Want to know a secret? Actually, it’s not a secret. It’s something I tell (almost) everyone I meet—at least those who are interested in talking about saving, budgeting and debt-free living. My husband and I bought our first car in cash without draining our savings account.
This goes to show that you can afford to save money, and you can do it without completely saying goodbye to a life of love and leisure. Because that’s probably what you think, right? That having a savings account larger than your rent bill is unheard of? That saving money means you live on beans and only buy new clothes once a year? I’m here to show you otherwise, and here’s how:
Stop Buying Stuff You Don’t Need
It may sound harsh, but if we’re being honest with each other, you don’t need most of the things you spend money on. Do you need that fancy Starbucks latte you have to have every morning? No. Buy a Keurig instead. Do you really need that $600 iPhone? Or, could you survive with something cheaper (and just as awesome) like the ZTE ZMAX? Yes. Most definitely yes.
In all seriousness, though, take a look at your average spending month after month. Where is your money going? If you have a hard time tracking your money, try using a budgeting software program like the Mint app, which breaks your spending up into categories so you can see how much money you’re spending over a period of time on shopping, entertainment, food, bills and so on. You may find that you’re spending way more money on lunch and movies than you thought you were. Again, I’m not saying you can’t enjoy a lunch with the girls or a movie with the guys. I’m saying cut back where you can, and doing so will help you put more money into your new car fund. Who knows, it may even show you that spending money can be a treat and not a habit.
Worry About Savings Not Credit
I have another secret. You only need credit for things you have to buy on credit. If you don’t buy anything on credit—aka, if you pay with cash—you don’t need credit.
Did I just lose a lot of you? I understand if you considered clicking away while thinking, “That’s not possible.” But it is. It really, really is. Let me back up and say that buying something on credit—like a house, car, education—is not bad. Those things are too expensive, and I’d venture to say that’s why loans were invented. However, buying things on credit because you can’t practice self control, that’s bad.
So, how does this tie into buying a car? I’ll tell you. We often think about saving just enough to buy a car with credit, but instead we should be thinking about the bigger picture. In 2015, instead of thinking about buying your new car, think about saving for your new car. Instead of working on your credit, work on your savings account. Every bit you can, throw it in the piggy bank. Then, in 2016, go out and buy yourself a new car. With cash.
