How Much Rent Can I Afford
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- Опубліковано 29 лис 2020
- How much rent can I afford? If you're asking yourself this question, you're on the right path to success with money. Because when you spend too much on rent, you don't have as much money leftover to put toward other financial goals. In this video, I give you my recommendation for how much you should be spending on rent each month. Sticking to these guidelines has played a crucial role in helping me pay off over $182,000 of debt in just two and a half years. And they'll help you win with money too.
What percentage of your income do you spend on rent each month? Let me know in the comments.
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Link to the paycheck calculator on Smart Asset: smartasset.com/taxes/paycheck-calculator
How much rent can you afford?
You lost me at ... “ we make an annual salary at 100k a year”..
Hey Lily, thanks for watching! I think I was using the $100K salary example in this video because it would just be an easy number to work with for calculating the difference that state income tax makes. But I get it and I agree - that level of salary is outside the realm of possibility for many people, and I will make sure I consider that in the future when I'm working on the video scripts. :)
Lmao…
I make (half of) $100k per year!
I make $24,000 a year
Honestly 2 people 50k each is 100k. 50k is about average.
25% would put my rent budget at $679. In my area, that will get you nothing clean or well managed. I pay 28% (soon around 30.5%) where I’m at right now and my complex is well managed. I’ve got about $10k more to my name than I did last year! 🎉
I think you've got a great situation there Blue Sky. And it shows, how you were able to save $10,000 in just a year's time. Soon, you'll be ready to become a homeowner!!!
I pay $1400 a month. I want it to go down
Cries in Bay Area
California*
It's definitely a challenge to find affordable rent in major cities and certain areas!!
*cries in Chicago
25%= $562 per month, 30%=675 per month. Rent around here is $900-$1000. Looks like I’ll be moving 😅
Rent now is 1,500-2,400 and it's a one bed .
$900 sounds like a deal coming from atl where u at?😂
get creative, make it work. there is no escaping basic math
@@NoName-to5xlthat advice literally means nothing. you might as well say: “you’re poor? just stop eating”
@@Ecasta96just stop being poor
How much rent can I afford? If you're asking yourself this question, you're on the right path to success with money. Because when you spend too much on rent, you don't have as much money leftover to put toward other financial goals. In this video, I give you my recommendation for how much you should be spending on rent each month. Sticking to these guidelines has played a crucial role in helping me pay off over $182,000 of debt in just two and a half years. And they'll help you win with money too.
That’s what I said!!!
Thank you soo much for this much needed knowledge!
Awesome video Andrew! Got to keep expenses as low as possible to save for investing! Like #5 😀
That's the truth!! :D
As usual very informative.
Thank you!! Much appreciated!! :D
Iv watched about 10 videos this by far best and pro Quality. Good editing.
Champloo I appreciate your comment, thank you so much for watching! I'm so happy you found my video valuable. :)
Groovy. I'm at about 18% with utilities taking me up to 20%. Now I just have to eat out less.
Dude, Chris you are a champ!! I'm between 25 and 30% on my monthly rent because my income fluctuates month to month. Whatever you're saving up for, you'll be there in no time!!
25% of my monthly income after taxes = ~$1,160...I wonder if there's any good places in my area that have rent prices that low 💀
My 30% doesn't even get me an apartment lol
@@AlienShake Lmao I couldn't find anything on that salary either, you're definitely not alone...everything costs so damn much these days 😭
@@triv4555Any luck? I feel screwed
My 25% will not get you anything in my area, not even like... in a bad neighborhood and commuiting 2 hrs, it is just insane the high cost here, I've never had the luxury of having an apartment for my own, alwas renting rooms, and small alcoves... I'm so sick and tired of it, I'm 33. I have higer education and a pretty good job at an engineering firm. Not even after that I can afford a decent spot. it's hearbreaking
@@WerevertumotoWtf are you talking about! Engineers with degrees make good money, why the hell can't you afford a house ?
