apartment therapy changing the world, one room at a time

Good ideas.

Those are indeed very good advice and it can happen, believe me when you are unemployed, getting unemployment or simply temping at a wage too low to make ends meet will do this too and best to pay the rent, even if it means letting other bills go by. Much easier to repair credit history over a non payment of say the cell phone bill than the rent each month and yes, it's way more important to have a roof over your head.

I know from experience on this one.

This is good advice until you wrote "If it's not used for rent, it can be used towards making improvements in your home."

Everyone should have at least a couple months rent in the bank. If you don't spend it on rent it should be in an interest-bearing savings account, not pretty light fixtures or new curtains.

Even Suzi Orman is now advising folks to put cash in the bank before paying off the credit cards. With banks and credit card companies slashing credit limits to even their best customers (Chase did it to me last week - and not only have I never missed a payment, but I make huge monthly payments to manage my cash-flow and collect points on my spending) it's best to make the minimum payments and stash the money away to build up the rainy-day fund.

I thought this was going to be a helpful post about pawn shops. ;-)

Let me add a suggestion to the list: If your rent is due on the first day of the month, you cannot reasonably expect to pay it out of the paycheck that you receive on the first day of the month.

Pay the bulk of your rent out of your second check of the month (which lets you pay on-time, and maybe even before it's due). If you get paid weekly, set aside one third of each check to pay the rent, so the whole amount of your last paycheck of the month won't have to be spent on the rent.

What I usually do is sell something. Like that mid century modern collectable that I found at a thrift store and picked up, not because I wanted it, but because it was a good deal and I knew I could make money on it. Either that or extra electronics like a flat panel TV in the extra bedroom, or an extra laptop. I collect computers like I do antiques. I always price things to sell w/in hours on Craigslist. That usually about does it for me.

When I run out of extra things to sell then I think seriously about selling the vehicles. I have had to sell a couple vehicles in the past because my husband and I weren't making mortgage on time on a regular basis. We're lucky enough that we usually own our cars and trucks out-right. On top of having the extra 10's of thousand's of dollars in your savings, you save on tabs and car insurance which is an added bonus. We're down to a cheapo, beater, commuter Toyota mini truck and an f150 for camping and hauling mid-century furniture home from the thrift store. LOL Now if only Seattle had a better mass transit system we might get rid of them all.

I think our problem is living w/in our means. Especially in this climate. My husband has been on and off unemployment since January, so we've had to play a little hard-ball with our mortgage company to get them to lower our interest rate. Fun stuff.

I'm with bepsf: keep that rainy day rent money in the bank. Once you have a decent rainy day fund, maybe THEN you can think about spending some cash on that apartment you don't own...

bepsf:

perhaps i wasn't clear. to clarify: yes, one month's rent in the bank but also one month's rent/year for home improvement projects to keep your home's (and your life's) energy flowing. i believe both are important for one's spiritual well being & groundedness.

cheers,
abby

I've scrimped for a few years now to build up enough savings to cover a year's worth of living expenses, in case I lose my job.

One month's rent in the bank is completely insufficient, particularly in this tough job market. Forget about decorating until you have enough in the bank to get you through a long-term financial drought.

Yea this might work unless you are part of an apartment complex that is owned by a larger organization. Then expect to pay 10% of your rent your rent for the time you are late. They won't kick you out on the first go, but you will get penalized.

Laura
http://www.grafxnerd.net

this is a good article and likely to have made me less angry when I was a landlord.

i've had those times when i've been down on my luck, and thankfully had very understanding landlords... i find that if you are truthful, pay as much as you can to get it all paid off, they tend to be understanding, not all of them (one really horrible instance where if it wasn't there by the 5th you had to go to court to stay ? ) but the past few i've had were awesome.

i get paid on the last day of the month and that's the check that covers the rent the next day. it's totally reasonable for these reason: direct deposit in my account by 9am, the lease states that a check postmarked the 1st of the month is on time, and time the mailing of the check. it doesn't arrive to the landlord (mngt. co.) before my pay arrives to my bank account.

Good post with excellent suggestions. Aaaand because I am evil, I really like the phrase "Oops, no rent!" as a recession-era variation on "LULZ PWN3D!11!!"

since i get paid every 2 weeks, i make sure to set aside half of the rent i owe from each check... that way i don't have one huge sum to cover with one check.

