I quite like the 1 year salary rule. Easy to remember.

I adopted this rule since the first car i bought after working, aeons ago.

My version though, is my own variant. The main thing is that the 1 year is a target , not to exceed but to push as low as possible.

So far this simple rule has made me quite prudent in buying cars and I havent had a stress feeling of paying for a car for a long time. I know people who get financial stress during insurance renewal time or when facing big repairs.

For my first car, my salary I include my annual bonus.

Second car just salary 12 months exclude bonus.

Then later 12 months net salary.

Even later, less than 12 months.

Now if I buy a car, it will probably be not more than 6 months of my net salary.

i would separate my funds into 4 buckets... not % nerworth

comfy living + medical + contingency + discretionary

discretionary will be for your holidays, cars, toys, etc... this way i can blow it all on a macan and world tour, etc...

your limit to 4% means your kids can start their retirement right after you gg... hahaha