HOW TO CREATE YOUR BUDGET

Budgeting is an important component of financial success. It's not difficult to implement, and it's not just for people with limited funds. Budgeting makes it easier for people with incomes and expenses of all sizes to make conscious decisions about how they'd prefer to allocate their money.

Cashflow In

+ Income- Are you working while in school?  Donating plasma?  Painting houses?  Have you landed a cushy paid internship?  Plan out what you will make, after taxes, weekly, and UNDER-estimate what you will have at the end of the semester.  While you may work extra shifts or pick up some overtime, more than likely you will be taking time off to study or go on trips.

+ Allowance- Do you have any scholarships?  Are your family members sending you money? Look at those dollar amounts as “donations” and include them here.  Scholarships can be rescinded  or reduced for a number of extenuating circumstances, and so can gifts from mom and dad.

+ Loans- Keep this as a separate column, because you know better than anyone that you will have to pay this back, with interest.  Always know, your creditors are watching you.

Cashflow Out

- Tuition– This gets you in the door.  You will know this number at the beginning of every semester.  If you pay in installments, put that down as well.

- Rent- Depending on your university’s location, rent can be where you can save a bundle or hemorrhage cash.  Don’t be afraid to live in a small space with lots of roommates, the library is free to study in, and you will never see anything for that college rent money except the memories you make.

- Groceries- Learn where the deals are, get a membership to Sam’s Club or Costco, and eat as healthy as you can.  Your future clothing budget will thank you, trust me.

- Social Budget (Necessary)- You need to make friends and go out during college.  Your network of friends will serve you out in the real world, and you should be building those relationships.  Plan for one big trip per semester, and a few nights out a week.  If you don’t take that trip, you can use that money to do something else.  BONUS!

- Social Budget (Slush Fund)-  This is for any incidental social spending.  Make a pledge to yourself that you will plan out this number when sober, and DO NOT SPEND MORE THAN YOU ALLOT TO THIS CATEGORY.  Sometimes a party requires a costume, or you need tickets to concert that wasn’t scheduled until last week.  Plan ahead for that.

- Books and supplies- Books are very expensive, and sometimes not found on Amazon or online bookstores.  Leave some room for a few $100 books in your book budget.  For art, architecture, and engineering students, special supplies are required for your classes.  Some are expensive one-time purchases, some add up over time.  Be aware, and read your syllabi as soon as they are available.

- Emergency- Things will go wrong.  Have an emergency budget set aside, and carry it over to the next semester if you don’t use it.  DO NOT spend this on a finals week party, you may find out you need something at the last minute.

- Transportation- Know the transportation deals around campus, whether they are free buses, safe rides, or bikeshares.    If you are in a city and have a monthly bus pass, put those charges here.

- Getting home- See if there are any deals on how to get back home.  Book tickets in advance, since everyone goes home at the same time, and don’t be afraid to carpool.  Gas money split four ways is much cheaper than bus, train, or plane tickets.

- Car- If you have a car at school, put money aside to upkeep it.  Oil changes, car washes, gas, and the occasional broken window or side view mirror.  All of these things are common on a college campus.  Plan ahead.

- Miscellaneous- Some people like spending money for a nice haircut.  Some people need ten hooded sweatshirts with their university’s name on it.  Think ahead, take inventory of your habits, and put money away in here for them.