When to Pay Rent

Howdy,

Rent is due on the 1st. How do I in theory pay for that? Do I budget to have the payment for rent by the end of the month? Or the beginning of the month? 

I normally try to pay on the 1st but I've noticed sometimes I pay on the 26th or so the month before? I don't know what makes more sense or where to put it in my budget? 

16replies Oldest first
  • Oldest first
  • Newest first
  • Active threads
  • Popular
  • Ideally, money should be in the category when the money leaves your control.

    Practically speaking though, if you don't import, you can just keep the scheduled transaction date of the 1st (and budget for that month), even if you technically pay a couple days earlier due to a weekend or something. If you import, though, you'll have to either edit the transaction date (into next month) or pull funds back in the budget (into this month's area). You must avoid/correct overspending.

    Putting this major expense in next month's area makes it much easier to get a month ahead as well, something that greatly simplifies the budgeting process. This allows budgeting with a month-sized chunk, regardless of when you actually receive the funds. From that standpoint alone, I'd target next month's area and fudge the occasional early transaction.

    Like
  • So like $1800 since rent is $900? 

    Like
      • dakinemaui
      • dakinemaui
      • 12 days ago
      • Reported - view

      Nathan Dowlen No, being a month ahead means any income received this month is budgeted in next months area. Categories get their normal amounts, not double.

      It's not technically an entire month ahead for everyone, but most people phrase it that way. The important part is you budget on a cycle aligned with your expense recurrence, not your income recurrence.

      Like
  • I don't quite follow? 

    Like
  • For now, make sure money is Available in the month of the outflow. (No overspending.)

    You can look into a more efficient process (pushing income into next month) after you're comfortable with the mechanics.

    Like
  • So this month I pay $900, I used what I had left over last week in June's paycheck for this week's paycheck to pay rent? Like that? 

    This month though, I'll only pay $900 and then next month, I'll do the same? Same way? 

    Like
  • You can set a Savings Goal to just have $900 each month in your Rent category. That's what I do. It saves me the complication of having to think of a more specific time in the month.

    Alternatively you can set a Spending Goal for the beginning of the month or the end of the month. I don't think it makes a big difference either way as long as you make sure to budget $900 at some point monthly.

    Like
  • That makes sense. I notice I pay at the end of the month/first of the month depending on the paycheck. I usually carry over from last month into the new month to pay the rent completely. I don't know if I'm doing it right or not? 

    Like this week, I get another $600 paycheck, on top of the $300 I have saved from last week to pay for rent this week. Then at the end of July, I'll do the same thing again, take what I have left over and add it to the first week of August. I dunno if that means I save an extra $600 or $300 for next month though? 

    Like
  • It's going to be up to you when you put money in the category. Since you're paid weekly, yes, I'd recommend putting 1/4 from each check (assuming you will receive 4 checks before you make the next payment).

    Like
  • I can try that. I tried that before and it confused me. lol Balancing it out across the entire budget.

    Like
  • So I split up all my expenses by 4 across the month of August and I'm still short $200. I dunno how to get it down to what I make in a week? Before my hours were cut and I lost all my overtime (About $200 lost), I'd be able to live off the current budget but now, I don't know how I'd cut anymore? 

    Like
  • I figured August instead of July, just because that's where I have the next 4 weeks. :/ But I can't even do 4 weeks for July and it has 5 weeks inside it. 

    Like
  • It's common when starting that you have to fund some True Expenses (non-monthly expenses) at a higher than nominal level. If you have an annual expense of $120 due in 2 months, that's going to suck up $60/month instead of $10/month. That means there's $50 less for everything else of lower priority.

    This is one of the reasons YNAB works so well -- you get a truer picture of your expenses. Unfortunately, it's usually the case those expenses exceed income. I know it may not seem like a good thing, but recognizing there is a problem is the first step to fixing it.

    Like
  • Yeah I see that now and it HURTS like I can't believe. I think once my girlfriend starts working. (She should soon once she's got her license and can drive.) We'll have better footing. Before Corona, I wasn't living beyond my means, but I didn't take into account that I had "Guaranteed Overtime". So when they said "We're cutting your 10hrs" I instantly lost that buffer... It's fine though. We'll survive. 

    Like 1
  • Nathan Dowlen said:
    Before my hours were cut and I lost all my overtime (About $200 lost), I'd be able to live off the current budget but now, I don't know how I'd cut anymore

    Either cut more, increase income (side jobs evenings/weekends?), or use credit to bridge the gap until income returns to normal. Ultimately, those are your only choices. Obviously, the latter is a slippery slope and not without drawbacks.

    Are you paying for a mobile plan with lots of data? If you're home more on WiFi, perhaps you could drop that.

    Like
  • I'm actually at work. But I use a lot of my data outside of work like on the weekends primarily when I can't connect to Wi-Fi. I think I've cut as much as I possibly can currently. I'm gonna look for some side gigs if they're available? If my girlfriend gets work fast, we'll be set in stone. 

    Like
Like Follow
  • 12 days agoLast active
  • 16Replies
  • 111Views
  • 3 Following