1. I know people who are paying 50% of their income for housing.
2. I don't have the ability to go out or take expensive vacations.
3. You can't really have an arbitrary percentage that's 'acceptable'. It all comes down to how the rest of your budget looks.
1. Well, I would assume they aren't renting something far beyond their means, which would be akin to throwing money away on expensive car beyond one's means.
2. I didn't catch whether you are paying a lot for locomotion.
3. I suppose, but the idea is really that you have basic living expenses, and then "disposable income". Nobody who makes what I make should be buying a $40K car...