Look through newspapers and visit car dealerships to see what type of car you want and how much you will need to save. Saving $5,000 is very different from saving $20,000. Knowing how much money you need will help you create goals.
Cut back on gas consumption by carpooling. If you know someone you work with that lives close and ask if they would be interested in carpooling. In fact, share a ride with your spouse and eliminate half of your weekly gas expenses.
Bring your lunch to school or work. Another easy way to stash some extra cash is to always bring food and drinks to work with you. The less you head off to the vending machine or nearest fast food restaurant, the better. The cash you save from bringing lunch and carpooling should go into a special savings account.
Put away a designated amount of money per month into a savings account specifically for your car fund. Treat this as a car payment to yourself. You are the lender and you need to pay yourself $100, $200 or however much you can afford each month. Place this money into your special savings account and it will quickly grow. After only a year or two you will have a substantial amount for a car or even a down payment.
Keep your current car clean and in good working order. You want to maximize the amount of money you get for your current car. Give it regular washes, especially if you live in an area that has a snowy winter. The salt that is sprayed on the roads is devastating to car paint. Also make sure you have regular tune-ups to avoid engine problems in the future.