// A BUDGET YOU CAN LIVE WITH
Having a budget is a simple way to make sure you squeeze the most out of student life while still keeping your finances on track. Follow these easy steps to create a budget that works with you and helps you to avoid any unplanned debt.
// Step One — Do the tally
Itemize your income from all the sources you can think of. Sort it into two categories: "sure thing" and "maybe." Be conservative and underestimate income.
Itemize all the expenses you can think of. Sort them into two categories: "must have" (like tuition, books, rent, food) and "want to have" (including entertainment, eating out). Be conservative and overestimate costs. Include an amount for savings or a contingency fund.
Add it up. You'll have one of two results: a deficit, with too many expenses (follow Step Two) or a surplus, with more than enough income (go directly to Step Three).
// Step Two — Make adjustments
The next step is to look at what you can change to stay out of debt or save money. There are three main things:
- Do without some of the costly "extras."
- Reduce some of your expenses where you can.
- Find ways to boost your income.
It's about setting priorities. That means asking questions like, What's really important to me? What can I live without? Can I still have fun with my friends without breaking the bank? Am I comfortable accumulating debt while I'm at school?
// Step Three — Live with it
Looks great on paper, but can you actually live with it? If your budget is way off by the end of semester, don't get discouraged. Just repeat these steps, based on your real-life numbers. Next term, you'll be closer to being on the money.