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A comment on UK survey: 40% of respondents pay more than 50% of their incomes on rent. Parent comment

Re:UK survey: 40% of respondents pay more than 50% of their ... by DaiPlusPlus on Saturday September 02, 2017 @06:38AM (#15155283)
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.

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Re:UK survey: 40% of respondents pay more than 50% of their ... by closeparen on Saturday September 02, 2017 @03:03PM (#15157647)
I'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.
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