INDIANAPOLIS, Ind.- At one time owning a home was just part of the American dream.
Now, for many, it’s become more of a status symbol.
“I was think of the early 2000s and the show Cribs. It was the setup for wanting a better house, and then a better house,” said Pete the Planner, a local financial expert.
How much should you be spending on a place to stay each month?
The exact amount will vary from person to person.
We first introduced you to 27-year-old Kassidy Galbraith on Monday.
She’s trying to figure out what she can afford when buying a home.
Pete the Planner offered her this advice.
“I like people at 25% of their take home pay goes towards housing.”
Think about budgeting even less for your housing needs if you’re someone who likes to travel a lot, or has a tendency to splurge.
“If you want to have an amazing life where you’re doing everything, stay below 20%,” said Pete the Planner.
Paying more than you can afford in rent or mortgage payments can quickly put you on the road to becoming what financial experts call “house poor.”
“You spend so much on the roof to live under that you can’t go out to eat, you can’t go on vacation, you can’t have your kids play travel sports,” said Pete.