I'm gonna be paying around 35% utilities excluded.
But I've made a choice for a bit of an more expensive place to also have a separate working space.
Seems like a solid compromise! :) Nicely done.
This is my situation! My studio is going up $70 this year so I’ll go from 28% to a bit over 30%. I’m considering paying 35% for a one bedroom in a good complex nearby just for more space, a balcony, and in unit washer/dryer. I’m touring it today but not sure I want to tighten my budget for a bigger space. I’d like to get to a point where I can feel comfortable enough to put a down payment down on a house. I’m pretty close to my savings goal that would make me comfortable enough to do so.
About to sign a lease 43% of my income and definitely has me thinking about it
43% before or after taxes are taken out? Are you in a high cost of living area? Do you have a high enough income that you’ll still be able to make progress toward other financial goals?
It’s just a rule of thumb. If you’ll still have money left over after all expenses are paid, you can still make it work. I’m HCOL sometimes it’s all you can do if you’re wanting to live alone.
I make about $13 an hour; I have a coworker with $800/ mo rent for 1 bedroom. I split a 3 bedroom for 420/mo 😬 rent hacking works.
This is the way to do it!
If you have a husband, who is in school. Sharing a small house does not work. any other advice?
I ran the numbers where I live in KS. Gross pay minus taxes, took that number per month and multiplied by 25%. This is contributing 0% to retirement, the housing prices are insane.
$50k/ year: $737
$60k $861
$70k $985
$80k $1,109
$90k $1,234
$100k $1,356
my rent is $906 and its the cheapest I can find around here, it is 37% of my month take home pay
Hey Zach, thanks for watching and I think it's important to do the math like you have. I will agree that rent prices seem to be too high these days compared to the average person's income, especially for someone who is single that just wants to rent a studio or 1 bedroom apartment. As unfortunate as it may be, the best solution in my mind is living with roommates. The only time which I've lived "alone" as an adult was for about a year when I was renting an in-law suite in another family's home. All other times, I've lived with roommates and eventually with my wife once we were married. That seems to be the best way to make the math work.
Great video. To many people over spend on rent or a personal morgage
So true, and it keeps them from every climbing out of debt!
Amazing video ❤ getting an apartment is so stressful lol especially when getting w2, paystubs and bank statements I had to pay an online vendor for help
Pls more info? Who?
NO Way 30 percent of my check will ever find me house let alone an apartment. I would love to know what kind of work people are doing that they can really afford 30 percent of their take home as rent.
Rent is just not affordable for the vast majority of people, people really are just scraping by
Just watched your video for the 1st time. Glad I did....Huge eye opener! I've been repeating the cycle for years and stuck in the "rat race" and my rent percentage is at 39% which I know is far from the 25-30% I need to be at. I'm working on getting a " larger shovel" (I listen to Dave Ramsey podcasts too about money) to dig myself of this and end this cycle, meaning getting additional income by other streams such as a 2nd job and as much OT I could get at my current job and am as motivated as I've ever been to fire my landlord and get a place of my own and putting aside necessary deposit money and increasing my credit score by chipping away at existing debts. It's such a tedious and long process. Any other advice u may have to make this process a little easier for me would be much appreciated? Thanks
Dave Ramsey has gone bankrupt several times, even after writing courses on finances. He is not a reliable source, I seriously suggest speaking to an accountant instead. (An actual accountant, not just a "financial advisor" which anyone can claim to be)
Rent is not affordable. Rent is now 40% add expenses and we are at 50%.
That's the tough reality in some places. I think it's important to remember that in many cases, there's nothing forcing people to live in a certain area. If a specific city is too expensive, perhaps there's another place nearby where the cost of living is less. Remote work opportunities are making a big difference for people with this mindset.
Move to Kansas.
@@DriveupLife22 I live in Kansas and my 1 bedroom apartment is $906 a month, still too much, its 37% of my take home pay. This is the cheapest place I can find.
