Do you really think you really know how to buy? How do you calculate the amount you pay for the loan the next time? Do you have a system that you know how much you will afford next time you buy a car or a house? You just bought a car. The installation is $ 650 per month and is set to allow you to pay for the installation. You have calculated the interest rate, credit and depreciation value, and you are very sure you can afford to maintain your car. After six months of driving, you feel that you are paying for your installation and you have many accounts, parking tickets and fines that have not yet been settled.
What are you doing after them? Spends less, travels less to save gasoline, and when everything else fails, you decide to sell the car. However, he must continue to drive the car, as he has still failed to save the loan with the financial company. Whatever you know, you stick with your car and the financial problem is like termites. Does this sound like you sound at least like you know it?
I'm not here to tell you not to buy a car or not to slip that bad choice to buy the car. I'm not here to tell you to avoid borrowing the car and the car in full cash. However, what will I do to teach you how to say whether or not you can afford it.
You may think I'm stupid and do not do a thorough research on this subject. Well, think again. This is because I see this problem too often, thinking about three days in succession and trying to think of a way to tell people how to calculate the right way. The method is nine years old knows how to apply!
The method I'm going to share with you is simply what I call the "percentage calculator" TM. Let me share with you how. Human beings are better than 0 to 100. The better way to calculate every percentage. If you say $ 2500 (100%), saving is $ 500 (20% of revenue), mortgage cost or rent is $ 1,500 (60% of income), only your income is 20%
By leaving 20% of your earnings and being aware that spending is kept to a minimum, do you still want to buy a car? You may disagree with me and tell me that you can still afford $ 500 to pay your monthly installments. I fully agree with you, but does this mean giving up on shopping, holidays and entertainment? So my advice is, when you buy something in installments or loans next time, try to calculate it in percent, and in the long run, you will be free from unnecessary financial shortages.