I purchased a new vehicle in 2011. After payoff, I decided to save for maintenance and repairs instead of renewing the warranty. Having no idea of what savings goal to set, I made an arbitrary decision to save 10% of the BlueBook value every year. Turned out to be a pretty good decision. My car is 9 years old and I now have enough to cover any repair. She's still in great condition but should needed repairs be too costly, I have enough saved to either buy a cash car or put a pretty good dent in the financing of a new (used) vehicle.
People say it takes discipline to save - of which I have none of. But earmarking my $ for a specific purpose has worked exceptionally well for me. It is highly unlikely I'll spend money intended for my car on something that's less important than its upkeep and maintenance.
This is a great strategy. I've just begun to start saving specifically to upgrade my 24 year old car. I think I've kept him running for as long as I can and it's just time.
I will start saving 10% of the blue book value of a car I would like to buy, that will help me save for the car aggressively and give a real purpose and guideline for saving.
That is a good ideal to save 10% of your car blue book value. I have never heard of that…but that is a good way to have funds set aside for just that reason.
Thank you, for the information
I purchased a new vehicle in 2011. After payoff, I decided to save for maintenance and repairs instead of renewing the warranty. Having no idea of what savings goal to set, I made an arbitrary decision to save 10% of the BlueBook value every year. Turned out to be a pretty good decision. My car is 9 years old and I now have enough to cover any repair. She's still in great condition but should needed repairs be too costly, I have enough saved to either buy a cash car or put a pretty good dent in the financing of a new (used) vehicle.
People say it takes discipline to save - of which I have none of. But earmarking my $ for a specific purpose has worked exceptionally well for me. It is highly unlikely I'll spend money intended for my car on something that's less important than its upkeep and maintenance.
@Shaina P., you say that you don't have discipline, but you set a goal, made a decision to save towards achieving that goal, and ultimately achieved your goal. Seems pretty disciplined to me. A lot of this personal finance thing is finding tricks and techniques that work for you, which you've done. Great work!
