How to Save Effectively to Buy a Car in Cash

Buying a car in cash for some people is quite difficult, especially for those who earn less than USD 350 per month.

However, this is not impossible as long as you have a strong saving commitment.

Of course, there are several things that can be done to make saving more effective so that you can buy a car in cash.

Focus on Savings

The first is to focus on the purpose of saving. By having a clear goal, such as buying a car, the enthusiasm for saving will be higher than just collecting money without a purpose.

Saving When Receiving Salary

It is recommended to save at the beginning of receiving a salary or other fortune.

Everyone has different needs, but saving the leftover money after spending it is generally not effective, because the remaining money is usually less.

Preferably, as soon as you receive your salary, set it aside to save about 10% to 20% of your income.

Separate Savings

Separate savings to buy a car with daily needs. By separating your savings, it will make it easier for you to manage your finances, so you won’t miss out on spending.

As Required

Prioritize buying what you really need, not what you want. The reason is that, even though it is cheap, buying something you want is not necessarily useful and it will only burden your finances.

Reduce Snacks

Likewise, the desire to eat out should be significantly reduced. The reason is that snacks outside, even though they feel small, if collected in one month, will be quite large. Of course, it would be very unfortunate if the money that was peddled just evaporated.

Thrifty Lifestyle

Also, adopt a frugal lifestyle, including at home. Many do not realize that the real need for housing can still be suppressed. One of them is the monthly electricity fee.

Simply turning off the lights while sleeping, watching less TV, and so on can make your electricity bill go down.

Purchase Used Automobiles

If everything has been done, then it never hurts to consider buying a used car because the price is somewhat more affordable when compared to buying a new car.