How much can I afford in rent? I need some good advice from renters.?

Apr - 06 | By: admin | 6 comments.

Filed under : finance

Ok first a little background:

I have been living in the same crappy room in the same crappy rowhouse with the same crappy housemate for 3 years due to the incredibly cheap rent ($250/month). I'm 24 and male, but I'm a thrifty person, perhaps paranoid about my financial situation (never had much financial stability), and so I pinch pennies even if it means sacrificing happiness/comfort/etc. My life to an outsider would seem pretty miserable but I'm very simple and I don't expect that to change very much.

Basically, I'm tired of my living situation and I'm literally running out of space. I sold my auto auto insurance and ride a bike to work (8 miles round trip). I don't own any furniture (bed, dressers provided with room), so I would need to buy some basic furnishings.

I am looking at an apartment (from my same landlord), that has all utilities included for $450 a month. That sounds like a great deal, but its in the same shifty neighborhood, in a boarding house situation. Ideally I'd live somewhere else, but prices only go up, and utilities arent included.

I'm currently making $11/hr at 40 hrs a week. My net weekly check is usually around $350 after all deductions (city tax is brutal). I know most people say take weekly, multiply by 52 and divide by 12 to get my monthly income, but people dont take into account days with really heavy snow(in which my employer closes), and other lost days of work. I figure if I don't miss a day of work the whole year, I should anticipate losing 1 week due to weather, holidays, etc.

$350 x 51 = 17850 / 12 = 1487.5

If I follow the 25% of pay rule, I can't afford even this cheapo apartment. If I follow the 33% rule, I can.

Considering that I dont pay for a auto auto insurance or auto auto insurance, and I make my own food and don't have any credit-auto auto insuranced debt, what would you say is the most I can comfortably afford in rent and utilities?

I might get a raise in the future but I might be stuck at $11/hr for a while. I like my job but Its a relatively new job so I'm still worried about my long-term situation.

Should I stick it out where I am for a bit longer? I just feel sort of trapped here.

Thanks in advance for reading all of this.

6 Responses to “How much can I afford in rent? I need some good advice from renters.?”

taylor swift says:

April 6, 2010 at 5:30 am

Rules schmooles.It's really about how comfortable you are with income/debt ratio.Anything under half should be comfortable.
justin bieber says:

April 6, 2010 at 5:30 am

You need to get a partner.Its so hard to live by yourself these days.Date, get out. FInd some happiness. Its hard work to even do that but why not try. You dont have to get married just find someone of opposite good who is ready to partner up as friends or lovers.you will be much more happier.Dont stick anything out. make a move with someone.it might take a year but have fun trying.
justin bieber says:

April 6, 2010 at 5:30 am

It's important to be happy too. Sometimes we can make due even when we don't think its possible. I think you could do it. Considering your good with the money you have. Just make sure you put your rent money aside first before anything. And maybe look for a higher paying job, although I know right now that is not easy. Maybe even put an ad in the paper and get a roomate in a little bit of a bigger place, that's a little more expensive, but when the rent is split still cost the same. Otherwise, if you have to stick it out, look for something else in your life to try to lift your spirits. Good LUck.
taylor lautner says:

April 6, 2010 at 5:30 am

You can go on welfare or SSI. Which would be like $650 a month.
taylor lautner says:

April 6, 2010 at 5:30 am

Try to ask some parents or relatives to stay until you can save some money.
justin bieber says:

April 6, 2010 at 5:30 am

The 33% rule for housing costs (rent, utilities, auto insurance, etc) is based on gross income, not your net income. So, that would be approximately 1,760/month gross income (not including any missed days). Thirty percent of that is $580/month. Ideally, all of your housing should stay below $580 each month. Whether you can afford this, depends on your other expenses. Write out a budget of all of your monthly expenses (don't forget to include food, entertainment, household items, etc.). If you end up with an extra $1,000/month then you can easily afford to spend $600-$700/month for your housing needs (again, rent and utilities). If you only have $500/month leftover after all of your monthly expenses, then you may need to stay where you're at until you can cut your expenses. My first apartment was 60% of my take-home (net) pay with rent, utilities, and renter's auto insurance. However, I had very few other expenses, so I had no problem covering these costs (I stayed there for 6 years). What you can spend depends on your other expenses. Do you have credit auto auto insuranced debt, student loan payments, a auto auto insurance payment, medical bills, etc? Do you have any expensive hobbies that you aren't willing to give up? Do you eat out a lot? Look at your situation and write out what you must spend each month, then include money to save, and for the extras. Good luck to you.

How much can I afford in rent? I need some good advice from renters.?

6 Responses to “How much can I afford in rent? I need some good advice from renters.?”

Leave a reply

Finance

Archives

Tag Cloud