Income ManagementLifestyle

How to Save For Your First Car

The average Australian citizen can remember back to the time when they were able to purchase their first vehicle. They remember how good it felt, to get behind the wheel and drive knowing the car belonged to them. They can also recall how hard they had to work to save enough money to reach that milestone. Well, looking forward it’s your turn, but how do you get there?

The first thing you need to know is how much you are willing to pay for your first car. The best way to make that determination is to go online and see what the car you are looking for cost. Are you looking to buy a new or a used car? Once you have made those decisions; you know the exact amount needed to buy the vehicle. Below are some moves you can make to save for your first car.

Save part of your income-Set aside 10 to 15 percent of your income monthly until you have reached your savings goal. If public transportation is available, use it until you have saved enough to pay cash for your car. If not, at least save until you have enough for a decent down payment. Set your savings up on automatic so that you don’t have the hassle of trying to remember each month that you need to place this money in savings.

Sell Something-If you have items that you no longer need, sell them. You can come up with a nice down payment by selling some of your belongings on sites like Craigslist or Ebay. These venues can kick start your savings. If you have some valuable items, you just may make enough money to pay for your car outright.

Take a part time job-Start applying for part time jobs or use your hobby as a way to get that much needed cash. You can take all of this additional money and put it towards your new car. This money can also be used for maintenance of the vehicle as well and any other things you might like to buy to enhance the look of the vehicle. If no part time job is available, talk to your parents about additional chores you can help them with to earn extra money. They will appreciate the help and the capital you raise can get you closer to your target.

Make additional payments-If you have saved enough for the down payment and wish to go ahead and purchase your vehicle, make additional payments to get it paid off faster, this lessens the impact of the interest rate and gets you to total car ownership a lot quicker. This is not only a great way to pay off your car, but also to handle any major expenditure.

When you are trying to figure out how to save for your first car, keep in mind the purpose of making this decision. You are looking for a way to get from one point to another. Any car can accomplish this. So look for an inexpensive yet reliable model. This will ensure that you can have the pride of owning an automobile without spending a large sum of money to do so.

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