Is 30 Cents Too Much To Spend on Rent?

I use Google Analytics and Sitemeter to track my website statistics. One of the advantages of using these tools is that I get to see what people type into Google to reach Sweating The Big Stuff. Once in a while, I’ll get a real gem, and last week, I was surprised that someone searched for:

is 30 cents a month bad for paying rent to your little brother thats 9

Obviously these two brothers are having some issues sharing their room, and what I find fascinating is that the younger brother is the one doing the bullying!

Also, I suspect that this kid didn’t stay on the site too long because Google brought him to a post about avoiding a high cell phone bill.

So today, let’s help him out and see if it’s a good deal. At 30 cents a month, it comes out to $3.60 a year. That’s compared to the average $651 per month, or $7,812 for renters* (let’s just assume he’s not ready to buy a house yet, although with these savings, he will be able to in a few short years). That’s a savings of $7,808.40. So, in short, yes, 30 cents a month isn’t bad.

However, since his little brother is 9, the humiliation of having to hand over 30 cents every single month must count for something. It’s hard to quantify it, but I suggest setting up automatic payments so that you don’t feel it so hard each month.

I grew up sharing a room with my older brother for the first 10 years of my life, followed by sharing a room with my younger brother for the next 4 years.

I never had to pay rent (and never demanded rent, either), but there are plenty of funny stories I have. One time, we split the room down the middle. After about ten minutes, I realized that having the closet but not having access to the door was going to be a real problem, and our agreement promptly ended in a fight.

So to answer your question, anonymous boy from Google, no I don’t think 30 cents is too much to pay for rent. If you can, I suggest locking in that rate for I don’t know, the next 35 years of your life. At that rate (with 7% interest), you’d have over a million dollars saved up, and that’s if you saved no other money! Imagine the possibilities!

*http://www.census.gov/prod/2004pubs/H150-03.pdf

7 Responses to Is 30 Cents Too Much To Spend on Rent?

  1. Your story reminded me of the line taped down the middle of the room on the Brady Bunch. I don’t think it lasted long for Greg and Peter either. (Or was it Peter and Bobby?)

    I love that the 9 year old had the upper hand. Go little brother!

    • Daniel says:

      @everyday tips, Never seen that one, the show in general was way before my time.

      As a middle child, I won’t take sides, but I do think it’s hilarious.

  2. Little House says:

    I wonder how the 9-year-old came up with 30 cents a month? And, this makes me wonder why the older brother is even paying it? They both are utilizing the room! The 9-year-old is obviously more financially savvy than his brother. ;)

    • FinEngr says:

      @Little House,

      He’s also more financially aggressive, which isn’t a bad thing. If the other kid grows up simply paying whatever other people tell him, he’ll have a long road to hoe…

  3. kt says:

    And what is funny is that the rent thing with the two little boys was something bigger than the whole world. If every problem was this easy

  4. Khaleef @ KNS Financial says:

    This is hilarious! Like you, I am glad to see that the younger brother is the one with the initiative! I wonder how soon before he goes up on the rent?

    By the way, I really like the site – especially the name. I just posted a series last week on tackling the big ticket items in our budget before focusing on smaller things – part of my title was “Sweat the Big Stuff”!

  5. I remember splitting the room with my sister. I used chalk to draw a line on the carpet, needless to say Mum and Dad went freaking mental! Maybe they split it up and the brother wants more space so he’s renting it off him. Still sets a worrying trend for the future.