Transportation costs make up one of the ‘big 3 expenses’ for most families, along with housing, and groceries. And let’s face it, no matter how little you spend, a car will almost always feel like a money pit.
rule of thumb
As I thought about it, I realized that my dad, a sensible and frugal role model, passed on some rules that have served me very well. There was no decree posted to my bedroom door; it was the way he lived and spoke about money, which rubbed off on me.
People ask me about this rule of thumb fairly frequently because they want to check whether their housing spending makes sense. My response is nearly always the same, and comes swiftly:
An emphatic ‘I hate that rule!’
And I do. I hate that rule.