How To Pay Off Your Car On A Cheap Budget!

About a year or two ago I paid off my first car for the first time! And honestly I wasn’t making much. Just a normal low paying job with a side hustle here and there to make ends meet. BUT I used these steps to make the payments more manageable and paid off my car quicker than originally planned, saving me money in the long run!

1. I CALCULATED MY TOTAL MONTHLY INCOME.

This is the first step I ALWAYS take in any budgeting that I do. I have to calculate all the gross income that I have to know where I can allocate each amount of money to which bill.

2. THEN, I CALCULATED MY MONTHLY BILLS THAT ARE NECESSITIES.

The bills that are necessities are always first for me to pay off and my car was one of these. Transportation is important because of where I live and the lack of public transportation. I need a vehicle to get to my job.

3. LASTLY, I TOOK MY MONTHLY CAR PAYMENT AND DIVIDED INTO 4 WEEKLY PAYMENTS.

It was easier on me to pay a smaller lump sum 4 times a month then a large lump some once a month. With smaller payments a week I could easily get that $100 from side hustles like door dash or babysitting. And it was more manageable to pay.

PRO-TIP- I also used money that was left over after paying bills towards my car to pay it off faster and reducing the amount of interest I’d have to pay in the end.

The best part is now that I’ve paid off a car it’s much easier to get another one in the future if I decided to do so because it shows I’ve paid one off in a timely manner in the past. The hard work paid off for now and in the future.

#budget #paycheck #paycheckbudget #buyingacar #MoneyTips #finacialfreedom #budgetingtips #budgeting101 #budgetingforbeginners #moneymaking