Wow thanks for this
Thanks I WILL BE Revisiting this video everytime I want to rent ..
Perfect!
Another great video man keep hustling! - fellow UA-camr
Thank you Jeremy I really appreciate it!! :D
@@PracticalPersonalFinance yes sir
Pffff good luck doing that in MA. Average rent around here is 1400 a month(more so if you’re in the Boston area), while most wages average around 55k(65k towards the Boston area). 25% of that after income tax gives you about $860($997 in Boston) to work with… any tips on areas like Taxachusetts?
Taxachusetts, that's a new one!! Love it!! Because you're in the vicinity of a large city like Boston, I would definitely expect the rent to be a little bit higher than elsewhere. That's just the cost of economic opportunity. I could be mistaken, but I think it was in this video that I mentioned how it might be necessary to expand that rent budget up to 35% of your take home pay in a big city. On a $55K salary, that would put you at around $1,225 per month. Close, but not quite there. There's not a huge problem with spending more, but it just slows down your progress toward other financial goals, which is the opposite of what you want. My best suggestion would probably be to live with a roommate if you want to get serious about cutting down on rent costs. I know it's not for everyone, but I was able to keep my rent to $750 per month or less by living with a roommate all throughout my 20's, and that was in Miami, another big city. Things got easier once I was married and I could pool my income with my wife. Hope some of this was helpful!!
Landlord raise the prices on water, trash, sewer, pest control, and a $5.00 bill fee, when you are under a lease. We still must pay for heating in a drafty apartment,hot water and rental insurance.
The best defense against something like that is to save up and purchase a home. No need to worry about the rent going up every year once you're a homeowner!
What about utilities like electricity bill and wifi bill...? Does it include in this ?
Thank you so much
My pleasure, thanks for watching!!
I personally would use net pay per month not gross. Even when you qualify for a house they only take the minimum credit card payments and don’t even include your utilities. It’s not realistic. Former loan officer, processor and multiple mortgage lender here.
this is a nice video 👌 but i needed bank statements and stub for my new apartment asap which got me stressed until yesterday when i found a legit source 💯
deelscafe helped me out
This doesn’t work for Los Angeles CA; especially as a single person :-(
You are right!! I am in L.A. and it is not possible to live with those numbers per his calculation in the video.
Hey Ryan, I know exactly what you mean. Unfortunately I think in many cases the only solution is to live with one or more roommates. That's what I did for my entire adult life until I was married and moved in with my wife. And I'm the kind of person who would've really enjoyed living alone before getting married if I could've! In my mind, it's just a harsh reality of the world we live in.
AHAHAH 25% of my monthly wage would be $485. There are no apartments/homes for rent in my area for less than $575/mo, nearly 30% of my monthly wages. Guess I should just get a better job 🤪
Yea i guess where the bottom bottom rn 😭
@@gawdlysiinz5134 Amen my friend 😂🥹 it is all good, though. We’ll get there.
Spending 0 on rent by mooching off my parents. Throwing my entire software engineer salary into the stock market. Eating whatever my parents brought home from work free of charge (they work in restaurants).
I feel no shame. I am happy to live in my parents basement until I save up enough for a house. With the rate I am investing and saving, I can pay it all in cash in just a few years.
No shame in that. All the hard work and sacrifice will pay off big time!
Definitely shameful
@@brayannieto2136 cool, lets see shameful i am when i have a paid for house and you dont ;)
I make more than minimum wage. $12.00 an hour. After taxes and health insurance, I'm left with $1240 a month. The cheapest place to rent available is $680 a month. How am I supposed to do this?
Hey AWOL, thanks for taking the time to watch my video and leave this comment. I hear you and I totally understand your situation. You're absolutely right - there's no way to spend a reasonable percentage of your income on housing with the state of wages in the US. So I believe what you need to do is to come up with a plan to increase your income and then execute that plan. What do you want to be doing 3 years from now? Where do you want to be living? How much do you want to be earning? What do you need to start doing today to get you moving in the right direction toward that vision of the future? There are all important questions to ask yourself. The road will not be easy, but you can do it. If I can help by answering questions or providing some guidance please let me know!!
