You don’t want to put yourself into a financial bind so it’s very important to ask yourself the question how much should I pay for rent? This is critical when it comes to learning what to avoid when renting. If you want rent to be easier on your pay check and less stressful you can follow a simple rule. Rent should be no more than your first week’s paycheck. This does include utilities as well.
So let us say that I make $1600 a month. That breaks down nicely into roughly $400 dollars a week. How much should I pay for rent? My rent should be no more than $400 dollars a month including utilities. If utilities are less than $100 you may be able to rent for $400 plus $100 in utilities, but that is also up to your best judgment.
The reason you should only be renting using this rule is because you don’t want to put yourself in a hard financial situation. You will have other needs like transportation, food, loans payments, credit card payments, etc. and if your rent is too high it can add quite a bit of financial stress to your life. So you will need to stick to this golden rule.
What can this mean? Well, it may mean you will need a roommate. I know I know, you love your independence, and you’re really excited to have your own place. But, the added stress on your checkbook will be more than the stress from your new roommate.
A great way to rent within these ranges is by finding a house and getting multiple roommates to split the bill. This can be one of the easiest ways to go in terms of rent. It can also be a lot of fun (if you get the right people).
Now when asking: how much should I pay for rent; you’ll know to stick to the rule of paying rent less than your first weeks paycheck.