How can I save money for a car?

Question

I am a college student. I only have to pay about 400 a month for rent. I make about 1,000 a month at my serving job.

I have only been there for nine months, and I have made 10,000 dollars in tips....and I would really like to buy a new car within the next two years.

I know that I am just a college student, but I would like a better car so I don't worry. I need to stop spending so much money on stupid stuff.

Any advice?

Answer 1

First, you do realize that you have to claim those tips by law when it comes to tax time. I wouldn't go spending all that money, because you are going to owe the government. If they audit you and find out, you are facing felony federal charges, which are very serious. Try putting some money aside each month in a savings account. ING Orange has a 4.25% interest rate on their Savings Accounts.

Answer 2

Make savings the top line in your budget.
Consider it an expense. If you had a car you would have budget items for gas, insurance and repairs so just make the car line and fund a savings account.
Set up a transfer to the savings account automatically so you have make a decision to borrow from your car account.

Answer 3

Make a list of bills, needs( food, entertainment, supplies) and subtract that from your income and put away what you can until you have what you need. Skip the un-necessities.