Mar
9
The key to making big savings is to cut back on the biggest expenses. For many people, one such large expense is their car. Few people realize how expensive owning a car really is.
Let’s look at how this works. If you’re buying a new car that you finance, you have to pay full price and then some (because of interest). You also have to pay for full insurance on the car, which isn’t cheap for a brand new car.Maintaining the car is yet another expense. This all adds up quickly.
Let us compare this with something like a sub $1000 used car. You’ve just spent less than a grand on the car, which is thousands and thousands less than anything new. Even if you spend $5000 you’re still coming out way ahead.
The cost for insurance is much lower. Since your car is so cheap, you only need the minimum level of insurance required by your state law, which will save you money every month.
This might not seem like the best plan to many of you since it seems like an old car like this would break down constantly. This doesn’t have to be the case. In order to get the most reliable car for my money, I prefer to go with older imports such as a used Subaru. These are very reliable, lasting hundredes of thousands of miles.
The best way to find old cars like this is to check used car listings, which will many different vehicle options to choose from.Be sure that you investigate the background of any car you’re looking at before you pull the trigger.
You will be surprised how much money you can save by simply being willing to drive a clunker.By driving a clunker, you have much more money left month to month while still being able to get around just as well.Think about it, you might just be on the path to freeing up your finances more than ever.
