Saving money can be hard as a college student. By the end of the month, many of us are left with little because we spent too much in the beginning of the month. This quick and easy budget will make sure you’re spending your money wisely!
Step 1: Income
Whether you’re receiving an allowance from family/friend/scholarship or are working a job, you have some sort of income. By determining your monthly income after tax, you can determine how to appropriately spend and save.
Step 2: Fixed Expenses
Fixed expenses are those that you can rely on having each month. These would be rent, utilities, loan/credit card, repayments, insurance, retirement fund, emergency fund, phone, cable, WiFi etc. I recommend listing these expenses out and determining the percentage of your budget that you are using in each category.
Step 3: Variable Expenses
These are expenses that are somewhat unpredictable. For example, a gym membership is typically the same amount each month unless you’re taking specialty classes or have yearly fees. It’s mostly predictable but it could vary month to month. In addition, I would include what you expect to spend on groceries, restaurants, entertainment, clothing/shopping, etc. Like the last step, make sure to include the percentage of the budget that these expenses are taking up.
Step 4: Savings
This is always the hardest category for college students. I recommend that after you have everything in their appropriate categories, you use this one as you “what’s left” pot.
Step 5: Review
At the end, look at how you’re allocating money. If you’re like me, the majority of your budget probably goes to eating out. Determine how you can decrease your spending and in turn increase your savings.
Good Luck!