15% of your income

[tygeade]

FED chairman Jerome Powell's term will be ending on May. I'm sure Trump's nominee Kevin Warsh will support cutting rates. Even with the Iranian war in play. If he's a "loyalist", he will meet with the President's demands. Rate cuts are needed to help lower housing and transportation (acquiring a new vehicle) costs.

The EU is way ahead in the game. It's been cutting rates for quite some time. But if wars intensify and supply chains continue to be disrupted, there will be no rate cut in the world that would benefit the economy. The situation is getting tough. One can only hope geopolitical tensions ease, so things can go back to "normal". At least, temporarily. We'll see what happens...

Still though? I mean I know that Trump wanted Powell to end up cutting the rates and Powell declined, at this point I think Powell didn't do it not because he thought it was the right decision, but he didn't do it just to piss of Trump and that's funny, I like him. But after that, many things changed and the financial world doesn't look like cutting rates is a smart move right now.

Because the oil prices are changing ,and there could be some issues and all of that combined could mean higher oil prices, higher gas prices, and inflation all over again when prices of everything goes up due to gas price going up. That means that cutting the rates would only fuel the inflation even further and not sure if it's a smart choice.

[Abiky]

Still though? I mean I know that Trump wanted Powell to end up cutting the rates and Powell declined, at this point I think Powell didn't do it not because he thought it was the right decision, but he didn't do it just to piss of Trump and that's funny, I like him. But after that, many things changed and the financial world doesn't look like cutting rates is a smart move right now.

Because the oil prices are changing ,and there could be some issues and all of that combined could mean higher oil prices, higher gas prices, and inflation all over again when prices of everything goes up due to gas price going up. That means that cutting the rates would only fuel the inflation even further and not sure if it's a smart choice.

Things may have changed now. But according to Trump, the economy is still going strong. So it's likely the President will keep pushing for lower rates, despite the deteriorating economic situation as a result of the Iran war. Kevin Warsh is Trump's nominee for the FED, so he must do everything in his power to win the President's (and Republicans') favor. It's most likely he will cut rates. But if he resists, you can bet he'll be "replaced" by the end of his term.

The heat is on Americans now. Especially with Donald Trump's uncertain tariff and foreign policies. Perhaps, people in the EU are living better? The ECB keeps cutting rates, which means the economy is going smooth. But I could be wrong.

[Leahized]

I don't know where you got that data from, but I think that currently most people pay 30% or even 50% of their monthly salary in rent, especially for those living in big cities, it doesn't make sense for them to pay only 15% of their income for rent, unless they have a large salary, but that's only a handful of people, for many people they are still burdened by rent that increases every year.

I support it because the situation is exactly the same in my state. In my state, those who are in big cities or capitals for jobs, their house rent is very high and many even more than half of their salary. I think this is a big problem in this case but there is nothing to do because everything is measured by location. But living in low-income countries,They may have lower rents and less financial independence as well. But money has to be spent in other areas including house rent.

[tygeade]

Things may have changed now. But according to Trump, the economy is still going strong. So it's likely the President will keep pushing for lower rates, despite the deteriorating economic situation as a result of the Iran war. Kevin Warsh is Trump's nominee for the FED, so he must do everything in his power to win the President's (and Republicans') favor. It's most likely he will cut rates. But if he resists, you can bet he'll be "replaced" by the end of his term.

The heat is on Americans now. Especially with Donald Trump's uncertain tariff and foreign policies. Perhaps, people in the EU are living better? The ECB keeps cutting rates, which means the economy is going smooth. But I could be wrong.

That makes NO sense at all, and quite on point with how stupid Trump is. I mean it is not really that complicated in math, if the price of oil stays high, then gas prices will go up, when gas prices go up, price of everything goes up, because logistics means with either ship or plane or trucks, we will need to move things from where they are manufactured, to where they will be sold, even a simple farmer will have to get their crops moved from their farm to wherever store they are going to sell it at.

So that means prices will go up, that means it's inflation and cutting down the rates during inflation would only burn it even more. So cutting down rates at this point could be the most stupid thing anyone can do, which trump... can actually do, because he is a moron.

[Bitcoin Smith]

In my country, people pay around 30-40% as rent in the city locations, if they need a decent house that is why both husband and wife are forced to work to maintain the financial struggle because everything became expesinve and the opportunity to spend money also a lot higher compared to 20 years before so this is the time that you pay more to enjoy the life that you feel comfortable.

[bhadz]

In my country, people pay around 30-40% as rent in the city locations, if they need a decent house that is why both husband and wife are forced to work to maintain the financial struggle because everything became expesinve and the opportunity to spend money also a lot higher compared to 20 years before so this is the time that you pay more to enjoy the life that you feel comfortable.

It's the same in my country, the minimum wagers are paying from the same percentage and the rent consumes that much from the salary that we are earning. The single employees could pay lesser because the can rent a bedspace which provides them a bed to sleep and have a locker of their items. It just becomes a place to sleep and during the day, they're on their jobs to work and earn money. The rent keeps on increasing and it will surely increase because of this crisis that's done by the war. I'm expecting it yet, the wages are not increasing.

