Need a Car? Get a Savings Plan

07 Mar 2023

There are so many reasons to buy a new car. Maybe you’re ready to trade in your old car and upgrade. Maybe you need a new vehicle for your job, or you just love the look of new cars. Whatever the reason, it’s always a good idea to have some savings set aside so that you can afford to buy a new car. Here are some tips to help you get started saving for a car:

  1. Get the right balance with your savings. It is important to have a mix of short-term and long-term savings. Short term savings should be kept liquid so you can access them when you need them. This includes things like your emergency fund, credit card payments, monthly living expenses and your summer vacation. It is a good idea to have money set aside for the long term as well, at LifeGoals we have tools to help you save for both your short and your long term goals.
  2. Pay yourself first! It is very easy to spend all of your money on frivolous purchases like restaurants and trips to the movies without thinking about your savings. In order to truly grow your nest egg, it is important to contribute towards your goals every time you get paid and then forget about it until you need it. This will help you stay on track and avoid impulse spending that will derail your long-term financial goals.
  3. Take advantage of compound interest. Compound interest is one of the great benefits of saving over a longer period of time. This means you get to earn interest on the money you already have in your account as well as the interest you have earned on that money.
  4. Get a side hustle. One of the best ways to save for a new car is to increase your income with a side hustle. This could include selling stuff online or doing some freelance work on the weekends. If you have time on your hands, you might want to consider finding an online job that you can do in your spare time, such as proofreading or data entry.
  5. Cut back on expenses. One way to save money for a new car is to cut back on your unnecessary expenses. This could include things like eating out at restaurants several times a week or going to the movies every weekend

There is a lack of prioritisation when it comes to saving money. Most people want to build their savings as quickly as possible so they can buy a new car or take a vacation, but they end up spending all of their money on frivolous purchases instead. If you are going to successfully save enough money to buy a new car, you need to stop spending money on things that are not important and focus on the things that are going to help you achieve your long-term goals. LifeGoals is here to help, visit our website create a free goal to start saving for your new car today.