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Worse yet, after you pay a 20% effective tax rate on your median ,000 gross income per capita, you’re now spending almost 100% of your net income on a car.That’s crazy and a sure path to financial mediocrity.Above you’ll find links to downloadable editions of the text of Little Brother.These downloads are licensed under a Creative Commons Attribution-Noncommercial-Share Alike license, which lets you share it, remix it, and share your remixes, provided that you do so on a noncommercial basis.With thousands of parts per car, something will inevitably break or need upgrading.
When you add everything up, I’m pretty sure you’ll be shocked at how much it really costs to own a car and hurl. Spend no more than 1/10th your gross annual income on the purchase price of a car.
Sometimes when you’re driving in traffic, you’ll feel more on edge because you don’t want anybody damaging your car.
If you are within 1/10th of your income, you drive and park stress free. The nicer your car, the more you want to spend on other things.
This is the simplest solution if you’ve spent too much.
Drive your car for as long as possible until the market value is worth less than 10% of your gross annual income. If you’ve spent anything more than 1/5th your gross annual income on a car, I’d sell it. Even if you have to take a little bit of a hit, I think it’s worth getting rid of your vehicle. If you don’t punish yourself, then you will repeat your mistake and feel fine with what you have now.