You can’t live without your car. You need it to commute to work, run errands, and just get from point A to point B. The only problem is that your car costs you a lot of money. Here are the steps that you can take to reduce Monthly Car Costs.
Make a Budget
The first thing that you should do is make a budget. Not having a personal budget is going to make it hard to track your expenses — this includes the expenses for your car.
How do you start a budget? Look at your bills and bank account statements to see how much you usually put toward expenses. So, when it comes to your car expenses, you would look at the average amount that you spend on auto loans, insurance, gas, parking and maintenance every month.
These might not be the exact numbers, but they’ll give you good estimates about what you need to spend every month. If finding the estimated dollar amount doesn’t work for you, you can also use budget percentages to organize your expenses. One of the most popular ways to use budget percentages is the “50-20-30 rule:”
- 50% is dedicated to your needs (rent, utility bills, credit card/line of credit)
- 20% is dedicated to your savings (retirement, college, emergency fund)
- 30% is your wants (entertainment, clothing, nights out with friends)
Once you get a better idea about how much you’re spending every month — including how much you’re spending on your car — you can determine your next financial steps.
Do DIY Maintenance
To reduce Monthly Car Costs simple maintenance tasks like changing your oil, vacuuming your air filter and replacing your wiper blades can save you a trip to the mechanic — and save you the mechanic’s maintenance fees, too. Even something as simple as checking your tire pressure and filling up your tires can help you avoid some expensive repairs down the line.
Get Cheaper Gas
Depending on the car that you drive and how often you drive it, gas can put a big dent in your budget. So, what can you do to minimize the cost? You can download apps for cheap gas to find what nearby station is offering the best deal. You’ll save some money every time that you fill up your tank.
Another thing that you can do is ask whether passengers can contribute to gas costs whenever they’re carpooling or joining you for a road trip. As the driver, it’s unfair to ask you to take on that burden on your own.
Shop for Better Insurance
Are you paying too much for car insurance? Don’t be afraid to shop around and see whether you can find a quote that suits your budget better. You should also see whether you qualify for any policy discounts or deals. This will help reduce Monthly Car Costs.
Refinance Your Car Loan
You can refinance your car loan to try to get a lower interest rate. This is a great strategy if you think that your current credit score is higher than it was when you first took out the loan.
Downsize
If your car-related expenses are just too high, the problem might be the car itself. Consider trading it in for a cheaper version that will work with your budget. The change could make a huge difference.
These steps should make it much easier to cover your car expenses. Now you don’t have to worry about money every time you put your key in the ignition.