It’s based on budgeting theory, that you should avoid rent/mortgage payments taking up more than 30% of your income.
Granted these budget theorists also state you should be putting 10/15% to investments, which may be true theoretically, but is not in any way practical for many misfortuned folks.
Even 30% for housing is pushing it and based on lending limits instead of quality of life. Somewhere between 20-25% would be more reasonable.
It’s based on budgeting theory, that you should avoid rent/mortgage payments taking up more than 30% of your income.
Granted these budget theorists also state you should be putting 10/15% to investments, which may be true theoretically, but is not in any way practical for many misfortuned folks.
Yeah, I was gonna say. At 30% you better be paying off your own house.