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Budgeting: Who wants to hear about that? Well, if you get to the last week of the month and
you only have $3.48 to get to the end of the month, all of a sudden it sounds like a good
idea. It's not that hard, and it sure can make your life better. It can help relieve
the stress around finances, keep you debt free, and best of all, can make it easier
to meet your personal goals, like studying abroad. Creating a budget isn't brain surgery;
it's just simple math. First of all, you need to look at where you're spending your money.
We all spend little amounts here and there for a snack or coffee, movies, gas, haircuts
you know what I'm talking about. So start by keeping track of everything you spend for
a month and I mean everything. Keep a little notebook handy to record your spending. I
guarantee you'll be surprised at how those little things add up to some big bucks. So,
how do you get started on a budget? No doubt you have some source of funds while you're
in school, whether it's from your parents, loans, savings, scholarships, or maybe you
have a part-time job. Wherever you get your money, your first step is to access the Income
Worksheet available right here on this page. This will give you a clear picture of all
of the money at your disposal. In step two, using your spending notebook or receipts you've
saved, complete the Expense Worksheet right here on this site. I was amazed at how easy
it was, and I was surprised when I saw where my money was going. Once you've done that,
it's time to compare your income to your expenses, and you've guessed it, that is step three.
The Income vs. Expenses Worksheet on our site can help you do the math. If your income is
higher than your expenses, that's great. That means you have enough to set aside some each
month for your personal goals like a new laptop, a great spring break trip, or an emergency
savings fund whatever. Of course, if your expenses are higher than your income, that's
not cool. You basically have two options if that's the case: cut expenses or increase
your income. Again, now you know where your money's going, so adjusting your spending
habits should be easy. As the school year goes on, things happen and you'll want to
adjust your budget. If your income increases, of course that's a good thing. You could increase
your savings account deposits or make larger credit card payments. But should your income
decrease, you'll have to make some adjustments. First, figure out how much money you need
to cut from your spending. Take a look at your expenses; are there obvious areas that
are nonvital? For example: Can you eat at home more often? Is cable TV really a necessity?
Can you use books from a library instead of buying them? Can you buy only essential clothes,
and when you do, consider shopping only on sale or even consignment shops? If you need
help with this, check out the Needs vs. Wants Worksheet. It will help you prioritize your
spending. For more tips on decreasing expenses, check out the article on plugging spending
leaks. I also encourage you to check out the Budget Wizard, our online budgeting tool.
Budgeting: It may not sound like fun, but it can make your life at school a whole lot
more enjoyable.