Back to: Finding Your Place: Overcoming Barriers in Rental Housing
A budget is simply a written plan that lets you keep track of how much money you are bringing in, how much you are spending, and what you’re spending it on. Making a budget helps you see where your money goes every month, which can help you figure out where you can cut back if you need to save more or if you’re spending too much on things you don’t really need. It’s like having a map for your finances that shows you how to get to where you want to be, whether that’s saving up for something big, paying off debt, or just making sure you’re not spending more money than you have.
Having a budget is important if you want to get a control of your finances, especially if you’re trying to get out of debt, improve your credit score, or find a good place to live. When you’re looking for a rental, landlords often check your credit score to see if you are someone who pays their bills on time. A good budget can help you make sure you do just that. Plus, by avoiding debt and managing your money wisely, you’ll be in a better position to save for a security deposit or the first month’s rent. In short, a budget doesn’t just help you keep track of your money—it’s a key tool for making your financial goals a reality. We will include your final budget into the packet that you show to the landlord or leasing agent.
ASSIGNMENT: Download and print the Budget form in the link below OR create a free budget account. Make 2 copies and complete one now to the best of your ability. Make sure to put a date on it. At the end of the course we will make an updated budget and compare the two.
You can also create a free account for EveryDollar, provided by Ramsey Solutions (Dave Ramsey), they offer a no cost version that allows you to manage and track your budget online.
https://www.ramseysolutions.com/ramseyplus/everydollar
HELPFUL TIP: If you do not have access to a printer, your local library should have one for use at no cost.
Your budget is the important first step as it will determine how much you can afford. Landlords typically want to see an income of between 2 and 2.5 times the rent amount. For example, if rent is $700 then they may require and income of $1400-1750 in order to qualify. We will go over strategies to find housing for people of all income levels, but it is very important you understand where your starting point is and do not rent something that is too expensive as that will only lead to problems later when other expenses come up and you have to choose between, for example, fixing your car and paying rent.