How to budget for your dream car

A dream car isn’t just a one payment deal. As well as buying your dream car it’s going to cost you to simply own it, so the only way to ensure that you can afford to buy and keep your dream car is to make some changes to your lifestyle. By learning how to budget properly and by picking up some beneficial, money saving habits you might be able to afford the car you’ve always wanted a lot sooner than you think.

Step up a savings account for your car

A spare account is an excellent asset that will help you save your money more effectively and stick to your budget. When you start saving up for your car put a portion of your monthly paycheque into your savings account. If you are serious about getting your car, then the money in this extra account should not be used for anything other than your car. Do not be tempted to overspend and dip into your savings because once you do it once you’re bound to do it again.

Find ways to earn a bit more money

Working three jobs at the same time is an unrealistic idea of what it means to earn more money. No one says that you should be able to afford your car within a week. It’s going to take a certain amount of time so don’t push yourself to the brink of exhaustion and as a result incur medical bills or be forced out of work. Instead, making a couple of changes to your daily life will gradually decrease the difference between you and your dream car. Perhaps you can work overtime for a couple of hours a week. If you’re a freelance worker then taking on an additional client is a good way to rack up a bit more cash.

Get rid of what you don’t need

Depending on how much you want your car, there are probably certain things that you could sell to cover the cost of it. Selling your current car is an option, but you shouldn’t sell it at a time that will make your life more difficult. Rather than selling it in the first online auction you find, shop around for places to sell it. Depending on the age and the condition, you might find a great deal for it online. Price comparison sites and apps are a great place to start.

Consider the lifetime costs

Unless you’re planning to buy a vintage car, most cars depreciate over time, which is something you need to think about when you look into buying your car. There’s also the matter of calculating how much fuel, maintenance and insurance will cost you. If you’re planning to keep your dream car as a spare car for display and for occasional trips then you might want to consider taking out short period insurance for cars when you plan to use it rather than spending more money on a policy that you’re not making the most of.

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