Budgeting Successfully For Students in Four Easy Steps

Creating and managing a budget successfully is not as hard as make out to be. Although, the initial commitment to live according to the budget you create is the hardest part, like most new things. But, once you get into a regular routine, it become a habit you are on your way to being a wiser spender and saving more.

What is a budget?

A written plan how your are spending your money. Some people look at as a savings plan, cutting spending to necessities and investing the rest. You will spend money on either things you need (fixed expenses) and wants (variable expenses); a budget just helps you to spend your money more wisely.

Managing a budget

1) Prepare a budget worksheet. You can create one yourself on paper or spreadsheet. There are also pre-made forms available. To create your own: down the left side list all of your sources of income and expenses. Across the top, you can break it down into weeks, or months. As you record the dollar amount for each, subtract expenses from income and that becomes the total at the bottom.

2) Tracking your incidental expenses in a small notebook. This is where the bulk of your money is going, but what about all those extras? The dollar here, fifty cents there add up quick over a month. This is an extremely important step if you are serious about stretching your money. Jot down all the money spent each day on meals, snacks, gas, movies, impulse purchases, beer, pizza, or entertainment. After you have done so for a few days, you will start to notice how small things add up to large amounts. This is where you can start cutting back putting the money into savings.

3) Learn everything you can about budgeting, spending, and saving/investing your money. The library is a great place to start as it offers many free resources. Talk to anyone who is already doing this, friends, parents, or teachers, to see what they have learned about using money more wisely, budgeting and saving. Maybe you can even form a small group at school to share what each student has learned.

4) Living a frugal lifestyle is not something to be shunned. Frugality is not a bad thing, it is the wisest thing you can do for yourself. Shop smart, spend less, invest more.

Some frugal living suggestions:

Define your financial goals. List wants verses needs. Concentrate on spending money only on needs and wants only if you have saved up for them. Don't gamble, drink, smoke, or do drugs. They are not only bad for you, addictive, and cost money it is how fortunes are lost. Always pay yourself first by keeping a savings account. Look around for high interest accounts, like money market accounts, and keep the majority of your money there. Eliminate waste, using everything to its fullest potential. Waste not, Want not. Reuse everything, study materials such as pencils, pens, and even paper. Even a backpack can be sewn at least once before it needs replacing. Then recycle. Don't spend money around the plans you make instead make plans around the money you have to spend after all of your responsibilities are met. Create a fun account and once its spent, that's end of the fun until you save some more. Don't be tempted by friends' to spend more than you have. They may just start wondering where all your money is coming from and that gives you the chance to educate them on living more frugal. Make the most of a school meal plan, or any event where there is free food. Use tuition money wisely. Always take the maximum number of credits allowed and don't burn you out. Get an on-campus job if at all possible. If not, find a job as close as possible to avoide travel expense. Make things yourself instead of buying them whenever possible or find another student you can barter for what you need. Shop smart when buying groceries and household items. Use coupons, look for sales. Stock up on discounted non-perishable items. Milk, butter, and cheese can be frozen. Don't buy soft drinks, they are too expensive and not goof for your health. Keep one bottle and refill it with water, bottle water is too expensive. Never spend money on snack machines. When buying clothes shop smart and do not pay retail prices. Go to thrift stores, consignment shops, yard sales, clearance racks, and buy during off seasons. Don't buy any item that requires dry cleaning. Consider consigning your own clothes to earn some money. Email or write a letter instead of calling home long distance, even if the parents are paying for it.

Just a few ideas you can use to start living more frugal, and to manage your budget successfully. Learning how to manage a budget in college not only helps you now, but all through your life. The decisions you make now will effect you throughout life. Use this time and your money more wisely.