Good answer because rent is now unaffordable. It is going to take people moving in together to afford rent in a safe area!
@@itstime9986 do two people have to make x3 the rent each? Let’s say the rent is $1,000. Do each tenant have to have a monthly income of $3,000 each??? Because if so even rent is impossible
Saving is a good start I was planning to save for two years for a years worth of rent and then finding a higher paying job during that time. While also still saving to stretch that rent money out.
@@lilypopsz It's usually the "household" income that they want. Like all members combined.
I live this video. Dave Ramsey also recommends to pay no more than 25% of your average take-home on rent.
I like Dave but 25% is a little outlandish.
Out of touch with reality
Geez, so making $100k a year will only get you “average rent” in most cities
I think taxes play a bigger role than people think. $100K as a married couple somewhere with no state income tax goes a heck of a lot further than $100K for a single person in a place with high state income tax. It’s all relative to where you live and some places are better than others when it comes to affordability!
@@PracticalPersonalFinance I am in Chicagoland west suburbs, single, and $100k. I am 38. But I need to contribute at least 15% of my income to 401k because I am late saving for retirement. So after that, fed and state income tax and other deductions, I should only be paying rent based on a $55k/year income,
Good on you contributing a steady 15% to your 401k. As for rent budget, I would suggest calculating your housing budget before accounting for 401k contributions, which would put you at about $70,000 per year. You're in a major metro area where the cost of living is higher, so I think you're fine spending 30% of your income on housing. By my estimation, that puts you at about $1,750 per month. I'm not too familiar with Chicago real estate, but a quick Craigslist search for apartments would suggest that $1,750 is a reasonable budget for a nice 1 bedroom, maybe even a more average 2 bedroom apartment. And you'll still have around $2,800 per month to play around with after housing and 401k are taken care of!
@@PracticalPersonalFinance $1,750 per mo will not get me into a 700sf plus apt in DT Chicago, so yeah, guess I will stay in my crappy 1-bedroom apt in the suburbs.
So I live in Southern CA and got married this past year. I am realizing that my wife needs to work full time if we are to live in this area. Renting in this place is so expensive. my rent percentage right now is 38%. We do have a savings for emergency and some assets but a lot of debt on my book while my wife does not.
whats your suggestion, move like everyone else in my family?
Hey Joel, thanks for the great question!! If you live in a very expensive area, then 38% really isn't too bad, but it will definitely make your life more difficult when you're trying to achieve other financial goals like paying off debt or saving up for a home. Moving somewhere less expensive might help; but if your income takes a hit, it might not be worth the hassle. You'll need to run the numbers. Sometimes it's a no-brainer to leave the big city. Other times, it's the only place you can earn a high level salary. Hope this helps!!
BTW: I made another video you might find useful about merging finances after marriage, here's a link: ua-cam.com/video/hRbQftIueyw/v-deo.html
I suggest leaving. Cali is a little messed up rn financially, so leaving if you can afford it is a good idea
2:11 LOL for some reason I thought you were about to say "For these reasons, I would recommend you get married." XDDDD Thanks for the tips!!
Might be a dumb question but when you are saying “rent” are you including the cost of utilities?
Hey Yeye, that's not a dumb question at all!! Thanks for asking! When calculating rent, I personally do not like to include the cost of utilities. If someplace I was looking at had utilities included, I would consider the rent to be a little bit less. Some people like to include the utilities in their rent budget, but if you're following the suggestions I laid out in this video, I don't think paying for electric, water, or internet will prevent you from achieving other financial goals like paying off debt or saving for a down payment on a home. Hope this helps!!
Bro, 25% for my rent is only 500$. I couldn't afford to live in a cardboard box.
