This article may contain links from our partners.
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…
1. She Made a Plan
This might sound so gimmicky 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.
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:
- 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!
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
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)
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.
Recommended Reading
- 35+ Entry-Level Remote Jobs No Work Experience Required
- 7 Pandemic Proof Businesses No Money Required
- 5 Legit Free Money Hacks
Recommended Resources to Increase Your Income and Save Money
Credit Firm
Respondent
Rakuten
Acorns
Chime
