For many people today, buying a car is their number one dream, which is why planning a person’s financial life often takes place with this goal in mind. And if there is no planning, it will be incredibly difficult to save up for a car. You can read the advice of many successful financial advisors and coaches who recommend how to save up for a car, but as long as you do not take any steps in practice, you can forget about the positive result. You need to choose for yourself the system that will best suit your way of earning money. After all, people today receive their wages in different payments, and some entrepreneurs receive their income daily in small installments. Each case will require its own system of planning and saving to buy a car.

6 Steps to Saving for A Car

Setting Goals
The most important and defining process in saving money for a car will be goal setting. In order to properly set beacons for future activities, you need to think about what kind of car you want, as well as what car is more or less comparable with your income. That is, if you want to buy Audi Q7 in the most expensive complete set, then you need to change your status to a very highly paid employee or a successful businessman.

It will be much easier to save up for the car if you really compare your present financial position and your desires. Many people would rebuke this idea because you have to dream, but in practice, this is the way to save that works. Start your planning by taking these steps:

-Determine the make and model of the car you are currently happy with;
-Set a deadline for buying a car, which you think is realistic;
-Adjust your income upward; find additional income;
-Use financial planners – special programs, of which there are many on the Internet.

Such steps allow you to get a good idea of what car and in what time frame you can get in the given situation. The plan can be adjusted as circumstances change. For example, your salary has been doubled. If you can keep your expenses at the same level, you can set aside the entire allowance for the purpose of buying a car. The fact that you keep a certain percentage of your cash income is very important. Even if it’s a small amount, you can easily get the results you want by setting up a disciplined and clear savings system. But remember that money that is just lying under the mattress is constantly getting cheaper.

Think About the Purchase Well

Another tip: Before you schedule a purchase and put it on your plan, think for a few days about whether you really need it.

Allocate Goals According to Urgency and Importance

Usually, you want everything at once. For example, in addition to a car, you dream of an apartment with a separate room for a child. When you clearly set priorities, it may turn out that it is better to postpone the vacation to the fall, when the trip cheaper. His own room the child will not need until he is three years old – so you have time to save up for a down payment on the mortgage. And the movie theater may not be what you need. That way you’ll have a list of goals with priorities, deadlines, and amounts needed.

Estimate Your Budget

Calculate how much you need to save in order to meet your goal by the target date. Divide the amount you need to save by the number of months remaining until date X.
Compare the two figures you got. This is how you know if you have enough money.

Let the Money Grow on Its Own

If you still have time before your goal, it’s better to save on your own, using suitable financial instruments. Choose them on the basis of yield, risk, and timing. The main thing is not to keep your money in a casket, so you will lose some of the real value of your savings due to inflation. By investing funds, you will receive additional income – and it should also be reflected in the financial plan.

And Most Importantly, Follow A Plan

Making a personal financial plan is only half the battle. The hardest part is sticking to it in a disciplined way. Every day there are many temptations, but emotional, impulsive purchases only alienate our dreams. If it doesn’t work out, the plan needs to be adjusted. You can redistribute spending, you can try to earn more. The main thing is to stay within the budget and resist the temptation to “get into the piggy bank. Otherwise, your financial goal will be endlessly postponed.

That’s It!

Remember, the best time to start saving is today. It is not uncommon for people who regularly save small amounts of money over a period of time to accumulate more than those who save on impulse. Creating savings is a habit that needs to be developed step by step. Plan your expenses, and use the money you save to build savings!