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’re buying a new car that you finance, you have to pay full price and then some (because of interest).Being a new car, you have to pay for the full insurance coverage.  You still have to pay for maintainence as well.  This all adds up quickly.

Let us compare this with something like a used car under $1000.  You’ve just spent less than a grand on the car, which is thousands and thousands less than anything new.  Even if you spend $5000 you’re still coming out way ahead.

The cost for insurance is much lower.Driving an older car also saves you money on insurance. You now need only pay for the minimum coverage required by your state.

Now, you might be thinking that going for a car this cheap is silly since it will break all the time.It doesn’t have to be this way.  I like to go for reliable imports such as a used Subaru.Many of these cars will run well into the six figure mileage ranges.

The best way to find old cars like this is to check used car listings, which will many different vehicle options to choose from.  Just be very careful to check into the background of the car before you go ahead and buy it.

You will be surprised how much money you can save by simply being willing to drive a clunker.By driving a clunker, you have much more money left month to month while still being able to get around just as well.  Give some thought to it, you just might make the best financial decision of your life.