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Chelseafc5505 t1_j19rsle wrote

Reply to comment by GhostOfRobertTreat in What salary do I need to afford a 1,500 dollar apartment per month by JimmyCasket84

Take home on 60k after taxes is 50k.

1500 x 12 = 18k

18k = 37% of your take home. That's too much. Should be <30%

Also need to consider how often you are paid. Bi weekly? That's ~1900 bi weekly. Aay goodbye to 1500 + utilities from your first check every month. Can you survive the two weeks on $400? Phone bill, cable/internet, food, transportation, entertainment?

What happens if you run into a tricky spot and need cash immediately - rent this high will bleed you dry and a sudden incident/accident could leave you in a world of financial pain.

Find a roommate or boyfriend/girlfriend and lower your expenses. Or find a better job.

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GhostOfRobertTreat t1_j19w96f wrote

The 30% should be considered only if you’re paying 15% or so in transportation. If your transportation costs are less, you can shift that to housing. Here’s a good resource on thinking behind that: https://htaindex.cnt.org/

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Chelseafc5505 t1_j19xsma wrote

If anyone is paying 15% of their annual salary on transportation, something is wrong.

Considering all living costs are up, that rent % allocation (ideally) needs to go down.

$1500 for an individual on 60k is absolutely insane imho. I understand that market prices have made this far more commonplace for individuals, but it doesn't make it a good decision.

Focus on investing your money and making work for you long term versus paying more now for a sweet apartment. Some day you'll have to retire and your 'retirement age' you will thank you far more than the current you

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GhostOfRobertTreat t1_j19zo04 wrote

Car payment, plus gas and maintenance can get high quick. I had to pay $1600 to repair my car once. It’s like adding $130 a month to my yearly transportation budget.

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Chelseafc5505 t1_j19zy41 wrote

Well there is bad decision #1 is a car payment....

You're justifying bad decisions with more bad decisions

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GhostOfRobertTreat t1_j1a09sm wrote

I mean, not everyone can afford pay cash for a car. Or the ones they can afford need repairs more often.

You’re not wrong as to what’s best but those aren’t always options for people. Where to live, where to work and how to get there don’t always line up great for folks.

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Chelseafc5505 t1_j1a0joa wrote

The issue is the 'need' for a new car on a lease.

I've not once in my life owned a new car. It's not that complicated.

Granted, car prices are insane in general right now - even more reason to look into the 2004 accord versus the 2022 Acura RX

Edit: there is a fine balancing point between buying "money pit" and stretching to buy a reliable (but less sexy) automobile

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