Budget Cuts Are Helping Me Get My Audi
Our goal is to save roughly sixteen thousand dollars by the end of August 2016. To save that much cash, we had to make significant changes to our spending. It means we need to save seven hundred dollars a month. Carving out hundreds of dollars from our budget wasn’t easy, but we were determined.
We looked at every aspects of our budget, our investments in Debt Free Guys, our savings, our 401(k) investments, our good and bad habits. We came up with the following three areas to cut back on to save $700 extra a month.
This is clearly a discretionary category. John and I are known to easily drop $100-150 on dining out, depending on the wine we drink.#HaveFun is part of our logo. We cut seriously back on dining out when we were paying off debt. This was the main reason we were able to pay off our debt six months faster than expected.
Dining Out Solution
Now we use of coupons, Groupons, promotions and quick-casual restaurants where we can both eat for under $20. A few restaurants include Chipotle, Garbanzos and Wahoo’s Fish Tacos. We fill up, save up and save time at these restaurants a couple of times a month without ruining our budget.
Emergency Savings Account
When we first started getting out of debt we saved $1,000 to put in our emergency savings account as fast as possible. This was necessary to help protect us from emergencies. It felt great having a buffer. Then, over the years, we added a small amount per paycheck to save six months worth of living expenses.
Emergency Savings Solution
Once we decided to save for the Audi, we squeezed dollars from this category of our budget. Six months’ worth of emergency savings is enough. This let us funnel more funds into our Audi account. If you’ve reached your emergency savings goal, this may be a great source for additional money.
You know from our other posts that we love to travel. England, Spain, Australia and New Zealand are among our favorite places. We’ve spent thousands seeing the world. Travel’s one of our main goals in life. We’ve set aside a significant portion of our income to see the world.
The Travel Solution
We won’t give up travel for a car, but we did make adjustments. Because we started The Debt Free Guys in 2013 and because we want this new car, in late 2014 we put a moratorium on travel outside the U.S. We decided our travel would be tied to business and family related activities. This is the reason you’ve seen two #NSE travel posts from us in the past year. We’ve explored Colorado more, spent more time visiting family in Pennsylvania North Dakota and scheduled trips to San Diego and South Carolina for Debt Free Guys.
Budget Cuts Are Working
For most people, coming up with money to pay for a car is an afterthought. They first purchase their car and then figure out how to pay for it. We’re doing the opposite. This has helped us save $7,000 so far, which means we’re nearly half way to getting the car of my dreams. Come back each month to watch us get closer my dream. If you’re considering a major purchase, we encourage you to save first and make your purchase second.
Are you looking to buy a car soon? Use these 5 tips to save even more!