How to Budget Rent Into a Paycheck
Creating a budget is an essential part of managing your finances in a responsible manner. Paying your monthly rent or mortgage on time should be one of the top concerns when formulating your personal or family budget. Those with a limited monthly income often find themselves paying closer attention to their daily, weekly and bi-weekly spending habits to save enough money to pay housing costs. When living paycheck to paycheck, it is important to break down the cost of rent each pay period to avoid month-end financial shortfalls.
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Instructions
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Examine your monthly housing costs, including your required rent payment and utility costs. Utility costs include water, electricity, natural gas, sewage and trash collection.
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Contact your utility companies and ask the providers if “budget billing” plans are available. Typically, budget billing plans will allow you to make relatively equal payments each month by dividing or averaging prior-year utility usage. Although budget billing payments for your utilities may vary slightly from month to month, you will be able to budget your monthly housing costs in a much more effective manner.
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Total the cost of your monthly rent and utility costs.
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Divide the total costs of your rent and monthly utility costs by the number of pay periods you will have each month. Keep in mind that certain months of the year may include more pay periods than normal.
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Mark your pay periods down on a calendar and include the divided amounts you need to withhold from each paycheck to cover your housing costs.
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