hands counting money
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relationships, you can fortify associations that may prove invaluable in the future.

BEST PRACTICES

11. The 20/10 Rule
Generally speaking, your total non-mortgage debt shouldn’t equal more than 20 percent of your annual net take-home pay, and monthly payments shouldn’t be more than 10 percent of your net monthly pay.

12. The 28/36 Rule
Your total monthly housing expenses, including insurance and taxes, shouldn’t be more than 28 percent of your pre-tax pay. Combined with your other debts, it shouldn’t be more than 36 percent.