Quote:
Originally Posted by LivingAlmostLarge
50% of income seems like a lot. Personally not sure but if this is the case then how are so many people affording two Honda Accords or Accord and CRV? Those are each $25k and yet do people really earn $100k to make each person driving one feasible?
I haven't heard the 50% rule, what I've heard not only from Dave Ramsey is if you save you can afford anything. You can have a jag, you can have a lexus, if you save the cash for it.
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DR says that when you have a million dollars, then you can buy a new car. Now, this can be cretiqued as being impossible for the auto industry, but the idea is to invest less in car than people normally do.
For a family earning 60,000, that would mean two 15,000 cars. As the income comes down, the cars get scarce. What I stated above about assets is what he says about car ownership. Your also, by his plan, are to invest 15% before you save for autos. You will rarely here Dave say a person can afford a jag.