How to Make a Budget
Managing your money, especially when dealing with student loans, is extremely important. Overspending is a bad thing, so being prepared is very helpful. Here is how to create a budget:
1. Discuss with your family
A lot of the time, your parents are involved in paying for some or all of your expenses in college. So before you start punching numbers, figure out who is paying what, how that will be paid, and aware of any account information necessary to pay for these expenses. As much as we want to be independent from our parents and do things on our own, take their advice and accept their help. They are wiser than we think!
2. Set a Timeframe
Determine how long you want to budget for. In a lot of cases, this is for a month, a semester, or a school year. It's best not to budget for over a year at a time, that can get hairy (you never know what's going to happen!).
3. Make a list of any and all income
In this, include all financial aid you may receive (grants, student loans, FAFSA, scholarships, work study, etc), money in your savings account, money from family (if any), and income from any jobs held. Total it all up to see how much you have to work with.
4. Make a list of any and all expenses
Make a list of all categories you may spend money in. This would include things like: tuition, books, rent, groceries, hygienic products, transportation, insurance, clothes, electronics, entertainment, etc. Go crazy! And don't leave anything out! You definitely don't want to come up short; not having enough money to buy yourself food could be a problem!
5. Over budget
Unexpected things come up all the time. This could be anything from car trouble, medical issue, drinking ticket; the list goes on and on. Saving the extra money will be worth it, just in case of an emergency!
6. Factor in larger items
If you are trying to buy a car, study abroad, buy furniture, or anything out of the ordinary, plan ahead! Saving up as soon as you are aware of such plans could prevent you from taking out a larger loan than necessary (plus interest you have to pay with it).
7. Balance your budget
Total income, expenses, and make sure your budget balances fine.
Tips and Warnings
Use envelops of cash to help limit spending on unnecessary items/services.
Try and steer clear from student credit cards. It becomes far too easy to spend money when it isn't cold, hard cash leaving your hands! Debt piles up much quicker than you expect it to.
Be aware of any student fees you owe. Schools make mistakes too, so it is important to know what you are paying for.
Be aware of payment deadlines. Overdue charges are expensive, and aren't figured into your budget.
Be frugal. All college kids are broke, so don't feel ashamed buying generic brand items or using coupons!
Article Source: http://EzineArticles.com/?expert=Abby_J_Anderson
Article Source: http://EzineArticles.com/7685900
Managing your money, especially when dealing with student loans, is extremely important. Overspending is a bad thing, so being prepared is very helpful. Here is how to create a budget:
1. Discuss with your family
A lot of the time, your parents are involved in paying for some or all of your expenses in college. So before you start punching numbers, figure out who is paying what, how that will be paid, and aware of any account information necessary to pay for these expenses. As much as we want to be independent from our parents and do things on our own, take their advice and accept their help. They are wiser than we think!
2. Set a Timeframe
Determine how long you want to budget for. In a lot of cases, this is for a month, a semester, or a school year. It's best not to budget for over a year at a time, that can get hairy (you never know what's going to happen!).
3. Make a list of any and all income
In this, include all financial aid you may receive (grants, student loans, FAFSA, scholarships, work study, etc), money in your savings account, money from family (if any), and income from any jobs held. Total it all up to see how much you have to work with.
4. Make a list of any and all expenses
Make a list of all categories you may spend money in. This would include things like: tuition, books, rent, groceries, hygienic products, transportation, insurance, clothes, electronics, entertainment, etc. Go crazy! And don't leave anything out! You definitely don't want to come up short; not having enough money to buy yourself food could be a problem!
5. Over budget
Unexpected things come up all the time. This could be anything from car trouble, medical issue, drinking ticket; the list goes on and on. Saving the extra money will be worth it, just in case of an emergency!
6. Factor in larger items
If you are trying to buy a car, study abroad, buy furniture, or anything out of the ordinary, plan ahead! Saving up as soon as you are aware of such plans could prevent you from taking out a larger loan than necessary (plus interest you have to pay with it).
7. Balance your budget
Total income, expenses, and make sure your budget balances fine.
Tips and Warnings
Use envelops of cash to help limit spending on unnecessary items/services.
Try and steer clear from student credit cards. It becomes far too easy to spend money when it isn't cold, hard cash leaving your hands! Debt piles up much quicker than you expect it to.
Be aware of any student fees you owe. Schools make mistakes too, so it is important to know what you are paying for.
Be aware of payment deadlines. Overdue charges are expensive, and aren't figured into your budget.
Be frugal. All college kids are broke, so don't feel ashamed buying generic brand items or using coupons!
Article Source: http://EzineArticles.com/?expert=Abby_J_Anderson
Article Source: http://EzineArticles.com/7685900
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