Posted on: Jan. 17, 2017 in Car Loans, Credit, Debt

If you’re the type of person who says they can never manage a car payment, then this is for you!


For some, budgeting is a bad word. It equates to restriction and deprivation. It means no more fun while you watch all your pennies go to bills. But that doesn’t have to be true. In fact, setting up a budget can be the answer to some cash flow issues and can help you meet your needs.

When you first start budgeting, you’ll need to determine where your money is going. Start by making a list of all your expenses and categorize them as essential (things like housing, groceries, and the electric bill) and non-essential (take out or entertainment).

If you’re not sure where your money is going, track it for a month to see. Bring a little note book with you to jot down expenses or use an app on your phone. By recording every penny, you can get a better idea of how you spend.

Next, look at your income. This may be as simple as noting your weekly paycheck. For some, this is harder, maybe because you’re a freelancer, a performer, or you work irregular shifts. You may need to take the average over a month. If you sometime work overtime or side jobs, don’t count that with your regular income if it’s not steady. This way, you have a more realistic look at what you can expect to have coming in.

Finally, subtract your essentials from your monthly income, then subtract the non-essentials. If you still have money left over, that’s great! If not, you may need to trim some expenses. Essentially, you want to make sure you’re not spending more than you earn.

But let’s say, after all this, you do have some extra dollars just hanging around. Or, you find that you’re spending way more than you thought on some non-essentials and you’re ready to streamline. How does this help you get a new car? Very simple: You now know exactly how much you have available to spend on a monthly payment!

If you’re coming up short and just don’t have the wiggle room, or you don’t have any non-essentials left to cut, a budget can help you identify how much more you need to bring in. While it can be very hard to take this honest look at your finances, knowing exactly where you stand can put you on the path to fixing things. It can give you the push to look for a new job, downsize your living arrangement, or sell some items you no longer need.

No matter how you slice it, having a framework for how you spend your money is the first step on a path to financial security.

If you need auto financing but your credit is keeping you from getting approved, CreditYes can help! We can match you with a dealership in your area that will be with you every step of the way. Our service is fast and free. Fill out our secure online application and get behind the wheel of your next car today!