Save on Transportation

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.

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