lutherbeau
Joined: 05 Nov 2012
Posts: 10
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 Posted: Mon Nov 05, 2012 12:42 pm Post subject: Low income car affordability? |
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I am interested to know if anyone here makes less than $24k per year and has a car, how it is possible to have room in the budget. (If living with parents, include imputed rent,food, etc. as income.) As a graduate student only making around 20k, I find myself struggling and scraping in an exhausting attempt to arrange it. I'm assuming modest values of $1,000 annually for each of gasoline, insurance, depreciation, and repairs, and another $500 for each of maintenance and titling/taxes/registration/fees/emissions testing. This adds up to $5,000 per year even for a very small, used car, which means, if I cannot now put over $400/month in savings, I cannot afford to own a car unless my income is higher. Although I have saved around $450/month at times, I have failed despite grueling attempts to continue to do so, since some of what I save must be set aside to pay the student fees ($400 twice annually) and pro-rated replacement of personal belongings that will eventually wear out. I already have emergency funds for unemployment (6 months of food and rent + anticipated job search and moving expenses + a little more) and car repairs (since I must have this funding set aside before I have a car, not after!) and have never borrowed money or had a credit card, nor do I intend ever to. I feel a little bad about not using an IRA, but so be it, I'm 25 and will get a better job at some point. But I have not been able to save on average over $400/month, which means, I can't afford a car right now. I am trying very, very hard.
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insolvency practitioners |
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