Four Reasons Renters Should Have An Emergency Fund

Renting is usually a part of everyone’s life at some point in time, but few are lucky. There are perks of renting vs. buying, but emergency funds are still necessary no matter your living situation. Life throws curve balls occasionally and a big wad of money is sometimes the only thing that can keep your head above water. If you happen to find yourself renting, here are a few reasons you will want to have this emergency fund.

Landlords control rent, and can raise it when they feel like it – While most states offer protection to the renter by prohibiting landlords from raising rent during the term of the lease, month-to-month renters can have rent raised in as little as 30 days.

States like Texas and New York allow rent increases only if both parties agree.  If the tenant doesn’t agree to the price increase, then the lease must be terminated. Keep in mind though, inaction legally is like the tenant approving. Be sure to read the fine print of the lease to make sure the landlord doesn’t have a clause stating he can raise rent at any time.

Disaster can strike anyone, at any time – We all know those weeks where nothing seems to go right. Your car needs a big service repair, you’ve broken your cell phone so bad a new one is the only option, and your dog needs a trip to the vet. All of these situations aren’t going to wait until you can afford all of them. Just like every month, rent is expected the day it is due. So if you lose your job, you will still need at least 3 months’ rent ready while you go find yourself a new one.

Paying your debts? Emergency fund is still necessary – As high as your debts may seem, the emergency fund is still the better path. Yes, get those paid off as quickly as you can, but keep the cash in your back pocket. If you’ve been making great leaps and bounds to pay off your debt, and a big doctor’s bill comes up, the emergency fund is there to save you from taking your credit cards out again. While your dream of being debt free is right around the corner, an emergency fund will guarantee you don’t trip and fall along the way.

No more money stress – It’s no secret most American’s feel the stress of money from month to month. The most common stress is not having the money to pay for the essentials, and dealing with the circumstances we cannot handle. The remedy, building that emergency fund!

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