Hello, I'm very new to financial literacy and have been reading up lately and a common theme I come across is the claim that your house should never be more than 30% of your monthly budget. But I was wondering more specifically:
-Does it mean 30% of your monthly income before, or after taxes?
-Does it assume a down payment of 20% at the start?
-Does the 30% rule include ALL housing expenses (ie home insurance, utilities, property taxes), or just your mortgage payment?
- Is it even a good rule to follow, or is outdated / not generally advisable anymore?
Sorry if these are silly questions, but I couldn't really find any clear-cut answers with some google searches, thanks for the help ahead of time!
Submitted May 05, 2021 at 07:32PM by TheLittleWedge https://ift.tt/3thgmWI
