(March 3, 2009) – You’ll also save a lot of money if you pay cash for your car.  How can you do that? By taking small steps.

First save up enough money to buy a beater for cash.  Say you can find a car for $1500, and you get the money by saving $150 a month.  After you buy the car, continue to save the $150. 

If you can drive the cheap car for two years, you will have saved $3600.  Then buy a better $35oo dollar car and sell your old car for $1000.  Put the $1000 into saving for an even better car.

Don’t get hung up on the numbers given above – they’re just examples.  The idea is to buy only what you can afford, then save for something better.  Get into the savings habit and pay yourself, not the finance company.