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its really a silly question because we all choose to have different amounts in taxes witheld.. some prefer more taken out others less .
some contribute more to other before tax things like retirement and healthcare . im not sure what the percentage of take home is supposed to represent?
suppose someone has lots witheld and gets back thousands at the years end. where is that accounted for in the question?
its really a silly question because we all choose to have different amounts in taxes witheld.. some prefer more taken out others less .
some contribute more to other before tax things like retirement and healthcare . im not sure what the percentage of take home is supposed to represent?
suppose someone has lots witheld and gets back thousands at the years end. where is that accounted for in the question?
If thats the case who made up this 40x the monthly rent? Is it the renter establishing the market with the LL accepting this, or the other way around? Why not just ask for pay stubs so they can see a breakdown of deductions?
I agree that both people can make 50K and take home different amts. due to this, but the reason why i think the OP asked was because to see the percentage spent on rent/mortg./maint in relation to one's budget. I gather that everybody who answered with their percentage did so in relation to their monthly budget....I did.
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
google it if you like but its 40x pretax income not after tax. 40x after tax would not make much sense.
Why would 40x net not make sense? Gross would be an inflated statement of how much money I'm actually seeing. I would like to know who came up with that system because whoever did screwed a lot of people.
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
its pretax because there are to many variables in our after tax income. alot can even be by choice. i can cut my 401k contributions and raise my after tax anytime.
some people hold more back in taxes and have it applied to the following years taxes especially if they know they are expecting a bigger income or bonus next year.
i go zero single all year even though im married so if i have gains in my portfolio during the year i at least got a jump on any extra taxes.
pretax puts everyone on an even measuring stick. its not perfect as it doesnt take into account expenses in that 40x number but at least your starting point is consistant from person to person..
we all choose to have different amounts in taxes witheld..
So true. I choose to front load my 401k contributions in the first few months of the year - to take advantage of my employer's very generous match in case they change the plan or if I decide to quit later in the year. Plus I get an annual bonus that makes up a large % of my total annual income. If you looked at my ratio in Jan, it would be over 60%. But if you looked at my annual rent compared to my annual take home, it's quite different & much lower in the mid-30% range.
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