Step 1: Decide how much you'll spend.
To do this, you’ll first need a basic budget. Start by finding your monthly income. Then, calculate your monthly expenses by adding up fixed costs like your rent, debt payments and subscriptions. You’ll also want to estimate your monthly variable costs such as groceries, clothing and car maintenance. Subtract all of your expenses from your income to learn what you have to work with. A good rule of thumb is that your car payments plus your existing required expenses should take up no more than 50 percent of your income.