Housing is often the largest monthly expense for many individuals and families, making it critical to get this aspect of your finances under control. Whether you rent or own, keeping your housing costs manageable can ensure that you have enough money left over for other essentials such as utilities, groceries, and savings.

One common rule of thumb is to allocate a percentage of your income to cover housing costs. Financial experts recommend this approach because it prevents you from becoming "house poor," where too much of your budget is tied up in housing, leaving little room for savings or discretionary spending.

However, the right percentage depends on factors like where you live, your other financial obligations, and your overall income. In high-cost areas, it may be harder to stick to the general recommendation, but it’s still a valuable guideline for maintaining financial health. Let’s see if you know what that percentage should be!