected expenses like roadside assistance or new tires—those can sneak up on you. But now you're setup for success!