Keeping track of your expenses is the first step toward financial sanity. Track your spending for a month with this worksheet.1 Get receipts for everything and enter them into the worksheet each week. Make a habit of it. You’ll be surprised how much you spend on little things – a coffee every day, a bag of chips here and there, quick trips to the grocery store. They all add up. Just by tracking your expenses and saving receipts, you’ll probably start to curb your expenses.
Download the Monthly Expense Tracker worksheet
Most college students are going to have what some call "limited revenue streams." In other words, not a lot of income: a monthly check from home, part-time job income – you get the picture. Figure out how much you have coming in each month and, just like your expenses, track monthly income on the worksheet. Only include income that you can count on – no gifts or bonuses. To really get ahead of the game, before you budget your income, try to set aside 5% to 10% of it for long-term savings.
- Food: Buy Larger – and less expensive – quantities. This also will save you gas money because you won’t be running to the store as often.
- Food: Use fewer “convenience” (frozen) items and spend a few minutes more on preparation. It may taste better, too!
- Coffee: That daily coffee can run you at least $850 per year. And that doesn’t include the tip jar. Cut back.
- Drive Less: With gas prices going up and up and up, you don’t have to be a math major to figure out how much you can save by carpooling, biking or just NOT DRIVING!
Tip: Use a blank check register to record your daily expenses. You can get them for free at your local Chevy Chase Bank branch.
Once you’ve tracked your expenses for a month and have a grip on what your income is, you can start to plan a budget. For each category (living, school, personal, food), see what you’ve spent, and make a spending plan for the coming month. After tracking expenses, you’ll probably find areas where you can cut back and areas that need a little more juice.
Every month you should balance your budget to make sure that you’re not spending more than you’re making. Entertainment expenses can go up quickly in college, but they’re easy to cut back. Housing and utilities aren’t as easy. Making a budget is a work in progress, so don’t get frustrated when you’re starting out. You’ll eventually get the hang of it, and spending within your budget will become second nature.
Budgeting to Meet your Goals:
- Prioritize
- Set short-term, medium-term and long-term goals
- Determine steps to accomplish these goals within your projected time frame
Congratulations! The hard part is done. Once you get in the habit of tracking your expenses, you’re ready to start balancing a budget. Take a look at how much you’re spending every month in each category. You now have a picture of where your money is going, so you can cut back in one category if you anticipate needs in another. For example, if a great concert is coming to town, you can cut back on snacks or be frugal with groceries for a couple of days so you can go to the concert and enjoy yourself without busting your budget.
The Budgeting Your Money worksheet1 will help you set up your personal budgeting system. Enter your income and expenses in the first column. After a month, compare it to your tracked expenses and income. How far off were you? Make adjustments, and try it again the next month.
