2 ms·
The rule of thumb is 1/4 of gross income before tax, 1/3rd of net income after tax - reasoning that 25% of your income is lost to taxes. Another approach is to
by DaiPlusPlus 9y ago
The rule of thumb is 1/4 of gross income before tax, 1/3rd of net income after tax - reasoning that 25% of your income is lost to taxes.
Another approach is to take your salary, max out your pre-tax retirement contributions, find out what dollar amount you need to maintain your current lifestyle in non-accommodation costs, set aside at least a few hundred $ monthly buffer, then whatever's left will be your budget for housing.
- closeparen 9y agoI've found it useful to consider transportation + housing in aggregate. It can cost the same to have a centrally located apartment vs. a suburban apartment + car. Also, your commute time and sanity (avoiding transit, avoiding rommmates) may be worth some sacrifices to lifestyle/entertainment expenses.