(Kristen) Welcome to Money Matters at 7:57 with Justin Chastain. And Justin, this is something: How much should we be budgeting for rent?
(Justin) You know, everybody seems like that. Mortgages are the hot topic, but renting is another hot topic, because some people are selling their mortgage or their house to rent, because the price of housing is so high. We recommend taking your net income — so after taxes — looking at that bottom number, and saying, “OK, 30% should go towards rent.” So, that’s your rent payment, but I would also include renter’s insurance in that. And, renter’s insurance is not that expensive, but it covers you from a lot of liability.
(Kristen) Exactly, and what are some other ways to reduce expenses overall for that?
(Justin) So, you want to just keep things simple and make sure you are looking at your values. Don’t sacrifice a safe area or school systems. If you go a little more, no big deal; just allocate it to that percentage.
(Kristen) Yeah, and that’s where you bring in your trusted advisor.Share