This Month’s Focus: Shelter
Gail let us know that her focus for the month of May will be shelter and for June it will be life changes such as marriage and graduation.
The first conversation was about renting and Gail started with her Rule #1: “Renting is not a waste of money.”
I appreciate Gail’s desire to give perspective on why a rental unit is not less of a home than a purchased property. As a renter myself, it’s a good reminder to check my motivations for wanting to own my own home.
Costs of a Home
I live near an expensive city, so I wasn’t surprised when I did my calculations and came out with 44%.
The basics of calculating the percentage of your budget spent on shelter are:
- Add up all the costs of your home
- Divide this by your net income
- Multiply by 100 to get the percentage
Gail also expanded on this topic a little more.
There was a lot of conversation in the replies to these tweets about how renters do actually pay for maintenance, but that these costs are hidden in the rent. I don’t disagree with that, but the conversation about homeowners and maintenance costs is still important because some people don’t include this in their budget.
As a renter I don’t have to budget for a new roof or a new fridge, but I do have to budget for a yearly rent increase and any inevitable moving costs that seem to happen every couple years.
The main questions for me with this conversation has been:
Are you paying attention to all of the costs associated with your type of housing? Are these cost factored into your budget?
Gail is always reminding us of things that are costing us money. This week it was storage units and the task was to inventory the items in the unit if you have one.
Did you calculate the percentage of your budget you spend on shelter? What did you think of the results?
New to the Money Master Class? There’s still time to get started!
Check out this Twitter Archive to see all of Gail Vaz-Oxlade’s #MoneyMasterClass tweets from the start.
Find the resources, spreadsheets, and quizzes here: Money Master Class
Check out my weekly recaps to get caught up.
Start here with the Money Master Class Intro and Week One Recap
Check out Gail Vaz Oxlade’s books here:*