trapez-finance.org >> your car killing your budget

Typically, car expenses rank second to your mortgage. Add your monthly payment to your monthly insurance premium and you can end up with hundreds of budget-killing dollars every 30 days. It’s a given that anyone who is employed needs a car. So, what can we do?
1. Figure it out. Sit down and figure the total cost per month for each of your vehicles. You’ll need to check your insurance web site or call your carrier to find out the portion of your premium that goes to each car on the policy. Do it. It’s worth the time.
2. Take stock of your driving habits. Do you have more cars than working family members? Can you eliminate one vehicle without causing a family split? Yes, it does take some sacrifice driving one family member to work so you can keep the car for the day. Is that 15 minute ride worth the hundreds of dollars per month on your expense list?
3. Analyze your insurance. Do you have overlapping coverage? If your auto warranty includes roadside service, why is that also on your insurance policy. Sure, it’s only $3/mo but why give away that $3 if you don’t need to?
4. Are you over-insured? Do you truly need comprehensive and collision on every vehicle? These coverages are necessary if you are making payments. But if your car is paid off, this is a choice. Consider full coverage on your primary vehicle only. My husband uses one car as part of his job. That one always has full coverage. The one our son drives to work? Nope.
5. Rate your rates. Check with at least 5 insurance companies and find out their best rate. Even if you did this one year ago, it’s worth doing it again. These figures change often. Be sure that your company is offering the lowest premium out there.
6. Check out a trade in. If your car is less than 5 yrs old, you may be able to swap it out and eliminate your payments altogether. Car dealers have lots filled with trade-in vehicles they can’t sell. This is definitely a buyer’s market. Use that to your advantage. Certified used cars are reliable and even come with a warranty. Spend an afternoon cruising the dealerships. Your savings paycheck could be thousands for a few hours of your time.
7. Get rid of your gas guzzler. Apply #6 to the gas issue. True, economy cars are higher priced, but if you drive any distance to the job, the savings on your gas bill could make that up.

Find a pencil and paper, use a calculator if you need one, and get your hard numbers. We’re often so used to the pain of paying bills that it becomes a mindless exercise. Let’s get your mind in gear and pay yourself for a change

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