Is The 30% Rent Rule Realistic?
The 30% rule won't work for everyone You might have less choice than I did about exactly which city or neighborhood you live in and how many roommates you have, or you might prefer to spend more budget on your house and less on food and travel.
CBS MoneyWatch recommends not exceeding 3 to 4 percent of your gross income for utilities. Most people spend between 30 and 35 percent overall on rent and utilities.
How Much Should You Spend on Rent When Budgeting? - Quicken
Most people are advised to keep their housing costs to 30% of their income or less. I used to spend around 50% of my earnings on rent, but it didn't hurt me financially. Keeping other bills low, like spending less on food and gas, can help your budget.
I Used to Spend Around 50% of My Income on Rent. Here's How I Made ...
Is spending 30% on rent too much?
A popular standard for budgeting rent is to follow is the 30% rule, where you spend a maximum of 30% of your monthly income before taxes (your gross income) on your rent. This has been a rule of thumb since 1981, when the government found that people who spent over 30% of their income on housing were "cost-burdened."
How much of your monthly income should go to rent? - Chase Bank
Is the 50 30 20 rule weekly or monthly?
Take, for example, the 50/30/20 rule. The 50/30/20 rule is a straightforward monthly budgeting method that tells you exactly how much to put towards your savings and your living costs each month.
50/30/20 Rule: A Realistic Budget That Actually Works - N26