I'm planning to buy my very first car, preferably a new one. I'm in a bind right now as I also need to save for unexpected emergencies, marriage & retirement. please provide extra details to help me deal with this thing. thank you very much!
2006-12-22 14:01:37 · 3 answers · asked by skylinezan 2 in Cars & Transportation ➔ Buying & Selling
Housing costs -- mortgage or rent -- should not exceed 28% of gross pay. Total debt service -- housing, car loan, credit cards, all other loans, etc. -- should not exceed 35% of gross pay.
Those are the maximum amounts. You should aim about 25% BELOW those limits or about 20% and 25% respectively.
So, if your gross monthly income is $2,000, your housing should be LESS than $560 and total debt should be LESS than $700. If you had no other debt, that would leave you with $140 for a car payment if your housing were at $560.
Do the math and plan accordingly.
Wealth tip: Salt away 10% of EVERY paycheck. Pay yourself FIRST and then budget everything else around what's left. You'll retire comfortably and will be able to weather pretty much any financial storm along the way.
2006-12-23 02:15:33 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
1
2016-09-26 14:51:14 · answer #2 · answered by Rosalyn 3 · 0⤊ 0⤋
You do NOT need a new car. Go to www.daveramsey.com as soon as possible.
2006-12-22 14:05:15 · answer #3 · answered by Anonymous · 0⤊ 2⤋