[Mpamaegbu]

...do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

Housing expenses isn't my biggest expenses. Feeding is. Anyone who has housing as their biggest challenge, is occupying what their financial muscles can't carry. I will continue to maintain that once anyone's annual rent exceeds their two months salary, that rent is above them. That's how I gauge mine. There's education needs, there's health maintenance, there's investment to be made, dependence allowances etc. If anyone spends heavily on rent, how can they take care of those others? It doesn't make sense to abandon one for others

For me, feeding tops the list. I spend like X5 on feeding of what I spend on rent monthly.

[7juju]

...do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

Housing expenses isn't my biggest expenses. Feeding is. Anyone who has housing as their biggest challenge, is occupying what their financial muscles can't carry. I will continue to maintain that once anyone's annual rent exceeds their two months salary, that rent is above them. That's how I gauge mine. There's education needs, there's health maintenance, there's investment to be made, dependence allowances etc. If anyone spends heavily on rent, how can they take care of those others? It doesn't make sense to abandon one for others

For me, feeding tops the list. I spend like X5 on feeding of what I spend on rent monthly.

It depends on what you are earning as monthly salary, and your taste of accommodation. When looking for a house you have to know that a clean accomodation will go a long way in reducing how often you fall sick. So if you live in a clean environment you are equally reducing how frequent you will need to visit the doctors, thereby reducing medical expenses. There are areas you will live and the rent will be cheaper, but the amount you will be spending on medications annually will be more. If you calculate these expenses on annual basis, you will find out that the person who pays to live in a cheaper environment will end up spending more money than the person who pays higher to live in a house that's in a cleaner environment that command bigger rent.

[Mpamaegbu]

~

It depends on what you are earning as monthly salary, and your taste of accommodation.

Someone with a low income earning powers shouldn't be talking of taste of accommodation that's outside their league. It will cause them to struggle all through and they still won't be able to meet up with their financial obligations in other needs of theirs. Here, what should matter is necessity and not luxury. By inference, all I'm saying is that people should learn how to cut down on their expenses and live within the reality of their income.

There are areas you will live and the rent will be cheaper, but the amount you will be spending on medications annually will be more.

No doubt, that's true. However, that's not to say that cheap or low rent budget can't be in a clean environment.

[9ja Amaka]

I don't know where you read that 15% of your income should be what you spend om your rent or house expenses,  because I really don't think that is possible. Rent has always been on the high side for as long as I can remember and it's only getting worse now in the present economy. I think rent take more of our income and I don't subscribe to the fact thar their was a time thR 15% of our income can take care of it. If you ask me I think rent and food takes the highest percentage of our income.

[bakasabo]

Those 15% are so unreal and % are so individual. What about rich and poor? They definitely dont spend 15% only. Even if we compare average salary to amount spend on utility bills, that number will be far from 15%. 15% could be real 20-30 years ago. Today it is more real if people spend 1/3 on house expenses. OP has mentioned rent in his post. I can say that rent was never that cheap, if you dont live in shoebox.

[DYOR+BTC]

Those 15% are so unreal and % are so individual. What about rich and poor? They definitely dont spend 15% only. Even if we compare average salary to amount spend on utility bills, that number will be far from 15%. 15% could be real 20-30 years ago. Today it is more real if people spend 1/3 on house expenses. OP has mentioned rent in his post. I can say that rent was never that cheap, if you dont live in shoebox.

Yes in the society we find ourselves now  even the complete salary wont even be enough to meet up to our needs not to talk of 15 percent that won't even be enough for rent. With the current inflation in the economy expenditures has grown beyond income and will continuously increase unless change is restored. Sharing income by percent can be very difficult except one is lucky enough to have a good paying job and business that could serve as our resting point as that is the only way such Sharing formula can work. All we need do is God's divine intervention as he is the only one that can soften to heart of both good and bad to bring things back to normal so after expenses one can still have some percent to save for future use.

[Kelvinid]

You can still stick to that but never expect to live comfortably. Because the truth is, not only the house rental is expensive but everything around us, our basic needs and wants come with high cost. The reason why its hard saving these days, especially if you are just living paycheck to paycheck.

However, if you work and make some investments at the same time, your income will also increase. Then maybe by that time 15% is good enough, even if it means covering everything just to make your family live conveniently.

[Abiky]

Housing expenses isn't my biggest expenses. Feeding is. Anyone who has housing as their biggest challenge, is occupying what their financial muscles can't carry. I will continue to maintain that once anyone's annual rent exceeds their two months salary, that rent is above them. That's how I gauge mine. There's education needs, there's health maintenance, there's investment to be made, dependence allowances etc. If anyone spends heavily on rent, how can they take care of those others? It doesn't make sense to abandon one for others

For me, feeding tops the list. I spend like X5 on feeding of what I spend on rent monthly.

What about power costs? With rising oil prices, it's going to be even worse. Food prices are also heavily-reliant on oil. Since the cost of living is rising at a fast pace, saving 15% of your income would not be enough to survive. I'd increase that rate to 30%. It would be higher if you're a wealthy person.

