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?
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 11, 2022
@ZuniKES, I've heard not to spend more than 30% of your after tax pay on rent.
Jun 14, 2022
Aug 10, 2022
@ZuniKES, People here are saying no more than 30-33% and this depends obviously on your local market and your earnings. But, aim for lower if you can. Before we bought our home earlier this year we were spending closer to 20% after tax on our rent.