Let’s break it down step by step to see if $1,000/month rent is affordable on a $20/hour wage.
- Calculate monthly income:
Assuming full-time work (40 hours/week): 20 dollars/hour×40 hours/week=800 dollars/week20 \text{ dollars/hour} \times 40 \text{ hours/week} = 800 \text{ dollars/week}20 dollars/hour×40 hours/week=800 dollars/week 800×4.33≈3,464 dollars/month (gross)800 \times 4.33 \approx 3,464 \text{ dollars/month (gross)}800×4.33≈3,464 dollars/month (gross) - Rule of thumb for rent affordability:
Most financial experts recommend spending no more than 30% of your gross monthly income on rent. 3,464×0.3≈1,039 dollars3,464 \times 0.3 \approx 1,039 \text{ dollars}3,464×0.3≈1,039 dollars
✅ Result: $1,000/month rent is just under 30% of your income, so it’s generally considered affordable.
Important: This doesn’t account for taxes, utilities, groceries, transportation, or other debts. If you have a lot of expenses, you might feel tight. But in general, yes, it’s doable.