So, here’s the deal – I’m not from the US, and I need some advice on my current situation. My landlord is selling the place I’m renting, and I need to find a new spot.
- My rent eats up 25% of my paycheck.
- I’m not drowning in debt, so that’s a plus.
- I usually put about 20% of my salary on my credit card to rack up those sweet points.
- I stash away 10-15% of my earnings in ETFs and stocks.
- But I don’t have enough saved up to buy a place where I want to live.
My current rent is reasonable in the area I like, but I might have to shell out a bit more (1-5%) for a new place. Or I could move to a fancier neighborhood with better digs, but I’m not sure if that’s the right move.
I’m aiming to save more and beef up my investments down the road. My career’s on track, and a raise might be in the cards, but I like to play it safe.
TL:DR Need advice on finding a new place since my landlord is selling. Rent takes up 25% of my income, and I’m not sure how much more I can afford without sacrificing savings and a good quality of life.
If you have any tips on this housing dilemma, I’m all ears!
Response from THE MONEY MINDER:
Hello There,
Hello,
I’m sorry to hear about your current situation with your landlord selling the property. It sounds like you have been very diligent in managing your finances, with your rent accounting for 25% of your salary and your focus on saving and investing. It’s great that you are thinking ahead and considering your options carefully.
In terms of what is generally considered a reasonable percentage of income to spend on rent, financial experts often recommend aiming for around 30% or less of your income. Given that your current rent is already at 25%, it appears that you are within a reasonable range.
When considering moving to a new place where the rent might be slightly higher, it’s important to weigh the additional cost against the potential benefits. It may be worth exploring different areas to see if you can find a balance between cost and amenities that suit your needs.
Considering your goal of keeping up with saving and investing, it might be helpful to reassess your budget and see if there are any areas where you can make adjustments to accommodate a slightly higher rent without compromising your financial stability. Remember that any increase in salary in the future can also help offset this change.
Ultimately, the decision on how much to spend on rent will depend on your priorities and financial goals. It’s great that you are being cautious and playing it safe. Take the time to evaluate your options carefully and make a decision that aligns with your long-term financial objectives.
If you need further assistance or guidance in navigating this decision, feel free to reach out. Best of luck in finding a new place that meets your needs while maintaining your financial well-being.
Warm regards,
THE MONEY MINDER
