if my salary is 3700 a month how much should I spend a month on a car payment

March 31, 2008

Posted by inthemoney

( 1 rating )

You should consider that taxes add up to almost half of your earned income and that leave you with your net income, which is your standard of living.

When it comes to financial decisions, most people tend to make it with a focus on one particular area. For example when they look to put money away for children's education they look for a good college savings vehicle. When they are buying a house they look for a low-rate mortgage that they can afford the monthly payments on. When they buy things on payment plans they look at their monthly cash flow to see if they can afford it.

Here is an analogy: What happens when you throw a pebble in the pond? It creates a ripple and that ripple effects everything that it touches. The impact of the ripple is either positive or negative.
Without looking at your whole financial world, this question is difficult to answer.

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March 30, 2008

Posted by bahellman

( 0 ratings )

There isn't a straight answer IMO. The most simple answer would be 0 dollars, don't buy something you can't afford. However, what I would suggest is making a budget, which includes, savings (15%), living expenses (health insurance etc.), bills, and then entertainment. Anything you have left over can then be used for items like a car payment. Does that make sense? I'd be happy to look at your budget and continue the thread.

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