Am I paying sustainable rent given my new income ?

Based on the financial scenarios discussed in the Wall Street Oasis threads, paying $1,950 a month on a $100k annual salary is generally considered sustainable. Here’s a breakdown to consider:

1. Income vs. Rent Ratio: Typically, a common guideline is that your rent should not exceed 30% of your gross income. With a $100k salary, your monthly pre-tax income is approximately $8,333. Thirty percent of this is about $2,500. Therefore, your rent of $1,950 is below this threshold, which is a good sign.

2. Net Income Considerations: After taxes, depending on your state and other deductions, your take-home pay might be around $70k-$75k per year, or about $5,833 to $6,250 per month. Your rent would then represent approximately 31% to 33% of your net income, which is still within a reasonable range.

3. Additional Financial Commitments: It’s also important to consider other financial obligations you might have, such as student loans, car payments, or credit card debt. Ensure these, combined with your rent, do not compromise your ability to save and manage unexpected expenses.

4. Lifestyle and Savings: Ensure that your rent level allows you to maintain an adequate standard of living and savings rate. It’s crucial to have enough left over each month for savings, investments, and emergencies.

In conclusion, while $1,950 might be a significant amount, it appears manageable on your salary, assuming you don’t have excessive additional financial burdens. Always review your personal budget regularly and adjust as necessary to ensure financial health.

Sources: Is my IB analyst personal budget realistic?, I cant save money, SF true cost of living, How much do you spend on rent as an associate making 275-325?, Can someone help me with budgeting? 170k as a 22 year old is absurd to me.