Sooner or later, your car will probably need some auto repairs. Of course, if you’re like everyone else in this world, you hope nothing ever breaks down. However, that typically isn’t the case. Maybe not right after you purchase the vehicle, but eventually, parts can go out and break down. When that happens, it often feels like it costs a small fortune to repair or replace them. But if you’re stuck and don’t know how to proceed, you can always use these tips.
That’s why many people look for ways to save for eventual auto repairs. Then, they have the cash on hand to get them fixed when issues arise. But the question is, “How do you save for car repairs?” After all, saving money isn’t easy, regardless of what it is for. There are various ways to accomplish the feat, so how you choose to do it may be different from others.
Make a Budget
Don’t make saving any harder than it has to be. Rather, create a budget if you want to save for auto repairs, a new car, or whatever. Simply making a spreadsheet or jotting things down isn’t enough, though. You’re going to need to stick to the plan. For instance, if you allow $100 for entertainment for a month, don’t go over the amount. If anything, you should try to spend less on categories to save even more.
Set Savings Goals
People who set goals are typically more likely to follow through with endeavors than those who don’t. Therefore, if your primary objective is to save money for auto repairs, do some research and determine the average cost of particular jobs. Then, you’ll have an idea of what to put back. For example, if you want to be prepared to replace your engine, it will be necessary to put back around $4,000 or so.
That’s because, according to askinglot.com, the average cost for an engine replacement on a 10-year-old car is between $3,000 and $4,000. However, if the vehicle is of the European variety, the price might increase by about 50 percent.
Make Savings Automatic
Do you have a checking account with a bank? If that’s the case, talk to a representative to see if they have a savings account that saves automatically. Normally, the way it works is after you spend money from your checking account, so much cash gets withdrawn from it and placed into the savings account. This eliminates human error from the equation because you won’t forget to make deposits. So, make savings automatic and watch as your account grows. Then, you’ll soon have the cash you need for eventual auto repairs.
Don’t fret if you don’t have a bank because all may not be lost. On occasion, employers will hold out so much money from people’s checks. Of course, this is done upon request, so you’ll have to ask. The company isn’t going to just start deducting funds from your wages without permission. But keep this tactic in mind, as it could be the perfect solution to getting your savings in order.
Save Those Tax Refunds
It can be tempting to spend all of your tax refunds on a big purchase as soon as you get them. For instance, maybe you want to put a down payment on a car or house. Then again, if the refund is large enough, you might wish to use it all to purchase a vehicle or piece of property cash. However, if you’re worried about eventual auto repairs on your existing ride, why not save some of your tax refunds?
Providing that you can hold onto the funds and not dip into them, you’ll have the money required when problems pop up. Of course, the last thing you will want to do is nothing at all. If you go that route, you could find yourself with a broken-down car that you can’t afford to fix. For example, did you know that a transmission repair can run between $1,200 and $5,000? So, save those tax refunds and don’t get caught off guard by auto repairs.
Car repairs are often expensive. That’s why you may need to start saving now. Then, when car problems show up, you’ll be able to send your ride to a mechanic without having to take out a loan.