Apologies in advance if this is the wrong place to post this. My biggest question is how hard should someone stick to the rule of spending no more than 30% of their take home income on housing? Is this a golden rule (don’t even think of breaking it or you’ll be miserable) or more of a suggestion?
I’m currently 25 and looking to move to the downtown area of my city when my lease is up. Not only will this be more expensive, but it will make my commute longer. I would have to commute roughly 30 minutes one way, but I work from home at least once a week. Also, I’ve spent my entire life living in suburbs and small towns. I would love the chance to spend part of my twenties right where the fun is if I can afford it.
Monthly take home: $3,624 Downtown rent and parking: ~$1,350 So it would be around 37% of my take home. Is this too much to comfortably handle?
My current expenses are roughly $2,100 including $950 rent. I think even spending 37% of my income on housing would leave me with plenty of money to put into savings and have disposable income leftover, but a lot of people have warned me that nearly 40% on rent is stupid.
EDIT: Here is my current budget:
Rent $945
Utilities ~$80
Phone $97
Internet $40
Electric $60
Gas $80
Groceries $100
Hulu $8
Spotify $10
Renter's Insurance $14
Car insurance $100
Student loans $500 (min payment is $300)
Savings: $500
———
$2,534
To add, I don't want to look for a roommate because the current plan is for my boyfriend to move in with me once his lease is up and help with the expenses. However, if that falls through, I need to be able to cover this place myself.
Also, I overestimated the distance to my office. It actually looks like the commute would be closer to 30 mins.
Submitted May 15, 2018 at 10:57AM by ScaredOfSharkWeek https://ift.tt/2GeNea5
