How much in rent can I afford?
I start a new job where Ill be earning approx. 53,000 a year. Ill be away two weeks at a time, so that may play a drastic role. Im single, male, have no kids, no pets, and owe 40,000 in student loans. Any financial "gurus" out there that might have any input? It would mean a lot to me if someone could help me.
Thanks
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The rule of thumb is to spend no more than 25% of your gross income on rent (53k / 12 = $4416 / .25 = $1100). This allows you plenty of money to cover your other debt and living expenses. When you have to leave the property for extended periods, don't forget to inform your landlord so you won't be confused with abandoning the property.
Well I could tell you that it is recommended to not exceed 25 to 30 of your monthly take home pay on rent/mortgage, but that is only a guideline. Obviously you are an adult and mature and you can do some math yourself knowing what your expenses are and your lifestyle. Then you can make an educated guess as to what YOU can afford instead of just a guideline.
You can afford 1100.00. I would talk to your employer to see if they have any apartment sharing opportunities for the person who would be on the shift the opposite time as you.
If you could do that, you could use the extra to pay off your loans even faster.
Good luck