04 June 2024 | By INDIE
For a lot of us, owning a car means so much more than just investing: some consider it a safe and convenient way to get to work, among other places, while others see it as a long-cherished personal goal to own a dream luxury automobile. But how to save money for a new car? Well, from coming up with a solid savings plan to researching all the after-sales expenses and then making an informed choice, we’ve compiled four effective ways that you can adopt to save for your dream car without having to cut down too much on your day-to-day expenses.
How to save money for something new is a question people often struggle to satisfactorily answer. By committing yourself to the following strategies, you can steadily accumulate funds and achieve your goal of purchasing a brand-new car:
The first step to owning your car starts with a strict budget. Create a solid budget that allocates a portion of your income every month specifically for saving towards your brand-new car. Cut unnecessary expenses, eat out less, and shop only if an item adds value and you must purchase it for urgent work. In other words, be self-disciplined and follow your budget religiously.
Yes, budgeting is important, but your money will never grow unless you are making profitable investments. Explore investment options, such as mutual funds or recurring deposits (RDs), that offer higher returns than a traditional savings instrument. However, make sure to choose investments with minimal risk and easy liquidity. Also, make sure to thoroughly research before you go ahead with an investment plan. With a plethora of options out there, choosing rightly gets overwhelming most of the time, and hence, following expert advice and signing up with a stock broker is a wise option.
Also Read: Understanding Investments
If self-discipline is not your strongest suit or you think you can be forgetful at times, setting up automatic transfers from your salary account to a dedicated savings account can benefit you. This monthly deduction can be earmarked for your car purchase, thereby ensuring consistent savings without the temptation to spend elsewhere or having to remind yourself to make those internal transfers.
In today’s fast-paced world, having a single stream of income is just not enough. Consider taking on part-time work, freelancing gigs, or selling handmade crafts or services to supplement your primary income. Every extra rupee earned can contribute towards achieving your goal of buying a new car.
Here’s a bonus tip, and it’s extremely effective:
This may not sound like a lot, but you will be surprised to see the money you can make just by selling items you do not use anymore or have never even touched since the purchase. Try this once: declutter your home and sell unused or unwanted items through online marketplaces or even a garage sale (a popular self-set-up sale). The proceeds can be added to your car fund, thereby boosting your savings.
Now that you have proper information on how to save money to buy a car, INDIE can help you reach that goal.
INDIE offers a range of financial products and services to assist you in saving up for purchasing a brand-new car or any other financial goal. You can deposit money regularly through our savings accounts and fixed deposit schemes and watch it grow with competitive interest rates. Additionally, investment options, such as mutual funds and recurring deposits (RDs), provide opportunities to generate higher returns on your savings over time. Whether you're looking for answers on how to save money or tools to maximize your savings, INDIE has it all, plus the support and guidance needed when using these products.
