What Percentage of Expenses should go to Rent?
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Re: What Percentage of Expenses should go to Rent?
Nitpicking ... think of being #wealthy guidelines as spending 1/3 of being #consumer guidelines. So 10% instead of 30%.
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Re: What Percentage of Expenses should go to Rent?
Whoops, I misread the original question.
Last year I spent $6,600 on rent + utilities, and total spending came in just under $24,000
So 27% of expenses, and since my utilities are included in my rent, there really is no accurate way to separate it.
Re: What Percentage of Expenses should go to Rent?
I moved in my propertie's garage, and reduce the rent by 50.- and offered to pay 50.- from the utility bill in exchange.
The total rent was 750.- But In only allow myself to spend 500.- out of it.
$o 10% on rent and 10% on utilities
The total rent was 750.- But In only allow myself to spend 500.- out of it.
$o 10% on rent and 10% on utilities
Re: What Percentage of Expenses should go to Rent?
Quoting this post as personal penance.jacob wrote: Nitpicking ... think of being #wealthy guidelines as spending 1/3 of being #consumer guidelines. So 10% instead of 30%.
Let's make ERE extreme again!
Re: What Percentage of Expenses should go to Rent?
I would say as little as needed.
Currently 5% for me, but it's just that I make good money in a place where rents are fairly low (and we split 50/50 with DW).
Back when I was just starting my career and lived in Paris it was 35% of my salary and with almost no respectable way to make it lower than30%
Currently 5% for me, but it's just that I make good money in a place where rents are fairly low (and we split 50/50 with DW).
Back when I was just starting my career and lived in Paris it was 35% of my salary and with almost no respectable way to make it lower than30%
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Re: What Percentage of Expenses should go to Rent?
@Jacob Interesting how your ERE performance metrics have changed over time. In 2016 it was 15% and now it's 10%. Why the change? I suppose half of consumer guidelines wasn't extreme enough?
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Re: What Percentage of Expenses should go to Rent?
Don't read too much into it. It's not like I keep a list of metrics. The 10% number was derived off of what I paid for this house relative to my NW as well as what I've typically paid in rent (NAV-equivalent) relative to my NW. Maybe I was rounding up in 2016 and rounding down in 2018?
Re: What Percentage of Expenses should go to Rent?
My family spends $27,000 / year to live in our house including maintanence, utilities, mortgage payment, taxes, etc. In my mind this accounting is equivalent to renting and living in an apartment for the same price. Not included in this assumption is that I am building home equity.
If our net worth is $100,000 (not including home equity) we are at 27% as a percentage of net worth just to live. This percentage is dropping rapidly and of course will be a new metric that I track.
For me thinking of mortgage payment as rent payment makes these sorts of calculations easier to understand and compare. Not sure if other people see it the same way though.
If our net worth is $100,000 (not including home equity) we are at 27% as a percentage of net worth just to live. This percentage is dropping rapidly and of course will be a new metric that I track.
For me thinking of mortgage payment as rent payment makes these sorts of calculations easier to understand and compare. Not sure if other people see it the same way though.