Hopefully, conflicts between US-Israel-Iran, and Ukraine-Russia come to an end for the global economy to get back on track. Unless another conflict arises that would lead us further to "rock bottom" (China-Taiwan, maybe?). Only time will tell...

[348Judah]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

I don't know how it is in other countries, but from mine here, things have never been the same, because of the inflation rate and how all the landlords have determined to increase their heart rate and disadvant effect, not only that, most of the house rent now were being doubled, if you can't afford it then you can search for another alternative.

[Bitcoin_people]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

with some saying this could be worse than the 2008 crisis. do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

We have seen that in the past, the monthly expenses including house rent and some other expenses go up by 15%. Although this is not much and this expense could have been easily invested and saved which would not have caused any problem to a person. But what we are seeing now in 2026 is really disappointing for every person, especially for those who are employed and work for a small salary. Currently, about 30% of the house rent is going up, which is making it very difficult for a person to manage their life because they do not have much money to invest and save later with the house rent expense. Again, in big cities, the cost is around 40% to 50%, where people are more stressed and they have to go on loans which can make their life more difficult. It is becoming more expensive now than in 2008, because the interest rate is high and the construction cost is high and the population is increasing, the rate of people living in the city is increasing, due to which everything is becoming more expensive. However, in my opinion, if 20% is spent at the present time from the personal side, it will be great, but whenever 40% is spent, it will be risky for every person.

[slapper]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

with some saying this could be worse than the 2008 crisis. do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

We have seen that in the past, the monthly expenses including house rent and some other expenses go up by 15%. Although this is not much and this expense could have been easily invested and saved which would not have caused any problem to a person. But what we are seeing now in 2026 is really disappointing for every person, especially for those who are employed and work for a small salary. Currently, about 30% of the house rent is going up, which is making it very difficult for a person to manage their life because they do not have much money to invest and save later with the house rent expense. Again, in big cities, the cost is around 40% to 50%, where people are more stressed and they have to go on loans which can make their life more difficult. It is becoming more expensive now than in 2008, because the interest rate is high and the construction cost is high and the population is increasing, the rate of people living in the city is increasing, due to which everything is becoming more expensive. However, in my opinion, if 20% is spent at the present time from the personal side, it will be great, but whenever 40% is spent, it will be risky for every person.

What you're describing is not only an economic problem. Technically it is, supply demand interest rates construction cost population density all real all measurable. But behind those numbers, are people doing mental calculation every month that just doesn't work out and then feeling like it's their fault.

In 2008 the crisis had a certain villain. Banks, CDOs, irresponsible lending, whatever. The stress now is more ambient and the blame is less clear. In some ways it makes harder to digest emotionally. Who are you even getting angry with when rent increases by 30%. The city? The government? The economy in the abstract? None of those are satisfactory answers. So a lot of people just turn the frustration inwards.

Taking loans to pay rent in particular. It's structural failure dressed up as a personal finance choice. Nobody borrows loans to pay for rent because they made bad decisions. They do it because the other option is worse.

Most conversations on this issue end with some variation of "be smarter with your money". Okay. Yeah. Budgeting is good. But there's a limit to what personal financial discipline can accomplish when the structural costs are this great. At some point individual behavior optimization becomes no more the answer. The inputs are simply too expensive, compared to the outputs.

[Jewan420]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

with some saying this could be worse than the 2008 crisis. do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

In my country's context, whether it will be 15% or not depends on the income of a person. In my country, there are people of different professions and different salary scales. Even people of almost the same profession live in cities and villages. Comparatively, house rent or construction of houses is cheaper in villages. If someone wants to build a house in villages or live in a rented house, then he can meet the cost of house rent by spending only 15% of his income.

But in the case of cities, the amount of your income is important. As per the average income of my country, 15% of income in cities is not enough for house rent. But if you are a little wealthy, then house rent will not be difficult for you. Even in my region, housing is still easily available due to different quality of houses. However, housing is not easily available in capitals, even for low quality housing you have to spend about 20%-30% of your income.

[Die_empty]

In my country, people pay around 30-40% as rent in the city locations, if they need a decent house that is why both husband and wife are forced to work to maintain the financial struggle because everything became expesinve and the opportunity to spend money also a lot higher compared to 20 years before so this is the time that you pay more to enjoy the life that you feel comfortable.

You reminded me of how things were when I was younger.  Mothers are always at home to take care of children because they are not working. The income of the fathers was enough to cover the home expenses. Now, both parents need to work hard to make the home survive. Even young children who are a few months old are kept in daycare to enable the mother to work. This is a clear illustration that the perception that house rent would take just 15% of one's income is outdated. It.was attainable in the eighties and late nineties.

[viljy]

~
It.was attainable in the eighties and late nineties.

I actually think that the boomer generation is incredibly lucky in life. They lived in greenhouse conditions. The middle class was created for the first time from their generation, they were the first representatives of the consumer society. And now? New generations live poorer than their parents, not to mention the generation of grandparents who could afford to travel around the world in retirement! Nowadays, young people cannot afford to own separate housing, and sometimes they cannot even rent housing. That's why they continue to live with their parents. So 15% is fantastic for most. At best, about half of the income is accounted for by housing costs.