Budgeting
Budgeting is like having a roadmap for your money, helping you navigate your financial journey. It involves understanding your income, tracking your expenses, and making intentional choices to ensure you're using your resources wisely. By budgeting, you gain control over your finances and pave the way for achieving your short and long-term financial goals.
Why do I need a budget?
It's easy to get lost in a sea of expenses, textbooks, and social events. But with a budget, you'll have a clear plan of where your money is going, ensuring you can cover essentials, save up for important things like textbooks or study abroad opportunities, and still have a little something left for those spontaneous adventures with friends. It's like having a financial compass that keeps you on track and helps you make the most of your college experience.
Where do I start?
You have lots of options for how to make a budget! You can use a digital spreadsheet, budgeting app, or a budget template (like ours!). This will help you stay organized and keep track of your expenses easily. Remember that a budget doesn’t mean you can’t have fun, just that you’ll be better prepared for any related expenses!
Step-by-Step
Building a budget is simpler than it sounds! Just check out these easy steps:
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Count Your Cash
Start by keeping track of all the money flowing in, like your paycheck or any side hustle you've got going on. Knowing your total income is a good starting point.
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Wrangle Your Expenses
Write down every expense you have, from rent and bills to groceries, nights out, and those sneaky little impulse buys. Don't forget anything!
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Sort 'Em Out
Put your expenses into different categories, like housing, transportation, food, entertainment, and savings. It helps you see the bigger picture and where your money is really going.
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Picture Your Goals
Think about what you want to achieve with your money. Maybe you're saving for a trip or trying to pay off debt. Set some goals that make sense for you and are realistic and attainable.
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Give Each Dollar a Job
Now it's time to divvy up your income. Assign specific amounts to each expense category based on your priorities. Make sure you're not spending more than you're earning and be open to cutting back on non-essential stuff if needed.
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Keep an Eye Out
Stay on top of your spending throughout the month. Compare it to your budget and see if you need to make any tweaks. Remember, it's all about finding that balance!
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Make It a Habit
Review your budget regularly, ideally every month. Adjust as needed, especially when your financial situation changes. Flexibility is key to staying on top of things.
See? You've got this! With these steps, your budget will be up and running in no time, giving you the power to manage your money, save up for things you want, and make your financial future a success.
Build Your Budget
Budget Template
Download our free budget template today and start your journey to financial empowerment!
Online Resources
YNAB (You Need a Budget
Designed to give you control over your money, with features like goal setting, real-time tracking, and personalized budgeting advice to help you reach your financial goals. Offers a student discount of one free year.
EveryDollar
A user-friendly budgeting app that follows the zero-based budgeting method, allowing you to allocate every dollar of your income to different categories and track your spending effortlessly.
Peach
A personalized debt payoff planner that empowers you to conquer your debts with a tailored step-by-step plan. It highlights how much you can save with its Payoff Planner, monitors your progress ensuring you're on track, and even allows you to earn reward points towards paying off existing debts. With a focus on accelerating your debt-free journey, it also offers insights into your spending across all your accounts.
Fleur
A budgeting app that combines functionality and aesthetics. With its intuitive interface and captivating design, Fleur makes managing your finances feel like a delightful and visually appealing experience.
There are tons of other budgeting apps and free budgeting templates available for Excel or Google Sheets. Feel free to play around with different options to see what works best for you!
While there’s lot of resources out there, SMMC does not endorse any specific app or online tool. We recommend you research to see what the best fit is for you.