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How to save money to buy your first car

Having a personal car is probably on everybody’s list but the inability to save is one of the reasons many people have not got their own car.

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Some cars can be very expensive, yes, but if you save enough you can get your dream car.

So, since you have a dream to have a car, Pulse is here to help you on how to save enough money to buy that car you’ve always wanted to buy.

1. First, determine the type of car you want

Knowing the type of car you want will help you determine the right amount of money to save to buy it. Again, depending on your budget, you can also decide on whether to buy a new or used car.

2. Consider the cost of maintaining the car you want

Before you decide to buy the car of your choice, you’ll also have to consider the cost of maintaining the car. You don’t want to find yourself buying a car and then not having enough money to maintain it.

3. Create a budget and stick to it

Now that you know the cost of your chosen car and how much it’ll cost you to maintain it, you can create a budget and stick to it. Check your income streams, how much can you save on a weekly or monthly basis.

Depending on how much you earn, if you are an average earner, it might take you more than a year to save up for your dream car. However, while you are saving for the car, you should also consider the fact that the car price can go up before you are ready to buy it.

4. Reduce your spending
Reducing your spending makes it easier for you to save up for your dream car. It will be wise of you to ignore things you don’t need. Don’t buy new gadgets because everybody is. Avoid impulse buying, compare prices before you buy anything and avoid eating out. All these will help you reduce your spending and save more for the car.

5. Make more money
If you have one stream of income, you might need to get another one to make the savings easier. The money you make from your regular 9-5 job and the side hustle could help you get your dream car earlier than you expect.

Source: PulseNG

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Hustle Tight!

How To spend less than you earn

You save more money when you spend less than you earn.

  • If you want to gain financial independence, you need to find ways to spend less than you earn.

Spending more than you earn is not good for your finances.

You save more money when you spend less than you earn.

Here are ways to spend less than you earn.

1. Create and stick to a budget

Creating a budget would help you control your spending and curb your excess spending. But to make your budget work, you need to stick and follow through with your budget.

You can have a budget but you might not be able to follow through which means you’ll spend more than you are supposed to.

So to make your budget work, you need to stick and follow through with your monthly budget.

2. Live below your means

You can be earning good money, which means you are actually fine financially.

This can make you want to spend more money, but you would have a better finance and save more if you live below your means. This, on the other hand, would help you save more.

Living below your means would help you save extra cash you could have spent on irrelevant things which you can actually afford.

A perfect way to live below your means is to cut down cost on things you don’t necessarily need and can do without.

3. Do things yourself

Doing things yourself is another way you can spend less money on.

There are things you can do without the help of professionals, who would charge you for rendering services.

4. Build an emergency fund

An emergency fund may not seem like it belongs in a list about how to spend less than you earn, but it does.

An emergency fund gives you a buffer to take care of unexpected expenses so you don’t spend more than you earn by blowing your savings.

Your emergency fund gives you the freedom to move on to the next step.

5. Learn how to bargain

Bargaining is another way people can spend less.

You bargain not because you don’ have the money to get something but because you are looking for the perfect price for things you want to get, which means you don’t want to waste hard-earned money.