I am pretty much of the opinion that if you are coming up short on your rent, you need to build up your savings so it doesn't happen in the future. And one month just ain't going to cut it.

Although when I broke it down, the one month rent spent on home upkeep spread over a year....amounted to pretty much what my household spends a month on new decor, maintenance of our things, etc. So after initially finding the suggestion a bit odd, it needs to be looked at just a bit differently before we realize that many of us spend at least half a regular month rent over the span of a year doing just what was suggested.

It also made me realize I spend *way* more than that. Clearly I need to work on my budgeting.

In a normal market, this is good advice, but this isn't a normal market. Many landlords may be one rent check from foreclosure, if they're strapped for money themselves. I think if you can possibly find a way to raise the money, you should. These days, your landlord can't necessarily cover the mortgage without it.

Gosh, I totally thought this would be a helpful post on pawnshops, selling things on Craiglist, and holding yard sales! ;) To those who feel able snark about people who don't have savings... do try to remember that some of us *had* savings a year ago. Re: budgeting, I get paid monthly on the 15th, which is dismal... half a month to stare at all that lovely, untouchable rent money sitting in your account. Sigh. And re: Lisa's comment... I often worry about that very problem, since we rent a condo from the owner. Sometimes he doesn't cash our rent check until the 10th or so and I'm biting my nails worrying if he's paying his mortgage on time. No fun at all.

I hold my rent out of my second paycheck of the month. Then if something goes wrong, I can add any additional funds needed from the first paycheck of the month. This has totally SAVED me from being a paranoid individual and losing sleep worrying.

In BC you legally have until the tenth of the month (or ten days past when it is 'required' by your landlord) to pay your rent. I would definitely advise everyone to look into the laws for their area. You may need to print up the page from your local govn't site, as many building managers might not know the law.

Actually, scratch that comment; apparently the law has JUST changed recently in BC. Typical. But check out your local ones anyway!

So this doesnt happen: make a BUDGET.

Write down all you earn and all you spend for a few months to see where the money goes. Then see where you can save money (coffe to go, eating out, clothes, books or other things) and put aside money each month for just that time when things get though.

If you have problems paying our rent each month maybe it's time to look for a cheaper place to live. As we see on AT each day, living in a smaller place doesnt have to be unstylish.

Befs..as usual...again I am glad to see your common sense advice..credit card slash happened to ME with the same card history as you...at the register!!...I will take your advise and def. do this..thanks again!!....lots of good reinforcements here!!

Nina79 - Agreed.

I don't get quite that organized, but I keep in mind the total cost of all the bills here (counting rent) - so I know what is extra and what isn't. It's safe to say if we don't have the entire amount in the bank (plus a couple hundred dollars), we aren't going shopping or going out for fun. As for the apartment, the ideal is not to buy more than one thing a month for it (exception is a set, like a table and chairs) and if it was expensive, the next month nothing will be bought.

Where I live, the rent is due on the first - but we do get a few day grace period until the fifth. After that, go ahead and add fifty bucks to your rent - it's the late charge. We have never had to pay it, which I am glad of since they tend to have the rent money by the second. I do see people get evicted if they are late more than two or three times - and it's very understandable. The management company needs their money too - they are paying for this land, the upkeep, etc.

When you are unemployed that first thing you think about is paying rent and there is no money to create a budget - believe it or not people actually do live check to check. Always have communication with your landlord - they can be very accomodating if your honest and have paid rent on time. I am going through this right now! I always made my landlord aware that my rent will be late because of unemployment. Always try not to be 2 months behind rent because its very hard to catch up. I think landlords will be ok with rent being a couple weeks late as long as it doesn't get more than a month behind.

When I was managing a couple of buildings, one renter was cleaned out by a messy divorce. She was a good tenant, and made more than enough to pay the rent each month, but not all of it at once. The owner of the building and I hammered out an agreement that until she was completely back on her feet, she'd pay half the rent on the first of the month and the other half on the 15th. It worked perfectly, though nowadays I don't think too many landlords can afford to take a risk like that.

My advice about a budget is for everyone really and the idea is that it will allow you to save money for just that time when you might lose your job and are glad to have some savings to fall back on. The idea is also that you can adjust your budget when your income changes or you lose it.