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In general, experts recommend spending **10%–15% of your income** on transportation, including car payment, insurance, and fuel. For example, if your take-home pay is $4,000 per month, then you should spend $400 to $600 on transportation. To be sure, that range is simply for guidance.

NerdWallet recommends spending **no more than 10% of your take-home pay on your monthly auto loan payment**. So if your after-tax pay each month is $3,000, you could afford a $300 car payment. It's important to be realistic about how long you can or want to be making this monthly payment.

Whether you're paying cash, leasing, or financing a car, your upper spending limit really shouldn't be a penny more than 35% of your gross annual income. That means if you make $36,000 a year, the car price shouldn't exceed $12,600. Make $60,000, and the **car price should fall below $21,000**.

So, theoretically, if your salary is $50,000 you could afford a car payment of $430 or less. With a $100,000 salary, you could afford **a mortgage payment of no more than $2,500**. For those with a salary near $30,000 your home, car, and debt combine should be no more than $1,250 per month.

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.

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).

With no other bills, you can afford a $40k car with a yearly income of **$12,000**. But if you do have other bills ( ie wife and children and a mortgage and student loans) then consider your bills and decide if you can afford a new car. In my opinion it would be insane to spend more than 10% of your wealth on a car.

**Nothing is too much for a car if you are passionate about it**. You might think of using the 35000 in other useful ways or invest it.

How much house can I afford if I make $200K per year? A mortgage on 200k salary, using the 2.5 rule, means you could afford **$500,000 ($200,00 x 2.5)**. With a 4.5 percent interest rate and a 30-year term, your monthly payment would be $2533 and you'd pay $912,034 over the life of the mortgage due to interest.

With that 28/36 rule in mind, someone with $120,000 yearly income could **spend up to $33,600 per year on a mortgage**. Assuming a 30-year fixed mortgage, a homeowner following the 28/36 rule could feasibly pay off a $1 million home with a $33,600 yearly commitment.

What is the 50-20-30 rule? The 50-20-30 rule is a money management technique that divides your paycheck into three categories: **50% for the essentials, 20% for savings and 30% for everything else**.

Because the upfront cost of a vehicle isn't going to be the only thing you pay for, and cutting down your base price budget is the most effective way to save money. If you make the median per capita income of about $42,000 a year, for example, you should limit your budget to **$4,200**.

When attempting to determine how much mortgage you can afford, a general guideline is to multiply your income by at least 2.5 or 3 to get an idea of the maximum housing price you can afford. If you earn approximately $100,000, the maximum price you would be able to afford would be **roughly $300,000**.

Making $150,000 to $200,000 a year will put you squarely in the **top 5 percent of American wage-earners**. But even the fairly good wage growth for that cohort is dwarfed by the gains of the top 1 percent in recent years. ... Certainly, the top 5 or top 10 percent have a lot of the wealth too.

At $200,000 a year, you are **considered upper middle class in expensive coastal** cities and rich in lower cost areas of the country. After $19,000 in retirement contributions to your 401(k), you are left with $181,000 in gross income, leaving you with roughly $126,700 in after tax income using a 30% effective tax rate.

By most measures, a $250,000 **household income is substantial**. It is five times the national average, and just 2.9 percent of couples earn that much or more.

“A typical down payment is usually between 10% and 20% of the total price. On a $12,000 car loan, that would be **between $1,200 and $2,400**. When it comes to the down payment, the more you put down, the better off you will be in the long run because this reduces the amount you will pay for the car in the end.

A $500 car payment is **about average right now**. The concept of “too much” is going to depend on your income and living expenses, your insurance expense, and other budget factors. Then there is the part about how many months or years you will have to pay that $500. Yes.

As of January 2021, the average new car cost about $41,000,1 and the average used car approached $22,000. Financial experts generally recommend capping auto payments and related expenses at 10%–15% of monthly income.

First unveiled at the NAMPO agricultural show in 2017, **the Bajaj Qute** has set social media alight more recently with stories, memes, jokes and videos about this compact little 'car'. The story goes that you can buy it for only R5 000, that it will only cost you R150 per month and that you can insure it for only R1. 20.

A person who makes $50,000 a year might be able to afford a house worth anywhere **from $180,000 to nearly $300,000**. That's because salary isn't the only variable that determines your home buying budget. You also have to consider your credit score, current debts, mortgage rates, and many other factors.

According to the Bureau of Labor Statistics, the median salary of all individual workers (male and female of all races) was $881 weekly for the first quarter of 2018. ... An income of $70,000 surpasses both the median incomes for individuals and for households. By that standard, **$70,000 is a good salary**.

The golden rule in determining how much home you can afford is that your **monthly mortgage payment should not exceed 28% of your gross monthly income** (your income before taxes are taken out). For example, if you and your spouse have a combined annual income of $80,000, your mortgage payment should not exceed $1,866.

I make $90,000 a year. How much house can I afford? You can afford **a $306,000 house**.

Really, $130K year is more than $10K a month so you should be able to **save $500 to $1000 a month**. That would get you another car that would cost $12K in a year and you have the $1000 beater and the interest on your savings. Next while you are driving the $12K car save $1000 for three years and then buy a $36k car.