How To Save Money For A Motorcycle
Increasingly, people are interested in purchasing motorcycles as a fun and cost-effective mode of transportation. But even though new and used bikes are less expensive than cars, it can be daunting to save enough to buy one and maintain motorcycle insurance. Here are some tips to save money for a motorcycle.
Adjust Your Spending Methods
Before you can save money, you need to know how much you spend and what you spend it on. To do this, you need to record every penny you spend and what category you spend it on. Categories can be broad or very specific — but the more specific you are, the more likely you are to succeed. For example, one broad category can be food, but if you make it more specific (such as lunch out, coffee from a shop with baristas and groceries), you can target opportunities to save.
Let’s say you spend $15 a week on coffee from a fancy coffee shop. By going somewhere without the bells and whistles (or making coffee at home), you can easily cut that cost down to about $5 and still get a large coffee. Decisions like these can help you save money to invest in a new bike.
Make a Budget
Once you know your spending habits, make a budget that includes a category for motorcycle savings. When you set your savings goals, you are more likely to make your target amount. By cutting back on bloated expenses — such as coffee served by a fancy barista — you can help yourself reach the goals set in your budget faster.
Establish a Savings Account
The most secure way to store the money you save is by using an FDIC-insured deposit account. These include:
- An easily accessible regular savings account
- A high-yield savings account that often pays a higher rate than a regular savings account
- A bank money market savings account (these accounts have variable interest rates)
- A fixed interest certificate of deposit (the bank holds your money at a specified interest rate over a specific time)
Set up automatic transfers from your checking account to your savings account. This makes saving money easier, since it happens automatically.
Follow these tips and watch your money grow. Even after you save enough to buy a motorcycle, continue your good financial habits to keep up with motorcycle maintenance and insurance premiums.
Don’t forget the right coverage. Call Miller Insurance Agency at (409) 899-9531 for more information on Beaumont TX motorcycle insurance.