When is the last time you sat down and created a personal financial budget? Having a planned budget can help students keep track of their expenses and allow them to set financial goals.
Jaren Jones, 19, a second-year business student from Indianapolis, Ind., learned the hard way that he needed to create a budget.
“When I came to FAMU as a freshman, it seemed like I was always broke,” Jones said. “I was constantly asking my parents for more money when my monthly allowance ran out. After about the second month of doing this, my parents told me that they were not going to give me anymore extra money and that I needed to create a budget for myself.”
Now, Jones says he enjoys the benefits of living on a budget.
“Once I took the time to look at how I was spending my money, it seemed like my money lasted longer.”
According to StudentFinanceDomain.com, there are three steps for creating a student budget plan.
Step one is to assess your finances. Find out how much money you have through your income and savings. You should also determine what your expenses are. Doing this will help you figure out how much money you have to spend each month. However, you must be completely honest with yourself. You may realize that you need to get a part-time job in order to live comfortably.
Step two is to set your financial goals. Set short, medium and long-term goals. These goals may include things such as paying rent, taking a road trip or paying off your student loans. Once you have set your goals, come up with a financial plan that will allow you to reach them. Your plan could include putting aside a certain amount of money each week or month. Then look for a bank that offers the best student banking for your needs.
Step three is to assess and prioritize your expenditures. Analyze your assets and expenditures and figure out what is the most important and how you can eliminate unnecessary spending. You may decide to cook more meals at home instead of going out to eat every day. By thinking creatively, you may be able to save a lot over the course of a school year.
Horace Lamar III, 19, a second-year business student from Montgomery, Ala., believes he would benefit from developing a budget, like the one explained on studentfinancedomain.com.
“I’ve never used a budget before but I would probably be better off if I had one,” said Lamar. “I usually just spend my money and when it’s gone, it’s gone. If I had a budget I would be less likely to overspend and I would be more likely to save money to go on trips like the Florida Classic.”
To learn more tricks on how to develop a budget, visit www.studentfinancedomain.com