5 Surprising Things This Millennial Did to Pay Off Her Car in 6 Months [Full Strategy Reveal]

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If you’re thinking about paying off your car early, you aren’t the only one.

And, it’s a great idea! A car payment is one of the biggest monthly expenses you’ll have.

It’s a great idea to work toward paying it off early so you can free up that income to save it, invest it, put toward another expense or purchase, etc.

So, how can you pay off your car early? How did this millennial pay off her car in 6 months?

Keep reading to find out!

How to Pay Off Your Car in 6 Months

This millennial owned a 4-year old SUV and had a car loan.

She was determined to pay it off and put together a plan to achieve that goal, which she did in under 3 months, eek!

Now, can YOU do this?

Yes!

You definitely can, but if it takes you longer, that’s totally cool too. Create a plan that fits your lifestyle best. Would it be worth it to live off ramen noodles for a year just to pay off your car early? For some yes, for some no. So, keep yourself in mind, don’t push yourself too hard and above all, keep your eye on the prize. Check out these 5 things this millennial did to pay off her car in 6 months…

• Crafting a debt pay down plan
• Earn extra money
• Saved a lot
• Enlisted lifestyle changes
• Lowered expenses

1. She Made a Plan

This might sound so cliche but you gotta start with a plan. This is so simple. You don’t need to type it out or create a fancy report, though you could if you wanted. Just put your ideas on paper, in your planner, cell phone, on a piece of printer paper, etc.

Write down…

• Your goal
• Your plan
• How you’ll execute
• How you will hold yourself accountable and track your results

For me, it was about checking in every month to see how much closer I was to my goal.

I did this by checking my balance online and reviewing my budget to make sure I wasn’t financially or emotionally suffering in other areas of my life, to reach this goal. And, I wasn’t so I kept trucking forward.

How to make your own debt pay-down plan?

To make a debt pay-down plan, you’ll need to do the following:

1. Gather all your debt information: Make a list of all your debts, including the creditor, current balance, and interest rate for each.
2. Rank your debts: Prioritize your debts from highest interest rate to lowest. This will help you save money on interest in the long run.
3. Determine a budget: Figure out how much money you have coming in each month and how much you spend on necessary expenses (such as rent, utilities, and food). Then, see how much money you have left over that you can put towards paying off your debts.
4. Make a plan: Use the extra money you have each month to make the minimum payments on all your debts. Then, focus on paying off the debt with the highest interest rate first, while still making the minimum payments on your other debts. As you pay off each debt, apply the money you were using to pay it off to your next highest interest rate debt. This is known as the “debt avalanche” method.
5. Stay on track: Review your plan regularly and make adjustments as needed. It’s important to stay focused and stay on track in order to become debt-free.

Remember, it’s also a good idea to try to cut back on unnecessary expenses and increase your income if possible, as this will give you more money to put towards paying off your debts.

2. She Made Extra Money

This is not a must but it definitely helps. Take up a side hustle. Use that extra money toward making a larger car payment to pay off your car loan faster. Here are some ideas:

• Start an online business
• Learn how to monetize your influence as a part-time content creator
• Build a full-time business on TikTok without showing your face
• Make $200/month taking online surveys (this one is a favorite)
• Try Online Panels which pay $40 to $400+ each all online
• Start an e-commerce store to make an extra $500/month with Shopify (I’ve done this over and over again with ease)
• Make $250/month helping out neighbors (doing things like dog walking, babysitting, landscaping, washing cars, etc.)
• Take up an online job (like copywriting, editing, graphic design, etc.)

There are a ton of ideas. Check out these 8 online jobs for college students. Psst…they’re great even if you’re not in college!

You can also look into writing for Medium and more money-making ideas.

What are some ways to make extra money?

There are many ways to make extra money, depending on your skills, interests, and resources. Here are a few ideas:

1. Sell items online: You can sell items that you no longer need on websites like eBay, Facebook Marketplace, and Poshmark.
2. Rent out your property: If you have a spare room, you can rent it out on Airbnb. If you have a driveway or garage, you can rent it out using websites like JustPark or YourParkingSpace.
3. Do odd jobs: You can use websites like TaskRabbit or Thumbtack to find odd jobs that people need help with, such as cleaning, moving, or handyman services.
4. Offer your services: If you have a particular skill or expertise, you can offer your services as a consultant or freelancer. This could be anything from writing and editing to graphic design or social media management.
5. Participate in paid surveys: You can sign up for websites that pay you to take surveys. While the pay is usually relatively small, it can be a simple way to make some extra money in your spare time.
6. Start a blog: If you enjoy writing and have a particular passion or subject that you know a lot about, you can start a blog and monetize it through ads, sponsored content, and affiliate marketing.
7. Sell handmade items: If you are crafty, you can sell handmade items on Etsy or at local craft fairs.
8. Rent out your car: If you have a car that you don’t use all the time, you can rent it out on Turo.
9. Do tasks for neighbors or friends: You can offer to do tasks for neighbors or friends, like lawn care or pet sitting.

