There is always something to save up for: it could be a deposit for a new house, it could be for a wonderful holiday, and in many cases, it’s for a car. However, when there are so many other things to be paying out for – perhaps especially when you’re a parent – that it can feel almost impossible to put together enough cash to buy the car you really want.
The good news is that it’s not impossible. It is hard, but you can do it if you have a plan in place. So read on to find out how you can make saving for a new car easier, and you could soon be driving away in the perfect car for you and your family.
Ring Fence Your Savings
One of the biggest issues when it comes to saving up for anything is that there are often other things you need to buy, and because you have money put to one side, you start to use it. You tell yourself you’ll only use a few pounds, but that can quickly escalate and before you know it, you’ve spent a good chunk of your savings – perhaps even all of it – and you have to start again.
To prevent this from happening, make sure you ring fence your savings. In other words, once it’s out of your current account, it’s untouchable. Ideally, you should set up an entirely new bank account and put the money in there. Don’t have a debit card linked to that account either, otherwise the temptation to spend will be higher. Use the old adage of ‘out of sight, out of mind’ and saving will become a lot easier.
Set Saving Targets
Having one large goal to aim for is what most people create for themselves, but this can be overwhelming, and in the end, it can mean that it feels like too hard of a job, and the idea of saving any money just disappears; it’s far easier not to worry about it when the amount you need to save is such a large one.
Don’t let this idea ruin your saving plans. If you break your final figure down into weekly or monthly amounts and ensure you stick to those targets, you’ll reach your goal, but it won’t feel so difficult. If you can combine this idea with having a separate account as we’ve mentioned above, you’ll quickly see your money piling up and be even more motivated to save. You might even go over your target, meaning you have enough spare to look at cool number plates too.
Make Saving Automatic
It’s always going to be tempting to keep some money back or not move any money at all into your second savings account at times. Of course, the problem with this is that you’ll save less, and it will take longer for you to reach your goals; you might even give up completely.
The best way to get round this problem – which is the same for everyone and is a part of human nature – is to make your savings automatic. Set a savings goal for the week, open up your new bank account, and create a standing order so that the money automatically goes into that account once you get paid. In that way, you don’t have to do anything and your savings will quickly grow.
