Why should I create a budget?
A budget is a guide that keeps you on the path to reach your financial goals. Budgeting keeps your finances under control, shows when you need to make adjustments to your spending, and helps you decide where your money goes instead of wondering where it all went.
- Budgeting helps you achieve academic and financial goals
- Budgeting makes it easier to plan, to save, and to control your expenses
- Budgeting can help you avoid debt and improve your credit
To create a budget, first list all the categories of your spending: rent, food, phone, personal expenses, entertainment, etc. Then assign an amount to each category. Keep track of your actual expenses for 1-2 months and see how they compare to the amount you listed on your budget. I’m sure you spend more than you realize in certain categories. If you are spending too much in some of these categories, you’ll need to make some changes to your spending. It’s a good idea to revisit your budget once a month to see how you’re doing and make any needed adjustments.