Question

What is the maximum percentage of net spendable income that should be set aside for housing?

Answer 1

Answer;

-38 %

Explanation;

-Budget busters are the large potential problem areas that can destroy a budget. Failure to control even one of these problem areas can result in financial disaster.

-Housing takes about 38 percent of your monthly budget. Housing decisions should be based on need and financial ability, not on internal or external pressure.

-Food takes 12 percent of your monthly budget.  The reduction of a family's food bill requires quantity and quality planning.

-Transportation (purchase and maintenance), takes 15 percent of your monthly budget, Debts takes 5 percent of Net Spendable Income, Insurance takes 5 percent of Net Spendable Income assuming an employer provides medical insurance, Recreation/Entertainment takes 5 percent of Net Spendable Income, Clothing takes 5 percent of Net Spendable Income, Medical and dental takes 5 percent of Net Spendable Income and Savings takes 5 percent of Net Spendable Income.

Answer 2

The maximum percentage of a families net spendable income should have at least 38% set aside for housing expenses. This is because most people can't afford their housing and need more set aside each month.