Budgeting for rent
When I moved into a more expensive living situation, I knew that I needed to so something to ensure that I would always have the funds available to pay rent on time. I currently pay $735/month for a studio apartment in the Seattle area. Based on my research, it is a good price given the area it is in. Since it was so much more than my usual rent, I decided to create a rent savings plan.
I figured there are roughly 21 week days during the average month. I then took $735/mo and divided it by the 21 days and I got $35/weekday. So each weekday I have my financial institution automatically transfer $35 from my checking to my savings. By the end of the month, I should have the $735 needed to pay rent.
This is an easy way to plan ahead for expenses without having to do a lot of thinking about it. The small daily transfer gives me some consistency, rather than a larger transfer at the end of each week where I may forget it is going to take place. If I had it my way I would have the transfer take place each day of the month, but my institution does not support that.
I think that anyone who is having trouble making an expected monthly payment on time should consider taking up this savings method. It really works for me and this type of budget could easily work for you too! I encourage you to give it a try.