Personal Finance (Not Investing) • Car/Airplane/Toy Purchases % of Income or % NW

I've heard of the 20/3/8 rule. I've heard of certain other rules but what do bogleheads recommend for a car purchase as a % of net worth, or income, or investment portfolio? Are car purchases part of the expenses of the 25x rule?

I've included airplanes as for the extremely wealthy that's equivalent to a car (I wish I could say that but not there yet!). Unless yall think it should be treated differently.

Edits: Additional Details

Hypothetical Details:

Emergency Savings: 6 months
Debt: Lets assume 0 debt not even mortgage debt.
Residence: 600k
Tax Filing Status: MFJ
Tax Rate: let's assume 30%
State of Residence: HCOL NY/CA
Age: 40 Spouse: 40
Investment Portfolio: $1M - 80% VTI 20% BND (80% in 401k and rest in taxable)
Savings Rate: 25% of Gross Income
Annual Income: $175k

How much car can this couple afford?

Statistics: Posted by cpambt22 — Thu Jun 13, 2024 2:27 pm — Replies 35 — Views 1193

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