# @diamondokoh on Instagram

- **Type:** Video
- **Original URL:** https://www.instagram.com/p/DGilzteROmw
- **Gondola URL:** https://gondola.cc/posts/63491574-diamondokoh-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/3590a16c24.jpg
- **Posted:** 2025-02-26T15:14:10.000+00:00
- **Account Owner:** Diamond Okoh-Chukwuma (@diamondokoh) — https://gondola.cc/diamondokoh

## Caption

Monthly car payments are not bad, what’s bad is👇🏽
.

➡️Spending more than 5% of your monthly income on car payments 
➡️Buying a car you cannot afford because you started making some money 
➡️Buying a car you cannot afford because your family is expanding 

.

Let’s do the math
.

Monthly income = $5250
Car payment = $600
Car insurance = $85
Gas monthly = $120
Total monthly car payment = $805
.

In the U.S, you are paid bi-weekly which comes to $2625 every 2 weeks of which $402.5 will go to car payments , leaving you with $2.2k 
.

That’s $2.2k to pay off your credit card, invest, save and if you are house poor, maybe half of that goes to your mortgage 
.

Building financial freedom with these forms of debt is often tough to do. Avoid this financial trap by: 
.

➡️Buying cars at auctions : there are online websites where you can do this ( do your research) 

➡️Buying boring cars and focusing on building your savings and investments 

➡️Taking monthly payments on used cars, this is often far lower ( do your research) 

➡️Making sure the entire cost of owning your car doesn’t surpass 5%, of your income ( if you must buy a car on monthly payments) 

➡️Using pregnancy or child birth as an excuse to “upgrade your car” when your income cannot take the upgrade. 
.

This is not for everyone so, choose what works for you but for I and my household, this works for us 
.

#financialfreedom #becomingfinanciallyfree #financialindependence #debtfreeliving #livingbelowyourneans #personalfinancetips

## Stats

- **Views:** 2,048
- **Likes:** 138
- **Shares:** 0
- **Comments:** 13

## Tags

personalfinancetips, becomingfinanciallyfree, financialfreedom, livingbelowyourneans, debtfreeliving, financialindependence

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