Housing out of college - do you include expected bonus in 30% of salary calculation?
I'm looking for housing in NYC and have heard to aim for rent to be around 30% of annual salary, and ignore bonus because rent is paid monthly. Considering that many of us have bonus' that are expected to be a significant portion of annual income, do you guys factor that in?
You should treat a bonus exactly like what it's called, a bonus. All your living expenses should be calculated off your base salary. Treating your bonus like an expected paycheck is not necessarily the right way to approach finances and can potentially leave you in a tough situation the moment it isn't as high as what you expected. Realistically speaking, let's just say you're at a bank similar to DB and were living like your bonus was guaranteed and all of a sudden they announce that you're not getting a bonus... tough times may be ahead. This is obviously pretty extreme, but it's definitely a real scenario.
As long as you don't work for Deutsche Bank #DBnotaBB
https://www.bloomberg.com/news/articles/2019-01-08/deutsche-bank-is-sai…
oof
30% of Salary or 30% of Salary after taxes?
Et voluptas architecto voluptas et porro et. Fugiat veniam iste maxime sed adipisci nisi. Architecto odit dolorem quo et dolores eveniet. Eum voluptatem ducimus sit sit vel vel.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...