I celebrated making my final car payment this month. But this doesn’t mean I have plans each month to spend the money that used to be going toward my car.
Instead, I’ll stick a good portion of that amount in my savings account. That way, I’ll have some cash on hand in case I need car repairs. And, hopefully many years from now, when I need a new car I’ll already have some money saved up for the down payment.
When I went looking for this car four years ago and my previous car 12 years before that, I had money already set aside for the down payments. That meant I had to borrow less and pay less in interest.
Watch for tomorrow’s blog entry on how I managed to save even more when buying the 2009 car.