SavingHoping to buy a new car in 2023. Seeking advice on making my money work or grow safe. (self.personalfinance)

submitted 6 years ago * by monkey616​

Hello everyone. First time posting here. I'm hoping to get some advice in regards to saving up for a car. As the title says, my aim is to buy a new car in 2023. I currently have a solid 2008 F-150 that continues to chug along, but I figure the time is coming soon for an upgrade.

My goal is to save as much as I can in order to use it as a nice, chunky down payment. My current aim is that it'll be a $50k vehicle. I don't know what kind of vehicle I'll get, but I know it'll be something close to $50k. My current job is healthy and allows me to pay my bills on time (barring unforeseen emergencies of course). My splurge is collectibles that can include comic books, Funko POPs, poster prints (like Mondo), action figures, etc. I use a spreadsheet to keep track of my collectible expenses (because I don't want to fall down a hole of debt for "buying toys"), and, at the risk of raising some eyebrows, I currently average about $300/month on these purchases. Starting in January 2020, my plan is to put a stop to this and place those extra funds in saving mode. However, my dilemma is where to put that money. I can't decide whether to put it in the bank or in some market where it could potentially earn me some returns.

Here are some options I have thought of so far:

• Put it in my bank's savings account (it is not a credit union bank in case that helps with the advice).

• Open up a new account with a credit union and place the money in there.

• Put it in Acorns. I currently have a small Acorns account that has the Round-Up feature turned on. The portfolio is currently set to Aggressive.

• Create a Robinhood account (I currently don't have one). I'm not familiar with Robinhood though.

I suppose my question boils down to, should I let my money be still and relatively safe, or should I be risky and try to make it work for me? I understand 2 of my options sound risky (maybe even naive), but this is why I'm posting here.

Also, as 2023 gets closer, I plan to liquidate my collectibles to get a small extra oomph, so to speak. All advice is appreciated. Thank you all for your time.

Edit: Here's my financial summary for more information/clarity:

Currently at $40k/year.

• Rent is $1200/month (split with roommate, so I pay $600)

• Utilies have never been more than $100 (I pay max $50/month after splitting it)

• Internet is also split, so I pay $50/month

• Student loans are $150/month

• Groceries are $100/week (I include eating out because I don't cook)

• Cell phone is $100/month (I pay my family's 4 lines on Cricket)

• Entertainment/streaming services is about $50/month

• Car insurance is $30/month (no car payment because I bought it used)

• Renter's insurance is $25/month

Edit 2: Thank you all for the quick responses. I will take them into account, especially lowering my initial goal to something more comfortable for my price range. You've been an enormous help.

(http://www.autoadmit.com/thread.php?thread_id=5882139&forum_id=2,#49995103)