resonsible spending
What ever you can afford to pay in cash, while leaving enough for housing, food, education, retirement, medical, etc.
That's why I bought a used 2003 EVO instead of new, so I could own it.
Over extended credit is exactly why our country is in this big financial mess today.
That's why I bought a used 2003 EVO instead of new, so I could own it.
Over extended credit is exactly why our country is in this big financial mess today.
off topic: Honduras
Average Annual Income (GNI per capita)
$1,030
http://www.worldvision.org/worldvisi...5!OpenDocument
More than half of the population depends on agriculture as a livelihood. Approximately 20 percent is employed in service industries. Manufacturing and construction also offer job opportunities.
Many farmers can grow only enough food for their families, leaving them without produce to sell. These peasant laborers sometimes decide to move to a city environment. Sadly, hardships—including poverty—often await them there
Many farmers can grow only enough food for their families, leaving them without produce to sell. These peasant laborers sometimes decide to move to a city environment. Sadly, hardships—including poverty—often await them there
$1,030
http://www.worldvision.org/worldvisi...5!OpenDocument
The income question I dont think has been interpreted as it was asked. He asked average income of a 'middle class family'. Yes the national average is ~$50k / household. As for middle class, I'd say a safe guess is anywhere between 50k-150k / household (obviously location has a lot to do with this).
If you dont have a lot of bills, than you can spend 1/3 on the car and insurance without any worries, but if you have a family and house, than I dont know... Im not up that point yet.
off topic: Honduras
Average Annual Income (GNI per capita)
$1,030
http://www.worldvision.org/worldvisi...5!OpenDocument
Average Annual Income (GNI per capita)
$1,030
http://www.worldvision.org/worldvisi...5!OpenDocument
30% is on the middle class to high class
yeah we are in trouble
well my payment is 500/month and my insurance is $700 a year. So that's 6700... by the 1/3 logic, that means I can afford the X on an income of 20k a year? Not likely. Maybe if I lived at home LOL.
And outside of the US and Europe, there really isn't so much a thing as "middle class" let alone "upper middle class." If 4 years in south america taught me anything it's that you do NOT want to be anything but rich in the 2nd and 3rd world.
And outside of the US and Europe, there really isn't so much a thing as "middle class" let alone "upper middle class." If 4 years in south america taught me anything it's that you do NOT want to be anything but rich in the 2nd and 3rd world.
well my payment is 500/month and my insurance is $700 a year. So that's 6700... by the 1/3 logic, that means I can afford the X on an income of 20k a year? Not likely. Maybe if I lived at home LOL.
And outside of the US and Europe, there really isn't so much a thing as "middle class" let alone "upper middle class." If 4 years in south america taught me anything it's that you do NOT want to be anything but rich in the 2nd and 3rd world.
And outside of the US and Europe, there really isn't so much a thing as "middle class" let alone "upper middle class." If 4 years in south america taught me anything it's that you do NOT want to be anything but rich in the 2nd and 3rd world.
Well, the same wiki-page shows the avg. slary at $45k per year, so the avg. household income..what does that mean? two working adults will surely be higher than $50k unless they both have entry level jobs. but I digress.
if you buy a car that is one third of your annual income and put a 1/3 down, then you have a remaining balance of about 22% of your annual salary. Then divide that up by 4 or 5 years (maybe 4.5 percent of your annual salary per year) then sprinkle a bit of interest and insurance cost to that and then it isn't so bad. Like I said, a third down against a car that costs a third of your annual income..no sweat.
if you buy a car that is one third of your annual income and put a 1/3 down, then you have a remaining balance of about 22% of your annual salary. Then divide that up by 4 or 5 years (maybe 4.5 percent of your annual salary per year) then sprinkle a bit of interest and insurance cost to that and then it isn't so bad. Like I said, a third down against a car that costs a third of your annual income..no sweat.
well my payment is 500/month and my insurance is $700 a year. So that's 6700... by the 1/3 logic, that means I can afford the X on an income of 20k a year? Not likely. Maybe if I lived at home LOL.
