In order to determine how much risk you’re willing to take, you must budget first. It may not be fun or interesting, but it will ensure that you’re able to comfortably balance your income and expenses. A proper budget will allow you to see where you spend your money, and it can help you plan for bigger expenses in the future.
If you’re having trouble, consider downloading budgeting software. Check out this handy budget planner, or download this pre-made spreadsheet tool.
You should always get your budget under control before you even start looking for an investment property.