Redstone Federal Credit Union

14 | r e d f c u.o r g Need a "get out of debt" plan or just need someone to read over your credit report with you? Redstone Federal Credit Union's accredited financial counselors can help. Do not email any account or personal identification information. As a college student with a part-time job, how do I figure out how much apartment rent I can afford? Savings, debt and other expenses could impact the amount you want to spend on rent each month. Rent calculators are available online and can help you determine what you can afford based on your income and expenses. Property managers typically use gross income to qualify applicants. Generally you don't want to pay more than 35 percent of your income to rent, but 25 percent is even better. Make sure you understand what other expenses you will be responsible for, such as utilities, cable, Wi-Fi or trash, so you can calculate the true cost of living there. When you combine your rent with your other debt, such as a car loan, credit cards or student loans, your total monthly debt payments should not exceed 43 percent. Of course, this isn't always possible, but it's a good starting point for you to gauge how healthy your budget is. Here's an example: If you are a student with a $2,000 net monthly income and debts of $300 per month, you can afford up to $560 per month in rent, if you are to stick with the 43 percent rule. YOU ASK – WE ANSWER! How can I grow an emergency fund? • Start small. Put as much into savings from each paycheck as you can spare. Your savings may only be five to seven percent of your take-home initially. Increase the amount when you can. • Sell something. Plan a garage sale. Sell stuff on eBay or list it for consignment. Get creative and sell those things you no longer use. • Grow it slowly. Consistency is key. Keep at it and when you are tempted to dip into that special savings account for a non-emergency – don't do it! Also, set up automatic deductions so that you never see the money before it lands in your savings account. • Stash all your windfalls in your emergency account. Windfalls such as a tax refund, bonus or raise should go into this account. Money Repair Call Redstone at (256) 722-3796 to schedule an appointment with an accredited financial counselor or send your financial questions to aspire@redfcu.org.

• Cover