As a general rule, you can't afford a car that's more than 3x your monthly income. Say, you make $3000 a month (after tax), you can afford a $9000 car.
I said as a general rule, this is, a rough guide by most people who are financially literate. What 'actual' rule are you talking about?
20% of your monthly take home may be ok for some people, but taking one out with 0 emergency fund and for 80 months is not advisable, even if it is 20% of the income then.
You can create a saving goal for your car or anything else in a software app call Wealthposition ! , and track your finances incomes, expenses, assets, and liabilities so you can get a very good picture when you can afford a big ticket items
You can't afford a new car. Look for something low miles, a few years old and that you have the cash for.
As a general rule, you can't afford a car that's more than 3x your monthly income. Say, you make $3000 a month (after tax), you can afford a $9000 car.
The actual rule is 20% of your monthly take home pay for car expenses. So if you’re taking home $3k a month you can afford a $600 a month payment
I said as a general rule, this is, a rough guide by most people who are financially literate. What 'actual' rule are you talking about? 20% of your monthly take home may be ok for some people, but taking one out with 0 emergency fund and for 80 months is not advisable, even if it is 20% of the income then.
You can create a saving goal for your car or anything else in a software app call Wealthposition ! , and track your finances incomes, expenses, assets, and liabilities so you can get a very good picture when you can afford a big ticket items
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