% of income on rent...(more rambling)

[bliss]

I know it's been mentioned on here before. I can't remember if it's 20%, 23% or 25%. I know they are all around the same amount really but I'm trying to weigh the pros and cons of getting my own place or renting a room.

Before you flame me for thinking it, it's just a consideration. Do I want to live alone and not have as much entertainment money. Or do I want roommates and more entertainment money.

I'm hoping to move out of state within the next 1-2 years. So I want to be able to save for a move but find a place I can stay for the next 1-2 years. I'm so sick of moving. I move practically every 6-12 months. I just want to stay in one place. Which is why I'm drawn to living alone.

Sorry, I'm rambling. My head is just spinning. I'm still waiting on news for the bungalow and trying to get back up plans going if that doesn't happen. I'm also tabling the car for at least another 30 days which really bums me out.

Ugh. Thanks for listening today. I know I sound uber crazy and all over the place and honestly I am. So I appreciate the support today.

[statlerwaldorf]

Most rentals require your rent to be less than 30% of your gross income. I would not only look at rent, but also all of the utilities. I would assume renting a room would have cheaper utilities than your own place. I would get a cheap place and work on savings instead of increasing your entertainment money.

[Deleted]

I think the rule of thumb is 30%. Depending on the application they may care about a percentage of income, they may not. If you don't have many other expenses you could possibly go higher than that, but I wouldn't go over 40% including utilities.

I don't think it is crazy to want to live alone, and I'd be willing to pay a bit more and have less entertainment money if it meant I didn't have to deal with random roommates.

[heygrey]

anywhere in the 20-25% range is decent, especially if that includes your utilities.

with h's income only, ours was around 25%. i didn't feel pinched by that expense at all. it was our student loans and car that made me sad while paying bills every month.

in your situation, i'd look for the cheapest 1 person rental available, even if it means a studio.

[bliss]

Aug 20, 2012 11:22:40 GMT -5 statlerwaldorf said:

Most rentals require your rent to be less than 30% of your gross income. I would not only look at rent, but also all of the utilities. I would assume renting a room would have cheaper utilities than your own place. I would get a cheap place and work on savings instead of increasing your entertainment money.

Well, I'd be saving regardless. I wouldn't be increasing my entertainment money, it would decrease if I got my own place. $150 living w/roomies vs. $50 living alone for example.

As for utilities if I get my own place they would be included in the rent.

Based on your 30% ratio I could totally afford to live on my own.

[bliss]

Aug 20, 2012 11:25:37 GMT -5 @buckybells said:

I think the rule of thumb is 30%. Depending on the application they may care about a percentage of income, they may not. If you don't have many other expenses you could possibly go higher than that, but I wouldn't go over 40% including utilities.

I don't think it is crazy to want to live alone, and I'd be willing to pay a bit more and have less entertainment money if it meant I didn't have to deal with random roommates.

That's what I'm leaning towards also. Especially since I want to stay somewhere long term and roommates will typically move every 6 months or so. I don't want to have to adjust to new people every time.

And I'm def looking into studios. Not my favorite idea but I'm sure I can make it work. I mean Ikea does it. LOL

[Deleted]

we are at 19% of SO's take home and are comfortable. I would go up to a max of 28% for a rental and 30% for a house.

ETA: this number for a rental includes all utilities, cable, internet, gym access, etc.

[countthestars]

I agree with up to 30%, and I would definitely give up some spending money to be able to live alone. I am SO glad I lived alone at some point before I got married.

[bliss]

Aug 20, 2012 11:32:01 GMT -5 countthestars said:

I agree with up to 30%, and I would definitely give up some spending money to be able to live alone. I am SO glad I lived alone at some point before I got married.

I've lived alone twice before, each for a year period. But for some reason I'm a little nervous about this. Probably because I'll be living alone in "the city" and I'm conditioned to think that's bad. 8-D

[Deleted]

30% is on the high side and really should be if you are in a HCOL area.

Our mortgage/insurance/taxes/homeowners insurance is ~ 23% of our take home.

[dr.girlfriend]

Is $50 in entertainment money something you could stick to? You seem to like to go out a lot. For me it would definitely be worth it to live alone, but we do not seem to have similar personality types. I would be happy sitting alone in my apartment every night and watching t.v., but would you? Or would you say, "Screw this!" and go over on your entertainment budget?

[bliss]

Aug 20, 2012 11:29:50 GMT -5 tacom said:

we are at 19% of SO's take home and are comfortable. I would go up to a max of 28% for a rental and 30% for a house.

ETA: this number for a rental includes all utilities, cable, internet, gym access, etc.

