Get A Budget And Manage Your Money

Typically, when we think about college life we think freedom and fun. However, frequently stressing over finances is definitely not "fun" and being chained to an ever-growing heap of debt is not my idea of "freedom". Managing your money is a necessary part of a stress-free college life. You're going to have to start sometime in your life and the sooner the better.

What students should know about managing their money:

In order to manage your money properly you must create a budget. The purpose of a budget is to outline a practical plan for spending the limited money that most college students have. Due to the fact that your income and expenses are constantly fluctuating, whichever budget you choose must allow for flexibility.

First, write down where all your income comes from. This can include income from a job, grants, scholarships, allowance from home, etc. The next step is to outline your expenses. Split them into two catagories: fixed and flexible.

Fixed expenses are exact amounts that are due on specific dates. Flexible expenses are ever changing amounts of money that you spend on your wants and needs.

Example Fixed Expenses:

* Housing
* Car payment (including insurance)
* Health insurance
* College Tuition
* Cell phone


Example Flexible Expenses:

* Books
* Gasoline and maintenance for your car
* Going over on your cell phone minutes or long distance telephone calls
* Social expenses (movies, dates, football games, etc)
* Personal expenses (clothes, groceries, doctor and/or dentist bills, domestic supplies, haircuts, etc.)


Add up the amount of income and expenses you have. Look at your paper. Do you have more expenses than your income can cover? If this is the case, think about what you can do to increase your income or decrease your expenses. This may seem elementary, but it's essential if you wish to stay out of debt while you are attending school.

Lowering your expenses will probably require some sacrifice. Many college students are used to spending their money impulsively. This sort of poor money management leads to financial bondage. If you are ready to lower your expenses try some of these tips:

- Pay your bills on time

- Watch out for peer pressure

- Purchase used text books

- Avoid impulse buying

- Look for sales

- Don't eat out and stop buying junk food

- Go to matinees instead of evening shows

Everybody is going to need a different type of budget to fit his or her individual needs. However, you can find basic budgets online, in financial books or just ask your parents to give you some ideas. Don't let debt to enslave you. Find a budget, use it, and be willing to sacrifice to stay out of debt.