|
I'm a financial advisor...
After taxes...
First set aside $ for all medical expenses for the year (co-pays, deductibles, premiums, etc.)
Second set aside at least 15% into long-term savings (IRA, etc.). More if you are saving for a house or to pay for kids' college.
Live off the rest (disposable income). If you want to spend more on a car than on something else, have at it.
I personally feel that my monthly capital cost for a car (depreciation or lease payment, as the case may be) should not exceed 1% of annual disposable income. ie, if I make $50k after taxes, savings and medical costs, then I would not buy a car(s) that depreciates more than $500 per month. If I need two cars, that's $500 total.
|