Salary: $98k/year
Monthly take home: $5800
Mortgage/Bills: Avg $2430
Roth IRA: $458.33/month (Maxed)
401k: $408/month (5%) (Employer matches 4% which is $326.64)
Overall monthly retirement saving: ~15%
(401k not included in take home, just in there to show overall retirement savings.)
After bills, mortgage, and $401k, I have around $2900 left over. I tend to save an additional $1000-$1700 in cash every month.
I am looking into buying a reliable certified SUV that's 2 years old. Purchase price will be between $21,000 and $23,000. I will be putting $5000 down, and my payment will be between $350 and $375/month.
Insurance will increase $40/month. Personal property tax for new car will start at an extra $50/month. All in all, car payment+insurance+tax = $525, which is 9% of take home, or 6% of gross income.
I've NEVER had a car payment so I'm just a little nervous about getting what I think is a very reasonable vehicle purchase. Am I off base here in thinking this is totally doable and reasonable?
EDIT: Thanks everyone for commenting, you've put me in a better state of mind going in to this.
Submitted August 14, 2018 at 09:50AM by Pierness https://ift.tt/2McFkG1
