Preparing a Budget: Make it Through College (Without Going Broke)

College can be the best part of a young adult’s life. Finally, nobody is gonna tell you what to do and not what to do on a Saturday night. You are on your own and pretty much the king of your life. However, it can also be a pretty daunting task without your mommy planning what you eat for breakfast or daddy taking care of the arrangements for the repair of the car you have just wrecked on a road trip with friends. These are just among the many concerns of an independent life. But perhaps the biggest single challenge that needs to be given a mighty attention is managing your personal finances.

Going to college is usually the first time you will be taking care of your own finances. For some, it is coupled with fear you might bungle up such first time experience. For many, it is not on top of the agenda to take care of with the newfound conveniences and the excitement that comes with it now that you are on your own. But if you want to stay afloat and even start building your savings while in college, you better put this concern among the top of your agenda.

Being on your own and not responsible for anybody is no excuse for not planning your income and expenses flow. Do what top money makers, the big business companies do to stay on top of their game. Make a financial plan. If making more money is not on your agenda, it will still help you stay afloat.

A personal budget is quite easy to do. First, you list your income, that is usually a mix of student loan proceeds, part – time job pay checks, and help from mommy and daddy. Then you list your possible expenses. Well, the list can go on to eternity but the beauty of putting into writing what you want to do with your money is the ability to trim it down to the necessities should you find your income list on the other side of the equation inadequate. After doing such, you can make sure that your expenses do not exceed your income and stay in good shape.

Any left – over money, i.e., money that is not expected to be part of your income stream for the period, should also be budgeted. Prepare a supplemental budget when this comes. You might want to splurge with the extra cash on your pocket but be mindful that this is not limitless. So, it is prudent to stay on top of your spending habit by making sure you are still within the bounds of what you got.  GP

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