Don’t Spend More Than This Much Of Your Income On Rent

If you’re just starting out in the adult world and have no idea how to manage your finances, the 30% rule is a great place to start. This tried and true method can help you determine where you should move, if you should have roommates, and how to divvy up the rest of your expenses. For example, if you make $25,000 per year, that leaves you with a max of $625 each month to spend on rent. This narrows down potential apartments immensely; on a budget like that, you might want to live with roommates, in an area with a lower cost of living.

Advertisement

Not to mention that paying more than 30% on rent can put a serious strain on your finances. You don’t want to have no money left over for bills, groceries, and a reasonable quality of life. This time-tested budgeting method can be very helpful if you’re planning to move or have some flexibility when it comes to picking a community. Of course, that flexibility just doesn’t exist for all (most?) of us. If you’re already locked into a location for any reason, the 30% method might not provide much guidance.


Posted

in

by

Tags: