This is How Much You Should REALISTICALLY Spend on A Car (TO NOT DIE BROKE)

Hey friends! In this informative video, discover how much should you spend on a car in South Africa (by salary) using the key car buying rules that empower you to determine the perfect car within your budget regardless of where you live in the world (though I use a rands based example, because I am currently based in South Africa). Join me as I dive into the well known 25-35% rule and unveil its practicality concerns for most individuals and how it needs to be adjusted to fit the South African context. I'll then introduce an alternative, the 20% net rule, a powerful guide that allocates a maximum of 20% of your net salary towards owning a vehicle, enabling wealth creation and life balance. #carbuying #buyingacarrules #caraffordability #howmuchcarcanyourealisticallyafford

So basically, How Much Car Can You Really Afford? Based on your salary or income.

🚗 The 25-35% Rule: Learn why basing your car payment on 25-35% of your gross monthly income may not be the wisest choice. Uncover the hidden expenses that this rule fails to consider, such as insurance, maintenance, and gas.

📈 The 20% Net Rule: Discover the more practical approach to determine your affordable car budget. Understand how this rule factors in all associated costs by focusing on 20% of your net salary - your take-home pay after taxes and deductions.

🔢 How to Use the 20% Net Rule: Follow a simple step-by-step process to calculate your net salary and find the perfect car that aligns with your financial goals. For instance, if your net salary is $5,000 per month, you can comfortably afford a car worth $1,000 per month.

𝐃𝐈𝐒𝐂𝐋𝐀𝐈𝐌𝐄𝐑𝐒 & 𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄𝐒:
All content on this channel including this content is for educational and entertainment purposes ONLY. Note that, Yvonne does not provide professional tax, insurance or investment advice. The information is being presented without consideration of the insurance, tax and or investment objectives, risk tolerance, or financial circumstances of any specific investor (individual or institutional) and might not be suitable for all types of investors. Please remember that, past performance is not indicative of future results; and that ALL investing involves varying degrees of risk, including the possible loss of principal.

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🔗 Important Links:
WesBank Finance Calculator:
https://www.wesbank.co.za/home/calcul...

Watch my latest video:    • How to Organize your Couple Finances ...  ee