Hey Everyone! I pay my rent on time always. I have never been late and I have a job that pays me weekly. Typically, 1 of my 4 checks covers my rent. My apartment allows rent payments in money order, debit, credit, and installment payments. I was wondering if it’s easier to save money when rent is broken up or should I continue to pay it outright? There would be 4 installments over 4-6 weeks. I really wish credit cards did something like this to build my credit. However, is this a good idea or no?
I’d prefer to pay as a lump sum, and if you pay multiple payments through an online portal through a card it can charge unnecessary fees (obviously not if you do a different form of payment). I think this comes down to preferences. Only you can answer this. You’re not wrong paying weekly unless the lease collector says otherwise.
We set aside a certain amount every week and then have rent by the first. We don’t pay it in advance, but we have it in advance.
Are you asking whether you should pay your rent monthly in a lump sum, or pay a portion of the rent weekly to add up to the full amount every month? Just to clarify the question.
Sorry for the confusion! Yes, I’m asking if I should continue to pay rent in full or in portions?
Personally, I prefer a lump sum so that it’s just one line item that I write in my budget. Plus, you’re paying the same amount of money anyway. As long as you have enough money to cover other expenses after paying a full lump sum, I would do that. I personally would only pay rent in installments if I didn’t have enough money leftover/saved/in my checking account to cover day-to-day expenses.
Credit cards actually do allow multiple payments. You can make a payment every day if you want or need to.
Technically, you could have your money sit in a high-yield savings/checking account and pull money out weekly to maximize your money, but I can’t imagine it would be that significant to add extra work. I personally have all my bills pull on the 1st if possible so I don’t have to think about it the rest of the month. It also allows me to move money to the right accounts because I know how much I need by the first.
Paying rent all at once is usually better. Splitting it will make things more complicated and sometimes comes with fees. If you want to build credit, use a credit card and pay it off every month. Simple as that. Don’t make it harder than it needs to be.
I pay half my rent and car payment biweekly with my paychecks so that I can get ahead in the months where I get paid 3 times. Car payment is to help get ahead and make the equivalent of an extra payment every year. Rent is so that I’m in the habit of consistency and then I’m all paid up early before my lease ends and can use the next ‘payment’ for moving and fees at a new place. It’s a habit builder for when I have a mortgage someday and will also use this strategy to make the equivalent of an extra payment each year.