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Preparing for an auto loan in Hamilton – Creating a budget

Preparing for an auto loan in Hamilton – Creating a budget

Preparation is the key to any undertaking and auto loans in Hamilton are no different. Making sure you’re fully prepared and your paperwork is ready can save time and heartache when it comes time to apply for the loan.

 

A budget forms part of that preparation. It can also help with other parts of life too.

 

Our Hamilton car loan experts recommend all our customers use a simple household budget to keep track of spending. It can really help!

Here’s how:

 

Calculate your spending

 

Use a simple spreadsheet or pen and paper, whichever you think best. Set up one column for incomings and one for outgoings. Go through all your bank statements and list everything that goes out on a regular basis.

 

At the bottom, add anything that you occasionally spend money on to give you the best picture.

 

Add it all up at the bottom so you can see exactly where you are.

 

Calculate your debt

 

Add another section to your budget and call it Debt. List everything you owe, the amount and the interest rate you’re paying. Set them in order so the highest interest rate is at the top and the lowest at the bottom.

 

Add it all up so you can see exactly what you owe and to whom.

 

Identify areas of efficiency

 

Take a good look at your outgoings and assess which are needs and which are wants. Can you make any savings without impacting your quality of life? Could you switch providers for services and save money? Could you make any spending efficiencies?

 

If so, identify what and how much you will save each month.

 

Start an emergency savings fund

 

Set up a savings account and set up an automatic payment for a set amount each month for savings. If you have spare cash, save everything you can. If you don’t, save the amount you have just identified in your efficiency drive.

 

It doesn’t have to be much, but make sure you save something. It will increase over time and should ideally end up being enough to bail you out of any household emergencies.

 

We recommend a fund of 6 month’s total outgoings to be safe.

 

Further saving

 

Once you have an emergency fund, set up another savings account for longer term saving. This could be for a Hamilton auto loan down payment, college fund, retirement fund or just to pay off your home faster.

 

Allocate as much as you can comfortably save to this fund while leaving your emergency fund intact.

 

Again, it doesn’t have to be much. Anything you can save each month will increase over time and provide a nice nest egg to use however you see fit.

 

If you decide to turn that into a new car, our Hamilton auto loan experts will be on hand to help.

 

Get in touch with the car loan experts at Northway Ford for great deals on auto finance in Hamilton.

 

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Categories: Car Loan

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