How much should I save for my first car?

Category: Finance

Buying a car is every individual's dream. However, in order to achieve this dream, an individual needs to have a certain amount required to buy a car. Saving up for a car eliminates the hassle of loan repayment in the long term. Saving up for a car will require a lot of planning and implementation. However, before saving for a car, individuals need to set a timeline they are willing to save for and keep in mind that the price of cars increases due to inflation. Based on historical data from the last ten years, the average price rises by 10 per cent annually. For example, if a person plans to buy a car after saving for five years and the cost of the car is 10 lakhs, then the cost of the car after five years will be 16.10 lakhs owing to inflation. After deciding on the savings period, individuals need to decide on the investment they are willing to go for based on the time horizon they have agreed upon to buy a car. Here are some pointers individuals need to keep in mind when planning to save for their first car- Start Saving Early Set a Goal Determine Your Budget Research Investment Options Set a Saving Plan To Read Full Blog Click Here - How much should I save for my first car