 TITLE: How Much of My Income Should Go Toward Rent CONTENT: Create a Budget and Account for Expenses\n----------------------------------------\nAs previously mentioned, creating a budget is a key step in finding out how much you can afford and ensure you don't overspend on housing. It will also help you keep up with other monthly expenses.\nTo start, write down what you earn each month. If you're a business owner or your hours aren't consistent, take an average income from the last three to six months.\nThen, identify all of your expenses from the past few months and categorize them so you can determine how much of your income you spend every month and where it's going. Your budget will help you not only find out how much you can afford in rent but also how much you can put toward other important financial goals.\nIn addition to rent, you'll need to account for other housing-related expenses. For example, many landlords require renters insurance, which covers your personal belongings if they're damaged or stolen. According to the most recent report by the National Association of Insurance Commissioners, the average annual premium for renters insurance was $180.\nDepending on your situation right now, you may also need to spend some money on furnishings to make your new place feel like home. Take some time to research what you'll need and how much it will cost, so you can plan for it. Buying furniture secondhand or accepting hand-me-downs from friends and family can help you reduce these costs. END