Buying a car is a big deal, no matter who you are. They are much more expensive than buying a book or a pair of jeans. Many people finance a car or lease a car instead of buying it with cash. It might seem impossible to be able to buy a car in cash if it costs $20,000 or more.
To get around this huge purchase, you could buy a car used. Some cars can cost only a couple thousand dollars or you could buy a fixer-uper for a few hundred, but you'd have to put some work into fixing it.
You could save a lot of money buy buying a car without financing, even a new car. If you financed or leased an $80,000 car, you'd spend a lot more over time than if you paid for it up front. Unfortunately, most of us can't pay that up front, or at all. Could you save enough money to buy a $18,000 car in a year?
First, it will depend on your salary. If you make less than $25,000 a year, there will probably be no way to buy it because even if you were able to save every penny, you still have to pay taxes on it. It will also depend on how much you spend every month.
If you don't pay for any living expenses or anything else, someone is paying for them. If you went and bought a brand new car while not paying for anything, you wouldn't be being very respectful towards whoever was paying for you. In this case, you should buy a meager used car and save for a house or education.
Could you save $18,000 for a car? Let's say you have your own apartment and you pay rent of about $700 a month. You have very few bills because you have no cell phone just a very cheap land line, no cable, no internet, and you barely run the water or turn the lights on. You live on Ramen noodles and never leave the house. You save wherever you can.
Let's say you make $35,000 a year. You are in the 15% tax bracket and your after tax income is $29,750. Rent costs $8,400 a year. If you wanted to save $18,000 by the end of the year you have to spend only $3,350 otherwise. That means, after rent, you'd have $280 a month to live on.
Technically yes, but who can honestly live like that and not go insane? If you are making six figures consistently, buying a car in a year could probably happen. For everyone else, give yourself a few more years to save and you can get the car of your dreams.
To get around this huge purchase, you could buy a car used. Some cars can cost only a couple thousand dollars or you could buy a fixer-uper for a few hundred, but you'd have to put some work into fixing it.
You could save a lot of money buy buying a car without financing, even a new car. If you financed or leased an $80,000 car, you'd spend a lot more over time than if you paid for it up front. Unfortunately, most of us can't pay that up front, or at all. Could you save enough money to buy a $18,000 car in a year?
First, it will depend on your salary. If you make less than $25,000 a year, there will probably be no way to buy it because even if you were able to save every penny, you still have to pay taxes on it. It will also depend on how much you spend every month.
If you don't pay for any living expenses or anything else, someone is paying for them. If you went and bought a brand new car while not paying for anything, you wouldn't be being very respectful towards whoever was paying for you. In this case, you should buy a meager used car and save for a house or education.
Could you save $18,000 for a car? Let's say you have your own apartment and you pay rent of about $700 a month. You have very few bills because you have no cell phone just a very cheap land line, no cable, no internet, and you barely run the water or turn the lights on. You live on Ramen noodles and never leave the house. You save wherever you can.
Let's say you make $35,000 a year. You are in the 15% tax bracket and your after tax income is $29,750. Rent costs $8,400 a year. If you wanted to save $18,000 by the end of the year you have to spend only $3,350 otherwise. That means, after rent, you'd have $280 a month to live on.
Technically yes, but who can honestly live like that and not go insane? If you are making six figures consistently, buying a car in a year could probably happen. For everyone else, give yourself a few more years to save and you can get the car of your dreams.
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