I plan to start some savings to buy another Prius in the next 2 years or so. I am in no rush for anything right now so I would like to know what is the best way to save up cash for the next Prius? I really dont want to be bothered with financing at the dealerships or anywhere else. And plus, I like the feeling of paying cash because I know that once I drive off the lot its mine completely. I am hoping that the 2010-11 next-gen Prius will have better legroom and a telescoping steering wheel, which are my main gripes with my current one. I also like the fact that they have better colors now than they did when I gotten my current one. Any great saving tips would be great!
If you want enough within a couple of years to pay cash you'll need to save about $1000/month minimum. The payroll deduction into an account that you otherwise don't sue is the best approach. It doesn't have to be money market; an ING Direct savings account would work as well and might be a bit easier to set up.
In my case, I am an owner/operator with the company I am leased (i'm a professional driver) to so I will have to see if they have a payroll option to do that, or whether to start up a savings acct myself and have it direct deposited there automatically.
With my ING account I just have it grab a few hundred from my regular checking on the first of every month. It was easier than setting up another payroll deduction.
Spend less than you earn or Earn more than you spend I just set up a ShoreBank Direct account to start my emergency fund. ShoreBank uses your money toward their missions of community development and a healthier environment. Perfect for a Prius stash fund.
The greatest thing I ever did to control my spending was to track it. It sounds so obvious but it's not obvious to everyone. I can't remember how, but somehow I got a free copy of Microsoft Money. I started tracking my income and my expenses. Simple stuff: every month I get a bank statement and a credit card statement. I enter all the income and the expenses along with all other incidentals. After a few months, trends start to appear such as "I'm spending much more on dining out than on groceries" and "how did I pay so much for clothes?"
"Bank on yourself" it's for real and really works. Steve Holtz in California set mine up. It takes someone certified in that area to set it up.
