How much of your annual income should you spend on rent?

[Etini]

The three basic needs of man are food, shelter, and clothing. For those people that have not yet built or bought a house. The big question is how much of your annual income should you spend on paying rent for your accommodation? Some people pay very high rents to the that it seems like they are working for their landlords. When a person considers his income level, what percentage of his income should he spend on rent so he can pay conveniently and not also be slaving for the landlord?

I think a person's annual rent should not be more than his/her cumulative income for three months. By right, your annual rent should not be more than your total income for two months. But to stretch it a little, let's take three months. If your annual rent is beyond your total income for three months, you are working for your landlord. And if care is not taken, you might struggle to pay that rent. So if your monthly income is $100, don't stay in a house that is more than $300 annual rent.

 

[Carpon]

I think this is something that you have to consider since from the time that you are trying to find a house to rent.

Know your net income and the place of budget comes in here. You make your budget allocating tye amount you can wield for each and every need you have to attend to. Your rent will have its own wieldabe amount and that is what you will be considering when renting a house.

And as you have mentioned in the thread, your yearly rent must not exceed 1/4 of your total yearly income. You can bring this down to monthly salary - your rent should not exceed 1/4 of your monthly payment.

Housing and shelter is indeed very vital and it is as you said one of the most basic needs and necessities of human beings who want to survive and thrive.

As for me, my rent is even below 1/4 of my net income and I don't think I need to make it exceed that.