How much of a percentage of your monthly NET salary should rent (not mortgage payments) be at a MAXIMUM?
I've read a fair amount of opinion on this and it seems the range seems to be between 20-30%. I'd like to get your thoughts on this.
PS - started to make me think after reading about the "8-month rule" which essentially says you have to work towards saving up or maintaining 8-months worth of savings to cover yourself (or your family) from anything unexpected - of course, opinions about this are also welcome.
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I think OP means an 8 month emergency fund.
For most people having some kind of means to deal with unemployment or other problems is sensible. For some, a credit card will be enough to give them comfort. For others, such as retirees without a good pension (which is most people who don't have the privilege of living off the taxpayer through a government pension), 2-3 years of cash, mmf, short term bonds or similar is a good benchmark.
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I pay 20% and we can now get ahead. Before it was a bit of a stretch. We have school fees and transport costs relating to this as well so I guess it depends on if you additional expenses....such as children who cost a lot!
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