3. She Saved Like a Crazy Person

Up your savings game to put that money toward your car loan debt.

Ideas:

• Try grocery pickup (this one WORKS!)
• Carpool
• Use one car instead of two for your family
• Move to a cheaper area
• Set a family budget
• Cut out Starbucks and fast food
• Try gas-saving apps like Gas Buddy
• Use coupon/deal sites like Rakuten which gives you deals (for free) on your online shopping

How to create your own plan to save money fast?

Here are some steps you can follow to create your own plan to save money fast:

1. Determine your financial goals: What do you want to save money for? Do you want to save for a down payment on a house, an emergency fund, retirement, or something else? Knowing your financial goals will help you focus your efforts and make it easier to stick to your plan.
2. Make a budget: In order to save money, you need to know where your money is going. Make a budget that tracks your income and expenses, so you can see where you can cut back.
3. Cut unnecessary expenses: Look for areas where you can cut back on your spending, such as dining out, entertainment, and subscriptions.
4. Increase your income: One of the best ways to save money is to increase your income. Consider taking on a side hustle or asking for a raise at work.
5. Automate your savings: Set up automatic transfers from your checking account to your savings account, so you can save money without thinking about it.
6. Find ways to save on bills: Look for ways to save on your monthly bills, such as by negotiating with your cable company or switching to a cheaper cell phone plan.
7. Consider a savings challenge: A savings challenge is a fun way to save money by setting aside a small amount of money each day or week. For example, you could save $1 on the first day of the month, $2 on the second day, and so on. By the end of the month, you’ll have saved $465.
8. Review your progress regularly: It’s important to track your progress and make adjustments as needed. Review your budget and savings plan regularly to see if you’re on track to meet your needs.

4. She Made Lifestyle Changes

Here are some examples:

• Cutting out fast food
• Eliminating pricey memberships (like gym, subscription boxes, etc.)
• Cutting back on expensive entertainment
• No vacation this year
• Lowering grocery bill by using cash-saving grocery apps (like Ibotta)

What are more examples of lifestyle changes to save money?

Lifestyle changes are a great way to save money because they often involve changing habits that can have a big impact on your budget. Here are a few examples of lifestyle changes that can help you save money:

1. Cooking at home: Dining out can be expensive, especially if you do it often. Cooking at home is generally cheaper, and it can also be healthier.
2. Reducing your energy consumption: You can save money on your utility bills by making simple changes, such as turning off lights when you leave a room and using energy-efficient appliances.
3. Walking or biking instead of driving: If you live close to work or other places you frequent, consider walking or biking instead of driving. This can save you money on gas and car maintenance.
4. Buying used instead of new: When shopping for items like clothes, furniture, and appliances, consider buying used instead of new. This can save you a lot of money, and it’s also good for the environment.
5. Canceling subscriptions: If you have subscriptions that you don’t use or don’t value, consider canceling them. This could be anything from a streaming service to a gym membership.
6. Negotiating bills: Don’t be afraid to negotiate your bills, such as your cable or cell phone bill. You may be able to get a lower rate by simply asking.
7. Reducing your credit card balances: Credit card interest can add up quickly, so it’s important to pay off your balances as much as possible. Consider transferring your balances to a card with a lower interest rate or consolidating your debt with a personal loan.
8. Making your own cleaning and personal care products: You can save money by making your own cleaning and personal care products, such as laundry detergent, soap, and toothpaste. These items are often cheaper and healthier when made at home.

5. She Reduced Expenses

Like #4, reducing expenses is a big part of lifestyle change. Try using cashback sites to get a little money back off your purchases.

You can also do things like reduce your spending, join a personal finance app like Mint to track how you spend money, cook at home, and other habits to lower your everyday expenses.

What are some ways to reduce expenses?

There are many ways to reduce expenses and save money. Here are a few ideas:

1. Make a budget: The first step to reducing expenses is to know where your money is going. Make a budget that tracks your income and expenses, so you can see where you can cut back.
2. Cut unnecessary expenses: Look for areas where you can cut back on your spending, such as dining out, entertainment, and subscriptions.
3. Shop around for the best prices: Don’t be afraid to shop around and negotiate for the best prices on things you need to buy. You can also use coupons and take advantage of sales to save money.
4. Consider your needs versus wants: When making a purchase, ask yourself if it is something you truly need or if it is a want. This can help you prioritize your spending and avoid unnecessary expenses.
5. Negotiate your bills: Don’t be afraid to negotiate your bills, such as your cable or cell phone bill. You may be able to get a lower rate by simply asking.
6. Switch to a cheaper cell phone plan: If you’re paying a lot for your cell phone plan, consider switching to a cheaper one. There are many options available, so shop around and compare prices.
7. Downsize your living situation: If you’re paying a lot in rent or mortgage payments, consider downsizing to a smaller place or moving to a cheaper area.
8. Cancel unnecessary subscriptions: If you have subscriptions that you don’t use or don’t value, consider canceling them. This could be anything from a streaming service to a gym membership.

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