Living independently is a serious financial commitment that starts with dependable income from a job, disability benefits, and/or public supports. Review income sources.
As a general guide, ongoing housing expenses (rent/mortgage loan payments, real estate taxes, renter’s/homeowner’s insurance, parking, homeowner’s association, and utilities) should not exceed 30% of your gross monthly income (review the difference between gross and net earnings). Here is an example:
Gross monthly income: $2,000 x 0.30 = $600 maximum amount per month for housing expenses
Now enter your information to find the maximum amount you should spend each month on housing:
While these guidelines can be helpful, everyone’s financial situation is different. If you don’t spend much on entertainment or transportation, you may have more room in your budget for housing. And if you’re living in a big city, it may be impossible to keep your housing costs at or below 30% of your gross monthly income.