![]() So, is your current home affordable? If it's not, it might be time to consider a cheaper place to rent or think about refinancing if you can. If you're married or have a partner, keep in mind that this calculation includes the entire household, so you'll need to include their salary and debts in the equation as well. According to CNBC, the average person spends about 164.55 per day when accounting for expenses like housing, food, cell phone bills, etc. ![]() The 28/36 rule stipulates that in order for a home to be considered within your budget, your housing expenses (such as mortgage payments, taxes and insurance payments) shouldn't exceed 28% of your gross monthly income. Your total debt (including credit cards, student loans and car loan payments) shouldn't exceed 36% of your gross monthly income. expenses for a child in the lowest income group, 31 percent in the middle-income group, and. If you're looking to buy a home, some financial experts also recommend using the 28/36 rule to determine what you can afford. average for the younger child in middle-income, husband-wife. For married couples with no kids, monthly. For single folks, the average monthly expenses are 4,337. The average monthly expenses for a family of four range from 7,875 to 9,168 (depending on the ages of your kids). ![]() But that dream comes with a pretty hefty price tag. The 30% rule is based on how much a family can reasonably spend on housing and still have enough money left over to afford everyday expenses like food and transportation. Mom, Dad, two kids, one dog, a house and a picket fencethe American Dream. That means if you earn $75,000 a year before taxes, you should spend no more than $1,875 a month on your housing. If you own your home, you should include interest, homeowners insurance, property taxes and utilities, in addition to your mortgage. The most common rule of thumb to determine how much you can afford to spend on housing is that it should be no more than 30% of your gross monthly income, which is your total income before taxes or other deductions are taken out.įor renters, that 30% includes rent and utility costs like heat, water and electricity.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |