Quote:
Originally Posted by Acturater
As with most things in life the relationship is likely not linear. Disposable income likely increases at an increasing rate as you approach (and pass) 7fig income. That said 10% seems low by todays standards - prob a rule of thumb from the days when a single working parent could, on avg, afford a cushy life. Nowadays 20% is prob more like it. The unfortunate effect of wealth being concentrated to the Bezoses of the world financed by the rest of society. They’ve conditioned us to feel lucky at the mere possibility of becoming bitcoin / Tesla millionaires while they extract trillions in stolen social, environmental, economic capital.
Thanks for listening to my TeD talk.  |
Right, I'm more or less just poking holes in the logic of that 10% advice. Look at it bottom up as opposed to top down. According to that logic... how do I afford a $50k car? When I have an annual income of $500k. That just doesn't make sense.
In reality people typically look at that equation (for standard car purchases) from a top down perspective. I make x amount, this is how much car I can afford. From that perspective, things change a bit if you're making $500k.
All this being said, articles and financial advice like these are meant for the average consumer. Someone with a household income around ~$60k annually, has credit card debt, student loans, and isn't financially savvy nor is particularly interested in cars and doesn't see them as much more than a means of transportation. Those are whom these "rules" are made for.