And outside of the US and Europe, there really isn't so much a thing as "middle class" let alone "upper middle class." If 4 years in south america taught me anything it's that you do NOT want to be anything but rich in the 2nd and 3rd world.
And outside of the US and Europe, there really isn't so much a thing as "middle class" let alone "upper middle class." If 4 years in south america taught me anything it's that you do NOT want to be anything but rich in the 2nd and 3rd world.
another way to look at it. If you put 1/3 down against 1/3 of your annual salary- then you only owe 22 percent and will finance that over time. A five year loan works out to about 4.5 percent annual salary before interest, taxes and insurance etc. per year.
If you do it right, you can be well under 10 percent per year on a car..if you want a more expensive car, save longer.
Evolved Member
Joined: Jan 2007
Posts: 671
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From: Dallas / Fort Worth
On the other hand, your monthly payment would be affected by any money down and how long you finance it... So maye by the 1/3 logic to buy a car that's $35K out the door you should make at least $105K a year.
Look honestly... the only way to know how much of a car payment you can afford is to figure it out on paper. Put down how much you make every month and subtract all your monthly bills. Don't forget to set some extra aside for savings... and whatever is left over is the most you can afford to pay for a car. Simple.
Look honestly... the only way to know how much of a car payment you can afford is to figure it out on paper. Put down how much you make every month and subtract all your monthly bills. Don't forget to set some extra aside for savings... and whatever is left over is the most you can afford to pay for a car. Simple.
huh? Why are you trying to sell me an ARM?
DTI. If you make 100k a year, and you want to stay under the classic 28% DTI ratio, then you need to be spending < $28k a year in debt service. Quarter that 100k to 25k and in theory you could survive with a debt service of 9k a year. But I have been there and let me tell you it is NOT fun or easy. I'd hate to be buying $4 gas, $200 tires, and $300 brakes for an Evo on $25k a year.
DTI. If you make 100k a year, and you want to stay under the classic 28% DTI ratio, then you need to be spending < $28k a year in debt service. Quarter that 100k to 25k and in theory you could survive with a debt service of 9k a year. But I have been there and let me tell you it is NOT fun or easy. I'd hate to be buying $4 gas, $200 tires, and $300 brakes for an Evo on $25k a year.
On the other hand, your monthly payment would be affected by any money down and how long you finance it... So maye by the 1/3 logic to buy a car that's $35K out the door you should make at least $105K a year.
Look honestly... the only way to know how much of a car payment you can afford is to figure it out on paper. Put down how much you make every month and subtract all your monthly bills. Don't forget to set some extra aside for savings... and whatever is left over is the most you can afford to pay for a car. Simple.
Look honestly... the only way to know how much of a car payment you can afford is to figure it out on paper. Put down how much you make every month and subtract all your monthly bills. Don't forget to set some extra aside for savings... and whatever is left over is the most you can afford to pay for a car. Simple.
Evolved Member
Joined: Jan 2007
Posts: 671
Likes: 0
From: Dallas / Fort Worth
huh? Why are you trying to sell me an ARM?
DTI. If you make 100k a year, and you want to stay under the classic 28% DTI ratio, then you need to be spending < $28k a year in debt service. Quarter that 100k to 25k and in theory you could survive with a debt service of 9k a year. But I have been there and let me tell you it is NOT fun or easy. I'd hate to be buying $4 gas, $200 tires, and $300 brakes for an Evo on $25k a year.
DTI. If you make 100k a year, and you want to stay under the classic 28% DTI ratio, then you need to be spending < $28k a year in debt service. Quarter that 100k to 25k and in theory you could survive with a debt service of 9k a year. But I have been there and let me tell you it is NOT fun or easy. I'd hate to be buying $4 gas, $200 tires, and $300 brakes for an Evo on $25k a year.