Dave Ramsey Said This Extra Cost Is Well Worth It if You're a Renter

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• Dave Ramsey believes renters should keep housing costs to 25% or less of their income.
• He stresses that renters insurance costs should be included.
• Renter's insurance is necessary to avoid financial disaster, as a landlord's homeowners insurance policy doesn't cover personal tenant property.

Don't rent a home without reading Ramsey's advice.

If you're renting a place to live, it's important you make sure your housing costs are affordable. To ensure that, finance guru Dave Ramsey advises you to spend a maximum of 25% of take-home pay on your total rent payment.

When you are looking around for apartments, Ramsey makes it clear that you need to foot the bill for an additional expense beyond just the money you're paying to your landlord. He said this additional expense should be included in your 25% calculation and you shouldn't skip out on it.