My soon to be wife and myself will be making about 1500 dollars a month. Our apartment will be 395 (everything included) Right now my car is paid off and she owes 1000 dollars on it. we have a baby due in April. Will we make it ok, can we afford a car loan so she can get a nicer car?
2006-10-06 05:41:19 · 7 answers · asked by David S 2 in Business & Finance ➔ Personal Finance
You make 18k a year...and go to school...and have a wedding to plan and pay for...and have a baby on the way...be honest with yourself, upgrading your cars should be the the last thing you think about doing. Drive that thing until it dies. Then jump it and keep driving it.
2006-10-06 06:50:30 · answer #1 · answered by J O 3 · 0⤊ 0⤋
These are the key ratios to keep in mind:
1/ Housing ratio - i.e. the cost of housing either as a mortagage or rent should not exceed 28% of your gross income. At $395 p/mo, your housing ratio is 26.3% which is good.
2/ Debt to income ratio i.e. your overral cost of living i.e. housing, term loans including auto, other real estate mortgages and revolving debt (e.g credit cards) should not exceed 40% of your gross income.
If you can hold constant these 2 key ratios, and maintain a credit score of over 660+, you will always be a good candiadte for debt financing and lower interest rates.
2006-10-06 12:58:52 · answer #2 · answered by boston857 5 · 0⤊ 0⤋
I'd suggest waiting until after the baby is born. Kids are expensive from day 1--things you never thought of come up, and it'd be a shame to introduce a money problem. There's formula, diapers, daycare, clothes (that will change every couple months), and on the list goes. Then there's the wedding, which is another huge expense.
2006-10-06 12:47:27 · answer #3 · answered by Dwight D J 5 · 1⤊ 0⤋
More than likely you will be able to make it. A baby is a very big responsibility an very expensive. Positive advice:Don't count your chickens before they are hatched, and get on a very tight budget for a couple of months. Make sure you always keep a little nest egg tucked away.
2006-10-06 12:48:32 · answer #4 · answered by Nada 1 · 0⤊ 0⤋
One word (or acronym) FASFA! fill out the forms, you'll qualify for a lot of grants and good loans especially when you're married an no longer considered dependents on your parents.
Congrats on the new family you are making!
2006-10-06 13:19:42 · answer #5 · answered by daisyk 6 · 0⤊ 0⤋
you're going to be newlyweds with a new child. save ALL of your money. your kid is going to need it. Don't get further into debt. seek the guidence of a financial expert and start making a college fund.
2006-10-06 12:49:28 · answer #6 · answered by Chit P 4 · 0⤊ 0⤋
You'll make it. With a baby you should probably get a mini van or SUV
2006-10-06 12:44:58 · answer #7 · answered by Anonymous · 0⤊ 0⤋