How much of one's income should be spent on rent?


4 Answers

DDX Project Profile
DDX Project answered

1/3 of your net income.

Let's say you make 150k base salary in the state of California. After taxes that's around 92k as your net income excluding yearly profit sharing, bonuses, and stock options. 1/3 of that is around $2500 a month.  So $2500 should be what you spend on rent each month.

The 1/3 amount is just a common amount in personal finance. However, you can spend more since you still have 5,000 left over. That's more leftover than let's say... Someone making 80k a year. There's also your yearly bonuses which can also be a lot, possibly half of your base income or more.

At least that's how it is in San Francisco.

Catherine Howard Profile

Typically (at least where I live) it estimated that you should be spending no more than 30% of you income.  However, if you are able to spend less, you will probably be better off.

Nov Noveltman Profile
Nov Noveltman answered

You always hear "30% of your net income".... Nonsense. Housing is too expensive now. Sure, if you're rich like Nazis or rich like Mormons, it's no problem. But for the rest of us normal, non-Cabal folk, try spending no more than 50% of your take-home on where you live. You'll still get by.

thanked the writer.
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Nov Noveltman
Nov Noveltman commented
I see more college graduates working low-paying menial labor jobs that Rick Perry loved to boast about having had created on his watch. We've advanced past "Come and work at the factory" because we don't have factories anymore in this country.

I do consider myself middle class. Lower middle class. I graduated from college with the hopes of having a decent paying job that would make repaying student loans easy enough. If anything, my diploma made it more difficult for me to get a job. The jobs in my field all dried up, and employers seem hesitant to hire overqualified people. I have a job that a poorly trained monkey could perform just as easily. My wife had much less training, but her field blossomed and she was hired on by an excellent company. She is why we're middle class. If we were both me, we'd be screwed.

No fault of our own.
DDX Project
DDX Project commented
I'm not denying the fact that there are college graduates working low-paying jobs. I already mentioned people majoring in useless degrees at low tier universities or diploma mills. A quick search into and anybody could see their prospect before committing time and money. Even before the internet, there were occupational handbooks with references and statistics.

It's a personal responsibility. People made their own choices. It's not like someone stuck a gun to their head forcing them to study English Literature or History as a major. Or to attend a bottom tier university. They chose it with their own free will, so how is it not their fault to be in their position?
DDX Project
DDX Project commented
"But the fact is that your life is largely determined by your own personal choices and decisions in every area. You are where you are and what you are because of yourself. You have gotten yourself to where you are as the result of the choices and decisions that you have made in the past. If you want to be somewhere else in the future, it is up to you to make new and better choices and decisions in the present…" - Brian Tracy
Sam Gray Profile
Sam Gray answered

According to me, Typically (at least where I live) it estimated that you should be spending no more than 30% of you income.  However, if you are able to spend less, you will probably be better off.

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