What goes into a calculation of how much house you can afford? Look for a monthly payment with principal, interest, taxes and insurance that’s no more than 30 percent of your take-home pay after deducting retirement or other savings. And remember extras like upkeep, repairs and decorating that averaged $9,000 a year for homeowners in a recent survey. Source Link
Saving money doesn’t always mean spending less. A high-quality mattress might cost more but could last twice as long as that bargain model. And you should consider the net value when buying a car. A new car that’s three years old may fetch a higher resale price and be a better overall value than selling a used car you’ve been driving for three years. Source Link
When shopping for a new car you can figure out what you can afford by using the 20-4-10 rule. Start with a 20 percent down payment and make sure the loan is for no more than four years. And don’t spend more than 10 percent of your gross monthly income on car expenses including the loan payment plus insurance, gas, license fees and parking. Source Link
