Whether it’s your first car or your hundredth car, the process of saving cash is the same. After checking out affordable cars in Bothell and picking your favorites, you have plenty of time to narrow down the right one for you while you work on saving enough money for a down payment.
Make Saving an Automatic Habit
- Set your goals with an initial down payment that would be easy to accomplish. For instance, if a car costs a total of $9,000, an easy 20 percent down payment of $1,800 would be your first goal. From there, you can adjust your budget to meet the monthly payments. Or you could save up the entire amount before investment, then drive the car off the lot totally paid off and completely yours.
- Link a savings account to your direct deposit. The bank will automatically separate a percentage of your check into savings, while the rest of your check goes into your main account. So put back 20 percent of every paycheck to build up a foundation towards your goal of investing in your favorite affordable car.
Eliminate Unnecessary Spending
Going out to eat and to a movie, every other night might be fun, but those habits don’t save money. So here are some ways you can cut unnecessary spending to save cash to put toward a new car.
- Dinner with friends? Plan an in-house potluck. Everyone brings something homemade. It’s a win-win when you all get to spend time together while sampling one another’s delicious dishes.
- Going grocery shopping? Make a list of preplanned meals and snacks for you and everyone in your household. This gives you an idea of a weekly budget for the grocery store. Stick to that budget!
- Want to see a movie? Factor a streaming service into your monthly expenses and watch a new movie available on that platform. There are dozens of new movies and shows released every month on streaming services like Netflix and Hulu.