Quote:
Originally Posted by wtwo3
I'm actually reading it as the purchase price should be 10% of your gross annual income:
"Spend no more than 10% of your gross annual income on the purchase price of a car.
Why? Because the upfront cost of a vehicle isn't going to be the only thing you pay for, and cutting down your base price budget is the most effective way to save money.
If you make the median per capita income of about $42,000 a year, for example, you should limit your budget to $4,200. If you make the median household income of about $62,000 a year, don't spend more than $6,200 on a car."
So yeah... based on this I think they're actually saying someone making $500k should limit the purchase price of their car to $50k lol
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As with most things in life the relationship is likely not linear. Disposable income likely increases at an increasing rate as you approach (and pass) 7fig income. That said 10% seems low by todays standards - prob a rule of thumb from the days when a single working parent could, on avg, afford a cushy life. Nowadays 20% is prob more like it. The unfortunate effect of wealth being concentrated to the Bezoses of the world financed by the rest of society. They’ve conditioned us to feel lucky at the mere possibility of becoming bitcoin / Tesla millionaires while they extract trillions in stolen social, environmental, economic capital.
Thanks for listening to my TeD talk.
