How much should I spend on a car? I’ve thought about this question many, many times.
The answer is simple: whatever is the amount, I should make sure that I can afford it. Like every other purchase.
But it’s also not that simple, because if it is, how come 1 out of 4 bankruptcies in Malaysia is due to car loans?
If you’ve been wondering how much you should spend on a car and avoid it being repossessed by the bank, here are some answers. Thanks to all contributions from the RoR audience!
#1 – How many % of monthly salary to go towards car payment?
This post was inspired by one of my favourite personal finance websites, The Financial Diet. Check out their version of the article here.
‘Don’t buy shit you don’t need’ – how many times have we all heard this six-word money advice? It sounds so simple, right?
The thing is, the definition of ‘shit you don’t need’ will differ greatly from person to person. What I think I don’t need and can cut from my budget is someone else’s necessity item, either required for their life/work or something they decided is worth the expense and thus budgeted in (instead of budgeted out).
Here are 15 things I have personally stopped buying and realised I didn’t miss.
#1 – A Car
Sometimes, the fact that I don’t own a car really surprises people around me. It’s considered a rights-to-passage-to-adulthood expense, something people buy as they start working.