Financial smart brehs……how do you calculate rent based on Income

[brooklyn_boulevard]

Tryna live a financial responsible life….since, I was never that great with it

Got a New Gig and now I’m planning to move to a different environment.

The younger me is telling me to cop a nice pad in a good area

Though the big boy in me wants to be financial responsible.

How did you guys budget rent when you were looking for an apartment ?

 

[Dr. Acula]

The general rule is 1/4 of your monthly income should be for rent.

 

[Stir Fry]

Multiply your gross (before tax) income by 0.3, divide by 12 (months) and keep your rent below that number

 

[newarkhiphop]

The general rule is 1/4 of your monthly income should be for rent.

 

[brooklyn_boulevard]

The general rule is 1/4 of your monthly income should be for rent.

Gross income or net income

 

[brooklyn_boulevard]

Gross income or net income

@newarkhiphop

 

[Secure Da Bag]

The general rule is 1/4 of your monthly income should be for rent.

Multiply your gross (before tax) income by 0.3, divide by 12 (months) and keep your rent below that number

So is it 1/3 or 1/4?

 

[Stir Fry]

So is it 1/3 or 1/4?

I just double checked and they're all saying 1/3 from what I've seen

 

[brooklyn_boulevard]

1/3 of what? Gross income or take home?

I just double checked and they're all saying 1/3 from what I've seen

 

[Taadow]

So is it 1/3 or 1/4?

I’ve always heard it should not exceed 1/3...


...but anyway before you worry about that, I’ve learned it is more advantageous to find what neighborhood(s)
you wanna live in first.

(A) You might be willing to spend a little more for your ideal neighborhood
(B) depending on what neighborhood you wanna be in, you could fucc around and rent a house
for cheaper than an apartment...

 

[Stir Fry]

1/3 of what? Gross income or take home?

Gross, before taxes. This is your max, if possible go lower, and don't try and push it just because the formula says you can

 

[UpAndComing]

New Gig means unstable income

Get a Studio apartment

 

[Primetime21]

subtract your non-rent expenses and amount you want to save per month from your income and the leftover is your "budget" for rent.

 

[newarkhiphop]

Gross income or net income

net

 

[brooklyn_boulevard]

New Gig means unstable income

Get a Studio apartment

I am thinking of this