Budget This! Monthly Rent

 In a previous iteration of this blog some time ago I would do a monthly series of how to pay for rent. Everything from how to budget for it to where to pay it. This "summer series" revisits that with an update or two. 

Let's Pay Rent. 

This is not something that one really looks forward to and it is a burden but, we need shelter so forgive me if I have little sympathy for the process. I am stunned when I look back at how I have been able as a single person making less than $50,000. has been able to live in the San Francisco Bay Area on my own since 1997. For 26 years I have paid for rent first with relatives, then total strangers. 

That is the thing, I have been able to pay rent and when I was earning $15 an hour. That is insane to think about today in 2024 where the State starting income is $16 an hour. I distinctly remember working 40 hours and earning $15 thinking I was winning because I could pay my rent. Even as recently as 2019 I was earning $23 an hour working 36 hours that was $828 dollars gross a week. My monthly take how pay was just over $2,200. 

Yet, I paid $1,000 in rent, $200 in transit pass $400 in entertainment/groceries eating out and $400 in meds. How did I do that? 

First, I split saving for my rent that meant taking 1/2 from each check and putting it away for rent. This habit would allow me to save money later on when or if my paycheck was late. 

Second, I did not own a car and public transit wasn't super convenient but I learned time management. When I worked for an State agency I was stunned how much public transit kept me from keeping a job because my access to it was hindered by public transit agency mismanagement (that is another story) 

Yes, having a car can make a difference on what you earn but it has more of an impact on what you spend. In 2019 gas was climbing around $4 people literally would go on the local news and complain about it. Today in 2024 people pay nearly $6 and there isn't a huge outcry? 

Now, I understand and appreciate needing your own space so, having an apartment is great. Do you have or make 3x more than your rent? Is your credit above 650? Can you put down an deposit of 2x the monthly rent?

So, I rent a room and while I have mostly good luck, I beg of you to really source out your search. It was when I was telling everyone and anybody that would listen that I was looking for a place to live that I found a place to live that was great. I got a Master bedroom and my rent was only $1100 a month. It was very nice unfortunately, I did once go on the "lower" side of my scale and found a place for $900 a month. I left within two weeks because the situation was just unsafe. 

Do these numbers seem foreign to you? Have you been paying $1800 or $2200 for the past few years? That is great if you have had your own place. I currently live 50 miles from my workplace that is given me the luxury of being close to hospitals, schools, grocery stores and quiet backyard. Whereas I  went to a place in San Francisco near Mission St where inside was all brand new but right outside my door was noise from fire trucks to traffic I would be paying for about 300 square feet at $1900. That is not for me. 

So, sincerely look at your budget and not what you make as gross but, look at what your actual paycheck is. This is really where your budget starts. 

Now, look at the resources, did you know now some AirBnB's are doing long term rentals and these are rooms for rent? ADU's are coming on the scene but the reality is you can find a place to live in someone else's house. A room for rent will save you money - I know this. 

The other resource is seeking housing assistance San Francisco has different programs and so does Santa Clara County. Ask for help - it is okay and GoFundMe is a great resource

Next, Save something $10 or $25 it will all add up three months from now with interest on savings accounts still at 4% you can build your savings. 

The hard part is negotiation you need to be clear on what is allowed and not allowed. Having before and after pictures is important. How long do you want to rent for? I stayed at one place for 7 years. It was really too long but I saved money where I could travel *caveat was I was only making $15 an hour at the time. 

There are a lot of resources to find places and budget your money. The default is to just take one paycheck and do it that way but what about emergencies ? Having an emergency fund is important. Renters insurance is too. 

So, now how do you pay the monthly rent is that you need to make sure its ON TIME. Don't give rental properties owners or management companies the opportunity to say you are late with rent. If you are you let them know WAY in advance. For example, I changed bank accounts that tied my money in a savings account that meant deposits and withdrawals took more BUSINESS DAYS to process. If you are use to getting your money right away that is great unfortunately even regular banking accounts can change timing of items. The difference I experienced was withdrawing money would take up to three (3) business days and because it was a new account it took 5 (five) business days. So, I notified my landlord a week (7 days) in advance that my rent payment may be late. Lo and behold because of splitting up my rent in paychecks by the first (1st) of the month I had my rent payment anyway. I was relieved and also proud that I had budgeted so well. 

First, budget the amount you can afford to pay. 

Second, split up how much you take out of each paycheck

Third, pay on time and get a receipt. 

Four, put something in savings account ( American Express has a great savings account at 4%)

Five, Repeat.