One week's pay for one month's rent (job hunting, employment, credit card)
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After running through calculations, I see the rule of thumb
isn't realistic. So I'm amending to 1.5 times week's pay to pay your monthly rent and the poll to ask do you make enough in your weekly paycheck times 4 to cover your rent and normal monthly expenses?
i think the general rule of thumb i have heard is that your housing cost (rental or purchase) shouldn't be more than 30% of your take-home pay. Of course this will vary on what other liabilities you have (loans, credit cards, etc) that are also taking up your disposable income; and some areas are just so expensive that most will end up paying more (San Francisco, NYC, LA, Seattle, etc)
In the last 5 years I have not had any significant raises but also I have not looked for biggest paycheck while job hunting. I am more about "pleasure of doing business with you environment." But yes, in 1 week wage I make enouph to cover housing expenses after taxes are taken out.
i think the general rule of thumb i have heard is that your housing cost (rental or purchase) shouldn't be more than 30% of your take-home pay. Of course this will vary on what other liabilities you have (loans, credit cards, etc) that are also taking up your disposable income; and some areas are just so expensive that most will end up paying more (San Francisco, NYC, LA, Seattle, etc)
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).
i think the general rule of thumb i have heard is that your housing cost (rental or purchase) shouldn't be more than 30% of your take-home pay. Of course this will vary on what other liabilities you have (loans, credit cards, etc) that are also taking up your disposable income; and some areas are just so expensive that most will end up paying more (San Francisco, NYC, LA, Seattle, etc)
This is correct; however, the rule also is that to be "comfortable" your mortgage or rent should equal to one week of your gross earnings and not more.
Is that a valid rule of thumb? (offhand I don't know if the pay is before or after deductions).
I will caveat this by saying "I USED to be able to when I rented" Now that I no longer rent a domicile, I easily don't have to worry about rent and much money goes to paying off debts. Rents here (Shared) are about $600-$800 (Some may include utilties) and up to $1,039 for a studio....
Probably belongs under "Economics." That is no longer a good rule of thumb. Food and clothing are not as expensive as when the rule was devised, and rent higher. Probably many who live comfortably with rent nearly half of take home pay.
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