by thelittlefrugalhouse Leave a Comment
This post may contain affiliate links. If you click and make a purchase, I may receive a small commission, at no extra cost to you. I only recommend products and services I use and love. Thanks for supporting The Little Frugal House!
Are you looking to buy a new car soon? My car is getting some miles on it, and we are saving for to buy a new one. We plan to buy this car with cash.
I bought my car in college, took out a loan, and got it paid off in about a year. My goal for this car is to just pay cash.
If you are looking to buy a new, or new to you car, soon, try to save up and pay cash for it!
It can be done, and you will feel so proud to buy a car out right and own it from day 1.
Here are the steps we are taking to buy my next car with cash.
Decide on your budget.
First, decide how much you feel comfortable spending. Determine your budget for the new car and that is now your goal.
Research cars & pick the car you want.
Do your research on cars in your budget, and choose the car you want. This gives you an image in your mind of what you are working towards.
To help motivate you more, you can print out a picture of the car and place it somewhere to remind yourself of your goal.
Make a goal chart.
You can make this as detailed or as simple as you like. I love having visuals when I am working towards a goal. Currently, my top 10 goals for the year are my phone background.
Make a visual for yourself to help you track the progress you are making. This can be a simple chart, a spreadsheet, or coloring in part of a car when you save towards it.
Set up a savings account for only the car.
Open a dedicated savings account only for your new car. Doing this, you will keep your car money set aside to buy the car and you won’t be tempted to spend it on other things. You will also always be able to clearly see how much you have saved.
Related Post: The 4 Bank Accounts You Need to Have
See Also101 Ways to Save MoneyPut a percent of your paycheck in the savings account.
Decide how much you can comfortably contribute to your car savings account from each check. This could be a percentage, or anything over X amount. If you have a regular paycheck, this will ensure your car savings account gets funded on a consistent basis.
If you have irregular income, this might be a little more tricky. You could decide to put any amount you make over X amount each month. Determine how much you can comfortably live on, save a little for emergencies, then put the rest in your car savings account.
Find side money.
Side income has been a huge factor in us reaching major financial goals. Sometimes, your regular income is just enough to cover bills and save a little each month. To put your goal of saving cash for a car on the fast track, find some side income.
We have done many side jobs and hustled to bring in extra money. You’ll stay motivated to work these side jobs knowing your goal of paying cash for a car is getting closer and closer.
Related Post: 30 Side Job Ideas
Track your progress regularly.
Keep up with your progress, using your goal tracker visual and by looking at your car savings account regularly. Half of the excitement and joy from making a large cash purchasecomes from the process. You will always wish you could reach the goal sooner, but appreciate the journey and acknowledge your hard work!
Buy when you have all the cash saved.
Once you have saved all the money you budgeted for your new car, you are ready to find the perfect car to buy with cash! By this point, you may be so anxious to buy a new car. Take your time and find the perfect car. You worked hard for this, so make sure you get exactly what you want!
Don’t be afraid to negotiate! Cash talks, and you can often get a great deal by buying a car with cash. If someone doesn’t accept your offer, don’t be afraid to walk away. They might come running after you, or you might just find a better deal elsewhere.
Enjoy your paid for car!
Time to celebrate your hard work and enjoy your paid for car!! Drive careful! 🙂
If you’ve been wondering how to save cash for a new car, I hope you’ve found it really isn’t too difficult. You can save up and pay for a new car with cash. It just takes a little time, hard work, and determination.
But the feeling when you drive away in your new car with no payments will be so amazing!
