Budget tips

A car is not an investment.  It's (usually) a necessary purchase to make one's life easier.  It's also one of the most expensive purchases people typically make.  Since cars decrease in value so quickly, going into debt to buy a car is usually not a good idea.  Paying cash for a car isn't that difficult, it just takes some planning.  After you have paid off the car loan for your current vehicle, keep making that car payment, only make it to yourself.  You already have your budget worked out so you can afford the car payment, so just stick it into a savings account and organize it into an envelope in NeoBudget.  After four years (assuming you had a 4-year loan before), you will likely have enough to purchase a new vehicle with cash.  Actually, you will have a lot more than that because you'll be keeping the interest you were paying on your previous vehicle loan.

Buying a brand new vehicle is not always the best option.  The only way this could be financially the best option is if you buy a brand new vehicle and keep it until it dies (say, 15 or 20 years).  Typically, a new vehicle will lose about half of its value after you drive it off the lot.  Why not let someone else do that, and buy a vehicle that is three or four years old?  You need to be careful when buying a used car, though.  Do your research.  Consumer Reports puts out a great publication (and a great online website) that reviews various cars.  Carfax.com is a great place to look up the history of a vehicle before you buy.  And finally, kbb.com (Kelly Blue Book) is a great website to help you find the actual value of a car, so you know you're not getting ripped off.