Almost everyone has a dream car they want to get behind the wheels and drive around the city in but the cost of such cars may be exorbitant, and without a well-defined plan to save towards it, you may only be nursing wishful thinking.
Buying a car obviously comes with a price unless you won a lottery or you have sufficient savings. To buy your dream car, you have to be committed to a long-term savings plan. And considering your day-to-day expenses and income, it might take several years to save up for your dream car.
Regardless, we have put together five ways to save money for your dream car.
- Create a Feasible Budget
The first step you must take towards saving up for your dream car is to create a realistic plan. Consider your monthly income, relative to how much you can save for your car after providing for your running expenses. Remember to also save for your car maintenance, insurance, and gas as part of your plan for your dream car.
- Reduce Spending
Owning a dream car becomes a reality with a bit of sacrifice. Remove some items from your expenses to have more cash left to save for your dream car. To help with this decision, ask if the spending is a need or a want. If it is not a need, cut it off from your spending and save the money for your dream car.
- Open a Savings Account
No place is safer to keep your money than the bank. Regardless of your belief about that, open a savings account specifically for your dream car in a bank that offers a higher interest rate on money saved. Even if you have an existing account, create another one for your dream car. Keeping a separate bank account will help you to keep track of your progress towards your dream car without spending your savings.
- Invest Your Money
When you have saved a significant amount of money, but it is yet to meet the cost of your dream car, you can invest about 30-40 percent of the saved money to earn a good ROI. Ensure to be sure about the kind of investment to go into relative to how soon you wish to buy your car.
- Consult a Financial Advisor
If you are cannot follow any of the above tips, your best option is to consult a financial advisor who will draw from their expertise and experience with your state of finance (income and expense) in focus and offer the most useful advice that will guide you towards saving for your dream car.