How To Save Up Money To Buy a Car
Save up money to buy a car.
There's a simple method to doing it.
And if you do it right there are many benefits, including: - Get paid for saving up - Avoid massive car loan interest charges - Get a discount because you're paying cash Here's how to do it.
1.
Open an on-line savings account with your bank.
But before you open the account, it's worth shopping around for the best interest rates.
If your bank offers a low interest rate, open a savings account at another bank instead.
2.
Many banks will allow you to set a nickname for your savings account.
If they do, change the name of the account to something relevant.
For example: "My Car Account".
This will encourage you as you see your pot of money increasing.
3.
Decide how much you can realistically afford to save each month, and divide the approximate price of your desired car by this value.
For instance, if the car costs around 3600 pounds, and you can afford 300 pounds each month, 3600 divided by 300 = 12.
So, in this case, you will have saved up enough to buy your car in 12 months.
4.
Set up a standing order or a direct debit to pay this regular amount into your new "car account", each month, for the number of months you've decided upon.
5.
Sit back and enjoy life, because the bank will now be paying you interest on your money, rather than charging you for borrowing theirs.
Not only will this method work for saving up to buy a car, but it's also great for saving for many other things such as: - Holidays - Christmas - DIY projects - Bills The amazing feature of opening a "Bills Account" is that you actually start to look forward to the bills arriving - because you know that you have the money ready to pay them.
To estimate the amount to pay into your bills account each month, simply add together the projected costs of the major bills over a year.
Then divide by 12 months.
Such bills could include: - Home insurance - Car insurance, MOT and service - Gym membership - Utility bills which aren't paid by direct debit Saving up money to buy a car, or for any other purpose, is so easy to do.
And it's so beneficial - because the bank will pay you for looking after your money.
You'll avoid nasty charges, and won't have to worry about the next bill arriving.
So why not set up an account with your bank today, and start saving.
There's a simple method to doing it.
And if you do it right there are many benefits, including: - Get paid for saving up - Avoid massive car loan interest charges - Get a discount because you're paying cash Here's how to do it.
1.
Open an on-line savings account with your bank.
But before you open the account, it's worth shopping around for the best interest rates.
If your bank offers a low interest rate, open a savings account at another bank instead.
2.
Many banks will allow you to set a nickname for your savings account.
If they do, change the name of the account to something relevant.
For example: "My Car Account".
This will encourage you as you see your pot of money increasing.
3.
Decide how much you can realistically afford to save each month, and divide the approximate price of your desired car by this value.
For instance, if the car costs around 3600 pounds, and you can afford 300 pounds each month, 3600 divided by 300 = 12.
So, in this case, you will have saved up enough to buy your car in 12 months.
4.
Set up a standing order or a direct debit to pay this regular amount into your new "car account", each month, for the number of months you've decided upon.
5.
Sit back and enjoy life, because the bank will now be paying you interest on your money, rather than charging you for borrowing theirs.
Not only will this method work for saving up to buy a car, but it's also great for saving for many other things such as: - Holidays - Christmas - DIY projects - Bills The amazing feature of opening a "Bills Account" is that you actually start to look forward to the bills arriving - because you know that you have the money ready to pay them.
To estimate the amount to pay into your bills account each month, simply add together the projected costs of the major bills over a year.
Then divide by 12 months.
Such bills could include: - Home insurance - Car insurance, MOT and service - Gym membership - Utility bills which aren't paid by direct debit Saving up money to buy a car, or for any other purpose, is so easy to do.
And it's so beneficial - because the bank will pay you for looking after your money.
You'll avoid nasty charges, and won't have to worry about the next bill arriving.
So why not set up an account with your bank today, and start saving.
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