I would love to have the luxury of deciding how much to pay. I basically always go for the cheapest place that is still in a safe neighborhood and not horribly far from work. Impossible to find anything under 30%
Businesses will charge the anount that people are willing to pay. If they increase rent to "unlivable" levels, then people will opt to not rent there and the business will lose money with vacancies. If it's too expensive, don't move there, if everyone did that then rent prices will always be fair. It's the people that overspend on rent they can't afford that really impact others negatively.
The currency of the nation is based on the fractional reserve banking system -- so here we are, as a nation hijacked by inflation: bidenomics. And inflation is really just hidden taxes in disguise.
Rule 1 is to figure out how much you can afford, but another quality of life rule that I realized is that if you can pay a little more and get responsive maintenance, a roach free unit, and great amenities (a big pool is something I love in these summer months) then go for it. Better than paying less but having peace of mind affecting by lack of AC on summer or roaches all over your belongings and food.
@@bluesky5384 that’s what I’m thinking!! That really applies to cities. You can’t cheap out or it could be an unsafe or roach infested unit. Also, if you moved further the price of Ubers and transportations adds up too
The 3x the rent for approval in a safe neighborhood is horrible when average costs for a house or apt are near 2000 or more. That means you have to make over $37 an hour. WTH!?
yea it can definitely be hard to get 3X a the rent especially when it's 2k. Crucial to have those roomies and focus on living as cheaply as possible, stack cash, build some passive income, and get that active income up... only way to make it now... hope you are well
All this told me apartments are far out of range for the median income salary of around $36k according to the national debt clock. How people are actually making due is a mystery.
I make 96K as a teacher... not sure where you’re getting 36k. Rent is only 1600 for a 2/1 here in SoCal. Easy when I have no debt and save 30% to retirement.
@@MrRuben536I only make $40 k so I’m sure $36k exists. I don’t thinks it’s even possible for me to afford rent alone .. although I won’t stop trying. 🥲
@@MrRuben536 hi! I’d love to know where you pay that amount in SoCal because I’m on the market for an apartment! I’m not seeing anything less than $1800 for a 1br/1ba!
Well I spent 20 years of my life working my way up to $30/hr and I can still only afford $760/month maximum in rent so I guess I don't deserve to be alive.
How much rent do you pay and what's your household income? Let me know in the comments, I'm curious! Hope you find this video helpful - I think it's a topic that affects everyone that rents, and is likely most people's most expensive monthly expense. Have a great day! -Charlie
@Charliechang I have FINALLY followed good rent rules with my new place in Hawaii. I sacrificed my usual quality living situation for financial savings and I now pay $1750/month (for a bedroom and my office) with my roommate. I take home $7200 a month or $1800 weekly on average. (Hawaii taxes suck!)
Because net is harder to calculate because of tax brackets. and gross can run the calculations already calculating that for you on back end. I sometimes make 300k. Sometimes 500k. Sometimes 900k a year. This chart is easier to understand for myself.
Household income almost $150k. Mortgage is $1100 mo ($1800 total with taxes, insurance and HOA) We were blessed and lucky to buy a home right before covid with a 2.625% rate.
finding something under 30% sounds like a dream in my area where bachelors start at 2050$, the 30% rule is a nice thought but is a old thought structure from over a decade ago that really just doesnt work in a lot of cities. (even greater city areas and suburbs around big cities dont get that much cheaper and at what point is the HOURS wasted traveling worth the savings?)
yea that's tough.... if you can't get a roomie, or a 2 /3 bedroom and split it then you may want to focus on increasing income ... some times you're better off figuring out how to make more than cut back (depends on the scenario)
@ShaunSurgener that's partially why I don't want to go back to the roommate situation. But for the most part I work overtime (which I rather not have to) but I agree I'm currently trying to find better paying jobs.
@@RellyMedia yea Roomie is tough. Yea find a higher paying position or try to find a skill you can develop or already have you could get a side hustle on your own and earn way more per hour. That’s what I did and it eventually turned into my full time thing and I make way more now.
@@ShaunSurgenerwhy are roommates suggested so often. There are a thousand cons to the single benefit of saving money. It's not normal to share all your privacy and live with a stranger
I used to live in Newport Beach, and was priced out. I moved to Costa Mesa, and finally was again priced out. I moved here to Vegas in December of 2023. When I left Costa Mesa, my rent was 76% of my take home pay for a not so nice place. I get far more for my money here, but my rent is still over 50% of my take home pay. 🤷🏻♂️
@@CharlieChang doesn’t even have to be cheap lol. Just like a house. $2000/m 4 ppl $500 per person. And $2000 will buy you a pretty nice house. Depending where you live. But yea. You don’t need A LOT of ppl and it doesn’t NEED to be CHEAP lol.
