Living a budgeted life is part of everyone’s lifestyle today. Everyone is obsessed with saving up, and the younger generation is learning from them. One of the ways they are saving up is through transportation costs. It’s estimated that the average American household spends $9,000 on transportation costs. That’s a huge chunk of the annual pay of every American. There are certainly ways to reduce your costs by looking into your financials and making the right decision to buy a car or not.
When to Buy a Car?
Millennials aren’t as car-crazed when compared to the previous generations before them. This is because they see them as a huge expense that they don’t need right now. They are partially correct on that point. Buying a car early on in your career can be detrimental to your financials because you’ll be spending a huge chunk of your annual salary paid for it. However, there comes a time when you do have to buy yourself a car.
Once you start a family of your own, having a car becomes essential. It’s estimated that 91% of American households own a car because driving a car is more convenient than riding local transportation. However, if you don’t choose the right car, you’ll be spending thousands of dollars on costs. Here are some things you should know when purchasing a car.
Always Buy a Four-seater
Don’t spend your money on a two-seater, especially if you’re starting your career. They might look more attractive than four-seaters, and they usually run faster, but they aren’t economical. Two-seaters use up more gas than a four-seater. You also don’t have the same amount of space for your family if you ever plan to start one. It also sucks if you’re planning to move or go on a trip. So always buy a four-seater car.
Buy Cost-efficient Cars
There are many vehicles meant out there to allure consumers because of their looks and utilities. But you’re not going to need all of those utilities every day. Some of those, such as Auto-cruise control, are considered luxurious utilities meant to inflate the car’s overall cost. Forget about those luxuries and buy cost-efficient cars.
Some of the most cost-efficient cars right now are SUVs and Minivans, such as the 2021 Honda Passport, 2021 Kia Sorento, and the 2021 Honda CR-V. These cars have a lot of space, use less fuel compared to other cars, and are designed to drive smoothly on the road. They are great for families, but they can also pretty good for single people as well. These cars ensure that you don’t burn a hole inside of your wallet by buying them. However, the best way to go for single people is to use local transportation.
Use Local Transportation
If you’re fresh out of college and just starting your career right now, your best way to save is to use local transportation. This means commuting to work and back to your home through buses and trains. These are particularly cheap (only costing you a couple of dollars every day), but they might not be the most comfortable choices. A more comfortable choice is getting into a carpool.
Carpool
Many people are offering a carpool in many cities in the US. Some of these people are making a living out of it, while some are just looking to generate extra income. If you’re using your car, you might as well get the best out of it, right? There are many ways you can look for carpool in the US. Craigslist has many people looking for carpool, but it’s not entirely safe to get one from there because of the nature of the site. Waze is more secure and legitimate because people also use it as a way to navigate. There are many choices on the internet with different prices, so look into possible leads and make sure you get to know the drivers before becoming a part of a carpool.
Using Moving Services
Moving can cost a decent chunk of your annual salary. Moving services can save you the hassle of return trips. It can also save you gas money. So by using moving services, you can save a decent amount of cash. If you need a local moving company, there’s plenty to choose from on the internet. Some are dedicated companies, while some are freelancers. Some can be cheaper than most but offer fewer services for the move. So it’s important to check these services and whether if they fit your move.
These are simple ways to cut your transportation costs this year. Make sure you do your background checks if you plan to join a particular carpool in your home. If you’re planning to purchase a car this year, ensure to have a look at your finances first before buying one.