Budgeting & Saving / What is a reasonable rent for how much I'm making
Jun 04, 2022
What is a reasonable rent for how much I'm making
I make $3800 after taxes per month. That is also after 403b contributions. I don't have debt, a car, or family obligations. I live in mid-cost of living area. I also don't have any specific financial goals but don't want to screw things up. How much rent is reasonable for my situation? Average studio or 1 bedroom rentals go for between $800 on the lower side and up to $2000 on the high and luxurious side. So is $1500 OK or is that too high? What is typical or what advice might you have me who is starting my career?
Replies (6)
Jun 04, 2022
@ZuniKES, the general rule of thumb on housing is not more than 1/3 of your income. Looks to me like you thinking about things right so early in your career. This depends on your preferences and style but I would try to keep increasing your 403b contributions every year until you can max it out. To keep your rent low, it might also make sense to find a roommate to split it with you? Starting to save and invest early on will only help you to achieve financial goals sooner.
Jun 05, 2022
@RonARO, I agree with this!
Jun 11, 2022
@RonARO, that's awesome help! Thank you.
Jun 11, 2022
@ZuniKES, good luck
Jun 11, 2022
@ZuniKES, I've heard not to spend more than 30% of your after tax pay on rent.
Jun 14, 2022
@CraigGQZ, Thanks!