Steps you can take to save on transportation:
- Do you need a car at all? Use a bike or public transportation instead.
- If you need a car: buy it used.
- Don't buy new cars frequently.
In More Details
Use a bike or public transportation — If you can avoid car purchases altogether, that's terrific! Not only do you avoid the price of the car, you'll also be saving on monthly insurance payments and maintenance costs. Using a bike or public transportation are great ways to: save money, help the environment, and get exercise.
Buy a used car — Don't buy a new luxury car. The value of a new car depreciates roughly 20% in the first year. For the next 4 years, it depreciates 10% annually. That's why it's generally a bad idea to buy new cars. Instead, opt for an affordable used car (and pay with cash).
Don't buy new cars frequently — One of the biggest financial mistakes you can do is to purchase a new car annually. If you're not passionate about cars and only want to use for transportation: purchase a used car in cash and maintain it for long periods of time. Don't lease a new luxury car. Don't get a loan to purchase a new expensive car. And don't do it on a frequent basis.
← Prev / Home / Next →
Budget Expenses Save on the big expenses and keep track of your net worth
Save on Taxes What can you do to save on taxes?
Save on Housing Buying vs Renting and the importance of avoiding lifestyle inflation
Save on Food Budget groceries, meal prepping, and less eating out
Calculate Your Savings Rate The most important number to early financial independence