Ask Dr. Beckem: How Much of My NET Income Should Housing Be Each Month?

In order to answer the question of how much of your NET income should go to Housing each month, first let’s list what falls under “housing”:

Mortgage payment………. $______
Rent payment……………… $______
Insurance (home)………… $______
Property taxes…………….. $______
Utilities……………………….. $______
Maintenance……………….. $______
Total $______

After you add up all housing costs, ask yourself:

•How much do you spend as a percentage of NET income?
Total / (NET income) = _____%

•Target: Keep housing costs under 33% of NET income!

For more answers to your Personal Finance Questions,  please visit the Life After Debt Institute. 

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

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