I'm not a fan of cutting costs, but I'm also not a fan of overpaying for things that you don't really need. But housing is something you really need – you can't be homeless. But how much do you really need to spend on rent and housing? It's not as much as you think.
Earlier this week we talked about the various ways that you can save money on rent in college, but what we didn't talk about is the maximum that you should pay.
I think that you should try to keep your rent expenses to no more than 20% of your take home pay. So, if you take home $2,000 per month, you shouldn't be paying any more than $400 per month in rent. I'd like to see it a bit lower, but I'm realistic.
What about you? How do you think that people should pay in rent? Let's get a comment poll going on: