There are two rules of thumb that provide guidance on how high the rent should be in relation to your income.
We pay it every month, it is one of the essential expenses and for most people it is quite high: the rent. Personally, I've been looking at the real estate market for a long time and every time I think: 'How are you supposed to afford this?'. Inflation, energy costs, food prices and of course high rents put a lot of pressure on your wallet.
Housing is expensive, especially in cities. But even in the suburbs of large cities, the situation doesn't look much better. If you want to save money, you inevitably have to deal with your own housing costs. After all, rent is probably one of the highest expenses of the month for most people.
In this context, I took a look at how high the rent should actually be in relation to income. You can find the answer here:
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Ratio between income and rent: 40 percent rent rule and 30 percent rule
There are two simple rules of thumb that initially serve as a guide. One of them is the rule of 40. This rule assumes that yourRent a maximum of 1/40 of your gross annual incomeshould make up. If you earn 40,000 euros gross per year, your monthly rent should not exceed 1000 euros.
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Another rule of thumb is the 30 percent rent rule. Here it is assumed that yourDon't rent more than 1/3 of your monthly net salaryshould make up. Since this is about the net amount, this rule provides more precise information about the relationship between income and rental expenses. Assuming a net salary of 2200 euros per month, the rent according to this scheme should be a maximum of 733.33 euros.
However, both rules only serve as a rough guide. Ultimately, the question of housing and the associated expenses is individual. Some people are willing to spend more on their rent because factors such as where they live, the size of the apartment or the age of the apartment are particularly important to them. Others, on the other hand, are willing to forego certain living comforts in order to have more money for other things.
You can find out more about saving here:
