The key to making big savings is to cut back on the biggest expenses. For many people, one such large expense is their car. Not many people truly understand the expense of owning a car.

Let’s look at how this works.If you must finance your new car, you’re paying even more in interest. You also have to pay for full insurance on the car, which isn’t cheap for a brand new car. You still have to pay for maintainence as well. This all adds up quickly.

Compare all this with something such as a sub $1000 used car. You’ve spent many thousands less than a new car, and you have no interest payments either.Even if you drop five grand you still are way ahead of the game.

You insurance is now much cheaper. Since your car is so cheap, you only need the minimum level of insurance required by your state law, which will save you money every month.

This might not seem like the best plan to many of you since it seems like an old car like this would break down constantly. This doesn’t have to be the case. In order to get the most reliable car for my money, I prefer to go with older imports such as a used Toyota. These are very reliable, lasting hundredes of thousands of miles.

To find old cars, look through used car listings and auctions, which will yield you a large selection to choose from.Be sure that you investigate the background of any car you’re looking at before you pull the trigger.

If you are willing to drive an old, beat up car, you will be shocked at how much money you can save. Driving an old, cheap car really helps free up your budget while still fufilling the basic task of getting you from place to place. Give some thought to it, you just might make the best financial decision of your life.