I learn quite a fair bit when I was having fun creating my cost of car ownership calculator.
The rule of thumb in my opinion is that your cost of ownership of your automobile as a percentage of disposable income should not be more than 30%.
If your disposable income is $2,500 that’s $750
If $3,500 that’s $1050
If $4,500 that’s $1350
So in the case of my friend’s example in this illustration, it is likely that if cost of car ownership is $1350 he should be earning well in excess of what I earn.
You can always do a calculation here to find out your cost of ownership.
Interestingly, here is an illustration of different expenses that is related to an automobile:
Latest posts by Kyith (see all)
- Have the World or Emerging Market Healthcare Stocks Outperform the World and EM Index? - November 26, 2023
- Retirement Spending Can Vary from 25% to 100%. Not your usual 2% to 3% a Year. - November 23, 2023
- If I Earn 10% Yearly On Average, and Inflation Averages 3% Yearly, I can Safely Spend 7% Yearly Right? - November 18, 2023