Your transportation

As stated earlier you should spend no more than 15% of your income on transportation. This means your auto loan, auto insurance, and gas must all come out of this 15%. Car shopping can be very a very stressful ordeal. The dealer will try to sell you a car that you probably don’t even need. Explore all the options when buying a car, and research into them. You will need a car that will accommodate for your lifestyle, and fit your needs. Once you have narrowed your choices down to a few different options, go to a dealer that sells those cars. Make sure you test drive the vehicle(s) to ensure yourself that you will like the automobile. If you still want to purchase the vehicle, check with the dealership to see if you would be able to check the car out with a mechanic so there are no surprises. When it comes time to purchasing try to haggle with the dealer, they will most likely reduce the price on the vehicle. Don’t sign any paperwork if you are unsure about the purchase you are about to make. It needs to be your choice, not something you were pushed into by the dealership. Once you’re comfortable with the transaction, you will need to either pay cash or finance the automobile. Don’t get into anything you can’t afford to pay off if you finance. Having a down payment saved before financing will save you tons when it comes to interest. Find the lowest interest rate possible, having a higher credit score will help you achieve this. Now that you have that automobile, you will need to find the best insurance you can. If you are financing, check to see if you can afford Gap insurance. If your vehicle has been totaled by accident, theft, fire, flood, tornado, vandalism, or hurricanes your insurance company will pay you the cash value on the automobile. This cash value will most likely be less than the retail value in which you still owe. Without Gap insurance, if your automobile is totaled you will still owe that gap between the cash value and the amount of your loan. Gap insurance will pay the difference between the two, which will ensure that you don’t pay for a vehicle you don’t own. Although you have Gap insurance you will still need auto insurance to protect yourself from accidents. Do your research on the correct insurance company for you. Most insurance companies will give you an estimate on what you will pay for it. Weigh out how much you want to pay for your deductible, and how much each insurance company will charge you. Saving money on gas is really tough with gas prices skyrocketing. To save money, plan your trips out. If you are picking the kids up from a school close to the bank, post office, or grocery store that you will need to make a trip to later, than do it in one trip. This will save you money by not driving back and forth. If you are in the market for a new car, consider the cost effectiveness of getting a better gas mileage vehicle. You may pay more for an eco friendly automobile, however in the long run you will save money in gas, which will only go up.