Bad idea to move out only making 2.3 times the rent?

So I keep hearing about the rule where you should make 3 times your rent, or at least 2.5. Problem is, I only make 2.3 times the rent of this place I want to move into. But, I've mapped out my budget and I don't see a problem - I could afford gas, groceries, phone, internet, utilities, etc. With money to spare. So why do people act like if you don't make at least 2.5 your rent you're gonna go broke living on your own?

It's a rule of thumb. If you've created a realistic budget and that rent works for you, then it can.

3 times the amount of monthly rent is correct. With no other debt.

Did you include 10% of your income in savings and do you have 2-3months available in reserve? The extra 1.5% is a buffer. Think of it like playing football without a helmet. It's not IF, it's WHEN you're going to get hit and how hard.

It is hard to get a landlord to rent to you if you only make 2,5 times your rent. It is true that with good management in your case you can do that but landlords do not have the right to see how you spend your money so have to assume that you need 3 times.

They don't, it is generally a rule that landlords use to make sure any potential tenant can afford to pay the rent, many tenants don't save and work month to month as in what they earn they spend so 'an emergency' comes up… Meaning they then fail to pay the rent owed forgetting it is a priority debt

Same as mortgages are worked out at x3 of earnings… Just standard practise

The landlord doesn't know, or care, how you budget your money. They just know, based upon experience, that they have more problems with tenants not being able to pay the rent when their income is less than 3x the amount of the rent.

They aren't in the business of analyzing the budgets of resident applicants - nor should they be. It is just simpler to establish a set rule and to follow that rule.

We can't all afford to live in the places we want to live in so you will either have to find a way to increase your income or you will have to settle for an apartment within your price range of one-third your monthly income.

BTW, are you figuring your monthly income correctly? If you are paid every other week you have 26 paydays per year so multiply your wage by 26 and divide by 12 months to come up with the monthly average income. If you are paid weekly then multiply by 52 and divide by 12 for the same result.

The " monthly gross income must be 3x the monthly rent" is a guide. It isn't written in stone. You are off to a good start creating a budget. A lot of people are short sighted and they get into serious problems. Landlords use the 3x thresh hold as a guideline only. They can bump it up or down.

The bottom line is that your rent should be at the top of the budget list. Why? Because with other things you can cut back to a point. Default on the monthly rent and you get the boot and will find yourself out on the street.

Realistically, you have said, "I could afford gas, groceries, phone, internet, utilities, etc. With money to spare." So far so good but…

It would be interesting to see what you mean when you say, "etc." I can list about 15 additional expenses [perhaps more] that you will have to take care of when you're on your own.

I'd also be curious to know when you say you have budgeted for groceries how much you anticipate spending each month. Have you budgeted for apartment insurance, car insurance, medical, car maintenance/repairs, cleaning products, monthly incidentals bla bla bla.

Getting the picture?

That's a general number that gets thrown around, but it's only that. When you're first stating out, that is not always the case.

You might be able to budget it so it works but it's likely that if you don't make 3 times the rent, the landlord will reject your application. Just because you want to be there doesn't mean you will be allowed to live there.

Have you calculated EVERYTHING into the equation? Clothing, entertainment (movies, video games, computer, a TV? What about gifts for family's birthdays, Christmas? Wedding gifts - that and more fall into a miscellaneous category. Perhaps, you have family out of state that you would like to visit. There are so many little things that add up and many items are not little at all. Haircuts - or do you cut your own hair? What happens when your computer dies? That about a $1,500 expense for a half decent computer. Print cartridges for your computer. Maybe you want to get a cat. I did when I was in my early 20s. I got one and 5 years later, I got another and had two. It all adds up. By the way, the formula is 3 - 4 times, not 2.5 - 3. Your landlord must have thought that you were a good bet not making that - a good amount of savings, good references, solid job, and he liked you so he gave you a chance. However, for most people, they would not qualify.