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One week's pay for one month's rent Is that a valid rule of thumb?
The NET income from one weeks pay to cover ALL housing expenses.
That's AFTER taxes and any other deductions you have (whether you want them or not).
ALL expenses means rent (or mortgage) and utilities and any other fees associated to living there.
That way you can actually afford to have a life and a future with the other.
Too few can afford to have a life or a future today.
That doesn't mean it's THEIR responsibility to pay more though.
Find a solution to align income with expenses.
This "rule of the thumb" isn't valid for many high COL areas like NYC, SF, and D.C. For example in D.C. and much of Northern Virginia, a small efficiency apartment in a safe area (with a reasonable commute) costs $1800-2200/mo. Living with a roomate may reduce your rent to $1200-1300/mo. For most young professionals in the area, a week of NET income won't cover that.
The NET income from one weeks pay to cover ALL housing expenses.
That's AFTER taxes and any other deductions you have (whether you want them or not).
ALL expenses means rent (or mortgage) and utilities and any other fees associated to living there.
That way you can actually afford to have a life and a future with the other.
Too few can afford to have a life or a future today.
That doesn't mean it's THEIR responsibility to pay more though.
Find a solution to align income with expenses.
I make almost enough in a week, net, to pay my mortgage. My husband works full time also, and makes about what I do. So I'd estimate we make enough to pay our mortgage in about 3 days. Not too difficult in DINK households in less expensive areas of the country.
I've adjusted the thread. What some people may find shocking is I recently read that over half the people living in NYC are a month away from bankruptcy if they lose their job (and presumably don't get unemployment compensation which I find questionable).
That has nothing to do with housing cost or how much they earn and everything to do with their budgeting skills...
a person can always out spend what they make and always be on the verge of bankruptcy if they are fired
I know doctors who make north of what the col in an area is and still live paycheck to paycheck. They live in a larger home if it is a consolation prize to their ego for being paycheck to paycheck.
When I worked at NASA life was good. One week's paycheck took care of rent, utilities, internet, groceries, all the fast food I wanted, gas, and car insurance.
Nowadays I don't see that. A one bdr in my former neighborhood of Wicker Park is now $1600 to $1800.
To avoid that crap I live in my minivan towing my Honda Civic [or soon to be a trailer]. 97% of my possessions are in storage lots, - way cheaper than rent. And my possessions would fill up a 3 story house! Like 30 bicycles!
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