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Tip 1

Save - Start on the right path by learning how to spend less than you make.
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Tip 2

Pay Yourself First - take an amount out of each paycheck and put it in a savings account.
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Tip 3

Big Purchases - save the money first to avoid credit card debt.
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Cars: New vs. Used

Brand New or Used

I have heard a lot of people say that for your first car you should buy used because you're new to full time driving and you're going to get in an accident.

I feel there is some valid backing to this claim, but financially, I think you have to look at the bigger picture and be a safe driver.

I was going to buy a used car from a friend. It was a '96 in decent condition I was told and only $1200. However appealing the price was I had to think about what else I had to pay for. I had to cover additional maintenance (which for an older car can build up), registration, plates, stickers, and parking (on a monthly basis). When I calculated out the numbers I realized I would probably be better off saving up and placing a larger down payment on a new car to minimize monthly payments than I was paying for everything with the used car and having the added worry of how long will this car last.

Here's an article that compares the benefits of buying new and used: Advantages of Buying a New or Used Vehicle.

Also, try reading this "Buy a new car or a used car?" For some help on what to do if you decide used and how to get the best bang for your buck.

There's no denying that buying used is significantly cheaper initially but in the long run it may end up costing you more. So if going used take the extra time to make sure you are getting what you want and that who is selling it to you is not trying to get over you. Be cautious!

There's also a time factor, shopping for a new car is usually less time consuming than shopping for a used car and there's less to worry about. But to each their own, just know your facts!