Follow tomcoates on Twitter
A weblog by Tom Coates concerning future media, social software and the web of data
Quote of the month: "This is not a brothel, there are no prostitutes here"
You can explore the archives, read the disclaimer or subscribe to an RSS feed

What proportion of your income should you spend on rent?

Posted May 10, 2002 7:57 PM.

I've heard a lot of different angles on this one in the last few days, so now I'm opening it up to the floor. I once heard someone say that you should pay one-third of your income in rent. That's all I can remember. One third on rent, one third on something else and a final third on something else again. Now of course my first question is whether or not that's supposed to be pre-tax salary or post-tax salary. And today a friend in the US said that you should never pay more in rent than one week's salary. Thus leaving three-quarters for living and saving. So what's true? What's the correct ration to spend on a place to live? Won't somebody tell me!?

Comments

Please stay on-topic, informative and polite. I reserve the right to remove comments for whatever vague capricious reasons seem reasonable at the time.

Want to add your opinion?

© 1999-2007 Tom Coates