The rule of thumb is to never spend more than 30 percent of your salary on rent.[tweetthis display_mode=”button_link”]Too Much Rent![/tweetthis] You’ve most likely heard it from a parent, financial advisors, loan specialist and so forth. This is because it’s essential to avoid spending a greater part of your pay on housing costs. Beside housing, there are still many different costs that we need to cover in a given month.
One of your next year’s resolutions should be about keeping your costs low without trading off all the essential qualities and values you desire. One reason you should endeavor to keep your costs low is it permits to free up a greater amount of cash to achieve other financial objectives like saving more, paying off debts and breaking out of the salary-to-salary cycle.
All things considered, you generally spend very little time at home during the week and you’d much rather spend your cash paying for experiences and putting resources into things that will help you excel in life.