Thursday, April 22, 2010

Why I Pay 41% of Take Home Pay in Rent

Recently, Debt Ninja over at Punch Debt in the Face asked his readers what their housing allowance was. I crunched my own numbers and realized that 41% of my take-home pay goes towards my rent! Yes, this is the largest expense I have. And no, it doesn't include my portion of utilities, which would tack on an additional 3%. Is it worth it to me? Definitely!

There are many reasons why I am comfortable paying this much towards my rent: I have no debt, I'm still able to save a decent amount each month, I live in a beautiful city where rents can be (and are!) high, the tri-level townhouse I rent with my roommates is huge... but the main reason why I'm okay with that amount? Location!

I live in one of the nicest and safest neighborhoods of my city. In terms of driving distances, I'm 6.5 miles from work and 2 miles (or less!) from all of my favorite grocery stores. There's also a movie theater and driving range nearby! This area is also very walkable: I can walk to my gym, a huge mall, a library, a drugstore, my doctor's office, grocery stores, various parks, restaurants and even bars! In fact, the walk score of this area is 75. :)

I'm now very attached to this location. I don't want to leave it! I drive against traffic, I have a short commute, I feel safe walking at any time of day or night and everything I want/need is extremely close by!

Are you attached to the location you live in? Would you pay more for a better location?

6 comments:

me in millions April 22, 2010 at 3:39 PM  

Rent here is superexpensive too. I pay a premium for living alone, but it's worth it to me (also because I have no debt). We pay for what we value... and I value living somewhere not crappy!

Moon Hussain April 22, 2010 at 5:08 PM  

I pay around that much for my rent. I love my apartment complex here as well as the view but it's not a walkable neighborhood.... DE is weird that way.

I can't wait to move to SD and settle in. It seems expensive so far but also worth it.

her every cent counts April 24, 2010 at 10:05 PM  

I ask myself this daily. I really like where I live. And crunching the numbers, I pay about 10% of my take-home income in rent & utilities. I actually live in a very nice place in a safe neighborhood in an expensive part of the country. Given my recent salary increase, I could pay more for rent... and move closer to work (my current commute is 1 hour) but I'd rather save the money. I used to pay a lot more in rent and earn a lot less. I'm happier now.

Lulu April 25, 2010 at 10:29 PM  

I pay about 27% in rent but I love my apartment. It is one of the better areas and one of the nicer complexes and I am about 6 miles from work, and 1.5 miles from Walmart (which I love). My area is not walkable sadly but I am happy with the area I live in. I could pay a bit less as I am paying for a 2 bedroom 2 bathroom place and the extra space only gets used on the random time when I have friends in from out of town....but I love the extra space and my comfort is worth it for me.

eemusings April 26, 2010 at 1:04 AM  

Our current location is about as perfect as it gets! I pay about 25% in rent, but when BF doesn't have income, rent for both of us is about 50% of my pay. Ouch.

Sara June 11, 2010 at 1:51 PM  

I just found your blog and you also live in San Diego! So I'll give you my downright neighborhood name! haha. I live in Normal Heights and I LOVE it here. I work in Hillcrest so it's close to work without me having to deal with Hillcrest traffic, and we're close to grocery stores, etc. Plus it's quick to get anywhere in the city from here. AND, of course, we love our apartment, despite being just barely the right size for the 2 of us (we could use a slightly bigger living room when we have people over). I'd say I'm very attached! :)

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