To buy a house:
1. Calculate the range you can afford.
2. Calculate 2 times and 4 times how much you make per year. This will be your range. (Example: If you make $50,000 per year, you can buy a house that is $100,000 to $200,000).
2. Find a house that fits within that range using the websites: · http://www.trulia.com or www.zillow.com )
3. Go to http://www.mortgagecalculator.net
· Type in the cost of the house where it says “mortgage amount” (example $100,000)
· It will automatically assume 5% over 30 years
· Click calculate and the monthly amount is the mortgage payment (example: $536.82)
· Write this number in for the housing amount in column 2 of your ledger sheet.
To Buy a Car:
Calculate how much you can afford (not more than 6 months of your yearly salary). For example, if you make $50,000 per year, you can buy a car that costs up to $25,000.
1. Go to www.kbb.com and click under “Cars for Sale”, then find one you can afford
2. Slide the tab on the price range to set a maximum of 6 months of your pay (there is no minimum)
3. Find a car you like and print it
4. At the top right-hand side go to Research Tools, then Finance, then Payment Calculator
5. Type in the Car price here (Example: $30,000) to calculate the monthly payment (Example: $567.76)
6. Put this number under “Car Payment” in your second column on the Ledger Sheet