Shop Within Budget
We all know how exciting it is to window shop for the car of our dreams by walking past the dealership or just seeing our dream car right there in front of us. We quickly visualize how we would look driving around in that particular dream car and how it would feel to push down that gas pedal and feel the power as we take off down the block.
However, before we get too excited about any car in particular, we must determine whether or not we can afford to get behind the wheel. The best way to do that is to figure out how a car payment might impact our budget.
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Size of your car payment - Generally, your car payment should be no more than 15% to 20% of your take-home pay after first subtracting monthly payments such as credit cards and home equity loans
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Extra car costs to consider - Gas, maintenance and insurance could cost you an additional $200 a month or more. Be sure to consider all costs when budgeting for your dream car
| Learn About: | |
|---|---|
| Living Within Your Means | Shopping Within Your Budget |
| Budget Glossary | Research The Right Vehicle |
| Why Budgeting Works | How to Develop a Budget |