The past few years have been rough financially (housing crisis and collapse in real estate prices). As a result I have been educating myself about personal finance (credit, debt, budgets, etc). I have been trying to refine my budget to better manage my spending, saving and payoff debt.
Now I am trying to determine how much I should spend upon transportation. My current commute is about 30 miles/day, plus miscellaneous errands (call it 200 miles per week), and public transport is terrible in my area. I also have three children who drive, and have had to loan them a car on occasion.
What percentage of my income should I spend on transportation?
What percentage of my assets should I commit to vehicles?
I currently have 3 cars,
- 2004 Civic, daily driver (paid off), 80,000 miles
- 2006 Honda, weekends (owe $8,000), 20,000 miles
- 2001 Oldsmobile, spare/extra (paid off), 130,000 miles
Currently I pay about $150/month for insurance on the three cars, and spend about $120/month on fuel. Selling one car seems like a good plan.