Goal #5: Save for a Car
So far, I have written about a short-term goal to get me immediate success, a mid-term goal to increase my annual income, and a long-term goal discussing my retirement goals. My last post about goals (goal post?!?!), I wrote about my want to become debt-free. In this post, I will set a goal to save for a car.
Step 1. Set goals that motivate you.
My wife and I are currently planning on our second child. Since we have two smaller cars, an upgrade to something bigger is almost a necessity.
Step 2. Be SMART about your goals.
This goal is SMART because it is:
- Specific: It clearly defines what I want to achieve.
- Measurable: Although a bigger vehicle is the end goal, I have given a dollar figure for what I want.
- Attainable: The goal is very attainable.
- Relevant: As I mentioned in Step 1, this goal is almost a necessity as my family grows.
- Time Bound: I want to save enough money for a bigger vehicle by September 26, 2013, a short 3 years from now.
Step 3. Write them down.
My goal is:
To save $20,000 for a bigger vehicle by September 26, 2013. This vehicle will have to support 2 adults, 2 children (and their booster seats), and a weekend’s worth of luggage.
Step 4. Develop smaller steps to achieve your overall goal.
I have only done minimal research so far for my next vehicle. I do know that purchasing a 5-person vehicle will range anywhere from $16,000 (relatively low mileage, not too old) to… well, to way above what I would pay for a car. I decided $20,000 so that I can give myself options.
Dividing $20,000 by 36 months, I need to save $555.56 a month. I’m assuming I won’t earn any interest on these savings.
Believe it or not: Even with my retirement goal and my debt freedom goal, I will have room to save for this goal as well.
Step 5. Stick with it!
As I’ve mentioned, my wife and I are talking about a second child. Trust me when I say: There is no way to put two babies/toddlers into car seats into either one of our current cars. There is definitely no way to have two kids in either of our cars AND include luggage for a weekend trip….