Idk where you live but isn’t rent only about $1k plus a month? i wish I was at $90k I feel like I’d live comfortably with that income . I’m only at 40k 😢
@@sulena8823no big cities like nyc dc or La are at least 1500 for rent controlled and then a regular 1 bed is 2,000-24000 if it was 1k I wouldn’t complain lol
I'm single (no kids) in Los Angeles. Last year I earned on average 21k p/month. This year I have been slacking and its around $16.6k per month on average. I pay $2600 p/month (includes managed utilities) for a 583 studio sq ft apartment. I am a VERY safe kind of person. I will need to bump it up to just the regular "target" of around 4k (I am aiming to spend less than your "targets" which seem high to me, when buying a condo soon (porbably will have to be a small condo etc)... Sucks living in a high COL area. I also drive a 2008 car with 100k miles on it. Don't need a new one as I earn money from home and get groceries delivered via Amazon. Don't see a point of buying a new car when I mostly stay home.
And that's why I stay in my rent controlled unit. $1000 a month in Hollywood, unfortunately it is in Hollywood, and makes up about 12% of my monthly income.
I live in P.R. a U.S. territory and its absurd how the average income here is basically 10k and how people who pay rent usually do it by having 2 jobs.
so pretty much, as a 17 year old who wants to move to LA and had completely accepted spending 60-70% of my paycheck on rent, i’m horribly wrong? idk i feel like i can live on 35%. see yall out there
If I wasn’t living with my parents rn I’d be living out of my car. Fuck making other ppl rich. I’ll make that sacrifice for a few years if that’s what it takes to be able to buy a home. While everyone else my age wants to look “cool” cuz they have a apartment they are getting recked on with rent so they can go out and drink every weekend, I’ll be the smart one and put money away every month.
I've actually been homeless for many years, several of them involved having a car, some of them not... You can make it work and survive but not without risk... Communicate with resources like family & develop clear goals (I'm gonna move out in 1 yr) you'll be fine. Don't ever think "homeless isn't that bad" it sounds ignorant to someone who doesn't have your same resources in life.
I had to choose between bring just over target to own a home or keep up with the jonses. 1200 to own taxes hoa on a 3k a month job. Lowest rent in town is 2.1k. Ones a paycheck the other would have taken both.
Roughly $15k + a month household income and pay $5400 mortgage. Also have another mortgage at $2800 but being rented out for $4000 (did not include that in my income).
$1200 profit from one rental, yuck. How do you sleep well at night. First having the greed to own two properties when you only need one then further showing greed by grossly overcharging the rent. Impacts so many people in a horrible way, just because you were born earlier than them. How special you are.
@@tylerdewitt8204 Your rent is fine, under 30% of your monthly income. But your car payment is a financial drain - 700 bucks a month is high af. A lot of financial gurus will tell you that outside of housing, high car payments are the biggest hinderance to wealth building. I would downsize or just buy a used car in cash and invest or save the rest every month.
No offense but how is 1,000 a month a lot of money for six figures ? That’s way to cheap you can’t even find enough places that cheap to begin with I think 30 percent is still great if your making six figures
So basically in Hawaii. People can afford a tent in the brush hiding from people off the highway 😂 Average person in Hawaii cannot afford anything then 😂😂😂
Holy shit, only paying 22 bucks in taxes???? I pay way more than that when i gross way less! I love getting screwed by my government :) Like when I've made that much, i'm paying HUNDREDS of dollars in taxes
Like 30% of my gross pay is 50% of my net pay. I make $58.5k/year, but my take-home is just under $38k. Based on your chart, I should be aiming for between 1000-1500, but based on take-home it's like 600-900/month. And where I live, you're LUCKY to find a decent apartment for much less than $1300, which is just about a whole paycheque! (Alberta, Canada, one of the cheaper cost-of-living provinces compared to average wages)
I would love to have the luxury of deciding how much to pay. I basically always go for the cheapest place that is still in a safe neighborhood and not horribly far from work. Impossible to find anything under 30%
There should be a law that keeps rent affordable or to ensure businesses have to pay a livable wage
Businesses will charge the anount that people are willing to pay. If they increase rent to "unlivable" levels, then people will opt to not rent there and the business will lose money with vacancies. If it's too expensive, don't move there, if everyone did that then rent prices will always be fair. It's the people that overspend on rent they can't afford that really impact others negatively.
