What percent should you spend on transportation?

Transportation. Transportation expenses include car payments, car insurance, gas and car maintenance. These expenses should be limited to 15 percent of your monthly net income, according to Ramsey.

How much does the average person spend on car insurance per month?

The national average cost of car insurance is $1,592 per year, according to NerdWallet’s 2021 rate analysis. That works out to an average car insurance rate of about $133 per month.

What percent of income do people spend on transportation?

Transportation accounted for $1.2 trillion (9.2 percent) of total national household spending (including spending on behalf of households such as employee transit subsidies) in 2017, making transportation the fourth largest household expenditure category after healthcare, housing, and food.

How much do you spend on transportation a month?

Transportation and Car Insurance Transportation is the second-largest budget item for most people, with average monthly expenses of about $819, including car payments, gasoline, and insurance. This should include all your regular expenses of commuting and just getting around town.

How much is insurance on a 100K car?

CALIFORNIA AUTO INSURANCE RATES BY COVERAGE LEVEL

Coverage Level	Average Annual Premium
$100K/$300K/$100K Bodily Injury/Property Damage — Liability-Only	$802
$100K/$300K/$100K Bodily Injury/Property Damage — $1,000 Comprehensive/Collision	$1,527

What percentage of your budget should go toward a car payment?

Before figuring out just what percentage of your budget can go toward a car payment, run the numbers carefully so you know just how much you spend on all essentials. While the percent of income you should allocate for your car varies based on several factors, the normal range falls between 10 and 15 percent.

How much of my income should be consumed by transportation costs?

To determine the percentage of your income consumed by transportation costs, simply total your yearly or monthly costs for gas, parking, car payments and maintenance and divide this number by your income for the same period.

How much should you spend on a car a month?

On average, 29.8 percent of that went to taxes, leaving $42,356 in after-tax pay. Multiply the total take-home pay by 15 percent, and you’ll have an annual car budget of $6,353. That works out to $529 per month. Of course, your net take-home will likely be a little less after you pay something toward your health insurance and retirement plan.

How much of your income should go toward your car loan?

There are caveats with the 15 percent threshold: If you have debt besides a mortgage, 15 percent is too high. If that’s the case, try to keep your car loan at 10 to 12 percent of your monthly income, and do your best to pay down high-interest credit card debt as soon as possible.