I make 55k a year. My mortgage is $800/month and I have two credit cards of which i pay $100/month.
Other than utilities and food, that is pretty much it. However, I am bad at managing my finances (I%26#039;m trying to change though). I need a new car and I have one picked out at $500/month. Is this too much? Or should I be okay with it?
Can I afford this car with my income? Do the math. For example,
Annual Earnings 55000
ALL Taxes: 15000
Mtge: 9600
CreditCards 2400
Essentials 8000(Food, util, Ins etc)
Travel 1500
NEW CAR 6000
Gas 2400
CarMaintenance 2000
Entertainment 1500
TOTAL 48,400
SAVINGS55,000 - 48,400 = $6600
This is a rough estimate. If you buy the car and the above is correct, then you will be saving around $7K per year.
If you DONT buy the car, you can pay off your credit cards sooner and start saving, then buy the car with cash to avoid interest.
Only YOU can determine if the above is correct. Did I miss any major expense categories? Factor it in and do the analysis yourself to get a better idea.
Yes, you can probably afford it, but you cant save much at the end of the day.
My final advice: If I were you, I wd focus on paying off my CCs first, and getting a car later.
All numbers above are yearly/annual figures.
GOOD LUCK!!
PS: What happens if you get laid off? Do you have an emergency fund saved up for 6-12 months of living expense?
Can I afford this car with my income? Until you completely pay off the credit cards I would not make any large purchase.
鉁?br>Can I afford this car with my income?
You should be okay - your mortgage rounding up will be 10k, your car will be a little less than 10k, credit cards, gas, bills, all together should be around 10k...you should be fine
Edit: If you have a credit card bill that%26#039;s racked up, I agree with the other answers here. However, if you%26#039;re just paying 100 /month for your credit card purchases within that month (you don%26#039;t have any debts besides from that month), you should be fine...
Can I afford this car with my income? You%26#039;d be better off getting a cheaper car and pay the extra to get your credit cards paid off! Don%26#039;t forget to add your insurance to your payment, it will be higher on a new car!!! You make over twice what we do and we don%26#039;t have credit card bills!!!
Can I afford this car with my income? no new car - you get higher insurance 500 a month and how much insurance ? possible 300 a month making the same as your house .Get a old at 1/3 to 1/2 the price better deal
Can I afford this car with my income? you have to include insurance and upkeep, higher gas prices,utilities and food prices. don%26#039;t be car poor
Can I afford this car with my income? i would hold off until i had the credit card debt down and had a rainy day fund build up -- you will be living payday to payday and that is very bad way to be!!!
Can I afford this car with my income? Yes, it is to much. If you want a new car, get a cheap, reliable sedan that will be cheap to insure and last you 10 years. Remember, when you%26#039;re in your casket, nobody is really going to remember what kind of car you drove (unless you died wrapping your car around a tree or something stupid like that).
When you are completely solvent (minus your mortgage), then you might want to look at buying a new car. However, cars are the absolute worst big-ticket investments we make. You%26#039;re much better-off investing in your home or education.
Bad at managing your finances? Make a budget and withdraw your spending cash at the beginning of each week (or month). Leave all the credit and debit cards at home in a drawer. Don%26#039;t forget that at least 10% of your paycheck should go into an interest-bearing savings account to pay for emergencies or even a small vacation when you hit a pre-defined savings goal (like a $2000 vacation when your account gets to $12000).
Can I afford this car with my income? Look at a less expensive car and invest the difference. If you are really serious about managing your money and learning a way to buy a car with no payment at all, check out this guys website: www.daveramsey.com. My wife and I are on his Financial Peace University program and it has truly changed our thinking and our lives.
Can I afford this car with my income? Better option - keep driving your old clunker for another year. But save $500/mo. for that year.
It%26#039;ll achieve 2 things
1) you%26#039;ll know whether or not you can afford to pour $500/mo. into a depreciating asset like a car
2) you%26#039;ll have $6000 in the bank that you can go out and buy a good used Honda civic for cash and then have $0 monthly payments.
Read Dave Ramsey%26#039;s Total Money Makeover - it%26#039;ll change your life! Good luck!
Can I afford this car with my income? You need to sit down and figure out all your monthly expenses and determine if you can afford an extra $500/month. But, you should figure in the cost of gas and oil changes and the like because it%26#039;s going to come to more than $500/month.
Can I afford this car with my income? Question: Do you *need* a new car, or do you *want* a new car?
If you do not own a working car and you absolutely need one (in order to get to work for example), you can buy an inexpensive used car.
If you don%26#039;t need a new car right now, save the $500 per month you were going to pay for your car payment. At the end of a year, you%26#039;ll have $6,000 (plus interest). Take that money and put it down on an inexpensive used car. Finance the rest (which should be no more than $6,000). Get a loan without a prepayment penalty, and pay $500 a month until it%26#039;s paid off.
You should drive this car for as long as possible and save the $500 per month once the car is paid off. When you%26#039;ve driven this car into the ground, you%26#039;ll have a nice bit of savings to put toward your next car. If you do this, you%26#039;ll be able to afford a more expensive car at that time (which is still a waste of money if you ask me), but at least you%26#039;ll be able to afford the waste if you so choose.
