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:
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- New 6-Month Singapore T-Bill Yield in Late-April 2024 to Drop to 3.70% (for the Singaporean Savers) - April 18, 2024
- Golden Nuggets from JPMorgan Guide to Retirement 2024. - April 16, 2024
- Be Less Reliant on Banks and Build Stronger Capital Markets by Pushing for Better Shareholder Dividend and Buyback Yield - April 14, 2024