Making a Budget

It is every students nightmare that they will run out of money before their semester is over. Making a budget will not only keep you on track but help you to achieve your financial goals. Here we highlight tips and suggestions to help you create the perfect budget for your needs.

Setting Goals
When creating goals it is important to consider your personal goals, financial goals and career goals. Make sure to create short term and long term goals. (i.e. and amount to be saved by the end of the term)
Keep in mind that your goals need to be realistic with the amount left over after this formula as a guide.

Income - Expenses = Potential Savings

Assessing Your Financials
First you will need to see where your money is from and where it is going. It is recommended that you save any financial documents such as pay stubs and receipts. Then you will need to organize them into three categories,income, variable costs, and fixed costs.

Variable costs - This you don't purchase or pay for on a regular basis (Groceries, Clothes)
Fixed costs - What you purchase on a regular basis (Rent, Cable, Phone)

You can then direct your money where it needs to go first. Once you have figured out where all your expenses go, then calculate your potential saving by subtracting your income. You may need to find more funding such as bursaries, scholarships, awards and student loans.

Once your total expenses are equal to or less than your income, you can begin to ration and start planning your budget.

Motivation and Discipline
This is the hardest part about budgeting is to stop impluse shopping. Make rewards for yourself to keep you motivated and on track.

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