There is an old standard set in the United States called the 28/36 rule, and many financial advisors are recommending it for their clients. The rule states that households should spend no more than 28% of their gross income on housing costs – including mortgage, property taxes and insurance – and less than 36% on all debt – including car payments, student loans, credit cards, and medical debt.

The idea behind the 28/36 rule is to encourage people to take things more slowly and reform their lives now before their problems get too large. According to the Census Bureau, many people are spending much more than that with 38% of homeowners spending more than 30% of their monthly gross income on housing costs. Worse, about 12% of homeowners spent more than half of their income on housing.

Such huge spending on housing and debt servicing costs leave little room for food, gas, transportation, utilities, child care, and other expenses that can affect households. The advice may seem elementary to some people, but many people have strayed far from the basics and the lessons may be necessary to embrace before things get much worse down the road.