The currency of the nation is based on the fractional reserve banking system -- so here we are, as a nation hijacked by inflation: bidenomics. And inflation is really just hidden taxes in disguise.
Rule 1 is to figure out how much you can afford, but another quality of life rule that I realized is that if you can pay a little more and get responsive maintenance, a roach free unit, and great amenities (a big pool is something I love in these summer months) then go for it. Better than paying less but having peace of mind affecting by lack of AC on summer or roaches all over your belongings and food.
@@bluesky5384 that’s what I’m thinking!! That really applies to cities. You can’t cheap out or it could be an unsafe or roach infested unit. Also, if you moved further the price of Ubers and transportations adds up too
The 3x the rent for approval in a safe neighborhood is horrible when average costs for a house or apt are near 2000 or more. That means you have to make over $37 an hour. WTH!?
yea it can definitely be hard to get 3X a the rent especially when it's 2k. Crucial to have those roomies and focus on living as cheaply as possible, stack cash, build some passive income, and get that active income up... only way to make it now... hope you are well
Focus on buying assets like stocks and real estate. Get out of debt and stop trying to look for strangers on tik tok.
All this told me apartments are far out of range for the median income salary of around $36k according to the national debt clock. How people are actually making due is a mystery.
They’re not. Credit card debit is out of control!
I make 96K as a teacher... not sure where you’re getting 36k. Rent is only 1600 for a 2/1 here in SoCal. Easy when I have no debt and save 30% to retirement.
@@MrRuben536I only make $40 k so I’m sure $36k exists. I don’t thinks it’s even possible for me to afford rent alone .. although I won’t stop trying. 🥲
just win the lottery. simple.
@@MrRuben536 hi! I’d love to know where you pay that amount in SoCal because I’m on the market for an apartment! I’m not seeing anything less than $1800 for a 1br/1ba!
Well I spent 20 years of my life working my way up to $30/hr and I can still only afford $760/month maximum in rent so I guess I don't deserve to be alive.
@@shuffinginoblivion fortunately there is more to life than the money you make an hour. you’re not taking any of that money with you when you go
How much rent do you pay and what's your household income? Let me know in the comments, I'm curious!
Hope you find this video helpful - I think it's a topic that affects everyone that rents, and is likely most people's most expensive monthly expense. Have a great day!
-Charlie
To get the discussion started I currently pay $3,600 for my rent, but I also pay $3,700 per month for another apartment that I use as a filming studio
Between the wife and I, our income is around 173k total.
Our rent is 2215 a month here in Round Rock, Texas.
i am making on average 8k a month as a dentist and my rent is 740 i guess im good 🤣🤣🤣
@Charliechang I have FINALLY followed good rent rules with my new place in Hawaii. I sacrificed my usual quality living situation for financial savings and I now pay $1750/month (for a bedroom and my office) with my roommate. I take home $7200 a month or $1800 weekly on average. (Hawaii taxes suck!)
I'm not saying lol but nice try IRS
Why is it based on gross? Shouldn’t it be based on net?
Yes
I never understood that either. Everything online goes off of gross income. I’m aiming for 30% of of net income.
Because net is harder to calculate because of tax brackets. and gross can run the calculations already calculating that for you on back end.
I sometimes make 300k. Sometimes 500k. Sometimes 900k a year. This chart is easier to understand for myself.
@@ssing7113 God damn, good for you man. What do you do for work?
Household income almost $150k. Mortgage is $1100 mo ($1800 total with taxes, insurance and HOA) We were blessed and lucky to buy a home right before covid with a 2.625% rate.
Wow that's amazing. Great housing spend percentage too
@@CharlieChang 🙏
Who cares
@@dearjohn8789Why did you care enough to comment? People like sharing their successes. You're either new to the internet or new to planet Earth.
finding something under 30% sounds like a dream in my area where bachelors start at 2050$, the 30% rule is a nice thought but is a old thought structure from over a decade ago that really just doesnt work in a lot of cities. (even greater city areas and suburbs around big cities dont get that much cheaper and at what point is the HOURS wasted traveling worth the savings?)
My thoughts exactly it would be more like 35-40%
I have been looking for videos and yours came out just in time!
