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The 30% rule is based on how much a family can reasonably spend on housing and still have <br />enough money left over to afford everyday expenses like food and transportation. <br />If you're looking to buy a home, some financial experts also recommend using the 28/36 rule to <br />determine what you can afford. The 28/36 rule stipulates that in order for a home to be considered <br />within your budget, your housing expenses (such as mortgage payments, taxes and insurance <br />payments) shouldn't exceed 28% of your gross monthly income. Your total debt (including credit <br />cards, student loans and car loan payments) shouldn't exceed 36% of your gross monthly <br />income. <br />If you're married or have a partner, keep in mind that this calculation includes the entire <br />household, so you'll need to include their salary and debts in the equation as well. <br />So, is your current home affordable? If it's not, it might be time to consider a cheaper place to rent <br />or think about refinancing if you can. <br />