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No more than a third of your gross annual income should go towards housing. As for rent, you should not spent anymore than 25% of your gross income. Housing - This expense should include mortgage, insurance, gas, electricity, maintenance, and phone. (according to crown.org budget guide) Rent or your monthly mortgage payment plus each of the above should never exceed 36%. 1/3 is generally a good rule just as with the 1st answer, but don' t forget that the number includes the other housing expenses.
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Rule of thumb currently promoted is that you should never spend more than 1/3 of your gross income. 33.3%. But you should be aware that this is far higher than th…e historic average. Up until 20 years or so ago, the rule of thumb was 25%, and many critics point to this change as one reason so many Americans are over-leveraged. _________________________________________ The change was made in 1999 under the direction of then President Clinton, the Gramm-Leach-Bliley Act was enacted and signed by Clinton. Prior to this act only 36% of your income could be leveraged by creditors, and only 28% by mortgagers.Afterwards 33.3% could be mortgage debt and 42% total leverage. These relaxed standards and other parts of the act which allowed banks to diversify their loans and investments, and eliminated the 18% maximum interest rate, (put in place after the "stagflation" of the late 1970s) which led to run away credit and interest rates contributing to an overburdened banking and credit crisis, where debtors no longer were able to cover inflating interest rates, which could triple overnight without warning.
less than 20% less than 20%
There is no exact percentage but it is recommended that around 10 percent of your income be put toward health insurance. Most people do not spend this much on health insur…ance.
Most small businesses should allocate between 2 and 3 percent of revenue for advertising. That number should increase as the business grows.
Investopedia advises that the principal, interest, taxes and insurance should not exceed 28% of your gross income.
Percentage of business income should not be used to decide rent. Business needs and desires should be used to calculate rent. You could be making hundreds of thousands of …dollars working out of a home office.
6% to 8% of gross sales Restaurant Rent: How Much is Too Much? By Richard D. Williams, MAI Tuesday, 31st October 2006 http://www.4hoteliers.com/4hots_f…shw.php?mwi=1661
To keep yourself financially stable, it is suggested that you keep your rent or mortgage payment 30% or less of your take-home pay.
Not more than 30% I'd say.
Depends on the business but for most small business your total occupancy cost should never exceed 10% of total sales.
It would depend on the company. A restaurant would need more (obviously). A dry cleaner would need none or next-to-none. A sales company would need somewhere in between becaus…e they'll be taking clients out to lunches. Same goes for a company that might host banquets.
If you're going to set salaries as a percent of gross income, I submit that you're approaching the issue from the wrong direction. Salaries should be established based upon, …not gross income, but (i) the responsibilities associated with the job and (ii) existing salaries for positions with similar responsibilities within your market.
No more than 30%
In US Air Force
Utilities are largely a fixed cost that depend on where you live,not a percentage of income. It's not like you should say "I'm rich,I should leave the air conditioner on with …the doors and windowsopen." It would be more realistic to contact your local utilities for an"average" bill amount (or, even better, an actual historicalaverage for the specific house/apartment you're considering) andbudget based on that, instead of trying to figure out how much it"should" be based on what you make.
In the real sense of the word, there is nohard and fast rule as to a specific percentage that'll work acrossthe board. However, a very good general rule of thumb is somewhereb…etween 10 to 20 percent of your gross income. The sooner you beginsaving, the greater your chances of being able to achieve yourtarget with a lower portion of your income, because you'll havemore time to put the power of compound interest to work in growingyour nest egg. Always commit to a percentage (not a set amount) ofyour income so that as your earnings increase over time a portionof the growth will go toward your retirement savings. Finally, itis crucial to keep in mind that the more you are able to save todaythe better.