If you budget for a monthly housing payment of $2,500 with two percent annually going to taxes and insurance, and assuming the current 30-year mortgage rate is 4%, the math “worked backwards” reveals a maximum home purchase price of $385,000.
What is the 70 20 10 money Rule?
How the 70/20/10 Budget Rule Works
Following the 70/20/10 rule of budgeting, you separate your take-home pay into three buckets based on a specific percentage. Seventy percent of your income will go to monthly bills and everyday spending, 20% goes to saving and investing and 10% goes to debt repayment or donation.
Why the 70/20/10 Rule Works
The 70/20/10 rule of budgeting works because it forces you to be mindful of your spending. When you know that 70% of your income is spoken for, you are less likely to impulse buy or make unnecessary purchases.
How to Implement the 70/20/10 Rule
To implement the 70/20/10 rule, simply take your take-home pay and divide it into three categories. Seventy percent should go to bills and everyday spending, 20% should go to savings and investing, and 10% should go to debt repayment or donation.
What is the 53 20 rule?
The rule of thumb for spending is that you should spend up to 50% of your after-tax income on needs and obligations.
The remaining half can be split between 20% savings and debt repayment and 30% to discretionary spending.
This will help you keep your spending in check and help ensure that you are able to save and pay off debts.
What is the 35 45 rule?
The 35/45 Model: With a $7,000 monthly gross income, 35% would be $2,450 for all your debt. But let’s say after taxes, insurance and other deductions, your take-home pay is $6,000. Multiply that by 45% and that’s $2,700. So your range (for all your debt) would be between $2,450 and $2,700.
11 Nov 2022
What salary is good in Houston?
While ZipRecruiter is seeing salaries as high as $125,244 and as low as $18,447, the majority of salaries within the Well Good jobs category currently range between $33,495 and $62,622, with top earners making $93,205 annually in Houston.
I’m Brendan Rivers, and I love all things real estate. I live in sunny Los Angeles and work as a real estate expert. I enjoy helping people find their dream home, and I love everything about the process of buying and selling property.
I’m originally from Boston, and I love spending time with my family and friends there. When I’m not working or hanging out with loved ones, you can usually find me at the beach or exploring new parts of LA.