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    genius1982's Avatar
    genius1982 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Nov 21, 2009, 09:16 PM
    Can I afford a new truck with my debt to income
    I bring home 2400 per month my wife brings home 1300 per month and a rental property of 600 per month mortgage is 900 per month auto loan of 400 per month 300 electric 100 insurance 130 cell phones 80 internet and phone small loan that is 300 per month and groceries about 500 per month also three children would it be wise to purchase a new truck with a payment of 500 dollars monthly
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
    Ultra Member
    		  
    #2

    Nov 22, 2009, 04:05 AM

    From the figures you supplied, you cannot afford to buy a new truck.
    SEE BELOW :-

    INWARDS

    SELF 2,400
    WIFE 1,300


    TOTAL 3,700

    ###################

    OUTWARDS

    RENT 600
    MORTGAGE 900
    AUTO LOAN 400
    ELECTRIC 300
    INSURANCE 100
    PHONES 130
    INTERNET 80
    PHONE LOAN 300
    GROCERIES 500


    TOTAL 3,310
    TRUCK 500

    NEW TOTAL 3,810

    ####################

    OVER 110

    #####################

    You cannot spend more than you earn.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Nov 22, 2009, 06:25 AM

    ROLCAM apparently misunderstood your numbers.

    I read it this way:
    SELF 2,400
    WIFE 1,300
    RENTAL INCOME 600

    TOTAL 4,300

    ###################

    OUTWARDS

    MORTGAGE 900
    AUTO LOAN 400
    ELECTRIC 300
    INSURANCE 100
    PHONES 130
    INTERNET 80
    PHONE LOAN 300
    GROCERIES 500


    TOTAL 2,710
    TRUCK 500

    NEW TOTAL 3,210

    ####################

    This gives you a cushion of 1,000. However, with three children and, in today's economy, this isn't much of a cushion. Also your budget doesn't provide for savings (college, retirement, etc.)

    My question is why do you need this truck and why such an expensive one? Also, how much longer do you have to pay on the other car loan and the other small loan?
    jmjoseph's Avatar
    jmjoseph Posts: 2,727, Reputation: 1244
    Ultra Member
    		  
    #4

    Nov 22, 2009, 07:46 AM
    It seems to me that there are a lot of day to day expenses missing.

    How about insurance, gasoline, and household expenses? Not to mention the three children, and all it takes to raise them?

    How about savings?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #5

    Nov 22, 2009, 11:42 AM

    And of course rental income can not be for sure. What if they don't pay for two months you have to evict and they do 3400 in damages
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
    Ultra Member
    		  
    #6

    Nov 23, 2009, 05:16 AM

    genius1982,

    I apologise for any misunderstanding of your numbers.
    I still adhere to the advice that you should NOT add any more burden on yourself at this stage of your life.
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