We manage at 50%, but we don’t have car payments or student loans and the alternative, renting, is much higher. With a mortgage, you also get equity and pay down principle, so it’s not just a place to sleep. It’s like 25% to bank and 25% into nonliquid savings.
Renting at 50% or higher is a full loss, though. And honestly, if you have plans to travel, have kids, or just expensive hobbies, it really eats into your ability to fucking live your life.
We manage at 50%, but we don’t have car payments or student loans and the alternative, renting, is much higher. With a mortgage, you also get equity and pay down principle, so it’s not just a place to sleep. It’s like 25% to bank and 25% into nonliquid savings.
Renting at 50% or higher is a full loss, though. And honestly, if you have plans to travel, have kids, or just expensive hobbies, it really eats into your ability to fucking live your life.