How to Save to Buy Your First Car After School
You know what car I want to drive when I grow up? Mercedes E63 AMG!
But it’s a tough bet. It’s like finding a needle in a haystack. A snowball’s chance in hell. Why? The car will set you back a cool $100,000 and considering our cedi’s weakness, it will cost over GHC 400,000 and that’s not all. We haven’t even added the cost of duty, registration and Insurance. Plus, the miscellaneous cost that will come with maintaining the car.
So, vim dey for the car? Small.
But can we make a monetary investment towards getting a Mercedes or that sweet and slick ride? Yes!
In this article, we share 4 points you should consider as a young man if you want to be ready to afford your own car in a few years.
FOCUS ON THE END
Financial discipline isn’t just a dream. It’s possible. But it’s largely a matter of willpower and mindset. You need to make up your mind and commit to it. It will cost you a lot of luxury, but you need to have your mind on the end goal. See the way you keep texting a girl, calling her, visiting her and even buying stuff for her to prove that you like her, it’s the same you need to do. Focus!!
GET AN INVESTMENT ACCOUNT RUNNING
This is a major step in your investment journey. Open an investment account in a bank. The trick is to open this account in a bank far from you or one you can’t get easy access to. This account should be different from your current account. When done, request for a standing order so that your bankers transfer money from your current to the investment account at a certain time in the month. It should be a convenient amount. But maybe more if you really need a car in a few years.
LET YOUR MONEY WORK
The money you’ve set aside now should be put to use. Put it into a high-interest investment vehicle. Your best options are Treasury bills, mutual funds or stocks from recognized financial institutions. Please don’t go chasing after institutions that promise high returns. You may lose your money on a whim.
TALK TO BROS
Experience is always the best teacher. Talk to your parents, older cousins, neighborhood friends or buddies you hang out with about your investment questions. If they are matured enough and have some experience on it, they can offer some good advice.
TUNE DOWN THE CHILLING. JUST A LITTLE BIT!
Your lifestyle and spending habits now has a major role to play in helping you achieve your big investment goal. Have fun but make sure it’s measurable and affordable. A smart way is to share cost with friends. Cut cost in every area of your life. Cook instead of buying food every day, go electronic with your banking instead of going to the bank every day, and stick to one girlfriend instead of the many you keep. lol
Sorry we sound like an annoying Big Brother
Saving for a Benz might be a far reach but as we said before, consistently saving and investing will put you in a good place to buy your first car a few years after finishing school. If It’s not enough, you can just roll over your investment and keep going. Who knows? Maybe it will be enough for a private jet in your 40’s.