Are you a new driver who is either working at getting your licence right now, or you’ve already obtained it but haven’t yet bought a car? Saving for a vehicle can be a pretty big undertaking that takes a rather long time. So how can you go about saving for a car, even when you’re living on a tight budget? We’ve put together a variety of tips that you may find helpful.
Pass Your Theory Test the First Time
One really simple way to save money is to make sure you pass your DVLA theory test the first time you take it. Did you know that if you don’t pass the test the first time you still have to pay for it each time you re-take it? That can add up pretty quickly if you’re not prepared.
In order to ensure you pass the first time, you may want to get a little help from the TopTests website that offers sample driving theory tests that you can practice with. You’ll be able to practice again and again until you feel confident enough to pass the test.
Make a Monthly Budget
Before you can start saving for the car, you need to know how much you can afford each month. This requires making a monthly budget that shows all your income and expenses. Be sure to include all the miscellaneous items you tend to forget about such as entertainment, clothing, eating out, etc. Once you’ve created your budget you can then look for places to cut costs. These cuts can be transferred to savings instead.
Open a Savings Account with Automatic Transfers
The next step is to open a savings account and set up automatic transfers to it. By doing this you can’t forget to put money aside each month. It’s also a good idea to have the savings account be difficult to access. The harder it is to get the money out the less likely you are to use it.
Make Little Cuts Instead of Focusing on Big Ones
When you are trying to save for a big-ticket item such as a car, it’s common to look for ways you can make big cuts in your costs. Unfortunately, there isn’t usually that “big” item you can cut out. Instead start making a number of small cuts, as these can quickly grow and amount to a rather impressive number.
Examples of these small cuts include:
- Not eating out as often
- Packing your lunch on a daily basis
- Do your grocery shopping from a list rather than just wandering the aisles
- Cutting back on entertainment (watch a movie at home rather than go out to the show)
- Cutting back on clothing expenses
Stick with Your Goal
Saving for a car is certainly a big venture and one that can take a while to complete. It’s important to keep your end goal in mind, stay positive, and creative when it comes to saving money.