Tag: Income

  • How Much Of Your Income Should You Spend On An Engagement Ring?

    The three-month-salary rule comes from a 1930s marketing campaign. De Beers, a leading diamond cartel that controlled 60% of all rough diamond output at the time, was looking for a way to drum up sales. The Great Depression had caused an obvious drop in diamond sales, so De Beers began what would become one of…

  • Don’t Spend More Than This Much Of Your Income On A Vacation

    If you’re looking for a simpler way to figure out how much you’ll have to spend for vacation annually, a common rule of thumb is 5% to 10% of your net (after taxes and other withholdings)┬áincome. For an earner with net income of $40,000 per year, that’s $2,000 to $4,000 to spend on vacation, which…

  • 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.…

  • What Should Your Mortgage Be Based On Your Monthly Income?

    Although the so-called 28% rule is a popular method to calculate affordability, it’s definitely not the only game in town. There’s also the 35%/45% model, in which your total monthly debt, including mortgage payment, shouldn’t exceed 35% of your gross income or 45% of your net income, which is the income remaining after taxes and…

  • Gross Income Vs. Net Income: What’s The Difference?

    When all the amount of money you earn, regardless of how it’s made, is added up (before deductions, including taxes), the resulting sum of all those parts is your gross personal income. Bankrate offers up the example of an hourly wage earner who works out gross income by taking an hourly salary rate and multiplying…