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A place for Get Rich Slowly readers to ask questions
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It is currently Thu Apr 24, 2014 7:33 pm




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 Post subject: How to save cash for next car
PostPosted: Sat Jan 19, 2013 11:48 am 

Joined: Sat Jan 19, 2013 11:40 am
Posts: 1
Settling the balance on my vehicle in a couple of months and I will save the 510$ payment.

I plan to buy my next vehicle in cash. No more interest payments for this family.

I plan to save the payments I was previously making until we are ready to purchase our next vehicle. Will not be any earlier than 4 years from savings start date.

Where is the smartest place to save/invest those payments? Low to moderate risk. CD's, savings account, money market, etc?

Thanks!


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 Post subject: Re: How to save cash for next car
PostPosted: Sat Jan 19, 2013 2:20 pm 
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Joined: Wed Sep 23, 2009 9:01 am
Posts: 5217
Money market account. A CD is safe enough but generally does not work when you are adding money every month. If you find one that allows that then it would be ok as well


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 Post subject: Re: How to save cash for next car
PostPosted: Tue Jan 22, 2013 9:56 am 

Joined: Fri Sep 12, 2008 12:29 pm
Posts: 1562
Location: Seattle, WA
You could also do something like, save in a MMA for 6 months and then buy a CD. But another downside is that a CD plan depends on how well you know in advance the timing of buying the future car.

Also, nowadays you don't get a whole lot of extra interest from a CD.

I just saved mine in a money market account.


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 Post subject: Re: How to save cash for next car
PostPosted: Mon Jan 28, 2013 12:45 pm 

Joined: Fri Jan 18, 2013 7:21 am
Posts: 95
Location: New York
Both a money market account and a savings account would be liquid enough for your purposes. That said, Barclays' 1.0% money market account is the highest I've seen out there...

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 Post subject: Re: How to save cash for next car
PostPosted: Wed Feb 06, 2013 8:07 am 

Joined: Fri Jun 25, 2010 3:06 pm
Posts: 81
What I did was invest in a CD up front. Additional funds after that went to a money market account. When the CD matured, that went into the money market account. When I was ready to buy the car, I transferred funds from the MMA into Checking and wrote a check.


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