Income budgeting
Do you guys follow a specific income-expense budget plan? I will finish university and start my fulltime job next year. Currently I am looking for a flat and I was wondering how much of my income I should spend on rent. I read various sources ranging from 20-40% of your net income. Anyways then I was wondering how I will spend my total net income.
Hope to get some insights from you. I don't need to know how much you even (feel free to include it though) but rather what percentage of your income goes to which expense. Also since I have offers in a few locations (both Europe and US) it would be great if you could include the city in which you are working since the living cost vary drastically
I aim to not exceed 30% of my net on housing costs, but I haven’t always followed that. My first job out of college I paid more because I wasn’t making much and lived in a high COL area (Los Angeles).
But now I’m staying well below that guideline now that my income has risen substantially.
I’d say find a list of things that are necessary, find a list of things that are nice to have, and try to find an apartment within budget that hits all the necessary and rank some of your nice to haves.
No. roughly 22% of gross a touch shy of 40% net.(taxes are a big wack)
I'm not a tax accountant but depending on what country you're in this will factor a lot, although from what I understand income taxes are generally higher in Europe. I'd say around 30% would be a good rule of thumb in the US, less could work if you find a great deal but those are increasingly harder.
Haven't bothered my tax accountant since 2016 (other than for dog photos) but I might just have a CFP. seriously, spend as little as you can.
Income budgeting is very crucial for financial stability. In order to have optimum utilization of income one should follow the 50/30/20 rule.
In reality, the rule is extremely straightforward. It asks you to divide your take-home pay into three parts. Needs receive 50% of the income, wants to receive 30%, and savings and investing receive 20%. This way, you'll have buckets for everything and be able to work within the limits of each bucket.
As a result, you'll have enough money to spend on rent or other services. In the event of a rise in income, you can adjust your spending proportionately.
That's a personal choice. Depending on how much you make it my not be much of a choice to spend at least 30-35% minimum
Basically. I budget to not spend more than 50% of my income on blow, but its hard sometimes.
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