How to Calculate How Much Rent You Can Afford

Video Transcript

"This is financial advisor Patrick Munro, talking about how to calculate how much rent you can afford. Basically, any financial advisor or bank will look at the topic of shelter, that is to say a mortgage, and it should not be more than forty percent of your gross pay. So, if you're a thousand dollars a month as an individual you should be seeking shelter of four hundred dollars a month for your apartment or whatever the case may be. And if you get used to that paradigm going forward you'll you'll build your life around those those benchmarks. Calculating rent; you don't want to go too high in your rent because they'll be other expenses that come calling; that is to say transportation, your car payment. Food is a big factor as well in your overall budget, and you'll also need to pay yourself first and normally that's ten percent right there that you should be putting away. So, it's important to use calculations and rent is no exception. I'm financial advisor, Patrick Munro."