How much of your income should you spend on rent?

[AlyTab]

Hi, I'm new to the whole living by myself thing and I've only recently moved out of my mother's house. This is also my first job that I've had, and I'm trying to work out if I've over spent on my rent or not.

I'm new to my job, I'm working on becoming a pharmacy technician, so until then I've become a pharmacy assistant. I started only a few months ago, so I make about £1,170 a month. I rent a flat for £395 but I was considering flats up to £500. I live in Scotland and in my area, it's quite easy to get a nice flat for a cheapish price. Am I over spending on my rent? I would appreciate some advice.

Usual affordability guidelines are no more than 40%. As it was back in the 1980s when I first rented.

It sounds like you can afford food and transport to work once you’ve paid the rent so no immediate concerns.

However, how reasonable that is, depends on what your goals are. For example, do you intend to buy your own property in the future? Do you have savings? Pension?

My first accommodation was dirt cheap as wanted to get on the property ladder and have savings. I was able to save 50%+ of my salary and bought my flat soon after. Now that I’m older, I also make sure I’ve got investments, a good pension etc so we live in a much cheaper house then we could afford to allow for all the other stuff + a good standard of living day to day.

Sorry, forgot to include AFTER taxes. £933 a month.

Depends whether you are content with your disposable income after rent and bills. In my first job, I rented a room in a shared house and did so for 2 years before renting a flat together with my then boyfriend. Even then, we chose a cheapish flat because our main goal was to save up money for a deposit as quickly as possible to buy a house and renting a more expensive place would have been self defeating. i.e short term sacrifice for long term gain.

On less than 1k a month I'd be nervous to be spending more than £300pm on rent tbh. But you know your expenses best,
If you're able to meet your expenses and preferably have £75-£100 spare per month for eg savings (for emergencies, treats or large purchases) and a bit of wiggle room for a higher bill or unexpected expense go for it.

Thank you for your responses. I'm quite good with money I think at least, and I generally have about £375 left to do whatever I want with after rent, bills, food etc., so it's not as if im struggling or anything, I just want to know if I could be saving more? Sorry if this sounds dumb because I know there's lots of people struggling to even get by at the end at the month after paying for everything, I'm just a bit confused with how much I should be saving and perhaps how I compare to other people to the point of obsession lol.

It depends on other bills if rent is £400-500 then council tax might be £50 then gas electric water, phone line, Broadband, insurence, TV liscence that’s easily another £100 on top.

I also live in Scotland if that matters. Don't have virgin or sky, I have a NOW tv box, low bills since I really don't use heating that often, and I never turn on the lights because I'm a weirdo. I have about £375 left at the end of the month after paying for everything.

I would go for something as cheap as possible if I were you, for at least a year - something in the £300-£400 region if possible.

When I was on £1000 take home, I was lucky enough to get a place directly next door to my office for £350/month (2 bedroom, at that including water rates, though ground floor so expensive to heat). I saved £200/month, and was able to live off the rest and furnish the place, including visiting my friends (I was entirely alone short term in the city, so traveled to see them and my boyfriend). I didn't even have a real bed for the first five months, using a double height air bed.

If you spend even just a year in the £300-400 place, then you can save up a nest egg of £1200, then move to the better place. You'd be in a much better position, and potentially earning more too. As a rule of thumb, for every pay rise, I only award myself a max £50/month increase in lifestyle, and plough the rest extra into savings, rather than further lifestyle improvements.