How Much To Spend on RENT With 0,000 Salary

How much should I be budgeting for rent |

What’s up y’all it’s tommy here with everyday finance and today i’m going to be breaking down how much you should be spending on rent with an income of 50 000. so if you’re someone who’s curious about how you should how much you should budget out for your rent or other expenses you might want to stay tuned now to jump straight into it one thing i’d recommend you do

First is i’ll link below to a calculator created by a website called smart assets that allows you to actually see what your after tax income would be you know a lot of times people might you know what kind of salary you’re getting maybe you’ve negotiated it with your company but you don’t know 100 exactly how much you’re gonna get after all your taxes and stuff are

Calculated this site will give you an idea how much exactly you’d have to pretty much pay to pay for taxes after you’ve gotten your amount right and so i typically recommend you use that calculator i’ll link to it down below again and once you actually get that amount now that’s whenever you can actually start figuring out exactly how much you can allocate to your

Rent now i recommend you use something called the 50 30 20 rule and the idea behind this rule is this right you want to break down the amount of money that you have into three categories basically fit it into one of these three categories the first category is going to be needs that’s 50 and needs includes things like housing utilities groceries transportation

Uh things like that right things that you need for your everyday life right so 50 is going to go to your needs 30 is going to go to your wants and 20 is going to go to your savings okay now uh when it comes to how much your rent is remember your rent is going to be a portion of your needs category now your rent should be no more than 30 of your income okay and

So remember your rent’s going to be part of your needs category which is 50 so you’re just taking 30 of would have been that full 50 percent right so that’s going to be your housing utilities groceries transportation category now if you’re in a situation where you’re having trouble staying under this that 30 uh threshold that could be a situation where you know

Maybe you live in a high cost area maybe you’re living in you know la and california or something like that right you might have to find different types of adjustments or ways to either um to be able to make it work right now of course one option is you can make adjustments to other parts of your budget right you can try to you know give a little more cushion to

Your rent by you know maybe lowering your utilities you know lowering your groceries your transportation things like that to where now you’re able to you spend a little more when it comes to your rent but i typically recommend you try to find somewhere in that threshold of 30 the reason why is because especially if you plan on eventually moving into a house they’re

Typically going to expect you to be below that 30 percent okay and so that’s why i think it’s always a good rule of thumb for you to stay under that amount but it all depends on the cost of living in your area right now another thing you could do is maybe living a little further away from the city center or the area that you’re currently living in by you moving

A little further out it makes it where things are going to be a lot cheaper and may mean a little more of a commute but a lot cheaper of the rent okay other options could be things like even living with roommates or living with other people that can help you split the rent of whatever the housing is that you’re using now to give you a quick example above let’s

Say i’m making fifty thousand dollars right my breakdown would be uh this is going to be my break how my breakdown would be down in texas then the reason why i like that calculator example or the calculator that i link down below is it calculates even your state tax as well now in texas we don’t have any state tax so this is how the breakdown would look you know

My monthly take-home pay after taxes is going to be about thirty three hundred and fifty two dollars or exactly thirty three hundred fifty two dollars okay thirty percent of that for rent is going to be just a little over a thousand dollars so i know i can spend a thousand dollars for rent uh that would leave me about 670 dollars per month for utilities groceries

And transportation and i also have another 670 for saving okay also i have another thousand dollars which is for any of my wants wants is really just things that you know i don’t really need but things i would enjoy in life right so that could be like going out to the movies you know taking a trip somewhere you know going hanging out with friends on the weekends

Buying drinks going out to eat things like that right things i want but i don’t really need okay now if you elect to have a nicer place maybe you’re in a situation where you can you wanna uh you prefer to live up at a nicer place than what your budget accounts for then you’ll just need to cut down on some of your wants okay but i recommend you never cut down on

Your savings category okay that’s i wouldn’t cut down on there unless absolutely necessary right situation like maybe again the higher cost of living might cause you to have to cut down a little bit in the area maybe you have you know a higher cost of maybe your lifestyle is a little higher cost because you have kids things like that right but you want to try to

Not cut down on the savings category unless absolutely necessary okay you know um i typically even recommend you you try to increase the amount that you’re adding to your savings category right especially if you have certain financial goals that you’re trying to reach right because you got to keep in mind that that savings category is really i look at it as not

Just savings but you know investing it’s kind of you looking to the future and planning ahead to where uh you plan on being later on in life right so that’s kind of how you want to look at that aspect of it but really that’s the gist of it guys that’s how you want to be able to budget exactly um how much you’re going to need when it comes to paying for your rent i

Hope this video was able to help you guys out if you found value in this video be sure you throw a like on this video and also make sure that you hit the subscribe button down below so you don’t miss any of my future videos also throw down the comments any other kind of information you want related to personal finance or managing your finances in general and i’ll

Be able to shoot those as well all right that’s gonna be it for this video guys i appreciate you watching and i’ll see you in the next one peace

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How Much To Spend on RENT With $50,000 Salary By Tomy – Everyday Finance