I've been there! The solution for me was living with roommates. For 7 years my monthly rent was between $630 and $750. That would be a little more than 25% in your case, but I'm fairly certain it was for me as well. The key for me was to focus on ways to boost my income over time, without going and spending much more on rent.
I live in Dallas, TX, a large metroplex. It was easy finding places for $500 with roommate wanted ads.
@@AlexanderWebster_ You live in the US where everything is cheaper and you are paid more. In canada you have to work two full time minimum wage jobs before you can even think about moving out.
Should the take-home include pre-tax deductions for company-sponsored insurance?
Hey Gaurav! That's an awesome question. There's no specific rule, but I usually count it as total pay minus taxes and nothing else. If your health insurance or retirement contributions are coming out of your paycheck, I prefer to add those back prior to calculating a budget for rent.
So my rent budget as being 30% of my take home income is $544 yay I love this country!
SaMe here
Sounds like you make just under 30k/yr gross. So you should either rent a room or get a roomate. This way, you can save money 💰. I saved quite a bit in my 20s when I was making 30k when I had 2 roomates renting a $1500 a month, 3 br home.
@@JayLawson having at least one roommate would be the only way I could afford to move out of my parent’s, but it just doesn’t fit my personality. I value my alone time, and so moving out and living on my own is the only option I’m open to. Just have to hustle and increase my income.
Thanks for watching! I agree with you, rent prices are out of control. But living with roommates isn’t so bad! I lived with roommates for a number of years and never had a problem with keeping to myself when I wanted to. As long as you can go into your bedroom and close the door, you’re good!
I pay 45% of my take home income on rent. Granted, I am debt free but you can NOT find a decent place in Atlanta GA for under $1,400/month. It's wild out here. I'm over living with roommates.
I hear that. Seems like in most cities now you’re either spending a huge percentage of your monthly income on rent, or you’re living with roommates.
I’ll most likely be in the same boat as you within the next few months. How’s it working out for you? Any tips?
@@xoxoinsideoutbeauty I've not yet moved but I'd say pay off all your debts. I think it is easier to make it on 45% of your income on rent if you don't have any other major bills although it is still a thing that is constantly on your mind! I'd also suggest coming up with side hustles. Hopefully this will all get better for us in a year or two *figures crossed*
I haven’t started my job yet, but looking at all the numbers, it looks like im also gonna be spending 45% on my take home pay on rent and utilities. From someone who’s already paying it, is it stressful for u? Do u live paycheck to paycheck or anything like that? I’m frugal with my money already, but still a bit nervous
@@kanoam7716 I'm not sure I can give an accurate answer as I have a lot of savings to work off of. I would say, after all of my expenses, I have about $1k left over each month for savings and fun things. That's a rough guess as I've just moved in but so far so good. Furnishing the apartment is what is currently draining me haha.
For those of you wondering about how to increase your income. I was $15/Hr working for Amazon. Small investment of $1500 I got my Class A (commercial driver’s license), now I work for FedEx, started at $25. In less than a year I added $10/hr to my pay. I live in Los Angeles. So rent ain’t cheap out here lol.
Don’t blame the world or the politicians. Because there are people out there killing it still! So Get up, improvise, adapt, and overcome.
Quality comment right here. Thank you for watching Carlos and keep rocking it!!!
So encouraging Carlos!!
Look else where 25 /hr in LA with a cdl you can make more. Try being owner op.
Same here, was working at dominos doing delivering driving at 7.25 an hour. Got my class A. Now im at $27 an hr. 60 hr weeks overime after 40. Yep
@@danielrubio5623 hell yeah brother!!
