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Get The Right Car For Your Budget
Posted
January 18, 2023
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January 18, 2023
9
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0:48Now PlayingHow much should you spend on a car? The rule of thumb is that your car payment should be a maximum of 15% of your take-home pay. And that's the money that actually goes into your bank account after all of the taxes, 401k, health insurance, and all of that other crazy paycheck math that really makes no sense.
But anyway, the money that you get- 15% of that. And the average 30-year-old makes $60,000 a year. In California, their take-home pay would be about $3,900 a month. 15% of that is $585, which is enough for a Honda Civic payment spread out over five years. Yep, that's all you get if you want to follow the rules: a great car but nothing fancy.
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