We wanted to buy our car with cash in order to remain debt free. I would be lying if I said that the road was easy, sunshine and lollipops or no big deal. However, sacrificing in order to prepare for the future and to experience financial freedom has been an AMAZING experience.
I wanted to write this post and share with you how we managed to buy our second car together, with cash rather than financing it because for a long time, I didn’t know any better. I was raised in a typical American home where it was normal to have a car payment. I never saw anything wrong having a car note. Dave, my husband, showed me a better way to live.
Almost four years ago we sold my Hummer H3 and bought a crappy minivan with cash. I fought him for months and cried several times about making the change. However, I could see that there was more to life than driving a nice car and that having financial security FAR OUT WEIGHTED DRIVING A FANCY CAR.
The paint was faded, the back fender was missing and there were several dents, dings and scratches on the vehicle.
The front bumper was literally being held on with jumper cables!
The leather was peeling throught the entire van and the passenger window did not go down. The trunk was broken and would not open, haha!
But…I had NO CAR PAYMENT and the engine was GREAT! We literally traveld the country in this van with no problems.
I caved. I saw the light and I joined the millions of Americans who drive cars without a monthly payment. I agreed to keep this piece of junk van for 3-5 years under one condition…that we WOULD upgrade. There is no better feeling than holding the title to your car in your own hands knowing that you don’t owe anyone a dime! So, here is what we did and how we bought our “new” car with cash.
Let go of your WANTS and focus on your NEEDS
- Make a Budget and STICK TO IT!
- Every home is different. My husband and I tried several budgets before we found one that makes us both happy while allowing us to reach our financial goals.
- Sell your car with a payment and buy one with a much lower car note (if you can’t afford one out right).
- Save the difference every month for your next cash car.
- By doing this, you will save yourself THOUSANDS of dollars in interest.
- Get rid of expensive cable packages
- You can survive with Hulu, Netflix, Roku etc..you won’t die without your favorite TV show
- Change your insurance policies
- Many people are paying double for health insurance on their auto policy. If you have medical insurance than you don’t need it on your auto insurance as well. You are already covered
- Change providers (We saved $100’s by switching to USAA, but every state is different.) Shop Around
- Stop Eating Out
- Pack a lunch
- Find inexpensive ways to date rather than eating out. They are usually more fun anyways!
- Cut back on expensive and unnecessary grocery items
- Everything doesn’t need to be organic
- We don’t buy junk food or sugary drinks for our boys. They only drink milk or water. I make my own cookies and almost never buy chips.
- Buy frozen veggies over fresh (It’s still healthy but cheaper) I buy a mixture of both
- Cut all subscription services
These are just a few things that we did to prepare for the future. We took all of those savings and put them away every month and now I have my upgraded car with no car payment. The financial sacrifice was well worth it and I would do it all over again. I’m confident enough to say that I will never have a car note again. I’m already saving for the next upgrade in 5-7 years. How do you save money? What works for your family? Please share with us in the comment section below.