Bruh these jobs don’t pay though😭. I take home just under 2000 monthly workin 40 hrs a week and I train at an mma gym so I already be drained. About to move into a hotel
Seems like a tough spot to be in. I know it's much easier said than done, but to break that cycle you either gotta get your income up or maybe find a place with a couple roommates where you can split the rent. In my 20's I had two roommates; we lived in a 3 bedroom townhouse and split the rent 3 ways. That was the only way I could spend what I felt a reasonable amount on rent. What are you thinking about doing long term for work?
between my partner and I we make about 8200-8500 a month. I found a rental for 2400, no utilities included, do you think this is a good starting point for us? 3 bed 2 bath home, we have been looking to buy but everything is super expensive here in oregon.
50% is the going rate in Pasco fl
Im a student and my apartment is 61% of my income. But it is 500€ and I won’t get anything for less than that in a city
These numbers make little sense in the N.Y area where you should expect to pay 45% of your net. Anything less and you're living in a dump
1. Get Married
2. Move out of california
3. Crying
4. Cry some more
5. ?
Living with a partner or roommates is a great way to make rent more affordable!
25% would put my rent budg... I'll go live in a garage I guess
It's definitely a harsh reality of the world we're living in! The rent is just too high, especially for single people trying to live alone!
If ur income doesn't afford you the rent for a 1-2bedroom, it means ur income is really bad to the area you live. So you must sacrifice now so you can live like no else later but just renting 1 bedroom and sharing the kitchen/toilets which is like living at ur parents but with strangers. Or if ur smart rent 1 bedroom from ur friend/family.
So ur saying i could only afford a place wit 267 as monthly rent
A vast number of the population can only afford to rent if they have a room mate or if they rent a single room rather than apartment
What about being on social security with monthly income of around $2000 and rent $1020 a month and other rents in the area are even more.
How did you manage?
Basically get roommates😂😂
If you’re single and especially if you live in a major city, then it’s a must!
I have no debt, I have an emergency fund, and I have money saved for downpayment. But I still want to rent with my fiance for a year or 2 when she makes it to America and give her a good life before we decide to buy together. If you arent in the "rat race" or tackling debt with gazelle intensity is there a different calculation? 25% of take home does not allow access to the nice safe areas I want to provide for her.
i work for 17hr im gonna be stuck with my parents for a while ig
Sooo I can afford a box....
So I might as well kms because I'll be stuck in poverty for the rest of my life.
What if I don't care about saving for a down payment?
You will eventually
Florida over here spending 60/80% of monthly income on rent.... ☹ and its the cheapest compared to the unsafe areas and the rentals that have Toleits IN THE KITCHEN. No im not kidding.
I’m looking to move into a luxury apartment with my girlfriend it cost $1843/month I really love it. I make $1100/week after taxes with $400 end of the month bonus check and she makes $6-700/week. Is this a good move? Please help 😩
I live in NJ btw
Thanks for watching and asking this awesome question Jay! First of all, the fact that you're giving this some serious thought tells me that you're going in the right direction. And I know that rent in NJ can be really high because of the high property taxes there (I'm originally from NJ and my family complains about the high taxes all the time). That being said, with the numbers you gave me, you and your girlfriend are taking home about $90 to 100K per year after taxes. With that household income, I think you're totally fine taking on up to $2,000 per month for rent. Just keep the total rent amount around 30% or less of your take home pay and you'll do great.
Two important things to keep in mind. First of all, I would only do this if things were pretty serious with my girlfriend. If you guys broke up, you'd be up around 35-40% of your monthly take home pay for rent if you were paying on your own, and at that amount it's going to be tough to achieve other financial goals. Second, keep your other financial goals in mind. If you want to eventually buy a home or get debt paid off, just make sure that after paying rent, you have some extra cash to set aside to make progress toward those goals. Let me know if I can help you out with anything else!!
Lmao. 25% of my take home pay is $550. Can’t even get a falling apart, roach infested, crackhead on the doorstep apartment for less than $1100 around here. Looks like I’m fucked. 😭😭
I moved to Querétaro,.Mexico at 79 in 2021, because USA is too deadly and expensive. God will and is dealing wit ALL of us. Karma never loses an address.
