Anyone who has ever put together a monthly budget is probably familiar with the idea of spending categories.
There are expenses we can adjust, such as subscription services, shopping, and other discretionary items, and then there are those we have little control over (rent/mortgage, utilities, car payments, insurance, etc).
The amount we commit each month to these fixed categories dictates how much is left over to pay for other necessary expenses, capitalize on opportunities, and respond to unexpected emergencies.
According to the U.S. Department of Housing and Urban Development, anyone devoting more than 30% of their income to housing is considered “cost burdened” and may struggle to pay for other necessities, such as food, clothing, transportation, and medical care.
An Unequal Burden
Last year, a majority of tenant households in 21 U.S. states were spending 30% or more of their incomes on rent and utilities (compared to 7 states in 2019). According to an article from WABE, Georgia had one of the highest increases in cost-burdened tenants, rising from 48.4% in 2022 to 53.7% in 2023.
“The impact of high-cost living places even more financial burden on families at the margins of low income and poverty,” says Alison Johnson, executive director of the Housing Justice League. “When we do not meet the needs of cost-burdened families, their cost-of-living budgets extract from other important life costs, such as healthcare, food, transportation, and childcare.
This is particularly significant for many Black Atlantans, whose capacity for building wealth is impacted by structural systems of oppression. For these cost-burdened households, financial mobility is critical for breaking free of the structural determinants that impact our communities and limit Black wealth.
And without it, the cycle may be doomed to repeat itself.
Lightening the Load
Our Lokey Help Center promotes financial mobility in our community by assisting cost-burdened neighbors with things like rent, mortgage, and utility bills.
Click below to learn more about this and other services offered through the Lokey Help Center.