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Q & A
Transportation Costs Hi,
we are big fans of your show. We record absolutely every one to watch
together so it can give us tips on where we can economize. One question
we have though is concerning transportation expenses. It seems as though
everyone around us is paying $400+ per vehicle on a lease plus insurance,
parking, etc. We make $125K gross annually, and are currently paying
$328 per month on a finance contract of 60 months for a Yaris (ie. it's
no frills, but all the safety features available). We currently have
a lease of $115 per month that is coming due soon and need a new vehicle.
My husband drives 96km round trip daily (he also works downtown and has
to pay $115 taxes in, in parking)and I drive 50 km daily. What would
you consider to be a reasonable monthly expense? Thanks a bunch : ) .
Diane
The general rule is that you shouldn't spend more than 15% of your net family income on transportation: lease/loan payments, gas, insurance, repairs, taxi, public transportation - anything that gets you from here to there on a regular basis. If you're making $124K gross annually, I'm going to estimate your
family income at about $90K net (I don't know your family circumstances,
so I'm guessing), which would make your monthly net about $7,500. You
can confirm this by looking at what you deposited in pay over the last
month. And 15% of that is $1,125. So that's what's reasonable for you
to spend, assuming every thing else in your budget is in line. |
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