I often meet people who spend an inordinate percentage of their income on housing. I spend most of my time in Victoria British Columbia, which has relatively high housing costs. The average house in my area is worth more than $500,000. I have found a small space to rent for $350 per month, utilities included. This is equivalent to the day rate that I charge, if someone wants me to show up at their project. --- So, I have to work one day per month, to keep a roof over my head, have constant TV and hot water in the bathtub.
For many years, I spent nothing keeping a roof over my head, other than the cost of insurance for various vehicles, which I lived in while demolishing houses. None were ever heated. I put some money away.
I can understand that being ultra frugal about housing, might have some difficulties for women and children. For young men who are trying to get ahead in the world, paying to live under someone else's roof, just doesn't make sense to me.
I know a lot of people. I know many who spend more than half of their income, keeping warm and dry. They don't save money.
I also know several people who spend less than 10% of their income on housing. These guys tend to get ahead in leaps and bounds, no matter what the general economy is doing.
For those of you who are paying rent .....
1. How much do you pay and how does this relate to your income?
2. Do you regularly put money into savings?
Even if you don't care to answer this on a public forum, it's worth thinking about.
The road to financial success, is not generally paved with spacious penthouse apartments or really nice three bedroom houses that belong to a landlord.
It's a bit more now that I have a wife and kid, but when I was a few years out of school I moved into an apartment complex that catered to college students and rented by the room. My total housing/utilities cost was less than 5% of my gross income, and I was saving/investing close to 50%.