How to Buy A Car | The 20/4/10 Rule Explained
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Learn how to buy a car and much you should spend on a car according to the 20/4/10 rule.
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How much should I spend on a car? This is a question that just about everyone has asked themselves at some point in their lives and today I'm going to go over one of the rules of thumbs when looking at how much to pay for a car. I will explain to you what the 20/4/10 rule is as well as give some of my thoughts on it.
The 20/4/10 rule states that whenever you're in the market for a new car you should always put at least 20% down, finance the vehicle for no more than 4 years, and have the total monthly car expenses (including the monthly payment if you have one as well as insurance costs and possibly even gas) add up to no more than 10% of your monthly income.
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Please watch: "The Budget That Pays You First | Reverse Budget Explained | Budgeting For Beginners"