The beginning of the year is a good time to set a budget for the major expenses that you know that you’ll have, such as your house payment and utilities. Your car is another asset that you want to ensure is financially covered. Unfortunately, when many people set their car budget they forget to include irregular expenses like repairs and tires, etc. The following are a few reasons to consider making a special fund to cover your car expenses through regular contributions instead of waiting until there’s trouble.
Taxes and Insurance
If you want to keep your car on the road, then you’re going to need insurance coverage. There are different rates available depending on the type of coverage that you have, but if you miss a payment, then you could find yourself without driving privileges. If you’re making payments on your car and don’t carry insurance or pay the taxes, then the dealership could repossess the vehicle until the issue is corrected.
Repairs and Maintenance
As with other mechanical items that you own, you never know if or when something will go wrong. The car care fund that you start early in the year can be used for automotive repair and maintenance to ensure that your car stays running instead of leaving you stranded. Some of the common repairs and maintenance that you can use the fund for include a new battery, new tires, an oil change, and an alignment. If you don’t need the money for repairs throughout the year, you can save what isn’t spent to get ahead on your insurance for the next year or to make sure you have this same area covered while you use new car care funds for another bill.
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Losing a Job
When the year begins, you likely expect that you’re going to keep your job. However, companies shrink or close. You might not be able to work due to an injury or another medical issue, resulting in losing your job. Your car care fund can be used to make your car payment until you’re able to go back to work and can be used to pay for the other essentials needed so that you can get back and forth to interviews, such as gas.
Travel
If you plan a vacation each year or you need to travel for an unexpected event, your car fund can be used for the additional gas that you need and for the maintenance to ensure that your car is mechanically able to travel a long distance.
Since your car is an important part of your life, you need to take care of it as much as possible. A car fund can be set aside at the beginning of the year that can cover things like gas if you lose your job or repairs that you don’t expect. At the end of the year, any money that’s leftover can be put back into another car fund that you make for the following year.
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