Here I am having to spend over 50% of my income on rent smh
Sometimes it's the only way, I feel you
yea that's tough.... if you can't get a roomie, or a 2 /3 bedroom and split it then you may want to focus on increasing income ... some times you're better off figuring out how to make more than cut back (depends on the scenario)
@ShaunSurgener that's partially why I don't want to go back to the roommate situation. But for the most part I work overtime (which I rather not have to) but I agree I'm currently trying to find better paying jobs.
@@RellyMedia yea Roomie is tough. Yea find a higher paying position or try to find a skill you can develop or already have you could get a side hustle on your own and earn way more per hour. That’s what I did and it eventually turned into my full time thing and I make way more now.
@@ShaunSurgenerwhy are roommates suggested so often. There are a thousand cons to the single benefit of saving money. It's not normal to share all your privacy and live with a stranger
I used to live in Newport Beach, and was priced out. I moved to Costa Mesa, and finally was again priced out. I moved here to Vegas in December of 2023. When I left Costa Mesa, my rent was 76% of my take home pay for a not so nice place. I get far more for my money here, but my rent is still over 50% of my take home pay. 🤷🏻♂️
At some point reducing spending needs to be met with increasing income
Thank you! I was struggling in my personal finance and this video helped give me an idea of what rent I could afford when I get out of college.
Moving to LA for work, partner and I make a combined 130k. We’re looking for rent that is 2.7k to 3k on the high end
Why would you even rent a place if you are making 1.2 million a year? unless is temporary I gueas
400-600 a month on rent boy wouldn’t that be nice lmao
Possible if you share a cheap apartment with a lot of people 😅
@@johnlongcock1122 When you're single and young sharing with people is not a problem. Do it while you're young, you'll thank yourself later.
@@CharlieChang doesn’t even have to be cheap lol. Just like a house. $2000/m 4 ppl $500 per person. And $2000 will buy you a pretty nice house. Depending where you live. But yea. You don’t need A LOT of ppl and it doesn’t NEED to be CHEAP lol.
@@CharlieChang that’s me I make a lil over 2k and live with 3 guys. Grateful but 😭 really hope I can move out one day.
I make a 90k salary and its impossible to spend only 30% of my income on rent. Our generation really got screwed man
Idk where you live but isn’t rent only about $1k plus a month? i wish I was at $90k I feel like I’d live comfortably with that income . I’m only at 40k 😢
@@sulena8823no big cities like nyc dc or La are at least 1500 for rent controlled and then a regular 1 bed is 2,000-24000 if it was 1k I wouldn’t complain lol
Your math ain't mathing buddy... 40% of my 60k gross is roughly 2000 so even I should be able to afford a place of my own in SoCal
Can I afford 1300 in rent on 68k income? NET income is 50k a year. No debt, single, and no kids.
I'm making 1200 a month work on 45-50k gross. It's very tight. If you use food pantries cut cable and just chill it's doable.
I'm single (no kids) in Los Angeles. Last year I earned on average 21k p/month. This year I have been slacking and its around $16.6k per month on average. I pay $2600 p/month (includes managed utilities) for a 583 studio sq ft apartment. I am a VERY safe kind of person. I will need to bump it up to just the regular "target" of around 4k (I am aiming to spend less than your "targets" which seem high to me, when buying a condo soon (porbably will have to be a small condo etc)... Sucks living in a high COL area. I also drive a 2008 car with 100k miles on it. Don't need a new one as I earn money from home and get groceries delivered via Amazon. Don't see a point of buying a new car when I mostly stay home.
Sounds like you're crushing it!
@@CharlieChang sounds like he’s under house arrest
HHI per month is about $18,450 and we spend $3500/month on rent
Wow! Very nice percentage
NICE! are you in a HCOL city? that's a decent percentage
How come it’s 30% of gross pay and not net? When paying rent we give 30% of or net pay … I’m confused.
Not sure where your finding a spacious two bedroom for 1000/mo in the Midwest. Maybe in Kansas or Nebraska lol. Nowhere anybody wants to live
Welp even renting a room is around 1k in my area 😭
Oh wow :(
Minimum 1200 right now.
are the monthly income numbers pretax or post tax
Pre-tax!
most people always refer to pretax.. HOWEVER post tax is BEAST MODE lol... hope you are well.. let's build that dream!
And that's why I stay in my rent controlled unit. $1000 a month in Hollywood, unfortunately it is in Hollywood, and makes up about 12% of my monthly income.
