2006-09-25 03:22:12 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Banks and other lenders say that your monthly debt (car payments, student loans, mortgages, credit cards, etc.) should be no more than 32-36% of your monthly income.
Food and the rest depends on how much you make and how many mouths you have to feed. The optimal would probably be saving 10% or more of your monthly earnings, but that is rarely possible these days.
2006-09-25 03:31:13 · answer #1 · answered by John J 6 · 0⤊ 0⤋
It depends on a lot of factors. People in a very stable career field with a lot of money in the bank can invest a higher percentage in real estate. Always go low on the car and the food. What happens with real estate is that your payment stays the same while you end up earning four times what you initially earned, so you have to take that into consideration.
Another consideration is the market. It seems that houses are piling up on the market which should lower prices. Spending a large part of your earnings now may result in a larger loss of value over the next few years with the pricier homes.
One trick is to live in a nice enough house and to buy a second nice enough house nearby. Rent that house out which will cover most of your expenses. Try to pay off both homes in fifteen years which is just a few hundred extra bucks per year. Sell your home and move into the other home so it becomes your primary home rather than a rental property as you will be treated better on taxes. Sell that home within a few years of buying it and then combine the profits from both and buy yourself a mansion or send your kids to a pricey college.
2006-09-25 03:41:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The total should be between 28 and 39%
2006-09-25 03:24:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋
rent/ house with insurance and utilities about 25- 35 percent
car payment with insurance and fuel from 20-25 percent
food/necessaties from 20-25 percent
entertainment and extras 20-25percent
2006-09-25 03:33:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋
your rent or mortgage should be a third of your monthly pay and then monthly bills, car payt, insurance, household bills and food should be balanced so you still have money to put a little money into a savings account and money for entertainment, and emergency costs
2006-09-25 12:55:04 · answer #5 · answered by churchonthewayseniors 6 · 0⤊ 0⤋
experts say that your house payment should not be over a third of your earnings
2006-09-25 03:32:07 · answer #6 · answered by Anonymous · 0⤊ 0⤋