In response to:

Dave Says Hate Driving That Beater, But...

Steve2110 Wrote: Feb 05, 2013 5:38 PM
My philosophy for automobiles is simple. For every $100 paid for the car and major maintenance, the car has to last 1 month. I bought my son a car for $900 after graduation. The total maintenance bill was about $700 including tires over a 2 year period. You can get a fairly nice looking, fairly well maintained car in the 100k mile range for around $1,200, and insurance is cheap! For 20 years of married life, I carried from $500 to $800 per month in car payments, because my wife couldn't be seen in a beater. Now we are broke. You do the math.

Dear Dave,

I’m looking at buying term life insurance. Currently, I’m in medical school doing my last year of residency and making $35,000 a year. Should I base the amount of insurance coverage on what I’m making now or what I’ll make when I’ve finished medical school?

Amanda

Dear Amanda,

In most cases, I advise basing the amount of life insurance coverage on the income you’re earning at the moment. After all, that’s the amount your family is used to living on, right? However, if you’re finishing up your medical degree this year, it’s a...