Living in the United States and getting around the cities sometimes requires a car. If you do not have a car and are thinking about getting one, you may find yourself in financial trouble. This situation is even more serious if you have no savings and only receive Social Security benefits. In this case, there are many different factors and situations to take into account.
Therefore, it is possible to save money and buy a car while receiving only the Social Security pension, but you should be aware that it will not be easy. In this sense, you have to be very smart and squeeze the most out of your money. To do this, we are going to give you a few tips that you can put into practice to save and buy a car collecting only the Social Security.
Saving with the Social Security benefit
Within the options for saving by collecting Social Security, there are many tips that we can follow. These tips will lead us to have enough money to buy a car in a short period of time.
Control your bills
A large part of the money that comes into a house can be spent on bills. If you have a lot of services contracted at home you may need to do without some of them. Cable TV services, streaming platforms or the like. All of these contracts cost a lot of money per month. To save and buy a car, it is a good idea for you to stick with the essentials and control the expenses on your bills very well.
Cook your own food
In order to save money at home and buy a car, another great money saver is to cook at home. Ordering food from home or going to a restaurant can be very convenient, but it is always more expensive. If you cook your own food, you will be much closer to buying a car with just your Social Security money. You’ll also be eating healthier, so your health will thank you for it.
Save a percentage of your Social Security
Every month you will receive your Social Security check. On the day you receive it, you should save part of that check directly. The final percentage will depend on how much you earn from your retirement benefit and what your fixed expenses are. In general, you have to manage to live well on a day-to-day basis, but without too much excess.
New or used car?
This question is fundamental to be able to buy a car with the Social Security benefit. The advantages of a new car are that it will not need repairs, but it will be more expensive. In addition, many retired people are not allowed to buy a new car with financing, so it is difficult for banks to help us in this regard. We have to save a lot of time to be able to pay for it at once.
Therefore, a used car may be the best option. Used cars have much lower prices, although sometimes they have the disadvantage that they may need repairs in the future. However, if you are thinking of buying a car with your Social Security pension, a used car may be the best option.