Dallas has a lower cost of living only compared to the most expensive cities. It is getting expensive fast
I live in P.R. a U.S. territory and its absurd how the average income here is basically 10k and how people who pay rent usually do it by having 2 jobs.
Which makes it impossible for me to have my own place, work and keep studying
What about for cars ?
I'll do one on this topic!
Side hustle to keep up with the Jones.
Great video idea !
AND I LIVE IN ST.LOUIS wow this video is for me!
so pretty much, as a 17 year old who wants to move to LA and had completely accepted spending 60-70% of my paycheck on rent, i’m horribly wrong? idk i feel like i can live on 35%. see yall out there
I’ve been financing my car for 3 years and I have 3 more years to go.. it does affect me with rent how do I lower it?? /:
Sell the car, buy one in cash you can afford
So if my gross income (monthly) of 3,300 and i pay rent 1165 per month will it work? Or it’s exceeding the limit there
That’s pretty high
If I wasn’t living with my parents rn I’d be living out of my car. Fuck making other ppl rich. I’ll make that sacrifice for a few years if that’s what it takes to be able to buy a home. While everyone else my age wants to look “cool” cuz they have a apartment they are getting recked on with rent so they can go out and drink every weekend, I’ll be the smart one and put money away every month.
Good thinking! I respect the sacrifice
I lived with my parents until almost 26 because why move to pay over 2k in rent to someone else and not be able to save??
@@sabrinawilk5693 yup that part
One person having to sacrifice only to avoid the benefit of another
I've actually been homeless for many years, several of them involved having a car, some of them not... You can make it work and survive but not without risk... Communicate with resources like family & develop clear goals (I'm gonna move out in 1 yr) you'll be fine. Don't ever think "homeless isn't that bad" it sounds ignorant to someone who doesn't have your same resources in life.
Is m1 a good platform for a roth ira or should I use something else
Yeah it's solid! can't go wrong with M1, vanguard, charles schwab, pretty much any online brokerage
Traditional ones are vanguard, fidelity, Charles Schwab.. I’d recommend those … vanguard was the original creator of index funds
I had to choose between bring just over target to own a home or keep up with the jonses. 1200 to own taxes hoa on a 3k a month job. Lowest rent in town is 2.1k. Ones a paycheck the other would have taken both.
Roughly $15k + a month household income and pay $5400 mortgage. Also have another mortgage at $2800 but being rented out for $4000 (did not include that in my income).
$1200 profit from one rental, yuck. How do you sleep well at night. First having the greed to own two properties when you only need one then further showing greed by grossly overcharging the rent. Impacts so many people in a horrible way, just because you were born earlier than them. How special you are.
$4,800 a month
My rent is 1500
Do you think I’m making a poor decision
My car is 450 my insurance is 250
Electric ⚡️ 175
And Internet 100
Phones 175
This was very helpful thanks I wish I had more of these to learn how others do it before I move which is terrifying to me.
@@tylerdewitt8204 Your rent is fine, under 30% of your monthly income. But your car payment is a financial drain - 700 bucks a month is high af. A lot of financial gurus will tell you that outside of housing, high car payments are the biggest hinderance to wealth building. I would downsize or just buy a used car in cash and invest or save the rest every month.
No offense but how is 1,000 a month a lot of money for six figures ? That’s way to cheap you can’t even find enough places that cheap to begin with I think 30 percent is still great if your making six figures
So basically in Hawaii. People can afford a tent in the brush hiding from people off the highway 😂
Average person in Hawaii cannot afford anything then 😂😂😂
Holy shit, only paying 22 bucks in taxes???? I pay way more than that when i gross way less! I love getting screwed by my government :) Like when I've made that much, i'm paying HUNDREDS of dollars in taxes
Like 30% of my gross pay is 50% of my net pay. I make $58.5k/year, but my take-home is just under $38k. Based on your chart, I should be aiming for between 1000-1500, but based on take-home it's like 600-900/month. And where I live, you're LUCKY to find a decent apartment for much less than $1300, which is just about a whole paycheque! (Alberta, Canada, one of the cheaper cost-of-living provinces compared to average wages)
This is assuming you can actually find a place to rent for that cheap 😂 I haven't found anything in 6 different states that are below 1,200 😭
no more real estate
Your numbers make no sense my dude, what magical country do you live in where you don't have to pay taxes?
And iv looked at that exact unit! WTF!
Okay
Monthly gross is 24k and I spend 1895/month on rent. I don’t think it’s worth spending a lot on rent.