I am a new grad about to start working in San Francisco and the rent in most places in the city is stressing me out. Either its too expensive, or is a sketchy neighborhood or far away from work. Just wanted some advice on how much is it okay to spend on rent in SF? Or what percentage of your salary should one be spending on rent? #sanfrancisco TC: 180k
~25% of total income before taxes.
Do you have a rough estimate of what % of salary ends up going in taxes in California? Haven't started working hence don't have a clear idea
40%
I spend about 21% of my income after taxes on rent + utilities
Preferably 20% of after tax income or less? This gives you some leeway for owning a home. 30% for mortgage is not super stretched.
110% Or live with four roommates
Some budgeting guides suggest max 33% gross and some appartment owners will qualify you to a max of 60% gross. That said, those are high water marks. I spent 14% (on rent only) when I was new college graduate ( software eng) and moved to Bay Area.
None. Buy your own place and pay mortgage instead.
Get some roommates including a really poor one to take the living room, 1700 should get you a room in a decent apartment. Pretty much every neighborhood is sketchy, welcome to San Francisco :P (I got out of there and don't intend to ever return) Your financial freedom is much more important than feeling like a baller at age 22. Don't blow through 3k+ a month on rent. You already live in the highest tax state.
30 percent of your after tax