If you’re getting 250/day and making $62.5k/yr and paying taxes, you’re left with about $50k. Average rent is 1550/month in the US ($18600/yr). 30% of $50k is only $15000.
Working 8hrs a day at $31.25 per hr. (that’s 4.3 times the minimum wage) still doesn’t cover the 30% rule.
$250 per day, 5 days a week, 50 weeks a year.
$62.5k a year. That’s just enough to pay the average rent in America if you follow the 30% thing that gets taught
If you’re getting 250/day and making $62.5k/yr and paying taxes, you’re left with about $50k. Average rent is 1550/month in the US ($18600/yr). 30% of $50k is only $15000.
Working 8hrs a day at $31.25 per hr. (that’s 4.3 times the minimum wage) still doesn’t cover the 30% rule.
The 30% rule is based off AGI (adjusted gross income) which accounts for some taxes but I don’t remember which.
That’s not to say you’re wrong, by any means. Our economy is literally failing. The average person cannot meet their basic needs to survive
I have always heard that the 30% rule is based on your gross income with no account for taxes included.
I believe I’ve actually heard both, but most recently I was taught it via AGI
Ah agi makes more sense, since that’s before tax but after alimony and student loan interest payments.