Can someone please help me? How much money from your income should go to rent?

Question

Also should you go by gross income or net income. I would think net income because gross isn't what you take home. Any percentage ideas? I hope to graduate university by 24 and look for a place to rent afterwards but I have no idea how much should go to rent. I hear these days rent is expensive as h**l and many can't afford it right out of university. My major is accounting by the way.

Answer 1

OK well the amount you should spend on rent will vary according to your life style.

what you need to do is calculate your 'leftover' income off of your net income. Take your bet income and subtract how much you pay for your car,insurance, estimated grocery costs, health insurance, loans for college,and any other regular costs you incur. (cell phone)

Then take your Leftover income, and decide from that amount how much you can afford in rent.

keep in mind things like vacations, outings, surprise bills or Dr. visits, and savings.

there is really no percent answer, you just have to live within your means and make sure you do not spread your income too thin.

also, if your rent does not include bills make sure to take that amount out of your net income too!

hope this helps!

Answer 2

1/3 to 1/2 should go to rent. I know it seems like common sense, but having a roomie after college will greatly help your rent costs!

The money you don't spend on rent:

save half of it, and use the other half to live off on.

Good luck!! :)

Answer 3

calculate your monthly income and divide by three.  That is how much you can afford

Answer 4

you should pay for your rent and utilites and whatever else that u need in one whole paycheck if ya wanna make it

Answer 5

it depends...most rent for a apartment is about $800 a month...this is also depending where u live...make sure u have at least $300 left over after all of your bills...because accidents do happen..and yes u are right you do go by your net income... i hope this helps u out...and remeber your needs come before your wants...if you remeber that you will never be in debt.

Answer 6

I was once told you should make in a week what you pay in a month for rent

Answer 7

Rule of thumb (at least where I am) is your rent/mortgage should be a 1/4th of your pay.  So, if you make 2000.00 a month you would want to find a place that is approx. 500.00 a month!

Good luck with school!!

P.S. I would go by Net pay, no matter what they go by!

Answer 8

i spend about a third of my check on rent but it all depends on the place. You could be spending about half of it on a place. I suggest getting a run down place and with the extra money you have start fixing it up. Money could go to your pocket with you decide to sell it.

Answer 9

You're right. It's usually 1/3 of your net income. However, it depends on where you want to live. Many large cities are expensive so you might be paying closer to 1/2 your income. It depends on the type of lifestyle you expect to have too.

Answer 10

I'm running through some budgeting right now, and plan to look at that myself soon.   I wouldnt suggest finding anything that takes more than 2 weeks to pay it.  Around 1 - 1 1/2 weeks of your income is an ideal number in my opinion.  It also depends on what other debts you have, you should always have a weeks paycheck in your budget that doesnt go to any bills, and can be spent toward food and savings.

Answer 11

If you get paid weekly, then one of those checks should be enough to pay your rent. So if you bring home $500/week, find rent that is not more than $500/week.  

Answer 12

1 week of labor.

Answer 13

most apartments want you to make 3 times rent in gross