$700/mo for a car I already own?!

I understand if you think I’ve lost my marbles. That’s quite a bit of money to spend on a car that I already own outright.

Here’s what the break down looks like:

(These numbers are rounded for simplicity)

Insurance:                                          $125

Maintenance:                                    $100

Gas:                                                      $200   [$50/week]

Parking:                                              $200   [$50/week]

DMV/Wash/GPS/Sat. radio:        $75

TOTAL:                                               $700/MONTH

You might also like to know that I have factored in the cost of two parking tickets per year (but I don’t want an actual ‘parking ticket’ category since that’s just asking for them!) This way, it’s not the end of the world when I get one.

Thinking about my car this way helps me be crystal clear about all the incidental costs associated with it. It helps me plan in advance for the months when larger bills are due (insurance twice a year, DMV registration once a year, and the occasional bigger maintenance costs). It also makes it easy to tell whether I am spending the right amount on my car compared to the other categories in my budget. The “right” amount is a reflection of my values and financial situation that I determined at the beginning of the year.

So while I actually don’t spend every dollar in the budget each month, this is what I allocate to my car every month.

I hope this way of looking at your car, and the rest of your expenses, is helpful.

Drive (and spend) safely!