<prompt> Human: Hi guys, first post in this sub, and I wanted to just say thanks for taking the time to look at this. I have been graduated since May with my BS, I started my job 2 months ago and I am making 2125 a month post taxes, I live with my parents still although I plan on moving out in the spring time, rent isnt too expensive out here, will be able to get at best 3-450 a month, I have a cellphone bill of 95, car ins is 190 a month, car payment is 275, the monthly income is post health, dental and savings. My student loans start in about two and a half months and they will be an additional 275 a month. I want to know if it is responsible of me to get a new car. The car I am looking at will be about 22k after trade in, I am already approved for 425 a month and my ins rate goes up to about 215 a month. So to recap2125month275car-425435190ins-215275student loan,starts in Jan100Cellphone450rent, in spring150-200gas, at most, dont drive too much100-150entWith my eventual renting in the spring, is it a wise idea to add about 200 to my total budget?  <response>: You make 25,500 per year, and you want to spend 22,000 on a car? That is nuts. You will be spending 840month on transportation expenses, and that does not even include registration or maintenance costs! That is 40 of your income, and almost twice your housing expense! ETA: To expand on this a little bit, a good rule of thumb is that transportation costs around 10 of your income are generally reasonable, and 20 is probably the upper limit of reasonability. For you, just gas and insurance is almost 20 of your income. That leaves nothing for a car payment. I note that you have 450 for rent and 275 for student loan payment in your budget, but these costs wont actually start until next year. A better plan for you would be to save the rent and student loan money right now, and try to pay cash for a much cheaper car early next year. 