Financial Cookie Jar

Learning how to budget can be one of the most difficult things to learn. However, it is vitally important. Too many college aged students leave home to conquer the world on their own lacking in their ability to budget. Many of these students learn these budgeting skills the hard way because they do not know where to begin or do not have the self control necessary to stay within a budget. Here are a few tips on how to begin a budget:

1. Start by gathering every financial statement you possibly can. This includes bank statements, investment accounts, recent utility bills, and income statements. These statements will help you determine how much you should set aside for utilities and other expenses during the month. They will also help you know how much you have to spend during the month.
2. Divide your expenses into two different categories. These two categories should be fixed and variable. The fixed column should contain expenses such as rent, car payments, and other payments that will not change from month to month. The variable expense column should include thins such as gas, groceries, gifts, and other expenses that will vary from month to month.
3. Evaluate your total income vs. your total expenses. If your total expenses are greater than your total income, you will need to adjust your expenses to live within your income.
4. Review your budget monthly at the very least. This will help you stay on track and make small adjustments as needed.