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But there are a LOT of people out there (here too) who believe it's actually okay to spend a whole lot
more on monthly housing costs. Some crazy more... even 2-3 weekly net earnings per month.
What they SHOULD be limiting the housing portion of their budget to is the point.
Should? Do you think household economics follows bumper sticker truisms?
There are many ways to do the right thing financially. For example, if someone pays nothing for transportation and puts that money toward housing, there's nothing wrong with that.
I just laugh when people think this stuff is that simple.
If you think a single person with extremely low non-housing expenses should only pay 30%, what should the limit be for someone with kids and debt? If you say 30% you're REALLY not using your head. Obviously they're not the same situation.
In many southern states and rural areas all over America close to 40% of the population makes less than $25,000 a year. Some how they make it just fine. Here is how:
One USED car
Few out to eat meals
No travel
No Internet or Cable TV
Clothes at Goodwill
The Dollar Store for stuff
They pay very little in state or federal taxes
Few or any kids
(Live the 1950s lifestyle and you will do fine.)
I hope you speak from experience and aren't preaching down as someone who's got it made since you say "they" and not "we".
BTW, the '50's lifestyle doesn't include "few or any kids" because there wasn't a lot by way of reliable birth control...oh, I know, ladies just keep your knees together or fight off your husband?
You can't do that. You also can't not eat. And you can't not save either.
23% ...12/52 of their annual
That's including utilities too.
Same.
I'm not saying it's easy or fun...
but if you want to have a chance at getting anywhere in life...
tighten the belt and make it work.
Some people are just surviving. And they do indeed "not save". They have no energy or reason to think about the future, just how they will buy food and keep the lights on today.
The OP asked about "getting by comfortably enough"...
True, Mr. Rational!
I wonder about someone I know. Worked in retail all her life. Not a manager, still after 35 years going in before a sale in the early a.m. to put out the signs on the sales tables; in other words, can't be making much more than MW. Her hours were cut to PT so she is retiring and told me that her pension will be $500 a month. She is taking another job as a janitor in a school. Her husband is in his 60s and lost a sales job about 5 years ago. Now he hawks solar panels/sets up appointment at a table inside Home Depots and Costcos. Not much coming in there.
No kids, but they have a 1200-sf house on a quarter acre and 2 older cars. I just stalked her taxes--just over 7k. Bought in 2000 so I think they must have a mortgage.
They seem to fit the OP's premise, and I wonder how they do make it on a low income. I know her husband told me that he cashed in his pension from the old job and got around $80k. He was all excited about that. I hope he invested somewhere, but I'm thinking not.
23% ...12/52 of their annual
That's including utilities too.
I'm not saying it's easy or fun...
but if you want to have a chance at getting anywhere in life...
tighten the belt and make it work.
If I paid just 23% of my base net income including utilities for an apartment in my area it would be a drag on my quality of life. Roaches, questionable neighbors, section 8, frequent break -ins, more litter, and etc. I gladly pay 30-33% of my net income not to deal with that. I won't lose 1 second of sleep over it either. Most people wouldn't either if a 10% increase in expenses improves their quality of life in a noticeable way v. sticking rigidly to a guideline if their housing situation sucks.
Also people like to say just get a roommate. In some cases it works. I assume it works better in a high cost living area v. a low cost area as roommates are likely to have better paying jobs. If your low income and roommate with someone to save money what happens when they for whatever reason fail to pay their portion of rent or bail on you? It could put you in a world of hurt and possible mess up your credit. Low income with bad credit can often turn into a death spiral and take years to recover from.
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