I have recently got out of a relationship and am trying to figure out how much I can afford to live on my own. I am thinking about moving into a duplex for $1200 a month.
I make 65k a year which comes out to about 4.1k per month. My total bills are about $800 with the new rent it would be about $2000. I’ve never lived on my own and don’t know what to expect. Are there hidden things I should be thinking about?
Depending on where you live finding anything much cheaper than 1200 would be basically impossible unless you have roommates. It doesn’t sound all that unreasonable relative to your pay based on how crazy rent has become lately.
A “normal” amount of money to spend on rent or mortgage is 25%-50% (Edit: a commenter was right to say that although 50% is “normal”, it is very high and risky. Keep your rent low if you can, under 33% is best), so that’s in the right range for you. Do your best to keep your total loan payments under 50% of your income (rent, car, schools loans, etc.), That is a good rule. You can go over that if you need but it’s considered risky.