How Much Car Can I Afford Dave Ramsey


How much should I spend on a car if I make $80000?

The frugal rule: 10% of income

For many people, I think that will be between 10–15% of your income. So if you earn $25,000 a year, that's going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that's a used car for around $10,000 or $12,000. via

How much car can I afford on my salary?

The rule of thumb among many car-buying experts dictates that your car payment should total no more than 15% of your monthly net income, sometimes called your take-home pay (some might stretch this to 20%, but 15% is more conservative and therefore likely to make budgeting even easier). via

How much should you make to buy a 50k car?

On a $50,000 salary, it is recommended you don't spend more than $5,000 (10%) on a car. Dave Ramsey recommends spending no more than half your gross annual income ($50k) on a new car. However, the cost of a car really includes purchase price, opportunity cost of investments, or loan interest. via

What car can I afford with 50k salary?

Dave Ramsey takes a balance sheet approach. Rather than looking at monthly transportation costs, Dave recommends buying cars that cost no more than 50% of your annual income. So if you make $50,000 a year, you should not spend more than $25,000 for a car(s). via

What does Dave Ramsey say about buying a car?

As a general rule of thumb, the total value of your vehicles (anything with a motor in it) should never be more than half of your annual household income. Dave doesn't recommend buying a new car—ever—until your net worth is more than $1 million. via

How much should I spend on a car if I make 75000?

If you make $75,000 per year, your total loan payments shouldn't exceed $2,250 per month. The 20/4/10 rule: Put down 20% on a car, finance the car for no more than 4 years, and keep your car payment less than or equal to 10% of your salary. via

How much is a monthly payment on a 30000 car?

A $30,000 car, roughly $600 a month. via

Is a 70000 salary good?

That equates to an annual median salary of $45,812. A median salary is the midpoint in a list of salaries, where half earn more and half earn less. An income of $70,000 surpasses both the median incomes for individuals and for households. By that standard, $70,000 is a good salary. via

What car can I afford on 60k salary?

How Much Should I Spend on a Car If I Make $60,000 a Year? You should spend no more than half of your yearly salary on a car, so if you make $60,000 dollars per year, you should buy a car that costs $30,000 or less. via

What does a 50K salary get you?

As previously mentioned, a 50k salary is roughly $3,498 per month take home pay, not counting additional expenses. You'll need to figure out your specific income situation, such as pre and post tax deductions or if you're paid biweekly. via

Is 50K a year good salary?

Is $50K a Good Salary? Let's look at the facts: In the United States, the median household income is $57,617, which often includes multiple household members' incomes as well as side gigs. So if you're asking, “Is $50,000 a year a good salary?” in comparison to other Americans, the answer is yes. via

How much should I spend on a car vs income?

You need a simple, functional car for 10-15% of what you earn. If you view a car as more of a functional tool than a lifestyle item or a status symbol, it's best to budget about 10 to 15 per cent of your annual income. via

What is a reasonable car payment?

Many financial experts recommend keeping total car costs below 15% to 20% of your take-home pay. For example, if your monthly paycheck is $3,000, your car payment would be about $300 and you'd plan on spending another $150 on automotive expenses. via

What does Dave Ramsey say about buying a home?

Okay, now make sure to limit your housing payment to no more than 25% of your monthly take-home pay—otherwise you'd be house poor! That 25% limit includes principal, interest, property taxes, homeowner's insurance and, if your down payment is lower than 20%, private mortgage insurance (PMI). via

What does Dave Ramsey recommend for car insurance?

Dave Ramsey recommends a $1,000 deductible for auto insurance. He also recommends $500,000 worth of coverage, more if your net worth is greater. According to Dave Ramsey, people should insure for what could financially devastate them, rather than what inconveniences them. via

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