What Percentage Of Your Budget Should Go To Housing. Following Kaplans 25 percent rule a more reasonable housing budget would be 1400 per month. When it comes to housing it can get tricky to determine exactly how much of your income you should spend.
So taking into account homeowners insurance and. Most financial advisors recommend spending about a third of your after-tax income on housing. 28 Rule monthly housing expenses rent mortgage PMI taxes insurance etcincome.
It might be difficult if youre in a city with a high cost of living and you dont have roommates but try to keep your housing expenses under 30.
Housing should fit into your budget. How To Set Your Budget Percentages. For example if you take home 4000 a month then no more than 50 of that or 2000 should go toward housing utilities and other essential expenses. The following spending recommendations are based on your net income meaning the money that you actually take home after your employer deducts taxes health care costs and contributions to your retirement or pension plan.
