<VV> re Reflections on newer cars

[Tony Underwood]

At 05:47 PM 12/26/2010, Sethracer at aol.com wrote:

>He also  says that you should not have more than 15% of
>your yearly  income in  cars and recreational vehicles.
>
>Sorry - I do not understand this one. More than 15% of my income in
>payments? - Boy that is for sure! Would not want to do that. More 
>than 15%  in
>current value of rolling stock in the driveway? When I retire -  that will be
>instantly violated, I'm afraid.  Could you elaborate?


I listen to Ramsey every day.   He's hot on percentages of income vs expenses.


That 15% pertains to *loan payments* for cars and any recreation 
vehicles like atv's or motorcycles or that Allison powered 
tractor-pull contest vehicle, or your Bugatti Veyron.   He also rants 
about house payments, which should never be more than 1/3 of your income.

"Anything higher than that is simply asking for trouble."

He also talks a lot about maintaining an emergency fund, enough to 
pay *all* your living expenses for 3 to 6 months, depending on 
circumstances.    And you should hear him go off about all those 
sub-prime mortgages and the "...crooks who perpetrated them thinking 
they would make a killing when payments went up".   I've not heard 
him say anything that sounded the least bit out of line or anything 
that would steer anyone wrong.

The guy makes sense.



tony..

---  Sovereign ingredient for a happy marriage: Pay cash or do 
without. Interest charges not only eat up a household budget; 
awareness of debt eats up domestic felicity.  RAH