There are many reasons to love and embrace the glorious month of April- warm weather, melting snow, spring flowers, you get the picture! Our favorite aspect of this month, however, is the shear fact that April is National Financial Literacy Month! We at Savvy Student did not want this opportunity to slip by, so we have decided to spend the entire month tailoring our posts towards helping YOU further your understanding of hands-on banking, investing, saving and spending, and many other important components of the financial literacy curriculum.
Budgeting: How to Create a Realistic Budget and Stick to It!
Creating Your Budget
As you chart new territory with a full time job, maybe an apartment and possibly even a car, creating and most importantly adhering to a budget can be very useful. By calculating your monthly income and allowing for all of your expenses, fixed and variable you will be sure to stay on track and not overspend. And, if you are living beyond your means at the moment creating a budget will make you aware of specific areas in which you should cut back spending or find cheaper alternatives. Budgets should be adjusted throughout the year to account for changes in income or expenses.
CARE (Credit Abuse Resistance Education) offers a free monthly budget planning calculator that we think is a great tool to get you started! CARE's calculator even includes an area to include monthly loan payments and other expenses that you may forget to include in your initial calculations.
Adjusting Your Budget
Once you have created your budget, you should review it and decide whether or not you need to make adjustments. This can be the most challenging aspect as it requires you to monitor your spending and determine which areas can be adjusted. As CARE explains, "If you need to reduce your expenses, go back to the list you kept of all of your expenses and look for places where you can trim. (For example, think about how a daily trip to Starbucks or other trips to eat out can add up. A $6 coffee and muffin at Starbucks adds up to $1,440 a year!)" (CARE).
Once you have made all of the necessary adjustments, check your budget to make sure that you will have enough money every month to put away into a savings account. You should always have money to put away for a rainy day. The money you save can help pay for a medical emergency, car repair, or any other unpredicatable life even that may occur.
Sticking to Your Budget
If you create a comprehensive, user-friendly budget you will be more likely to stick to it. Whenever you struggle to stick to your budget, just remember the time and care you have put into the worksheet and the opportunity for financial security that the budget allows you. Be sure to keep track of any changes in your financial situation and any additional income or expenses that may occur each month so you can plan accordingly.
Budget planning can sound like an extensive and intimidating process. However, once you put in the initial work to create a budget the benefits are endless. By using the CARE budget worksheet, you can be sure to include every aspect of your monthly finances and ensure that you have all the luxuries that you need, as well as, money put aside for a rainy day.
~ Savvy Student
Budgeting: How to Create a Realistic Budget and Stick to It!
Creating Your Budget
As you chart new territory with a full time job, maybe an apartment and possibly even a car, creating and most importantly adhering to a budget can be very useful. By calculating your monthly income and allowing for all of your expenses, fixed and variable you will be sure to stay on track and not overspend. And, if you are living beyond your means at the moment creating a budget will make you aware of specific areas in which you should cut back spending or find cheaper alternatives. Budgets should be adjusted throughout the year to account for changes in income or expenses.
CARE (Credit Abuse Resistance Education) offers a free monthly budget planning calculator that we think is a great tool to get you started! CARE's calculator even includes an area to include monthly loan payments and other expenses that you may forget to include in your initial calculations.
Adjusting Your Budget
Once you have created your budget, you should review it and decide whether or not you need to make adjustments. This can be the most challenging aspect as it requires you to monitor your spending and determine which areas can be adjusted. As CARE explains, "If you need to reduce your expenses, go back to the list you kept of all of your expenses and look for places where you can trim. (For example, think about how a daily trip to Starbucks or other trips to eat out can add up. A $6 coffee and muffin at Starbucks adds up to $1,440 a year!)" (CARE).
Once you have made all of the necessary adjustments, check your budget to make sure that you will have enough money every month to put away into a savings account. You should always have money to put away for a rainy day. The money you save can help pay for a medical emergency, car repair, or any other unpredicatable life even that may occur.
Sticking to Your Budget
If you create a comprehensive, user-friendly budget you will be more likely to stick to it. Whenever you struggle to stick to your budget, just remember the time and care you have put into the worksheet and the opportunity for financial security that the budget allows you. Be sure to keep track of any changes in your financial situation and any additional income or expenses that may occur each month so you can plan accordingly.
Budget planning can sound like an extensive and intimidating process. However, once you put in the initial work to create a budget the benefits are endless. By using the CARE budget worksheet, you can be sure to include every aspect of your monthly finances and ensure that you have all the luxuries that you need, as well as, money put aside for a rainy day.
~ Savvy Student
No comments:
Post a Comment