Living off-campus is a great feeling; you finally get to be free and independent. Living outside means no rules, more takeout, and no nagging roommates. However, freedom comes with some sense of responsibility. What happens when you order just a little too much takeout? It will reflect in your bank accounts. The excitement of moving into your new residence comes with overspending since you may want to buy a few items to make your condo livable.
Budgeting does not have to be an entirely boring exercise. You can make it interesting by coming up with challenges such as "I spent $55 last week, so this week, I need to cut down the expenditures by $10." Such challenges make budgeting interesting and easy to stick to simultaneously. Let's go through some tips that can make your budget exciting and easy to work with.
Understand Your Expenditure
The main step to making a good budget is to add up all your expenditures and list what you think you will need, from rent to other supplies such as food and school expenses such as bus fare and stationery. The list of expenses should include ongoing spending to ensure you accurately calculate what you need.
Buying your friend a gift on their birthday is not a recurring expenditure; therefore, you should not include such in your list. However, if you have takeout regularly, such as coffee, you have to include it in your list. Once you make your list, calculate the total cost to determine your recurring expenditure, then decide what you need to cut down for better financial planning.
Note Your Regular Income
As a student, you may not be working, so you should note down the amount your parents send you in a month. However, if you have a part-time job, include it with the pocket money sent to you. Knowing your exact monthly income gives you a solid figure to work around.
It is important to note that you should not add any amount you have not received or expect to receive. Do not include it in your regular income if it's a one-off gig since it might interfere with your budgeting.
Budgeting can be complex if you depend on financial aid. So if you don't have a guaranteed income, spread out a single disbursement to ensure the money can last you the entire semester.
Takeaway Your Expenditures from Your Regular Income
After identifying your regular income and expenses, subtract the expenses from the income to determine exactly how much you will be left with. This simple math will help you recognize how much is coming in and the amount of cash you are spending. If the difference is not sensible, make the necessary adjustments.
Narrow down your budget by separating wants from needs. Is takeout necessary? if it is not, you reduce the amount allocated for it. However, when narrowing the budget, be careful not to interfere with utilities or crucial bills such as rent and school expenses.
Pay Your Bills on Time
Timely payments are essential. Paying your bills late can attract hefty fines and can be costly, especially if you are working under a tight budget. Understandably, sometimes you may get so busy with school and assignments that you forget to run up your bills on time. To avoid such, go through your list of expenditures and note the due dates beside each bill.
If possible, have an alarm for such days. Late charges on your utility accounts can accrue, leaving you in debt as a student. It is crucial to avoid such pressures as they can spill over to affect your academics. To live smoothly off-campus, you should understand all your bills and when they are due.
The Take-Home
Living by your budget is important as it helps you stay disciplined on your money. So, it is best to create a versatile budget that you can stick by throughout the semester. Once you note down your recurrent expenses and your regular income, you’ll be able to estimate the allotment. Importantly, it is best to minimize spontaneous spending since it may interfere with your finances. But do not forget to set aside some cash for entertainment.
Written by Patrick Green
