By Stephanie Staszko
Buying a first car be financially draining due to the buyer having no previous car to sell and ease the cost. Applying for a car loan is the most obvious step to funding a first car but there are other small tips that can help first time car buyers save money for their much desired automobile.
1. Start a piggy bank
Saving up loose change is perceived to be a long and gruelling process but can be a really convenient cash source. When saving up, every penny counts. There are many places to trade petty change for notes once a large amount has been collected. Using change for low-cost items can prevent a person from withdrawing money out of their bank account. The change could even be saved for the first petrol fill!
2. Only withdraw what is necessary
Many people are tempted to withdraw their full week’s budget at the beginning of the week. Before online banking was available this was one of the most effective means of budgeting. Nowadays it often results in people spending what they have in their wallet/purse on items they don’t need. Rather than withdrawing a week’s budget, savvy savers should use online banking to track their expenses.
3. Open an ISA or savings account
Many people over-spend because the money in their current account is too easily accessible. With evolving technologies such as chip-and-pin devices and mobile payments it’s all too easy to overspend without realising. Transferring the desired and realistic amount a person wants to save into a savings account means the cash isn’t as easily accessible and less likely to be spent on frivolities.
4. Take advantage of the voucher trend
Online vouchers are currently extremely popular and can be a great way of saving money on almost any purchase. In order to save effectively it’s important for a person to still have luxuries in their life to remain happy. Online voucher discounts range from dining-out to day trips and allow savers to still participate in pastimes. Many supermarkets offer petrol vouchers which may be worth collecting for drivers-to-be.
5. Be aware of energy usage
Utility bills can be a large expenditure, particularly following the latest price hike. Striving savers should be more aware of their electricity consumption in order to reduce their monthly outgoings. Having televisions, radios and computers turned on simultaneously can cause utility bills to soar, and even the most skilled at multi-tasking would struggle to use all three at once.
Saving money for a car can be difficult, many people believe they have to stay in and avoid activities they enjoy. This is simply not the case as there are many money saving vouchers and techniques available that can help people save up without experiencing much change to their lifestyle, meaning they are more likely to continue saving.
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