One way you can save more money, without increasing your budget, is to keep on making your car payment, even after it is paid off. You already have it figured into your monthly budget, so just keep paying it. When your auto loan is paid off, simply open an online savings account (you’ll get a higher APY), and start putting that money into savings. Think about how much money you can make when interest is on your side, not working against you. So, while you should be setting aside money for savings as it is, you can increase your savings when your car is paid off simply by putting your car payment amount into a savings account.
Areas of Expertise: Personal Finance
Miranda is a financial journalist. Her work has appeared in a number of publications, online and off, and been mentioned by the Wall Street Journal, USA Today, NPR, and Consumerist. Miranda is a contributor to U.S. News & World Report, and writes at the blog Planting Money Seeds. She is also a panelist for the Money Mastermind Show, and the Money Tree Investing Podcast.