I know the 30% rule isn't some static one size fits all guideline, but I would love to get some feedback.
I currently live about 20 minutes away from my work and pay $900(including pet rent addition) a month for my current apartment.
I've done some quick math, and realize that I spend about 190.6 hours(without factoring winter increasing time spent in car by 30% or higher sometimes both ways) in any given year just driving to work. I also use about 416 gallons of gas just for commuting to work, which costs about $1,100/yr at the given rate.
My question is this: If my take home, after tax and deducion pay is roughly anywhere from $2350 on the low end(no commissions or overtime) to ~$3000(w/ commissions or overtime or both) per month could I justify getting an apartment that is $1050/mo that is quite literally a 20 second jog to my work building?
It would cost me roughly $1800 ($700 after factoring gas) over the year to buy my time back and improve my quality of life if you consider the gas money goes straight into my pocket. The apartment in question also has free heat(live in Michigan) so it could drop that $700 number by a few hundred over the year as well.
My job seems pretty secure, and I'm one of the better performing members of my team. I also see myself staying there for at least another year. I just feel like if I don't get overtime/commission, it gets close to that 40~50ish percent mark spent on rent.
I have a fully funded emergency fund and I intend to purchase a property(duplex/triplex and live in one of the units) in the next couple years if that makes any difference, and this shouldn't affect my pacing as I should still be able to put away $800-$1200 per month with either option.
Submitted April 12, 2018 at 12:03AM by ogbrien https://ift.tt/2GUvnGD
