[disneysteve]

Originally Posted by Gruntina

For many here on this board will think I pay too much for my home (36%) as I am going over the rule of thumb 25-30%.

Actually, I think that rule of thumb is 28% home, 33% (or maybe 36%) total toward debt. So if you are otherwise debt-free, you are probably within, or very close, to that rule of thumb, which I still think is a good one.

But you make a good point about priorities, something we talk about often around here. If your priority is your home and you are willing to forgo or limit other things like vacations, fancy cars, dining out and such, that's fine. You are saving, tithing, funding your retirement and otherwise sound like you have all your financial ducks in a row. Nothing wrong with that at all.

The problem arises with the person who might be spending 35% on their home, 10% on travel, 35% going to taxes and insurance, and 20% to vehicles, entertainment and miscellaneous spending. That adds up to 100%. Savings - zero. Retirement - zero. Emergency Fund - zero. In fact, the total often adds up to greater than 100% when credit card debt gets added to the mix. Those are the folks that are heading for trouble.