Oh yes. I'll include utilities, I won't have cable (I don't have a TV) and will likely not have gym access. Bummer but that's what happens with old, historic buildings/houses.

[bliss]

Aug 20, 2012 11:35:15 GMT -5 dr.girlfriend said:

Is $50 in entertainment money something you could stick to? You seem to like to go out a lot. For me it would definitely be worth it to live alone, but we do not seem to have similar personality types. I would be happy sitting alone in my apartment every night and watching t.v., but would you? Or would you say, "Screw this!" and go over on your entertainment budget?

Oh that's a piss poor example, I was just throwing out numbers. It'd be about $100/month for entertainment. I do go out a lot but don't often spend any money going out.

For example, I went out Friday and didn't spend a dime at the bar, I've got a concert next Tuesday and didn't have to pay for a ticket or drinks there either. I've been socializing in the "scene" long enough that I often drink for free. I really only pay for dinners out, sporting events or movies. I can definitely cut back on those if I chose to go the live alone route.

[shopgirl07]

Well, of course, 20-25% is ideal but not often realistic. When you're young and just starting out in your professional career, sometimes you have to be a little rent poor. If it has to be at 40% so be it.

[bliss]

Aug 20, 2012 11:55:10 GMT -5 v said:

Aug 20, 2012 11:42:14 GMT -5 bliss said:

Oh that's a piss poor example, I was just throwing out numbers. It'd be about $100/month for entertainment. I do go out a lot but don't often spend any money going out.

For example, I went out Friday and didn't spend a dime at the bar, I've got a concert next Tuesday and didn't have to pay for a ticket or drinks there either. I've been socializing in the "scene" long enough that I often drink for free. I really only pay for dinners out, sporting events or movies. I can definitely cut back on those if I chose to go the live alone route.

Something to think about though -- I think my entertainment budget was higher when I lived alone because I didn't want to sit around my apartment by myself (even with a TV) when I could be out to dinner or drinks with friends, etc. so I went out a lot more.

Also, even if you are able to drink in theory for free, shouldn't you be tipping the bartenders, etc.? We have friends who own bars and sometimes guest bartend at them, but I would never expect to drink truly for free at their places...

That's what's great about living downtown, there's always something free going on if I want to get out of the house. We've also started making dinner at home and just drinking hanging out. Maybe go for a walk when the sunsets. We're all kinda in the same boat as far as spending less and maximizing our good time.

As for tips, if I'm "buying" my drink I'll do a $10 tip once and get maybe 1 or 2 more the rest of the night, that I don't pay or tip for. If I'm being bought drinks (which happens more often) than that person tips the bartender. Typically, when we go out we run into people we know who buy us drinks for the rest of the night.

ETA - When I lived alone previously my entertainment budget went WAY down because I was entertaining more at home.

[kadams767]

I think you need to do what is going to enable to you to have the most reliable, safe method of transport to work. You are constantly worried and stressed out about your car situation. If you truly cannot afford a car, I don't think you can afford to live alone.

[bliss]

Aug 20, 2012 12:26:04 GMT -5 kadams767 said:

I think you need to do what is going to enable to you to have the most reliable, safe method of transport to work. You are constantly worried and stressed out about your car situation. If you truly cannot afford a car, I don't think you can afford to live alone.

I can afford a car. It's not that I can't. It's finding a car in my price range or committing to a car payment. I'm not sure which one will benefit me most and which is the better decision. They each have pros and cons that make it difficult to decide which one over the other.

Finally, I've spoken with my carpool. I'll still have a ride regardless and it might be easier for them and me depending on where I relocate.

ETA - That's what is so frustrating about this. Both paths ahead of me will work out great, it's just deciding which one to take. And I'm probably over-analyzing and thinking too much but I can't stop until I know what's happening.

[Deleted]

if having two "great" options is frustrating and debilitating for you, life is going to be m.i.s.e.r.a.b.l.e.

[bliss]

Aug 20, 2012 12:43:30 GMT -5 tacom said:

if having two "great" options is frustrating and debilitating for you, life is going to be m.i.s.e.r.a.b.l.e.

LOL. Frustrating in the sense that I'm not sure which one to pick. It's like choosing between 2 of your favorite things. Do I pick lipgloss or mascara when I can't have both, KWIM?

I've made pro and con lists and nothing seriously outweighs the other. So it's annoying and I'm on a deadline so that makes it stressful. It's a frustrating situation. Not the end of the world but more just annoyance.

[bliss]

I'm bumping this because I just thought of another question and didn't want to start a new thread....


Is the 25-30% net or gross? I ask because they are different numbers, obviously.