Saturday, April 16, 2022

Figuring Out a Monthly Budget? Car Expenses to Account For

Manage your money well, and you’ll wonder how you ever lived without a budget. Your spending will dictate how much money you have leftover for emergencies, savings, and discretionary fun.

A monthly budget is a great way to help you stay on track and focused on your financial goals. It’s an essential tool for anyone who wants to keep tabs on their money and make smart financial decisions. 

Following a budget will help you stay on track and help you feel accountable for your spending. It’ll also help you avoid making money-eating mistakes and set realistic spending limits. 

This article will go into depth about car expenses to make sure you include them in your monthly budget.

Petrol and Diesel

The average person will spend $2,783 on petrol and diesel each year. This equates to $8.67 per gallon of petrol and $4.39 per liter of diesel. 

However, this doesn’t consider taxes, fees, or additional costs associated with operating a car. If you’re a higher-end driver, you may spend even more. To put this in context, the average car in the U.S. costs $30,000. 

That means, on average, you’re spending about $4,000 more per year on petrol and diesel compared to the price in your own country.

Insurance and Registration

The average person will spend $1,919 on car insurance every month. This equates to $8.62 per gallon of petrol and $3.25 per liter of diesel. What’s more, this exceeds the price of car maintenance by far. 

You could easily pay $1,000 or more for the privilege of driving your car. If you need to take someone to court, their car insurance will likely cost you more than your monthly budget.

Brake, Tire, and Servicing Expenses

These are the majority of the costs associated with maintaining a car. Break these down, and you’ve still got yourself a healthy monthly budget

For example: brakes cost $84, tires require $96, tire recommended $40, servicing fees $36, tire replacements $36, brake maintenance $318, etc.

Now that you’ve got a better understanding of how your monthly budget works, it’s time to take action. Make a plan and stick to it. Make small adjustments each month, and you’ll see results. 

There are many ways to go about this. You could look at your monthly expenses as a percentage of your income or look at them as a dollar amount. Whatever way you look at it, you can still make it work.

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