I spend half my money on rent
This is my housing formula. Don’t spend no more than 20% of net, not gross, income on housing, which includes the rent or mortgage and utilities. If somebody nets $3,500 a month after taxes and deductions, then they shouldn’t spend no more than $700 a month on total housing costs.
Impossible in lower class.
@@tylerlacasse5756 Not really. It doesn’t have to be if people stick to a solid budget and refuse to pay more than 50% of their net, not gross, income, like so many folks sadly do, on inflated, ridiculous high housing costs. 👌🏻
@@travelingdude1621 yeah but 50 percent is alot different than 20 percent
@@travelingdude1621 yeah but 50 percent is alot different than 20 percent
Im not trying to live in the slums
100% for rent :-)
D:
27%
I think it is not too bad considering I live in a pretty good place in Vancouver, Canada
But for having it down to 20% I'll have to live in a basement :(
That's an awesome percentage!! Nice job!! If you're only spend that much I'm sure you'll be able to pay down any debt you might have and save up for a down payment in no time.
Good content, but too long to get to the point and very distracting music.
Would 33% be a bad start?
I'm at 37% so you're better than me.
Bay area exists bro...
Higher rent prices typically translate to higher available salaries in the area. That being said, I know that not everyone earns one of those salaries. It’s a no-win situation for those paying more than half of their income in rent!
Meanwhile in Denmark the tax % is 49%🤣
There’s a reason why everyone hustles here in the US, we are just trying to survive out here you guys have high taxes but great benefits and don’t have to slave away your lives with a full time job and 2 side hustles
Where's the calculator?
Hey Ice! So sorry I forgot to include the link in the video description. Here it is: smartasset.com/taxes/paycheck-calculator
Someone please answer why we have to pay rent at all?
You can't live for free anywhere.
On a primitive level, and I love thinking philosophically about this sort of stuff, it's because you're essentially paying for the privilege of living in someone else's home. Someone else owns that home, and you're compensating them for the use of it. Definitely the sort of thing that makes me think back to one of my favorite books - The Richest Man in Babylon!
IM GONNA GET MARRIED FOR TAX PURPOSES NOW THANKS ANDREW
Make sure you're in it for the long haul before you tie that knot!!
Lmfaoo
sobbing in $12 minimum wage
What if you work two jobs
Hey Wild, thanks for watching and commenting!! Working multiple jobs is alright in my eyes, as well as it’s only for a certain period of time in order to more quickly reach a goal like getting out of debt or buying a home. If you’re having to work two jobs just to get by, I personally think you need to re-evaluate your situation. I would ask myself these questions: Could I live in a less expensive city or area? Is there any other way I could increase my income? What do I want my income to be 5 years from now and what are the steps to getting there?
If you want to chat further and talk strategy I’d be happy to help you out. I have a private Discord group set up for this purpose. Here’s an invite: discord.gg/YGZK85vvFF
Crys in $550 rent budget
Hey James, $550 isn't too bad! My monthly rent payment was right around that amount when I lived in Miami, for my first 3-4 years after graduating from college. I lived in an in-law suite for a year with all utilities included for $750 per month, and then I lived in a 3 bedroom townhouse with 2 roommates for a total of $1,475 per month for 2 or 3 years. My roommate with the smallest bedroom in that townhouse paid just $400 per month for rent. It's possible, you just need to get creative!
%40% unfortunately
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Can anyone help if I make 3,840 a month how much rent can I afford
If that is take home pay then 25% of that is 960 per month.
Zach G has you covered, but it's also important to consider whether this is your income before or after taxes!
@@PracticalPersonalFinance yes it's after taxes
Who tf makes 4x rent anywhere?
100,000 isn't a "practical" amount to example from. If you're making 100,000 a year you're good.
I make about 8k a month after tax, excluding any bonus or stock options...so tempted to get a 3k apartment just for myself, but i figured it's probably too much for my budget at the moment 🥲
what do you do for a living?
SDE @@jewelariel