A question I get a LOT from my friends and peers: How much of my income should go towards rent/mortgage?
My rule of thumb is 25% but I read a Washington Post article that says 30% of your gross income. Gross is your income before taxes and deductions are removed. This means the following affordabale rents if you make $3,000/mo gross income:
25% - $750/mo
30% - $900/mo
This percentage is not supposed to include utilities or other household expenses.Only your home payment.
Of course you need to adjust your percentage for your other monthly committments (i.e., car note, loan payments, child support, etc). If you're looking into buying, 30-33% is a decent estimate od affordability because your income will increase yearly and your mortgage payments will not.
Hopefully this adds to your roladex of financially savvy information! Happy apartment/house hunting!
Sunday, May 22, 2011
Friday, May 20, 2011
Well I'm movin on upppp...to the East side...
Greetings!
Sooooo.
First things first, I'm moving into my OWN PLACE. Gahhhh! I'm so excited. In Hyde Park, on a cute little cul-de-sac'd (did I make that tense up) street, one block from the lake, where birds chirp and lawns are pristine and I will have one of my very on line sisters living right across the street. I. AM. TOO. GEEKED.
With all of the excitement, I haven't really thought about the fact that paying the entire rent and all utilities (y'all cable is so expensive when you're the only one paying it!!!) solo will put me on a tighter budget than ever. Well I mean I did the financial analysis that informed me I could technically handle it. But, the reality that I won't be able to soothe my work woes with massive amounts of online shopping and weekend getaways as much, hasn't kicked in. But after month one, I'm sure that reality will kick in. Prayerfully. lol
So I went on a blogging hiatus (by the way, who does that after like 2 months of blogging???) because I'm incredibly busy with work and life. I don't think I've worked less than 12-15 hours a day for the past few weeks and therefore sleep is very limited. Additionally, I'm coming into my promotion year at work...which is a big deal anddddd seems to be really emotional (as for me, EVERYTHING is).
But I'm coming back because I need this blog to keep my sanity...and most of all I need it to keep my pockets safe after my big move!
So I'm back and I'm still...
25andretiring.
Sooooo.
First things first, I'm moving into my OWN PLACE. Gahhhh! I'm so excited. In Hyde Park, on a cute little cul-de-sac'd (did I make that tense up) street, one block from the lake, where birds chirp and lawns are pristine and I will have one of my very on line sisters living right across the street. I. AM. TOO. GEEKED.
With all of the excitement, I haven't really thought about the fact that paying the entire rent and all utilities (y'all cable is so expensive when you're the only one paying it!!!) solo will put me on a tighter budget than ever. Well I mean I did the financial analysis that informed me I could technically handle it. But, the reality that I won't be able to soothe my work woes with massive amounts of online shopping and weekend getaways as much, hasn't kicked in. But after month one, I'm sure that reality will kick in. Prayerfully. lol
So I went on a blogging hiatus (by the way, who does that after like 2 months of blogging???) because I'm incredibly busy with work and life. I don't think I've worked less than 12-15 hours a day for the past few weeks and therefore sleep is very limited. Additionally, I'm coming into my promotion year at work...which is a big deal anddddd seems to be really emotional (as for me, EVERYTHING is).
But I'm coming back because I need this blog to keep my sanity...and most of all I need it to keep my pockets safe after my big move!
So I'm back and I'm still...
25andretiring.
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