If you are like most people, you want to have some kind of savings for emergencies. With the economy the way it is right now, it is difficult to do that. However, it’s not impossible! With some discipline and a little sacrifice, you can start or add to your savings account. This series gives ideas of ways that you can save money to add to your savings account. Following are some car related tips that you can use to help increase the amount of cash that you have in your savings account.
Reduce or eliminate car debt
This sounds like a no brainer, right? Well, this is one way to help add money to your savings account. If you can focus on paying off medium sized amounts of debt, like vehicles and student loans, you can start to save money. Think of it this way, when you pay off your student loan or vehicle, the money that you would’ve paid for that bill can go either directly to savings or into paying off other debt.
Some people get sucked into purchasing a new vehicle soon after they finish paying theirs off. The vehicle manufacturer will send a sweet, enticing little “deal” to get you in the door. Or maybe you notice your neighbor has a sleek and shiny new vehicle. Maybe you see a commercial on television and think that you’d look nice in that vehicle. Don’t let it suck you in! It is so nice to have the freedom of not having to a car note. Plus, the money you were paying for your car can roll over into your savings.
We just finished paying off both of our vehicles. That money is not going into a savings account yet though. Our next goal is to pay off credit cards. We don’t plan on purchasing a new vehicle until ours are no longer trustworthy. Don’t be tempted to get a shiny new vehicle as soon as you make your last payment! Enjoy the feeling of knowing your vehicle is truly yours and hold on to it. Focus on taking good care of the vehicle so it can last for years to come.
If you can’t eliminate vehicle debt altogether, perhaps you can reduce it a bit. Maybe you are not close to paying off your vehicles, can you refinance? If you have better credit now than you did when you bought your vehicle, it might be worth looking into. Of course, you want to make sure that you do research to find out if refinancing your vehicle is the right decision for you. It’s not for everyone.
Another option is to get rid of your second (or third) car. Think about if it would be possible for you to get around without that vehicle. You can save on the cost of insurance, gas, and maintenance for the vehicle. This could save you thousands of dollars each year! If you could carpool or use public transportation (or even walk), to make up for the loss of the vehicle, it might not be such a crazy idea to get rid of it. Plus, you can lessen your carbon footprint. If you own the vehicle, you can sell it and use that money to go towards your savings account.
Downsize! Do you have a gas guzzler? Trade it in for a vehicle that gets more miles per gallon. If you can save on the cost of gas, the money that you would’ve been paying on gas can go towards your savings.
I hope this article has given you some ideas on ways to add to your savings account. Check back next week for more tips on how you can save money to add to your savings account.
This post may contain affiliate links. Read my disclosure policy for more information.