What should I pay in rent based on a salary?
Your housing expenses (rent or mortgage with utilities if at all possible) should not be greater than 35% of your take-home income.
General Idea of a Smart Household Budget from a guy who grew up poor and is quite wealthy now because I have read nearly all personal finance books over the last 25 years.
HOUSEHOLD BUDGET FOR BEGINNERS
- 10% IN RETIREMENT ACCOUNT
- 5% IN SAVINGS for a rainy day because it will rain one day
- 25% Rent/ mortgage
- 10% Utilities (renters insurance/homeowners insurance)
- 15% Car payment/ insurance
- 15% Groceries
- 7.5% Entertainment (eating out, movies, etc.)
- 7.5% Clothing
- 5% misc/ not budgeted for and just happens
DEBT WILL COME FROM ALL OF THESE SO STAY AWAY FROM IT.
