The share of your income that should go towards paying your rent depends on many factors, the most important ones being your income level and where you want to live.
When it comes to figuring out how much you can afford, setting aside around 30% of your income on rent is the golden rule, It should get you a comfortable apartment you can afford. At the same time, you should have money left to keep up with any debt you may have and contribute to your savings.
If you spend around 20% of your earnings on rent, you could generally spend more on non-essentials or save more. Spending about 20% on housing when you're earning a regular income means you'll have to keep your distance from sleeker apartments in the pricier neighborhoods.It can be very tempting to spend more on rent, especially if you think you've found the perfect home.
Allocating 40% on renting an apartment could put you a bit above the medium budget on housing. Spending 10% extra each month comes with its risks, you should keep an eye on your spending habits, set and track budgets for day-to-day expenses.
You should evaluate your finances carefully before signing a lease on a new apartment.
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January 21, 2021