The average monthly loan payment for a new vehicle hit an all-time high of $523 in 2018.
The good news is, "vehicle spending is far and away the easiest category to control," says "The Money Wizard." He drove a 13-year-old pickup truck before upgrading to a Mazda 3, which he bought for $13,000 in cash — which means he doesn't make any car payments. "Taking a reasonable approach towards the new car upgrade is key."
You can also save on gas by carpooling with co-workers or neighbors. And if you live in an area where public transportation is an option, consider using it at least a few days a week. While you may not save time, chances are you'll save money.
Finally, if you live within a few miles of your office, consider investing in a commuter bike, which could easily pay for itself in less than one month. Trent Hamm, author of "The Simple Dollar," estimates that you could save nearly $6,000 a year by leaving your car in the garage and riding to work. Plus, your commute would double as a workout.
This is an update of a previously published story.
Millennial who saved up to $3,400 a month to get out of debt says this mentality helped her spend less
Like this story? Subscribe to CNBC Make It on YouTube!