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Home Renters - What % of your gross income goes to rent?


HarryCaray
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Gross income or net? We never see all our gross income so thats not really relevant.

 

And as others stated, we have a mortgage and do not rent.

 

But doing the math, 17% of gross income goes to mortgage. 25% of net income goes to mortgage.

 

yea for some reason when you get a loan they use gross which make no sense at all, since people will have different tax situations

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Guest pocketrockets

That too. You aren't doing it now? It involved reading Spanish so I assume he was going to have you read up on things he did not want to bother with. I know he is not handing anything much over to you because that is not his style. 

 

It would be a good opportunity. durito might get you headed in the right direction and impart you wisdom. But your BR management is horrendous so you really have no shot.

 

If it was something you would be doing anyway, it would be a good thing.

 

The main reason why my BR management is horrible is because I am in a rush to win $ gambling NOT to increase BR but to pay other shit outside of it... basically 70% of all my poker winnings have been used to do that as well... never have a steady bankroll.

 

Im impulsive but im not dumb... been sober for a month and thinking clearer... thats why I took steps in limiting my deposit amounts on the books I play at, cause im not ready... and wont be for a while.

 

Fot me to be able to gamble steady and with BR... I need to be comfortable in my life, comfortable with my debts, my possessions, my house (my own house), get a vehicle again, etc, etc... is not something I will get by gambling... I mean, hard work and saving up is the way to go and I can get there in 1 year, is not like I am 20k in the hole, I owe all in all, like 4-5k, between family, bank, credit cards....

 

I might deposit $50 to play cards... or bet, $50 a month is not gonna break me... if I win, I win, I pay shit... If I lose, is like taking a chick to applebees

 

Im taking it slow... i dont want to be in this position ever again

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The main reason why my BR management is horrible is because I am in a rush to win $ gambling NOT to increase BR but to pay other shit outside of it... basically 70% of all my poker winnings have been used to do that as well... never have a steady bankroll.

 

Im impulsive but im not dumb... been sober for a month and thinking clearer... thats why I took steps in limiting my deposit amounts on the books I play at, cause im not ready... and wont be for a while.

 

Fot me to be able to gamble steady and with BR... I need to be comfortable in my life, comfortable with my debts, my possessions, my house (my own house), get a vehicle again, etc, etc... is not something I will get by gambling... I mean, hard work and saving up is the way to go and I can get there in 1 year, is not like I am 20k in the hole, I owe all in all, like 4-5k, between family, bank, credit cards....

 

I might deposit $50 to play cards... or bet, $50 a month is not gonna break me... if I win, I win, I pay shit... If I lose, is like taking a chick to applebees

 

Im taking it slow... i dont want to be in this position ever again

That's part of it. But very few people have any kind of BR and I doubt you ever will. You are a action junkie and that is incurable.

 

The fact that you tried to use gambling to pay for stuff is an example.

 

You do not have the mental discipline for gambling. That is not likely to be something you ever have.

 

You would be bored to tears gambling with discipline. In some ways, the guys with discipline are even crazier than the action junkies.

 

So it is best that you are getting away from it

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Gross income or net? We never see all our gross income so thats not really relevant.

 

I was looking for gross, and sure it's relevant.

 

Net income is not only less taxes but also less pre-tax contributions like retirement and insurance.

 

If one was trying to determine the amount of their retirement contribution, the % coming off the top for housing would be a useful figure.

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You can rent a nice 15 year old duplex here. 2 bedrooms, maybe 1100 sq feet. 1 car attached garage. Small pack patio with a yard for about $675

Pretty much describes our scene but in north side of Clearwater FL runs 1100-1300 w HOA lawn service and a very large and nice pool scene

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I was looking for gross, and sure it's relevant.

 

Net income is not only less taxes but also less pre-tax contributions like retirement and insurance..

Relevant for you maybe. And others. Matter of perspective I guess. We never see taxes. So why should we use gross? I consider health insurance and retirement money I never see either.

 

Net is a more accurate thing for myself when considering my finances and own budget.

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I consider health insurance and retirement money I never see either.

 

Yes but the amount of retirement contribution (and to a lesser extent health insurance contribution) is decided by YOU.  That's the point.

 

Sticking your fingers in your ears and closing your eyes and just saying "money gone" is not a good way to plan.

 

In other words, if I spend less on housing I can afford to pile more into my retirement.  If I take the pricier place I contribute less.  That's the balance I'm looking at, and to play with that equation you need to look at gross income.

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Banks look at gross income as well for mortgages

 

I'm aware.  I'm sure they have some formula they come up with after they look at the gross.

 

But if I'm wondering how much I can afford for a mortgage, for myself, then I'm going to look at what my take home is.  That's the money available to pay a mortgage.  Not the gross.  

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Yes but the amount of retirement contribution (and to a lesser extent health insurance contribution) is decided by YOU.  That's the point.

 

Sticking your fingers in your ears and closing your eyes and just saying "money gone" is not a good way to plan.

 

In other words, if I spend less on housing I can afford to pile more into my retirement.  If I take the pricier place I contribute less.  That's the balance I'm looking at, and to play with that equation you need to look at gross income.

 

I understand where you are coming from.  

 

That money isn't "gone" obviously.  I just don't consider it available after I have already decided what I need to put away each month for retirement.  I don't even want to consider it available until I need it.  

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Guest boatboatboat

I understand where you are coming from.

 

That money isn't "gone" obviously. I just don't consider it available after I have already decided what I need to put away each month for retirement. I don't even want to consider it available until I need it.

But if you were routinely putting 15% of your income into a Deferred Compensation Plan what it would allow you to do is to reduce that contribution going forward if your budget got tied most people would cut back on their 401K contributions before they would get a home repossessed

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I'm aware.  I'm sure they have some formula they come up with after they look at the gross.

 

But if I'm wondering how much I can afford for a mortgage, for myself, then I'm going to look at what my take home is.  That's the money available to pay a mortgage.  Not the gross.  

 

they just use a debt to income ratio including the other payments on your credit report.  but it's stupid we could both have the same gross, same debt payments, and drastically different take home and we'd qualify for the same amount.

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